Innovating beyond frontiers: Opportunities and Challenges of Open Innovation for Moroccan Small and Medium Enterprises

Abstract Small and medium-sized enterprises (SMEs) are characterized by their vulnerability, stemming from limited resources, insufficient financing, and a lack of expertise. These constraints drive them to seek and implement new solutions to ensure their survival in a challenging environment marked by economic uncertainty and intense competitive pressure. Innovation has emerged as one such solution. Whether pursued internally (closed innovation) or through collaboration with external partners (open innovation), the ultimate goal is to enhance sustainability and avoid the fate of many SMEs that fail to survive—particularly in times of crisis. This paper explores the opportunities that open innovation presents for Moroccan SMEs, as well as the challenges they face when adopting this approach. Our study adopts a qualitative methodology, based on a multiple case study approach selected for its exploratory value. We focus on two Moroccan SMEs located in the city of Marrakech. The findings provide deeper insights into how these enterprises engage in innovation through external collaboration. While generally open to adopting ideas from outside, they remain cautious about sharing their own internal innovations, due to concerns over confidentiality and the protection of their competitive advantage. Keywords: Small and Medium Enterprises, vulnerability, open innovation.