Measuring the Digital Transformation in Morocco

Overview & Synopsis

This report identifies two primary challenges facing Morocco’s digital transformation: (i) a substantial gap in the adoption of advanced technologies relative to the global frontier, and (ii) a significant lag in the intensive use of these technologies, a phenomenon referred to as incomplete digitalization. Incomplete digitalization, where firms adopt advanced digital tools but fail to integrate them into core business operations, is consistent with broader patterns observed in other developing economies (Comin and Mestieri, 2018). The remainder of this report is structured as follows. Section 2 describes the details of the survey and the sample used for the analysis. Section 3 explores the gap in technology adoption through analyses of cross-country and within-country variation and the relationship between technology and productivity. Section 4 examines the determinants of technology adoption, including perceived obstacles and incentives, information asymmetry, internal capabilities, and external environments. The final section concludes with discussions based on the main results.