Banks gave 669.4 trillion rials ($2.2 billion) in loans to the knowledge-based economy in the last fiscal year ending March 20.
According to numbers released by the Central Bank of Iran, this was 108.2% more from the corresponding period a year before.
Most loans were given by the biggest state-run Bank Melli plus Bank Mellat and Bank Saderat Iran -- the two semi-private lenders.
Bank Mellat lent 112.9 trillion rials followed by Bank Melli at 94.4 trillion rials and Bank Saderat Iran 88.9 trillion rials.
State-owned banks accounted for 178.37 trillion rials ($594 million) or 27% of the lending and the semi-private lenders for 37% (253 trillion rials). Credit institutions and private banks reportedly processed 237.99 trillion rials ($793m) or 36% of the total lending.
The CBI said 1,362 knowledge-based companies qualified for the loans.
As per earlier data, total outstanding loans granted by 28 lenders to startups and knowledge-based companies stood at 590.3 trillion rials ($2.2b) as of Jan.20 -- 103.2% higher on the same period a year ago.
According to data published by the Vice Presidential Office for Science and Technology published in July 2021, 6,035 knowledge-based companies are active nationwide.
The companies have been expanding their footprint in the economy over the past several years. Experts say knowledge-based enterprises are making a decent contribution to economic growth by increasing added value.
According to available data, sales of goods and services handled by knowledge-based firms on average is in the region of 900 trillion rials ($3b) per year. The figure was barely 2 trillion rials ($7m) a decade ago.
The upsurge in financing the knowledge economy indicates the government’s interest in boosting such firms. The government has voiced support for tech firms and expressed willingness to extend financial support to help the tech ecosystems grow.
Earlier in the month, Bank Melli Iran opened two specialized branches in Tehran to facilitate financing knowledge-based companies.
Specialized branches help in various ways to improve the financial strength of knowledge-based companies, according to Mohammadreza Farzin, the bank CEO.
“In addition to providing financial assistance, the branches will provide financial consultancy to knowledge-based companies,” Farzin said.
A knowledge-based economy is a system of consumption and production based on intellectual capital, in which a significant part of the company’s value may consist of intangible assets, mainly the value of its workers’ knowledge (intellectual capital).
The scope of a knowledge-based economy is not limited to the technology industry, it can and is also used in other sectors like IT, nanotechnology and biotechnology and other high tech areas.
While the knowledge economy has normally relied on banks for funds, there are plans to help them via the stock market.
