Healthcare, Agriculture Focus of Iran’s Knowledge-Based Business

Healthcare, Agriculture Focus of  Iran’s Knowledge-Based Business
Healthcare, Agriculture Focus of  Iran’s Knowledge-Based Business

Nearly 41% of domestic knowledge-based firms (95 companies) are focused on producing health care products including pharmaceuticals, said Seyed Mohammad Sahebkar Khorasani, head of Knowledge-Based Companies and Institutions.

Such firms have a major role in generating knowledge and turning it into new products. Many recombinant drugs which are now available have been produced by knowledge-based companies, Borna News Agency quoted him as saying.

In other words, the domestic pharmaceutical industry owes its growth to knowledge-based firms.

To cite an example, Barakat Pharmed Co. has acquired 14% of the national pharmaceutical market and produces more than 420 products through its subsidiaries such as Sobhan Darou Pharmaceuticals, Iran Daru, Tolid Daru and Alborz Darou companies, among others.

Several measures have been taken to enable the innovating firms to grow. Earlier this year (started March 21), knowledge-based businesses were granted tax exemption as well as customs waiver on imported equipment.

Khorasani said, “We are doing our best to remove obstacles. Fortunately, knowledge-based economy has been given priority in the upcoming five-year economic development plan (2016-2021) as they constitute an important source of income, employment and economic development.”

Problems related to knowledge-based companies, are discussed at meetings in the presence of experts from the Ministry of Science and Technology and recommendations are sent to the government, he said.

“Knowledge-based companies in health and medicine have at least three representatives in the Cabinet including Health Minister Seyed Hassan Ghazizadeh Hashemi, Research and Technology Minister Mohammad Farhadi and Vice-President for Science and Technology Sorena Sattari,” he said.

 In addition to its significant impact on the country’s health system, knowledge-based firms have also accelerated agricultural development. Agriculture with 79 knowledge-based companies (34% of the total), stands in second position after medicine.

Besides the two main fields of medicine and agriculture, there are 53 active companies in three fields of molecular technology, materials and equipments and environment, Khorasani added.

Iran’s economy is in transition from traditional business to knowledge-based activities that make a significant contribution to overall economic development by increasing value added among other things.

A knowledge-based economy is a system of consumption and production based on intellectual capital, in which a significant part of a company’s value may consist of intangible assets, mainly the value of its workers’ knowledge.