Government Promoting Innovation, Creativity

Over the past three years, Iran has taken great steps towards developing a knowledge-based economy.

“Today knowledge-based economies are dependent on creative people with high education qualifications,” said Sorena Sattari, vice president for Science and Technology, speaking in the southern province of Bushehr.

Creating the conditions to foster intellectual capabilities that contribute to an accelerated pace of technical and scientific advancement, is a top priority for the government, he said, IRNA reported.

Noting that Iran’s knowledge production has seen satisfactory growth since 2015 compensating for the previous shortcomings, Sattari said the Rouhani administration has helped in contributing to the development of science, technology, and knowledge-based economy in Iran.

“The growth rate of knowledge-based companies tripled last year compared with the previous year. After the signing of the nuclear deal in July 2015 and removal of sanctions last year, we have seen new academic programs in our  universities, some special majors of studies and growth in the number of bursaries.

There are 2,950 knowledge-based companies currently in Iran, the official said, and referred to the 85,000 university students and 850 faculty members as great potential to support and boost intellectual capital.

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.

The government has been a major proponent of gradually shifting priority from oil export to a knowledge-based economy. It has introduced incentives for knowledge-based firms, including tax holidays and launched an Innovation and Prosperity Fund to muster support.

   Medicine, Agriculture

Nearly 41% of domestic knowledge-based firms (1,250 companies) are focused on healthcare products including pharmaceuticals. The domestic pharmaceutical industry owes its growth to such firms.

To cite an example, Barakat Pharmed Co. has 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.

Knowledge-based economy has priority in the upcoming five-year economic development plan (2016-2021) that takes effect from March, as they constitute an important source of income, employment and economic development.

In addition to its positive impact on the health system, such firms have also accelerated agricultural development. Agriculture with 1,000 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.