The government’s initiatives of extending resources and facilities for boosting the country’s technology ecosystem are bearing fruit, as they help curb the country’s dependency on oil-based revenues and materialize a knowledge-based economy.
An innovation factory named Aftab (sunlight in Persian) is being expanded in Arak, Markazi Province. It will be officially inaugurated in September.
Alireza Moaddeli, the project manager, told the Persian economic daily Donya-e-Eqtesad that the factory is an outcome of a multilateral agreement signed last year in August between the Vice Presidential Office for Science and technology, Machine Sazi Arak Company (MSA), Markazi Governorate and the province’s tech park.
The factory is partly operational and has already started attracting investors, accelerators and knowledge-based companies.
“Initially, an 8,000-sqm area was designated for the factory. Then it was decided to add 18,000 sqm to the project at MSA, which makes it the largest innovation center in the country,” Moaddeli said.
The project manager said the factory has 37 labs and workshops, and is provides workspace for all local entrepreneurs and tech teams from the border provinces of Lorestan, Hamedan, Kermanshah, Qom and Alborz.
“The factory is to direct the flow of innovative ideas in the fields of information technology, metallurgy and mechanics toward domestic industries and larger markets,” he said.
“MSA can provide the tech units with equipment, space and expertise to help them commercialize their ideas. Production and research facilities, investment and consultancy will also be offered to knowledge-based firms and fledgling companies. This can offer huge opportunities to innovative teams.”
Moaddeli said several collaboration deals have been signed with the vice presidential office, Arak University of Technology, the city’s tech park and the state-affiliated National Elite Foundation.
An accelerator has been launched at the factory jointly by the university and tech park for monitoring and supporting innovators and knowledge-based companies.
The innovation factory is an outcome of a multilateral agreement signed last year in August by the Vice Presidential Office for Science and technology with Markazi Governorate and the private sector
“Hoopad Machine Company has signed the first cooperation deal with the factory,” he said.
The company is a domestic producer and retailer of construction tools.
Based on the deal, the factory will start manufacturing road construction and mining machinery, as well as related devices.
He added that the factory is negotiating with the private sector to design and establish subsidiary centers in adjacent provinces.
Last year in the signing ceremony of Aftab Factory project, Vice President for Science and Technology Sorena Sattari said, “The city has followed Tehran in its push for establishing tech centers to support knowledge-based companies and startups.”
The factory aims to support businesses by providing them with various resources, facilitating their activities and accelerating their growth, he added.
Sattari noted that the factory will provide a shared working place, an opportunity to exchange ideas and solutions, share technical, legal, commercial and marketing consultancy, as well as professional mentorship to startups and companies.
Appreciating the establishment of such institutions as part of Iran’s move to curb its dependency on oil revenues, Sattari said as the tech firms flourish gradually, they can both contribute to MSA to apply smart solutions to its production chain and help promote digital economy in the country.
More Facilities
Providing multi-dimensional support to the technology ecosystem has been high on the government’s agenda since President Hassan Rouhani’s first tenure commenced in 2013.
In line with the policies, the construction of innovation factories, tech centers and accelerators in Iranian metropolises has gained momentum over the past few years.
One of the latest efforts is the establishment of an accelerator, specialized in social entrepreneurship, which is a joint initiative between the vice presidential office and the Iranian Institute of Social Business Supporters, a non-governmental center.
Social entrepreneurship is an approach by groups, startups or entrepreneurs that develop, fund and implement solutions to social, cultural and environmental issues. This concept may be applied to a wide range of organizations that pursue different objectives.
According to the vice presidential office’s website, Isti.ir, the project is focused on tapping the hidden potentials of rural and less developed areas to create jobs and develop micro-businesses.
The accelerator will also offer mentorship and financial assistance to social entrepreneurs working on innovative business ideas.
Problem Solving Ideas
The Vice Presidential Office for Science and Technology has so far been a staunch supporter of startups, making efforts to remove barriers in the tech ecosystem’s path.
Suggesting several measures to ease the hardships of knowledge-based companies and startups, Sattari earlier said knowledge-based firms and startups need not grapple with basic requirements.
“The tech units should not be worried about the lack of a workplace. In case there is any incomplete or abandoned building, my office will finance their restoration and preparation for startup use,” he said.
He added that insurance and tax fees should be waived for tech units. “Establishing an office to specifically address such issues can help them get rid of frustrating processes and extra expenses,” he said.
“The relevant resources should also be adequate to meet the units’ financial needs in the form of loans and grants.”
Sattari emphasized that promoting a knowledge-based economy is the most efficient and affordable strategy to address the current economic headwinds and remove impediments in the way of boosting domestic production.
For promoting a knowledge-based economy, Iranian officials believe that the conventional oil-based economy system should be upgraded and the country’s reliance on natural resource revenues must be minimized.
To achieve this aim, authorities have been taking measures to support tech firms, boost Iranian startups and develop a technology ecosystem.
