Two projects have been inaugurated in the central province of Yazd to expand technological facilities and give a boost to fledgling startups and knowledge-based companies.
Vice President for Science and Technology Sorena Sattari inaugurated the two projects and attended a tech exhibition during a daylong trip to the province late last week, the vice presidential office’s website Isti.ir reported.
Sattari officially inaugurated an innovation school for high school freshmen.
In tandem with the main educational program, the center offers students with practical and project-oriented training in modern technologies. The objective is to enable the students to identify their talents and wisely select their field of study at higher academic levels.
Speaking at the inaugural event, Sattari emphasized the prominent role of high quality education for the young generation in developing Iran’s tech ecosystem and materializing a knowledge-based economy.
“A knowledge-based economy is ideally run by the young members of society, whose talent and ideas are their main assets that we should value and support,” he said.
During his visit, Sattari also broke ground on the construction of a section for Yazd Tech Park. The project, covering 70 hectares, is set to be implemented in three phases.
Reportedly, the tech park’s section will be partly prepared as shared workspace for knowledge-based companies and startups in the first phase.
The second phase will set up a separate space for growth centers and accelerators, while the final phase would help establish suitable offices for larger domestic and international firms.
Later the same day, Sattari visited a small-scale exhibition of tech firms at Yazd Tech Park. the park houses 120 knowledge-based firms, out of which 25 featured their achievements and products in information and communication technologies, biotechnology and engineering systems.
Local Potentials
Sattari then met with provincial authorities and reviewed local achievements in technological fields in the past several years.
He noted that the province is a treasury of untapped potentials and efforts to develop tech units will help shape a knowledge-based economy.
“Supporting the presence of knowledge-based firms and startups at the international level and featuring their products in the target countries’ markets are high on the vice presidential office’s agenda for the current Iranian year [started March 20],” he said.
“The move is focused on boosting the export of innovative items and strengthening the role of tech ecosystem in curbing Iran’s dependency on the oil-based economy.”
Sattari noted that knowledge-based units are also encouraged to work on vital products in high demand, which were imported before the US sanctions limited Iran’s international economic relations.
Commenting on financial resources specified for the tech ecosystem, the vice president said, “Fortunately, Iran National Innovation Fund, which is affiliated to the vice presidential office, and the National Development Fund are ardent supporters of fledgling startups and tech firms. They support the young tech ecosystem with loans, grants and investments to help them become independent and strong businesses.”
Sattari also called on financial institutions and banks to switch from paying traditional loans to startups to direct investment and take on the risk of pre-vetted financing.
Financial Assistance
Tech officials say financial support to the technology sector is in line with the government’s policy to realize a digital economy and curb the country’s dependency on oil revenues.
Reports say the government has injected 36.6 trillion rials ($163.6 million) in the growing tech ecosystem in the form of low-interest loans during the first quarter of the current fiscal year (March 20-June 20).
The loans have been offered to 484 tech units and knowledge-based companies, averaging 76 billion rials ($325,200) for each applicant, the Central Bank of Iran reported last week.
The figures illustrate the government going the extra mile to support the tech ecosystem throughout the country, as the amount of financial assistance offered to knowledge-based companies and startups has seen a significant 95.5% rise compared to the year-ago period.
Narrowing down the data, Central Bank of Iran says Bank Melli Iran with 7.1 trillion rials ($30.3 million), Bank Saderat Iran with 7 trillion rials ($29.9 million) and Bank Mellat with 6.7 trillion rials ($28.6 million) have granted the largest share of loans to applicants.
Tech officials are also mulling over the extension of non-financial facilities for the fledgling tech ecosystem, such as affordable workplaces and a variety of consultancy.
Recommendations
The vice presidential office, a staunch supporter of startups, is making efforts to remove barriers from the tech ecosystem’s path.
Recommending several measures to ease the hardships of knowledge-based companies and startups, Sattari earlier said these 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 economic 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 and startups by developing the technology ecosystem.
