TEHRAN – Iran has introduced new laws, including the Knowledge-Based Production Leap Act and the Knowledge-Based Companies Support Act, to foster the growth of knowledge-based firms, according to the head of the Innovation and Prosperity Fund.

Speaking at the closing ceremony of the third PetroTech Conference on Monday, Mohammad Sadegh Khayyatian emphasized that scientific policies and support for knowledge-based companies in the oil sector have led to significant progress. He highlighted the role of major corporations in developing a knowledge-based economy, stating that their investment and participation could yield substantial benefits.

Khayyatian noted that nearly 10,000 knowledge-based companies are currently active in various sectors across Iran, generating over 5.2 quadrillion rials ($10.4 billion) in sales last year. Under the Seventh National Development Plan, the contribution of these companies to the country’s GDP is projected to reach approximately seven percent.

He traced Iran’s innovation trajectory since the 1980s and 1990s, when efforts focused on higher education and international learning opportunities. This trend strengthened in the 2000s and 2010s with the establishment of scientific research parks, culminating in the 2010 Knowledge-Based Companies Support Act, which played a pivotal role in their growth.

The 2022 Knowledge-Based Production Leap Act, Khayyatian said, placed greater emphasis on technology demand, investment, and tax incentives. Beyond supply-side support, it encouraged investment in technology sectors, which has helped develop domestic industries in strategic areas such as petrochemicals and pharmaceuticals while reducing reliance on imports.

He emphasized that legislative support, particularly through the knowledge-based economy laws, has been instrumental in fostering the sector’s growth. Moving forward, its impact on the national economy is expected to become more evident.

Referring to research from 2013-2014, Khayyatian noted that university graduates prefer employment in reputable, well-established companies. Large corporations, he argued, could serve as a platform for recruiting top talent due to their market reach, experienced workforce, and financial resources.

While knowledge-based firms often struggle with limited market access and funding, collaboration with large corporations, universities, and startups could help bridge these gaps. In return, such firms offer highly skilled and motivated teams capable of rapid innovation.

Khayyatian also highlighted the role of intermediary institutions in commercializing technology and fostering connections between major companies and startups. He stressed that investing in technology could yield significant added value and called for leveraging the expertise and networks of established corporations to advance Iran’s technological landscape.

EF/MA