Support for knowledge-based SMEs in Iran

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Support for knowledge-based SMEs in Iran Mostafa.K.Eghbal.Director general,technology planning, Ministry of science, research and technology(msrt) Ali Asghar Pilehvar Head of North Khorasan Science and Technology Park(NKSTP) 2

Introduction University and Industry in Developing Countries Background about Iran S&T Policies STPs and Incubators Some Cases 3

4 1

Introduction Effective Government, University and Industry interaction is essential for a knowledge-based economy. 5

6 2

Triple Helix Model The "triple helix is a spiral model of innovation that captures multiple reciprocal relationships at different points in the process of knowledge capitalization. Etzkowitz, 2002 7

Knowledge-Based Economy Features of this new economy: Intensively based on knowledge Growing through innovation Requires Gov.-Univ.-Industry cooperation Global reach 8

Knowledge-Based Economy Natural Resources = Value added Products & Services Natural Resources + Technology and Innovation 9

University and Industry Relation Working with individual researchers rather than organizations Low level cooperation (De-bottle Necking) Not based on mutual cooperation 10

Missing links Universit y University Research Centers Private Research Tech Org. Techbased SMEs R&D units Industry (Market) Missing links Science Parks and Incubators 11

12 3

Background Schools: 18.000.000 students Colleges and Universities: 3.200.000 students 60%women WELL TRAINED HUMAN RESOURCES, Less job opportunities Weak entrepreneurship culture Brain drain 13

Background Socio-Economic Settings Population: 77,000,000 Median age: 26 Administration: 31 provinces, Central Administration (non-federative) Industries: petroleum, petrochemicals, textiles, construction materials, food processing, steel industry 14 Agricultural Products: wheat, rice, sugar beets, fruits, nuts, cotton; dairy products, wool, caviar

15 4

Science and Technology 140,000 120,000 100,000 80,000 Iran has the world's fastest-growing scientific output, measured by the number of peer-reviewed papers published in international journalsavicenna J Med Biotechnol. 2013 Jul-Sep; 5(3): 139 130,131 60,000 Middle East Iran 40,000 23,344 39,240 20,000 827 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 16

17 Top growing countries in area of knowledge creation evaluated by percentage increase in the number of published articles compared to 2010 (Diagram courtesy of Nature)

Science and Technology Science: Conversion of Money in to Knowledge Innovation: Conversion of Knowledge in to Money Less success in innovation during the 3 rd Innovation Plan 18

Planning for Improvements 4 th and 5 th (starting) Development Plans Emphasizing on Knowledge Based Economy Developing Innovative Culture Encouraging Entrepreneurship Upgrading quality of products and services Encouraging competitiveness Support for SMEs Incubators Science and Technology Parks 19

Planning for Improvements Privatization of major industries 20 Obligation for technology transfer in international contracts Increase of government R&D expenditure to 3 percent of GDP at the end of the 5 th plan (presently it is about 0.6 percent) Provision of the new intellectual property regulations Free zones rule for tenants of science and technology parks Contribution of government in establishing private venture capital funds Easing regulations for establishment of non-government universities

Government Role (Before) () Government Industry University 21

Government Role Government role is to support and to create the right environment for innovation Innovation by people (private sector) 22

Knowledge-based Business: Key Player Knowledge-based SMEs 23

24 5

Incubators and STPs in Iran The first incubator established 14 years ago Currently: 148 Incubators, 34 university related 33 STPs, 7 university related 25

Incubators Field of Activity 2% 2% 3% 12% 21% 58% 2% General Medical Inds. Polymer Biotech Electronics Architechture ICT 26

University STPs University STPs require a model that may be more suited for a university owned and operated science and technology park. 27

Sustainability Value Added Services Park Clients Sustainable Values Financial Resources 28

Clients Students and Faculty members Small and medium size enterprises and start-up companies A segment of industry that has a close relationship with the university 29

Divisions Proposed University Special Division General Division Industry Division Industry Knowledge Based SMSs with suitable business plans in different fields, priority with companies founded by Tehran University members Professors, researchers and graduate students who have marketable research or ideas Selected industry along with related companies 30

Services Financing Technical Support Technology Marketing Business & Legal Consultation Business Networking Business Incentives Clustering Support for International. Tenants Patenting & Licensing Business Support General Business Support Subsidies Technical Support Industry Support Technology Commercialization Support for Knowledge-based SMEs Industry Networking Industry Division Special Division General Division Special Division 31

32 Division Activities

Conclusion 33 Importance of University Industry interaction for a knowledge based economy Innovation by private sector with the support of the government Positive role of STPs and Incubators Although developing countries such as Iran still face many challenges, but there are many opportunities and many success stories in these and other countries to learn from

34

Thanks for your attention 35 Persepolis 520th BC