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In the name of God

Surveying on National Innovation Systems and Intellectual Property on Iranian Industries, Research

and Technologies Centers

Ali Akbar Mottahediعلی اکبر متحدی IROST

Iranian Organization for Science and Technology

3-days regional workshop on

National Innovation Systems and Intellectual Property

October 7-9 2013, Islamabad, Pakistan

ISESCO

COMSATS

INIT CIIT

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About our discussion industrial development strategy, SMEs and their relation to national innovation systems and intellectual property. Pathology of their situation can help improving countries to use experience as a case study to improve national innovation system to improve their technology and economical condition.

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IntroductionTo have better economic situation,

countries should abstinence from row export.

Industries have an important role in national development

limitation of water recourse in Iran, agriculture shall be by developed technology.

for development of technology, countries shall intentness to national innovation systems and intellectual property.

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Age sum male femaleNumber percent number percent Number percent

total 70,495,782 100,00 35,866,362 100,00 34,629,420 100,000-4 5,463,978 7.75 2,801,568 7.81 2,662,410 7.695-9 5,509,057 7.81 2,820,524 7.86 2,688,533 7.8610-14 6,708,594 9.52 3,441,245 9.59 3,267,349 9.4415-19 8,726,761 12.38 4,443,901 12.39 4,283,860 12.3720-24 9,011,422 12.78 4,511,851 12.57 4,499,571 12.9925-29 7,224,952 10.25 3,660,167 10.21 3,564,785 10.2930-34 5,553,531 7.88 2,837,969 7.91 2,715,562 7.8435-39 4,921,124 6.98 2,511,545 7.00 2,409,579 6.9640-44 4,089,158 5.80 2,081,679 5.8 2,007,479 5.8045-49 3,522,761 5.00 1,792,481 5.00 1,730,280 5.0050-54 2,755,420 3.91 1,386,063 3.86 1,369,357 3.9555-59 1,887,981 2.68 9,3,536 2.57 964,445 2.7960-64 1,464,452 2.08 726,449 2.03 738,003 2.1365-69 1,197,550 1.70 622,470 1.74 575,080 1.6670-74 1,119,318 1.59 598,231 1.67 521,087 1.5075-79 694,122 0.98 372,570 1.04 321,552 0.9380-more 645,601 0.92 335,113 0.93 310,488 0.90

Table 1: Iranian Population by different sex and ages-2006

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Employment Policy and SMEs task on national innovation system in Iran

Considerably Iranian population is young. Most of the Iranian populations are below than 30 years old (60%)

now days the rate of unemployed are even more in the graduated young people.

Iran shall work mostly in technology base occupation.So: improve SMEs Companies. Because, SMEs

Company needs: little capitals, (comparison to medium and large

companies)no need to sophisticated experience and professional

management, No need so much times to be productive.

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Roles of Industrial SMEs on Employment and Economy in Iran

small factories (workers up to 9), have the most important role in employment and economic development.

SMEs have an important role in jobs creation, economic and Industrial development in Iran

No. of factories

workers 103 Added value 109 in US$

Small factory (1-9 workers) 16,057 10714 27

Medium factory (10-50 workers)

12.151 2666 2.4

Factory (more than 50 workers) 3906 8038 25

All the factories 32,114 21428 54

Table 2: role of scale of factories, to occupation, Iran in 2007

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Industries, Industrial Towns, Research & Technology development Role on National Innovation system in Iran

Most of small and medium factories are in industrial towns (cities)

In spite of huge industries, medium and small factories cannot have R&D center or laboratory for research and innovate on their products or technology development.

establishing of research center would be very effective to innovation system and industrial development at the national level.

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Number of industrial towns 393

Number of industrial company in the industrial cities 20594

Workers 442163

Number of technology cities 2

Number of technology centers in the industrial cities 8

Number of IT centers 3

Table 3: Some information about Iranian industrial cities in 2008

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Science and Technology Parks (STP) task on intellectual property in Iran

STPs and Technology incubators in Iran are established from 2001, below to the ministry of Science, research and Technology

haven’t an important role on economy and employment yet

is expected to have influence on reduction of brain escaping and positive role on intellectual property.

taking advantage of managers with industrial experience in research and technology centers especially in technology parks is a necessary approach for developing national innovation

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Figure2: Technology incubator centers in Iran

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Figure3: establish of Technology Incubators in Iran

Figure 4: establish of Science and technology parks in Iran

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Agriculture and national innovation systemIran works on very different and various kinds

of production in the area of agricultural and industrial fields

Most of agricultural firms are small and private by non specialist men. It is not enough technological based activity.

technological base agriculture is necessity due to insufficient water in Iran.

organizing technology based agriculture and in bigger soil by saving water is more important policy for national innovation system.

In present situation, it is difficult to support intellectual properties of agricultural innovation.

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Role of Industrial development strategy on National innovation system and intellectual property

Self Sufficiency Approach

Particular:The most products will be

used in the same country. The export and import will

be limited.The row material will be

provided from inside of country.

Low competition and marketing

Doors will be closed or limited to international business

Advantages:The country will gain more

power and resistance to sanction and limitation of other countries or international restriction.

The country does not need to have more investment for nitty-gritty and foundation like as roads and so on

Low competitionLow marketing costs

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Self Sufficiency ApproachDisadvantages: 1. Intellectual property cannot be supported well2. Innovation will be limited3. Low Efficiency 4. The cost will be higher5. The economy will be lower6. The technology will be lower7. Low variety of products8. Lower job especially for graduated peoples.9. Lower quality of products10.Lower design11.Consumption of more row material and energy 12.Sometimes There is black market

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Export Oriented ApproachParticularsome products will

be export to other countries.

The doors are open for the international business

High marketing and competition

Advantages1. Intellectual property can

be supported2. Innovation will be

improved3. High Efficiency 4. The cost will be lower5. The economy will be

higher6. The technology will be

higher7. higher variety of

products8. More job9. more quality of products10.better design11.Consumption of lower

raw material and energy 12.Different goods for

satisfying man needs

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Disadvantages of Export Oriented Approach1. economy will be

depended to the other countries and will affects of fluctuating of other countries, especially bigger ones.

2. Difficult to resist to sanction and limitation of other countries or international restriction.

3. need to have more investment for nitty-gritty and foundation like as roads and so on

4. High competition5. High marketing costs6. specialist just in some or

limited technology

So the distinguish of this tow kind of strategies can be summary as:

The Self sufficiency approach will gain more political power for a country and the Export oriented approach will gain better technology and economical situation.

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Industrial Development Strategy and national innovation system in Iran

1-Before revolution in1979: Saied export oriented

2- After the Islamic revolution (1979) for about 15 years: self sufficiency

3- 8 year third and forth economic and social development plan of Iran: export oriented.

But after 2005 due to political situation of Iranian government: not clear (challenge)

the import is expanded from about 35% to 60% during 2005 to 2010

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Conclusion1. National innovation system and intellectual properties

are affected by industrial development strategy of countries

2. Innovation mostly will be improved in countries with export oriented strategy.

3. Innovation and intellectual properties will be in submissive in self –sufficiency strategy.

4. Industrial development strategy based on self sufficiency however can develop political power and influence, but cannot improve economical condition as: innovation, technology and employment of developing countries especially for small and medium countries.

5. Industrial development strategy of country shall be stable as more as possible.

6. In fluctuation conditions, due to changes of law and regulation it seems that, the SMEs can be more compatible to the industrial strategy of governments. However, this makes them uncompetitive to other firms in all over the world.

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Conclusion-27- The most important economical and social problem in Iran

is occupation for years.8- One solution for solving employment for young educated is

improvement of knowledge based SMEs companies because, they need:

a) Little capitals, (comparison to medium and large companies)

b) No need to sophisticated experience and professional management

9- Iran's industrial development strategy changes from self sufficiency to the export oriented and then to a not clear industrial development strategy due to political limitation.

10- Knowledge based company takes time to be efficient so they are more sensitive to the fluctuation condition. Innovation systems need to a more stable industrial development strategy.

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Thank you for attention

Ali Akbar Mottahediعلی اکبر متحدی

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