Surveying on National Innovation Systems and Intellectual Property on Iranian Industries, Research and Technologies Centers Ali Akbar Mottahedi علی اکبر متحدی IROST Iranian Organization for Science and Technology 3-days regional workshop on National Innovation Systems and Intellectual Property October , Islamabad, Pakistan 1 ISESCOCOMSATSINITCIIT

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. 2

Introduction To 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. 3

Agesummalefemale NumberpercentnumberpercentNumberpercent total70,495,782100,0035,866,362100,0034,629,420100, ,463, ,801, ,662, ,509, ,820, ,688, ,708, ,441, ,267, ,726, ,443, ,283, ,011, ,511, ,499, ,224, ,660, ,564, ,553, ,837, ,715, ,921, ,511, ,409, ,089, ,081, ,007, ,522, ,792, ,730, ,755, ,386, ,369, ,887, ,3, , ,464, , , ,197, , , ,119, , , , , , more645, , , Table 1: Iranian Population by different sex and ages

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. 5

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 10 3 Added value 10 9 in US$ Small factory (1-9 workers)16, Medium factory (10-50 workers) Factory (more than 50 workers) All the factories32, Table 2: role of scale of factories, to occupation, Iran in

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. 7

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Number of industrial towns393 Number of industrial company in the industrial cities20594 Workers Number of technology cities2 Number of technology centers in the industrial cities8 Number of IT centers3 Table 3: Some information about Iranian industrial cities in

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 10

Figure2: Technology incubator centers in Iran 11

Figure3: establish of Technology Incubators in Iran Figure 4: establish of Science and technology parks in Iran 12

Agriculture and national innovation system Iran 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. 13

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 competition Low marketing costs 14

Self Sufficiency Approach Disadvantages: 1. Intellectual property cannot be supported well 2. Innovation will be limited 3. Low Efficiency 4. The cost will be higher 5. The economy will be lower 6. The technology will be lower 7. Low variety of products 8. Lower job especially for graduated peoples. 9. Lower quality of products 10. Lower design 11. Consumption of more row material and energy 12. Sometimes There is black market 15

Export Oriented Approach Particular some products will be export to other countries. The doors are open for the international business High marketing and competition Advantages 1. Intellectual property can be supported 2. Innovation will be improved 3. High Efficiency 4. The cost will be lower 5. The economy will be higher 6. The technology will be higher 7. higher variety of products 8. More job 9. more quality of products 10. better design 11. Consumption of lower raw material and energy 12. Different goods for satisfying man needs 16

Disadvantages of Export Oriented Approach 1. 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 competition 5. High marketing costs 6. 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. 17

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

Conclusion 1. 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. 19

Conclusion-2 7- 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. 20

Thank you for attention Ali Akbar Mottahedi علی اکبر متحدی آنچه در علم بیش می باید دانش ذات خویش می شاید 21