Historical Analysis of the Formation and Development of Policy in the Law for Supporting Knowledge-based Firms

Abstract

Knowledge- and technology-based firms (TBFs) have driven economic development for the past half-century, and supporting these firms is a major issue of focus in national innovation policies. In Iran, developing a coherent policy package to support TBFs took place after nearly three decades of evolution in the country's science, technology and innovation policy-making system. This study examines why and how policy package, entitled “the Law for supporting Knowledge-based firms” was formed. This paper uses a historical approach and adopted the theory of policy-cycle. Data was collected with literature review, empricial evidences and policy documents. The findings show how institutional and historical contexts (such as the gradual shift in focus from science policy to technology and innovation policy, and the formation of a systemic understanding of innovation and the role of firms in the innovation system) interact with political and governance drivers (Such as technological sanctions, the establishment of specialized institutions supporting technology and innovation, redefine the roles and responsibilities of the MSRT and Vice-Presidency for Science and Technology) to form a policy mix to support TBFs in an independent and coherent law. The results indicate the need to pay attention to the demand-side innovation policies, tax credit, and protection of intellectual property to complement the tools of the law.

Keywords

• technology-based firms
• policy
• technology
• innovation
• the law for supporting knowledge-based firms