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STI Policy Review of I.R. Iran
Geneva
10 May 2017
UNCSTD 20th Session
Michael Lim
Policy Review Section
Division on Technology and Logistics
UNCTAD
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Outline
• Purpose of STIP Review of IR Iran
• Process behind STIP Review
• Content of STIP Review
• Main findings
Slide 2 of 19
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Purpose of STIP Review of IR Iran• Assess firm/industry/national STI capacity,
national STI policies, regulations, institutions,
governance, infrastructure
• Identify gaps, strengths, weaknesses and
challenges
• Recommend policy actions to address
gaps/weaknesses, foster tech upgrading,
improve innovation performance
• Evaluate developments since STIP Review of
2005
Slide 3 of 19
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Purpose of Review
• Support effective integration of STI policy
in development strategy of I.R. Iran.
• Promote policy maker awareness of role
of STI policy in sustainable development.
• Stimulate discussion in I.R. Iran on STI
policy for sustainable development.
Slide 4 of 19
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Process behind Review
• Cooperation with Vice-Presidency for S&T
• A team of staff from UNCTAD and a team
of international experts + UNESCO-UIS
• Extensive discussions with national
stakeholders (government, research
institutes, academia, universities, firms)
• 2 fact finding missions, 4 stakeholder
workshops, 70 interviews (500 +
stakeholders), 4 dissemination meetingsSlide 5 of 19
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The STIP Review content
• Introduction: major changes 2005-2016
• STI indicators and benchmarking
• National innovation system of Iran
• STI in biotechnology
• STI in oil and gas industry
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Main findings
• Good progress on STI since 2005, areas of
strength have emerged - but weaknesses
remain
• Huge potential exists, but could be better
exploited
• Policy action on STI can help improve
Iran's development performance
• This critical to benefit from reintegration
into global economySlide 7 of 19
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Major progress since 2005• High level vision and direction supporting STI
• Stronger focus on innovation since 2010 (3rd
wave of STI policy)
• More of a systemic approach to innovation by
some policy makers
• New institutions for promoting innovation (VPST,
16 technology councils)
• New mechanisms to support KBFs (IPF, VCFs,
STPs, incubators)
• Financing for innovation improvingSlide 8 of 19
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Major progress since 2005 (2)• New policies to promote STI (NMPSE, Resilient
Economy, Policy for S&T, KBF law, MULC,
Technology Annex)
• Emergence of many new KBFs
• Increase in production and exports of KB
products
• Significant advances in research, higher
education, technology
• Better research performance
• Increase in patentsSlide 9 of 19
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Major progress since 2005 (3)• Stronger human capital (STEM assets)
• STI capacity has improved
• More diversified economy, lower dependence on
oil and gas
Slide 10 of 19
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Major challenges remain• Insufficient policy alignment - STI, trade, FDI,
industrial policy, financial, competition
• Dual approach to innovation persists - linear vs
systems thinking
• Some overlaps in STI organizations
• Some key economic institutions focus on
production, too little on innovation capacity
• Low productivity levels and productivity growth
• Need to further improve business environment
Slide 11 of 19
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Major challenges remain (2)• More private sector development and
competition
• Modernizing an aging infrastructure (energy,
transport)
• Financing for innovation still insufficient
• R&D spending relatively low (especially
business R&D)
• Commercialization of research - S&T strength to
innovation
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Major challenges remain (3)• Large established industries not investing
enough in innovation (O&G, autos, steel)
• Funding of universities and public research
organizations not performance related
• Tightened sanctions since 2008
• Limited international collaboration
• High university graduate unemployment
• Weaknesses in management of IPRs
• Relatively weak soft skills - marketing,
managementSlide 13 of 19
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Major challenges remain (4)• Environmental challenges, climate change
impacts (reduce carbon footprint)
• Limitations in ICT infrastructure and services
• Low FDI outside O&G, low FDI contribution to
building domestic capabilities
Slide 14 of 19
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Main recommendations• Improve coherence among key development
policies - trade, FDI, education, financial,
competition
• Restructure division of functions and
responsibilities for STI governance
• Establish an attainable target for R&D spending,
and focus on promoting business R&D
• Make funding of universities, research and
technology organizations performance-related
Slide 15 of 19
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Main recommendations (2)• Modify the approach to evaluation and policy
learning
• Adopt a comprehensive strategy to attract and
benefit from FDI, promoting linkages, technology
flows and technological learning
• Improve the credibility and usefulness of the IPR
system, encompassing the entire IPR lifecycle to
maximize its relevance to innovation
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Main recommendations (3)• Promote the goal of a knowledge-based
economy across traditional industrial sectors,
with continued policy support for start-ups and
new growth areas
Slide 17 of 19
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Oil and Gas• Promote collaborative learning and knowledge
linkages in O&G industry
• Promote supplier development, including via
MNE-local firm linkages
• Foster capabilities building in O&G firms
• Develop public procurement instruments and
shape financial institutions and tools needed to
support demand and supply
• Restructure institutional set-up of O&G sector -
improve coordination, modernize approach to
innovation Slide 18 of 19
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Biotechnology• Improve financing for biotech
• Enhance collaboration between biotech KBFs and
mature firms
• Strengthen international collaboration on biotech and
biotech firms' access to international markets
• Improve biotech accreditation system - lab and testing
facilities
• Enhance local content policies and public procurement
in favour of biotech innovations
• Strengthen balanced applications of biotech in its four
main subsectors - health, industry, agriculture,
environment Slide 19 of 19