Supporting pioneers on condition of supporting SMEs in the knowledge-based ecosystem

Sahar Bankdarpour

Secretary General of the Iranian Knowledge-Based Organizations Forum

In the current situation of the Iranian economy, which is facing challenges such as sanctions, currency fluctuations, and restrictions on access to advanced technologies, the role of knowledge-based companies as the driving force of the knowledge-based economy has become more prominent than ever. The Knowledge-Based Production Leap Law, which was approved with the aim of strengthening these companies and creating the necessary platforms for their growth, has provided an exceptional opportunity for the transformation of the Iranian economy. However, to fully exploit this opportunity, we must seek to create a balance between supporting leading companies and small and medium-sized enterprises. In this note, I have tried to examine the necessity of this balance and provide solutions for its realization.

The necessity of supporting leading companies

Leading companies, as the main players in the technology and innovation ecosystem, play a key role in creating value chains and developing new markets. With more financial, technical and human resources, these companies can act as engines of economic growth. They are able to implement large-scale projects, develop new technologies and even enter international markets. In the current situation of the Iranian economy, supporting these companies can help create jobs, increase non-oil exports and reduce dependence on imports.

However, supporting leading companies should be conditional on their commitment to supporting SMEs. This approach not only helps to create balance in the knowledge-based ecosystem, but also strengthens supply chains and increases inter-company cooperation.

Another type of support for SMEs, which is very common, causes the majority of knowledge-based and SMEs to become indebted and, given the current economic conditions, cannot meet their debts. This is while the production cycle is happening all over the world with large companies investing in small and medium-sized companies and not with government support. For example, companies like Google and Microsoft are trying to drive the economy forward by investing in small and medium-sized companies.

Challenges of SMEs in the knowledge-based ecosystem

As a vital part of the knowledge-based ecosystem, small and medium-sized companies face numerous challenges. These challenges include limited access to financial resources, lack of stable markets, weak technological infrastructure, and inability to compete with larger companies. In many cases, SMEs are unable to develop innovative products or enter international markets due to lack of resources. This is while these companies have high potential for growth and innovation due to their high flexibility and ability to respond quickly to market changes.

Therefore, it is very important to be able to create a balance by thinking about measures to support leading companies and SMEs. In this regard, by implementing the following solutions, effective measures can be taken in the mentioned area.

Creating shared value chains

Leading companies can involve SMEs as suppliers or business partners in their projects by creating shared value chains. These collaborations not only help SMEs grow, but also increase quality and reduce production costs for leading companies.

Sharing knowledge and technology

Leading companies can help improve the technical level of these companies by sharing their knowledge and technologies with SMEs. This can be done through training courses, specialized workshops, or even technology transfer.

Conditional financial support

The government and related institutions can make financial support for leading companies conditional on their participation in supporting SMEs. For example, part of the facilities granted to leading companies can be allocated to developing their cooperation with SMEs.

Of course, the point is that large economic companies do not need much financial facilities, and the type and type of this support should be different from loans and facilities and be of a facilitating nature without government intervention in its implementation.

Creating cooperation networks

Forming cooperation networks between leading companies and SMEs can help exchange experiences, resources, and market opportunities. These networks can operate under the support of institutions and trade organizations such as the Iranian Knowledge-Based Organizations Forum.

Recognizing the innovation economy in the country’s economic ecosystem

It is necessary to consider the innovation economy as the driving force behind economic growth and development. This requires a change in attitude and the creation of suitable platforms for the growth and development of knowledge-based companies and startups.

The innovation economy is a dynamic ecosystem in which innovative ideas can quickly be transformed into marketable products and services. In this ecosystem, financial support, facilitating laws, digital infrastructure, and international networking should help move forward.

Therefore, the culture of innovation should be institutionalized through education and awareness-raising among the general public, managers, and policymakers at all levels of society so that everyone understands the importance and role of the innovation economy in the sustainable development of the country.

The role of the Knowledge-Based Production Leap Law

The Knowledge-Based Production Leap Law, by emphasizing support for knowledge-based companies, has provided countless opportunities for the growth of these companies. However, to achieve the goals of this law, we must seek to create a balance between supporting leading companies and SMEs. This will not only contribute to the balanced growth of the knowledge-based ecosystem, but also increase competitiveness and innovation at the national level.

Considering the above, supporting leading companies while supporting SMEs is an approach that can help create balance in Iran’s knowledge-based ecosystem. This will not only lead to economic growth and increase non-oil exports, but also strengthen value chains and increase inter-company cooperation. In the current situation of the Iranian economy, this approach can be considered as a key solution to achieve the goals of the Knowledge-Based Production Leap Law and create a knowledge-based economy.

The Iranian Knowledge-Based Organizations Forum, as an upstream institution, can play an important role in achieving this goal by creating the necessary platforms for cooperation between leading companies and SMEs. This will not only help the growth of knowledge-based companies, but also increase competitiveness and innovation at the national level.

Publication date: 1404/01/10