Attracting domestic and foreign capital brings cutting-edge technologies into businesses.

Maziar Nourbakhsh, Head of the Transformation, Innovation and Productivity Commission of the Tehran Chamber of Commerce, in a conversation with the Public Relations of the Iranian Knowledge-Based Organizations Forum, while examining the challenges facing Iranian knowledge-based companies, spoke about the limitations caused by sanctions and difficult access to modern knowledge in the world, and the infrastructural and legal weaknesses of these companies. Nourbakhsh believes that in the field of international cooperation, we should be able to expand our activities as much as possible and attract domestic and foreign investors, especially in the fields of research and development, and adapt our businesses to modern technologies.

In your opinion, what are the most important challenges that Iranian knowledge-based companies face in benefiting from modern knowledge in the world?

Regarding the challenges faced by knowledge-based companies in benefiting from modern knowledge in the world, I should raise the issue of sanctions. The scientific and economic sanctions that Iran faces have limited our access to up-to-date scientific databases, specialized software, and international collaborations.

In addition, trade restrictions resulting from sanctions have reduced international interactions and exchanges, increased costs, and made research and development more difficult for these businesses.

Is the domestic market available for the products and services of knowledge-based companies? If not, why not?

This market is relatively available, but it is naturally not ideal. There are domestic markets for some products. However, challenges such as the lack of support for domestic products – of course, I mean those domestic products that are of high quality and meet international standards – in the traditional economic culture that prevails in the country have prevented us from reaching that ideal situation. This is exactly where the link between industry and academia, which allows knowledge-based markets in Iran to grow and mature, must be strengthened. Another point is that unnecessary support and limiting the import of foreign products under the pretext of supporting domestic production prevents the quality of domestic products from improving, and we are witnessing events that we witnessed in the automobile market and similar markets. As we are witnessing in the field of home appliance products, we were forced to turn to foreign markets again. Therefore, quality is very important here, and knowledge-based companies must be able to compete in the global and international space, and at that time they can expect the domestic market to be kind to them.

In your opinion, how much have Iranian knowledge-based companies advanced in the development of technologies and innovations?

I think we have made significant progress in some areas such as nanotechnology, biotechnology, medical technologies, and information technology. But in areas such as artificial intelligence, semiconductors, and hardware, we are still far from the leading countries in this field.

Are these companies familiar with the current trends in the world in the field of technology and have they been able to keep up with global developments?

I think so; despite the restrictions and sanctions that have made access to up-to-date resources very difficult, they are still familiar with global trends to a considerable extent. But we are still behind in terms of access and have not yet been able to properly keep up with them and implement them. However, I think that the closer the issues are to the software field, such as digital health, nanotechnology, and biotechnology, the more in sync we are with them than with the hardware and infrastructure fields.

So can software fields be considered the strengths of Iranian knowledge-based companies?

Yes, these young and capable elites and talented forces that exist in the country and the same number of human resources that have not emigrated and still remain are the strengths of our companies that we should use for software and hardware production. In my opinion, the only issue that Iran should focus on and invest in is its elite human resources. On the other hand, due to the large technological gap we have with the world, I think we can achieve results much faster by focusing on software production.

Have Iranian knowledge-based companies been able to have a say in certain areas of technology at the global level? If so, in which areas?

Naturally, in some areas such as nanotechnology, pharmaceuticals, and defense industries, they definitely have something to say, but in the areas of artificial intelligence and electronics, it seems that we are still far apart and do not have much to say.

You have attended international exhibitions such as GITEX and… In your opinion, what level do Iranian companies stand at compared to foreign companies in terms of science, technology, and engineering?

Unfortunately, this position is not very suitable; Both in terms of quality and in terms of problems arising from the existing sanctions that prevent them from easily introducing themselves in such scenes. For several years, as sanctions have intensified, Iranian companies have been forced to limit themselves even in visiting these exhibitions, and sometimes they can even operate in these areas with foreign names and brands. In such circumstances, when a market is formed and interactions are created, they cannot easily interact with foreign markets and their foreign counterparts because they are Iranian. This leads to weaknesses in branding and international marketing, all of which pose numerous problems for extensive presence in exhibitions and gatherings.

Have Iranian companies been able to attract global attention in these events? If not, what steps should they take?

I must say, to a limited extent, yes, some startups that are based in Iran and have also prepared a foreign structure for themselves abroad were able to attend these international events, succeed, and even obtain credits and persuade markets to their side. But these events are very limited, and unfortunately, due to the issues that exist, they cannot easily present themselves, and there are many obstacles in this regard. Even if a foreign company wants to bypass the sanctions and continue with them in any way, it will still face restrictions on financial exchanges, and this will complicate the continuation of the work to a great extent.

What solutions do you suggest to increase the synchronization of Iranian companies with global trends?

The first issue is the issue of sanctions, which has prevented us from being able to benefit sufficiently from the trends and knowledge of the world. Given the current conditions, which are unchangeable, we must try to expand our activities in the field of international cooperation as much as possible, attract domestic and foreign investors, especially in the fields of research and development, and adapt our businesses to modern technologies.

Naturally, within the country, the complex permits and legal processes that exist within the country sometimes limit and hinder the activities of businesses and entrepreneurs. These must be taken into account. The law on removing barriers to production and continuously improving the business environment in the country exists, but they are not observed by some government institutions in the country. These matters must be followed up to remove the existing obstacles.

In your opinion, what will the future of Iranian knowledge-based companies be like? Can we hope that they will be able to compete in the global arena?

You see, if we want to focus only on domestic markets, we will not see much growth. As we see that the largest companies that enter the stock market or are managed by large and well-established companies, the partnerships, pricing, and events that occur are not at all comparable to the world. An example of that is startups that we see with very, very few users, but have high revenues in the world and even in neighboring countries. The reason for this is the lack of connection with our peers in the world, which limits us to domestic markets. Therefore, I hope that our connection with the world will be established. Because, I believe that we have a much better future for Iranian knowledge-based companies than what we are currently facing. This ecosystem must be supported, I emphasize that by support I do not mean financial support, loans, and facilities. Because, I believe that this is a short-term housing that results in rent and does not help much.

How much has Iran’s technology ecosystem been able to help the growth and development of knowledge-based companies?

The ecosystem had a very favorable growth at one point, people from abroad entered this ecosystem who brought very good experiences and created new methods and solutions for knowledge-based companies. However, there are still weaknesses in the laws. More importantly, the issue of industry-university relations is still not happening as it should and is very limited, which has slowed down this progress.

Is the necessary infrastructure for the growth of these companies available in Iran? If not, what are the deficiencies?

Some infrastructure has been provided, but it is not enough; some data centers and laboratories have been prepared, but again, they are not enough and are not up to date due to sanctions. Sanctions have prevented us from investing enough in this sector, and access to this infrastructure is not very fast and up to date. Therefore, we still need a lot of development in this area.

In your opinion, how much has the education and research system in Iran been able to help the growth of knowledge-based companies?

This role is very prominent. The country’s educational system has not been bad to a certain extent and has been able to introduce elite and talented human resources to the labor market. But unfortunately, this system has not been updated, which means that there are still topics taught in universities that are outdated and it is necessary to address current topics and technologies. Therefore, there is a serious need to review university course syllabi and respond to what is needed by knowledge-based companies today and fill this gap. A serious review of the topics and teaching methods should take place from high school and university.

If you want to give a message to knowledge-based companies in the field of technology and innovation, given the current conditions, what would that message be?

My advice is that they should not despair and not stop innovating. The situation will definitely not stay like this and international interactions will definitely increase. They should definitely focus on quality and global standards and pay attention to them.

They should not have a short-term view of their business process and should not seek this rent from import restrictions. They should not neglect new technologies, technology is growing rapidly and is beyond our control, and we must do our best not to be left behind.

What changes in policies and laws can help knowledge-based companies grow?

I mentioned it in the middle of the conversation. Attention should be paid to existing laws and those that are still following old paths should be dealt with seriously. Bureaucratic matters and redundant work that exist in the process of obtaining licenses and operating businesses in the country should be reviewed. Knowledge-based companies should not be involved in these obstacles.

The issue of supporting the export of knowledge-based products is an important point that should be considered, which of course also goes back to the quality of these companies’ own products. The government and relevant institutions, organizations active in this field such as the Iranian Knowledge-Based Organizations Forum, chambers of commerce, etc. should help us to have a say in global events so that we can expect serious growth for these companies.

The issue of creating infrastructure for the development of the research and development category is an important issue that should be given attention by the government. Especially in the field of artificial intelligence, we see that it is not taken very seriously, but it is an important issue and we need to get into it as soon as possible. The discussion of the system of financing and supporting venture capital, which has happened to some extent, but is still involved in obstacles and challenges that are becoming more difficult every day instead of being facilitated, and these issues need to be examined.

Publication date: 1403/01/06