In recent years, Iran’s innovation and technology ecosystem has played a significant role in advancing the country’s development goals—despite growing challenges such as internet restrictions, economic constraints, and a lack of coherence in policymaking. Actors in this domain, especially venture capital investors, have continued to rely on domestic capabilities, the potential of skilled youth, and the strength of innovative companies, navigating forward in the fields of technology and knowledge-based economy, even in the face of structural barriers in the tax, social security, and legal systems.
The Iran Venture Capital Association (IVCA), as a specialized, inclusive, and private-sector-oriented institution, currently comprises over 105 active members, including research and technology funds, venture capital firms, accelerators, and other ecosystem enablers. It has consistently sought to advocate for the collective demands of this sector and to play a constructive role in enhancing policies and strengthening the innovation finance infrastructure.
At a time when the knowledge-based economy has gained unprecedented importance as a key pillar of national economic growth, it is expected that the new administration will take a problem-oriented approach to understand both the opportunities and challenges of this field. Leveraging the expertise of specialized institutions and existing experience can pave the way for participatory governance in the innovation ecosystem. Coherent policymaking, effective engagement with the private sector, and targeted support for innovation finance institutions could catalyze a fundamental transformation toward economic justice and improved national productivity.
On the eve of the new administration’s inauguration, the Iran Venture Capital Association found it essential to send an official letter to the President-elect, Dr. Masoud Pezeshkian, underlining the critical issues facing the knowledge-based economy. The letter, authored and signed by Seyed Mohammad Hossein Sajadi-Neyri, Chairman of IVCA’s Board of Directors, represents the concerns of the broader innovation finance community.
In this letter, five key policy areas were emphasized as top priorities for the country’s innovation and technology ecosystem:
- Enhancing the role and position of public-sector innovation and technology institutions
- Implementation of the “Knowledge-Based Production Leap” Act
- Special focus on innovation and technology financing
- Strengthening institution-building to reinforce the innovation finance system
- Removing growth barriers for knowledge-based businesses and the digital economy
Full Letter Excerpt:
Dr. Masoud Pezeshkian
President-Elect of the Islamic Republic of Iran
With hopes for national progress and prosperity, I extend my congratulations on your election. Your background as a respected academic figure inspires confidence in your leadership of Iran’s science, technology, and innovation ecosystem. On behalf of the innovation finance community, I would like to highlight several pressing and priority issues of the Iranian knowledge-based economy:
1. Enhancing the role and position of public-sector innovation and technology institutions
The Vice-Presidency for Science, Technology, and Knowledge-Based Economy and the Innovation and Prosperity Fund are forward-looking institutions that have already achieved significant success in guiding and shaping innovation policies. To fully harness their potential, your administration’s special attention and proportionate budget allocations will be essential. A technical, expert-driven approach and the appointment or retention of experienced and capable professionals within these institutions would reassure stakeholders of their continued independence from political interference.
2. Implementation of the “Knowledge-Based Production Leap” Act
Effective implementation of this Act across its various provisions would resolve many of the country’s economic issues. As Chair of the High Council for Knowledge-Based Technologies and Products, we urge you to prioritize this initiative and align the government’s overall support strategies to foster a unified and coherent policy environment for knowledge-based companies and institutions.
3. Special focus on innovation and technology financing
While the role of the Innovation and Prosperity Fund and non-governmental research and technology funds is critical in financing innovation, isolated policy efforts will not suffice. A thriving knowledge-based economy requires cross-ministerial coordination, drawing on the experience and capabilities of these funds. Capital markets—such as the Tehran Stock Exchange and over-the-counter platforms—alongside crowdfunding mechanisms, must also be leveraged. Removing regulatory and operational barriers for startup listings is essential.
4. Strengthening institution-building to reinforce the innovation finance system
Facilitating the creation of new financial institutions is a key role of the government. Recently, under the framework of the Knowledge-Based Production Leap Act, major industries such as steel, mining, and telecommunications have established Corporate Venture Capital (CVC) funds. Incentives such as tax credits have helped channel substantial resources into the innovation ecosystem. Similar policy innovations could further strengthen the knowledge-based economy and contribute to resolving broader economic challenges.
5. Removing growth barriers for knowledge-based businesses and the digital economy
Despite severe internet disruptions and filtering, digital economy players have demonstrated their commitment to national development. Today, these businesses face serious challenges—ranging from outdated labor and social insurance systems, to tax obstacles and unfair competition from semi-governmental organizations with privileged access. The decline of the digital economy and the brain drain of elite talent is alarming. By empowering these companies, we can harness our country’s most valuable asset—its young, skilled professionals—for national development.
As a well-established, professional, and inclusive trade body within Iran’s innovation ecosystem, the Iran Venture Capital Association expresses its best wishes for your administration and stands ready to participate in collaborative innovation governance. We believe the aforementioned recommendations can support your commitment to fairness in resource allocation, merit-based appointments, and creating an enabling environment for innovative and tech-driven enterprises. With improvements to the innovation and technology ecosystem, we envision a bright and proud future for our beloved Iran.
With sincere hopes for the prosperity of the Islamic Republic of Iran
No comment