Knowledge Economy Studies

Examining Technological Trends in Iran’s Manufacturing Sector through Science and Technology Indicators

Document Type : Original Article

Authors

Sahar Bashiri 1
Hassan Heydari 2

1 Assistant Professor of Economics, Hazrat-e Masoumeh University, Qom, Iran.

2 Assistant Professor, Department of Economics, Faculty Member of Tarbiat Modares University, Tehran, Iran.

https://doi.org/10.22034/kes.2024.717185
Abstract
This paper examines the technological trends in Iran’s manufacturing sector over time, using the following science and technology indicators: human capital per capita from the Federal Reserve Bank of St. Louis, the ratio of research and development expenditures to gross domestic product calculated by the World Bank, the World Bank human capital index , the economic complexity index from Harvard University’s Atlas of Economic Complexity, the Global Innovation Index published by the World Intellectual Property Organization, and the manufacturing competitiveness performance as calculated by UNIDO. By analyzing the developments in various science and technology indicators within Iran's manufacturing sector, it can be concluded that these indicators showed an upward trend until the late 1380s (2000s in the Gregorian calendar). Overall, both the Iranian economy and the manufacturing sector were moving towards greater complexity and increased technology use. However, since the early 1390s (2010s in the Gregorian calendar) and the onset of economic sanctions, technological advancement in the manufacturing sector has stalled, leaving the Iranian economy in a relatively stagnant state, with some indicators even showing a backward movement. Despite this, given the potential of Iran’s economy, appropriate policymaking could partially reverse this trend. Considering the overall findings of this article, which indicate a decline in technological activities of the manufacturing sector over the past decade, we can argue that the lack of economic stability in the manufacturing sector, and macroeconomic developments in the country, have created an unfavorable environment for Iranian industries. This situation has led entrepreneurs and industrialists to focus more on maintaining existing performance rather than pursuing innovation and increasing competitive capacity, which has hindered efforts to expand activities and capture a larger share of the global market.

Keywords

Economic Complexity Index
Iran
Manufacturing Sector
Science and Technology Indicators

Subjects

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Knowledge Economy Studies
Volume 1, Issue 2
October 2024
Pages 151-176

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