How the government plays a role in the successful transfer of technology (Study of Iran)

Document Type : Research Paper

Authors

1 PhD student in economics, Allameh Tabatabai University, Tehran, Iran

2 Professor of Economics, Faculty of Economics, Allameh Tabatabai University, Tehran, Iran

3 Assistant Professor, Technology Studies Institute, Tehran, Iran

4 Associate Professor, Faculty of Economics and Entrepreneurship, Razi University, Kermanshah, Iran

Abstract

Purpose: Technology plays a prominent role in determining the economic and political status of countries. But who benefits from new technologies and increased productivity depends on the institutional context and the type of each technology. During many critical periods, technology was subordinated to the gaze of the powerful outsiders, and the growth of productivity did not bring any meaningful improvement to the lives of the majority of the population. The new technologies introduced and perfected in Europe, the United States and China can be exploited by their transfer to developing countries so as to increase their economic growth. But how? Also, do developing countries benefit from importing technology?
Technology transfer is one of the important channels of acquiring it. But the transfer of technology can involve costs such as creating a dual structure, increasing inequality and poverty, imposing values and consumption patterns, or losing the local markets of the technology-importing country. In today's world, due to rapid changes in technology and the characteristics of new technologies, the possibility of reverse engineering is limited. Thus, it is not possible to separate the endogenous development of technology from the transfer of technology; the successful transfer of technology requires the combination of domestic technological capacities with transferable technologies from outside. This type of technology transfer is often possible through cooperation between domestic and transnational companies and requires the existence of capable companies that have sufficient technical and organizational attractiveness for cooperation. What is required of them in this case is national interests and not their own material interests. Having such powerful organizations with national biases requires the existence of a development-oriented government with a set of measures and characteristics. It is also necessary to strengthen the balancing forces that affect the path of future technologies and create incentives for technologies that benefit everyone. Balancing forces cannot be created without relying on civil society organizations. 
 
Methodology: In this research, Iran has been examined by a descriptive-analytical method, and the role of the government in transferring technology is explained.
 
Findings and Discussion: The results of the research show that the existence of an autonomous government and reliance on the society are necessary for the formation of companies that have the ability to unite and cooperate with transnational companies in order to absorb technology. The government in Iran is not able to define joint projects between itself and the private sector due to features such as low legitimacy, lack of meritocracy, patronage and the existence of administrative corruption. Also, according to international indicators, Iran does not have a good rank in the political environment and regulatory environment (political stability and stability-effectiveness of the government, quality of regulations, and rule of law). This issue has caused a suitable environment for the use of investments made in this area (such as investment in the field of knowledge-based companies, research and development, and human resources).
Oil revenues and the short-sighted dominance of the government's decisions in Iran, which is caused by the lack of cohesion and communication with social classes, is the most important obstacle in creating proper conditions for successful technology transfer. The investigation of Iran's automotive and biopharmaceutical industry shows how coalitions play an effective role in institutional changes and technological developments. Examining the industries shows how industrial development can occur in a situation where the developmental government and stable social order have not been formed, but this development is both discrete and reversible.  Institutional changes are mainly the result of joint projects between institutional entrepreneurs in government and non-government sectors.
 
Conclusions and Policy Implications: The existence of organized social groups is necessary because the government and social structures shape each other. Without an efficient roulette, it is not possible to define transformative projects. Also, the social mobilization and organization of informed people makes the government avoid developing low-quality projects. It is necessary to create a relative advantage in order to balance technology exchanges, which requires the selection of driving industries and their support. But the right choice and support happens in a suitable institutional context.  This institutional context provides political and economic entrepreneurs with opportunities that facilitate production activities and constantly strengthen the motivation of organizations to engage in production activities. Improving the capacities of the government by holding recruitment tests and preventing forced recruitment, making the distribution of power fair by creating parties and directing class-oriented interests to higher political arenas, changing the country's planning system (limiting goals, prioritizing goals and programs) and supporting the forming of companies around the main advantages, and determining clear criteria for distinguishing production from distribution, with defining indicators such as the minimum ratio of added value at the beginning of the activity to the added value at the end of the activity and the minimum percentage of domestic manufacturing to receive government support, can help to improve the conditions of the country in the field of technology absorption and application.

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