Research and technology financing is a fundamental pillar of a knowledge-based economy. However, the share of research and development (R&D) expenditure in Iran’s gross domestic product was only 0.73% in 2021, indicating a significant gap between Iran and leading innovation-driven countries. The purpose of this study is to analyze the structural and policy dimensions of the research and technology financing system in Iran. In terms of purpose, this research is applied-developmental and qualitative in nature. The research strategy adopts a qualitative policy analysis with an interpretive approach. Data were analyzed using thematic analysis and thematic network analysis. Data sources included content analysis of upstream policy documents and semi-structured interviews with ten experts in research and technology financing. The findings reveal that the research and technology financing system in Iran faces five major categories of challenges: weaknesses in strategic planning and priority setting; inefficiencies in executive structures and research processes; lack of transparency and deviations in research funding allocation; insufficient inter-institutional coordination in budget allocation; and shortages and declining public funding for research. In response to these challenges, twelve policy and structural solutions were identified. The most important include strengthening stakeholder synergy and participation; restructuring boards of trustees with greater involvement of non-governmental actors; enhancing financial and managerial autonomy of universities; designing incentive mechanisms to attract private sector investment; reforming performance- and mission-oriented funding allocation systems; integrating demand-driven research platforms; diversifying financing mechanisms; strengthening university–industry linkages; and establishing a specialized institution for research and technology financing.