Using Foreign Finance Credit as a Public Procurement for Innovation Policy: A Case Study of Foreign financed Projects Approved by the Economic Council in Iran

Document Type : Research Paper

Authors

1 Assistant Professor, Department of Knowledge Based economics, Technology Studies Inistitute (TSI), Tehran, Iran

2 Researcher, Department of Knowledge Based Economics, Technology Studies Inistitute (TSI), Tehran, Iran

3 Associate Professor, Faculty of Management and Accounting, Allame Tabataba`i University, Tehran, Iran.

4 PhD Student of International Economics, Faculty of Economics, Management and Administrative Science, Semnan University, Semnan, Iran.

Abstract

One of the important tools in stimulating the demand for innovation is to take advantage of the capacity of public procurement. Due to the difficulties of financing the public sector, a significant part of the government procurement of developing countries especially Iran, is done from the sources of of finance. As a tool, the policy of innovation and stimulation of domestic demand will be difficult. The purpose of this paper is to examine the requirements for the use of these financial aids as pro-innovation public procurement policies. To investigate this issue, a multi-case study research method has been put on the agenda in order to design a single structure from several thematic perspectives and to set the required requirements in a multidimensional manner over a certain period of time. Based on this, semi-structured interviews were conducted with the managers of the projects related to the mentioned projects and the analysis of the qualitative content of the data and the pattern of requirements related to the research topic was developed based on the main categories. In order to select these cases, from the database of approvals of the Economic Council in the field of export credit facilities from 1390 to 1396, 5 large projects were selected from the 5 ministries that had the highest demand. According to the studies, the proposed model is presented in six axes, which focuses on the participation of its capable domestic contractor as an intermediary between domestic employers and foreign lenders and supporting support systems.

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