Strategic Studies of public policy

Strategic Studies of public policy

Structural and Policy Analysis of the Research and Technology Financing System in Iran

Document Type : Research Paper

Authors
1 Ph.D. student in Innovation management and strategic technology development, National Research Institute for Science Policy (NRISP),Tehran, Iran.
2 Assistant Professor, Department of STI Financing & Economics, National Research Institute for Science Policy (NRISP),Tehran, Iran.
Abstract
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.
Keywords
Subjects

Refrences
Alizadeh, P. (2025). Systemic and Institutional Failures in Financing Science, Technology, and Innovation: The Case of Iran. Interdisciplinary Journal of Management Studies. Doi: 10.22059/ijms.2025.397774.677749
Alizadeh, P. (2024). Examining the science and technology financing system in Iran and proposing reform measures in line with the Seventh National Development Plan [Research report]. Institute for Research on Science Policy, Iran.(Persian) B4-_-11-Alizadeh-_-Text-_-14040431.pdf
Alizadeh, P. (2022). Investigating the Challenges of Funding Public Research Institutions in Iran. Journal of Science and Technology Policy, 15(4), 1-19. doi: 10.22034/jstp.2023.11155.1570 .(Persian) https://jstp.nrisp.ac.ir/article_13968.html?lang=fa
Alizadeh, P. (2022b). Providing a financing system for various research institutes in line with the missionoriented framework [Research report]. Scientific Policy Research Institute, Iran. (Persian) https://nrisp.ac.ir/
Abedi Jafari, H., Taslimi, M. S., Faghihi, A. H., & Sheikhzadeh, M. (2011). Thematic analysis and thematic networks: A simple and efficient method for explaining patterns embedded in qualitative data municipalities. Strategic Management Thought, 5(2), 151–198. (Persian) https://sid.ir/paper/129816/fa
Bloom, N., Jones, C. I., Van Reenen, J., & Webb, M. (2020). Are ideas getting harder to find? American Economic Review, 110(4), 1104–1144.
Behrooz,A. , Pourezzat,A. A. , Dezhpasand,F. and Amiri,M. (2020). Diagnosis of Science and Technology Budget in Iran Using Meta-synthesis Method. Innovation Management Journal, 8(4), 85-122. (Persian)
https://www.nowavari.ir/article_102634.html?lang=fa
Etzkowitz, H., & Leydesdorff, L. (2000). The dynamics of innovation: From National Systems and “Mode 2” to a Triple Helix of university–industry–government relations. Research Policy, 29(2), 109–123.
Erçetin, Ş. Ş., & Fındık, L. Y. (2018). Autonomy in higher education [Paper presentation]. In Chaos, Complexity and Leadership 2016 (pp. 463-475). Berlin: Springer International Publishing. DOI: 10.1007/978-3-319-64554-4_32
Fartash,K. and Baramaki,T. (2024). Proposing a policy framework to promote research and the third mission in universities and research institutions in Iran. Strategic Studies of public policy, 14(51), 24-55. doi: 10.22034/sspp.2024.2032881.3666(Persian) https://sspp.iranjournals.ir/article_714703.html?lang=fa 
Farazkish,M. , Tatina,S. and Safdari,M. (2024). Synthesizing the integrated performance evaluation framework of the Ministry of Science, Research and Technology with a functional approach. Strategic Studies of public policy, 14(50), 2-31. doi: 10.22034/sspp.2024.2022541.3559(Persian) https://sspp.iranjournals.ir/article_712467.html?lang=fa
Golalizadeh, M., Tabatabaeian,S. H. and zomorodian,G. R. (2022). Providing Solutions to Reduce the Financing Challenges of Knowledge-Based Companies in Iran. Innovation Management in Defensive Organizations, 5(3), 47-72. doi: 10.22034/qjimdo.2022.340079.1501 (Persian) https://www.qjimdo.ir/article_159713.html?lang=fa
Goodarzi,M. (2024). Pathology of the current situation of private research institutions in Iran. Strategic Studies of public policy, 14(50), 102-125. doi: 10.22034/sspp.2024.2018012.3525 (Persian) https://sspp.iranjournals.ir/article_713132.html?lang=fa
National Research Institute for Science Policy. (2025). Flow of issues and policy solutions in science and technology: Examining the research and technology financing system in Iran and proposing reform measures in line with the Seventh National Development Plan. National Conference on Science and Technology in the Seventh National Development Plan, Islamic Republic of Iran. (Persian) https://nrisp.ac.ir/prog7publications/
Jansen, A. (2024). Effectively financing private sector innovation? Toward a conceptual policy framework. Science and Public Policy, 51(4), 580–598.
Michavila, F., & Martinez, J. M. (2018). Excellence of universities versus autonomy, funding and accountability. European Review, 26 (S1), S48-S56. DOI: 10.1017/s1062798717000539
Mirnezami,S. R. , Maleki,A. and Keykha,A. (2024). Comparative Comparison of Research and Technology Funding Systems. Science Cultivation, 15(1), 67-76. (Persian) https://www.sciencecultivation.ir/article_724342.html?lang=fa
Mansourifar, S. A. (2013). A comparative study of research financing methods in Iran and selected countries (Master’s thesis). Faculty of Administrative Sciences and Economics, University of Isfahan, Iran. (Persian)
Norouzi, K., Javadi, M., Abdolhosseinzadeh, M., & Taslimi, M. S. (2016). Science and Technology Macro Intermediary Institutions; a Paradigmatic Model: the Case Study of Science and Technology Vice Presidency).. Rahbord Quarterly, 25(79), 91–116. (Persian) https://rahbord.csr.ir/article_124592.html?lang=fa
Nafisi, G., Taee, H., Arasteh, H. R., & Gholi Ghourchian, N. (2021). Identify and rank financing methods that affect the financial performance of universities. Quarterly Journal of  Educational Leadership & Administration. 15(3), 199–225. (Persian) https://sanad.iau.ir/fa/Journal/edu/Article/856613 
OECD. (2023). R&D intensity in OECD countries (2021 highlights). Organisation for Economic Co-operation and Development. Retrieved from https://www.oecd.org/
Sazmand, T.ahereh, Niaz Azari, KiyomarthK., & Salehi, Mohammad. (2020). Presenting the model of gaining scientific leadership in medical education with a responsive education approach in Mazandaran University of Medical Sciences. Educational Leadership & administrationAdministration, 14(1), 78-98. (Persian) https://sanad.iau.ir/Journal/edu/Article/856308
Soltani, B. and Shaverdi, M. (2019). Science, Technology and Innovation Financing. Journal of Science and Technology Policy, 12(2), 297-314. (Persian) https://jstp.nrisp.ac.ir/article_13701.html?lang=fa
Tabatabarian, S. H. , Alizadeh, P. and Mokhtari Hasan Abad, S. (2024). Analysis of Barriers and Policy Recommendations for Strengthening Financial Autonomy in Iranian Public Universities with an Emphasis on Development Plans. Rahyaft, 34(1), 39-64. doi: 10.22034/rahyaft.2025.11877.1567(Persian) https://rahyaft.nrisp.ac.ir/article_14096.html?lang=fa
United Nations Conference on Trade and Development (UNCTAD). (2025). Technology and Innovation Report 2025. Retrieved from https://unctad.org
Vendrell-Herrero, F., Bustinza, O. F., Larreina, M., & Opazo-Basaez, M. (2025). Blazing the trail: Describing and assessing a new policy instrument whereby indirect tax incentives fuel collaborative innovation. Research Policy, Article 105276.
World Intellectual Property Organization (WIPO). (2024). Global Innovation Index 2024: Rankings. Retrieved from https://www.wipo.int/gii-ranking/en/iran-islamic-republic-of
World Bank. (2023). Research and development expenditure (% of GDP) – Iran. The World Bank Data. Retrieved from https://data.worldbank.org/indicator/GB.XPD.RSDV.GD.ZS