Program and Development Research

Program and Development Research

Policy implications of the economic Economic Catch-up theory for Iran

Document Type : Original Article

Authors
1 University of Tehran
2 Department of Energy and Climate Governance, Faculty of Governance, University of Tehran, Tehran, Iran
Abstract
This article aims to examine Iran’s economic policymaking based on the theory of economic catch-up and to provide policy implications for overcoming the current situation. Initially, the framework of the economic catch-up theory in the Schumpeterian school is explained, emphasizing the roles of innovation, learning, and the development of technological capabilities as key strategies for escaping the middle-income trap. Accordingly, mere imitation of advanced countries cannot lead to an economic catch-up; instead, countries must create new pathways and leverage technological opportunity windows to distinguish their growth trajectories. In the second part, through a systematic review of domestic studies, Iran’s status is analyzed in terms of economic catch-up indicators. The analysis identifies three main challenges for Iran: failure to achieve the catch-up stage based on primary indicators, the divergence of Iranian industries from the catch-up and path-creation stage, and differences in industrial targeting between Iran and selected developing countries. The study proposes several key policy recommendations: Fostering collaboration among various actors in research and development, emphasizing vertical (industry-specific) policies in policymaking, designing mechanisms to circumvent sanctions in technological collaborations, prioritizing industries in relevant documents (such as the industrial policy document), Selecting technologies based on catch-up indicators. These recommendations are highlighted as essential for enabling Iran’s economic catch-up and achieving sustainable growth.
Keywords

Subjects


 
Lee, K. (2020). The art of economic catch-up: Barriers, detours, and leapfrogging in innovation systems (H. Padash & R. K. Kahan-Houshnejad, Trans.). Tehran: Institute for Religion and Economy Studies.
Bagheri Moghaddam, N. (2018). Designing a conceptual framework for formulating technological leapfrogging policies in Iran. National Research Institute for Science Policy.
Ahmadvand, E., Salami, R., Tabatabaian, H., & Bamdad Soufi, J. (2018). Windows of opportunity for technological catch-up in Iran’s nanofiber technology from a sectoral innovation system perspective. Innovation Management, 7(3), 1–28.
Ahmadvand, E., Salami, S. R., Bamdad Soufi, J., & Tabatabaian, S. H. (2018). Analyzing and explaining the pattern of government policies in technological catch-up of nano-coatings in Iran. Public Policy, 4(1), 36–60. https://doi.org/10.22059/ppolicy.2018.66848
Eftekhari Toroghi, H., Kazazi, A., Amiri, M., & Ghazi Nouri, S. S. (2024). A framework for downstream petrochemical industry development with a focus on managing windows of catch-up opportunity. Strategic Studies in Oil and Energy Industry, 15(60), 201–226.
Jafarnejad Chaghoushi, A., Taghafi, F., Mojiri, F., & Fakhimi, M. A. (2022). Identifying gaps in the national biopharmaceutical industry to complete catch-up: A comparative study approach. Journal of Management Improvement, 16(2), 96–130. https://doi.org/10.22034/jmi.2022.332032.2752
Heidari, A., Manteghi, M., Naderi, F., & Esmaeili Givi, M. R. (2019). Proposing a conceptual framework for technological catch-up of commercial turbofan engines in Iran using a meta-synthesis approach. Journal of Management Improvement, 13(1), 32–61.
Khalili, I., Shirazi, B., & Soltanzadeh, J. (2019). A historical study of Iran’s steel industry: Application of the technological catch-up framework in complex products and systems. Journal of Management Improvement, 13(1), 62–90.
Dastarandj, N., Ghazi Nouri, S. S., Taghafi, F., & Hassanzadeh, A. (2016). Structural change in technology roadmapping for follower countries. Journal of Management Improvement, 10(1), 5–31.
Daghayeghi, A., Jafarnejad, A., & Bagheri Moghaddam, N. (2021). Formation of technological capabilities for catch-up in complex products: Directional drilling equipment in oil and gas wells. Technology Development Management, 9(2), 13–45. https://doi.org/10.22104/jtdm.2021.4050.2440
Rahmani, S., & Safdari Ranjbar, M. (2020). Internalizing windows of opportunity for technological catch-up based on sustainability transition: Wind turbines in Iran. Innovation Management, 9(4), 7–34.
Shahrzad, S. Z., Hamedi, M., & Mohammadi, M. (2017). Dual-level catch-up in Iran’s thermal power plant construction industry. Science and Technology Policy, 10(1), 69–83.
Saber, A., Elahi, S., Majidpour, M., Shayan, A., & Sahebkar Khorasani, S. M. (2018). Analyzing technological catch-up efforts of Iranian biopharmaceutical firms. Science and Technology Policy, 10(4), 49–63. https://doi.org/10.22034/jstp.2019.10.4.539574
Safdari Ranjbar, M. (2022). Conceptualizing technological leadership from a catch-up perspective: Indicators, requirements, and policy implications. Rahyaft, 32(4), 65–84. https://doi.org/10.22034/rahyaft.2023.11416.1427
Safdari Ranjbar, M., Rahmanseresht, H., Manteghi, M., & Ghazi Nouri, S. S. (2016). Drivers of acquiring and creating technological capabilities in latecomer firms producing complex products and systems: The case of Oil Turbo Compressor Company (OTC). Innovation Management, 5(3), 1–26.
Safdari Ranjbar, M., Rahmanseresht, H., Manteghi, M., & Ghazi Nouri, S. S. (2018). Exploring windows of technological learning opportunity in complex product and system industries in latecomer countries: The gas turbine industry in Iran. Technology Development Management, 6(3), 9–40. https://doi.org/10.22104/jtdm.2019.3085.2058
Safdari Ranjbar, M., Rahmanseresht, H., & Ghazi Nouri, S. S. (2019). Exploring technological, policy, and market regimes in complex product and system industries: The gas turbine industry. Journal of Management Improvement, 13(4), 1–28.
Safdari Ranjbar, M., Alizadeh, P., & Elyasi, M. (2020). Analyzing Iran’s legal capacity to support technological learning and catch-up: A comparative study with successful international experiences. Journal of Management Improvement, 14(3), 47–72. https://doi.org/10.22034/jmi.2020.117987
Tarighi, S., & Shavalpour, S. (2021). Technological catch-up in the oil exploration and production industry with a learning and capability development approach: Enhanced oil recovery in Iran. Technology Development Management, 9(2), 47–89. https://doi.org/10.22104/jtdm.2021.4566.2672
Abbasi, M., & Serajzadeh, S. H. (2015). Methodological issues in systematic review with evaluation of Iranian articles based on this method. Iranian Journal of Social Studies, 9(3), 132–160.
Farsi, A., Manteghi, M., Farsijani, H., & Valmohammadi, C. (2021). Technological catch-up in complex system-based industries: A case study of Iran’s petrochemical industry. Journal of Management Improvement, 15(1), 1–38. https://doi.org/10.22034/jmi.2021.127826
Farsi, A., Manteghi, M., Farsijani, H., & Valmohammadi, C. (2022). Mapping a roadmap to facilitate and accelerate technological catch-up in Iran’s petrochemical industry. Journal of Management Improvement, 16(2), 1–34. https://doi.org/10.22034/jmi.2022.312675.2689
Farsi, A., Manteghi, M., Farsijani, H., & Valmohammadi, C. (2023). Technological catch-up as a sustainable approach to gaining competitive advantage: A case study of Iran’s petrochemical industry. Strategic Management Research, 29(88), 151–180.
Fakhimi, M. A., & Taghafi, F. (2022). Challenges of technological catch-up in the nuclear industry and development of a capability-building model. Science and Technology Policy, 15(2), 1–20. https://doi.org/10.22034/jstp.2022.13936
Faghih Mirzaei, S., Razavi, M. R., Ghaffari, F., & Shafia, M. A. (2021). Assessing technological and innovative capabilities of firms in Iran’s plastics industry: Barriers to reaching the frontier (catch-up). Technology Development Management, 9(2), 225–266. https://doi.org/10.22104/jtdm.2021.4583.2682
Kalantari, E., & Majidpour, M. (2021). Theorizing the foundations of resistance economy as the economic theory of the Islamic Revolution based on technological catch-up theory: A multiple case study of South Korea, China, and Iran. Quarterly Journal of Islamic Revolution Studies, 10(3), 191–221. https://doi.org/20.1001.1.23222573.1400.10.3.9.3
Kahan-Houshnejad, R., Pakzat, S. M., Mohammadian Amiri, R., & Hadinejad, F. (2023). Prioritizing Iran’s industries based on economic leapfrogging indicators. Planning and Development Research, 4(2), 103–124. https://doi.org/10.22034/pbr.2023.386558.1313
Mojiri, F., Sheikh, A., Payandeh Mehr, B., & Majidpour, M. (2019). An endogenous development model for the national biopharmaceutical industry: A case study of CinnaGen Company. Journal of Management Improvement, 13(1), 91–120.
Maleki Karamabad, M. M., Aghajani, H., Manteghi, M., & Abdi, B. (2019). Conceptualizing technological catch-up in defense maritime industries. Military Management Quarterly, 19(76), 69–102. https://doi.org/10.22034/iamu.2020.43078
Maleki Karamabad, M. M., Manteghi, M., & Abdi, B. (2021). Identifying and explaining critical success factors of technological catch-up in Iran’s defense maritime industries. Technology Development Management, 9(2), 197–224. https://doi.org/10.22104/jtdm.2021.3935.2387
Maleki Karamabad, M. M., Aghajani, H., Manteghi, M., & Abdi, B. (2020). Explaining the role of higher education in technological catch-up of defense industries. Journal of Marine Science Education, 7(20), 19–30. https://sid.ir/paper/262010/fa
Momeni Rad, A. (2013). Qualitative content analysis in research methodology: Nature, stages, and validity of results. Educational Measurement Quarterly, 4(14), 187–222.
Minaii, M. R., Elahi, S., Majidpour, M., & Manteghi, M. (2020). How do industry characteristics affect technological catch-up of latecomer firms? A case study of an Iranian automotive firm. Science and Technology Policy, 13(3), 47–66. https://doi.org/10.22034/jstp.2020.12.3.1259
Naghizadeh, R. (2021). A policy framework for technological catch-up in industrial units of less-developed regions in Iran. Technology Development Management, 9(2), 267–296. https://doi.org/10.22104/jtdm.2021.4670.2721
Nozari, H., Sadeghi, M. E., & Fallah, M. (2021). Prioritizing application domains of Internet of Things technology in Iran: An opportunity for economic catch-up. Science and Technology Policy Letter, 11(4), 45–61. https://doi.org/20.1001.1.24767220.1400.11.4.3.7
Elyasi, M., Manteghi, M., Bamdad Soufi, J., & Mirbagheri, S. M. (2018). Analyzing catch-up strategies of emerging firms in the aviation industry and implications for Iran’s aviation sector. Journal of Management Improvement, 12(4), 118–136.
Yadaei Amn Abad, M., Taghafi, F., Mohaqer, A., Jafarnejad Chaghoushi, A., & Ghazi Nouri, S. S. (2021). Identifying mechanisms through which higher-level capabilities create or upgrade technological capabilities of latecomer firms on the path of technological catch-up: A case study of an Iranian automotive firm. Technology Development Management, 9(2), 91–128. https://doi.org/10.22104/jtdm.2021.4629.2713
Yousefi, A., Shahbazi, M., Safdari Ranjbar, M., Ghazi Nouri, S., & Manteghi, M. (2022). A multilevel analysis of factors affecting technological catch-up in the banking software industry: A case study of an Iranian banking software developer. Journal of Management Improvement, 16(2), 35–64. https://doi.org/10.22034/jmi.2022.332329.2754
Baldwin، R. (2016). The Great Convergence. Cambridge، MA: Harvard University Press.
Hidalgo، C. A.، B. Klinger، A.-L. Barabási، and R. Hausmann. (2007). “The Product Space Conditions the Development of Nations.” Science، 317 (5837): 482–487. doi: 10.1126/science.1144581
Kim، Y. K.، K. Lee، W. G. Park، and K. Choo. (2012). “Appropriate Intellectual Property Protection and Economic Growth in Countries at Different Levels of Development.” Research Policy، 41 (2): 358–375. doi: 10.1016/j.respol.2011.09.004
Lee، K.، S.-J. Cho، and J. Jin. (2009). “Dynamics of Catch-Up in Mobile Phones and Automobiles in China: Sectoral Systems of Innovation Perspective.” China Economic Journal، 2 (1): 25–53.
Lee, Keun. (2019). The Art of Economic Catch-up: Barriers, Detours and Leapfrogging in Innovation Systems. Cambridge University Press.
Lee، Keun (2013). Schumpeterian Analysis of Economic Catch-up: Knowledge، Path-Creation، and the Middle-Income Trap. Cambridge: Cambridge University Press.
Lin، J. Y. (2012). The Quest for Prosperity: How Developing Economies Can Take Off. Princeton: Princeton University Press.
Luo، J. (2005). “The Growth of Independent Chinese Automotive Companies.” Cambridge، MA: International Motor Vehicle Program، MIT.
Malerba، F.، &  Nelson،  R.  (2011). Learning and   catching   up   in   different   sectoral   systems: evidence    from    six    industries. Industrial    and Corporate Change، 20(6)، 1645-1675. doi.org/10.1093/icc/dtr062
Park، K.-H.، and K. Lee. (2006). “Linking the Technological Regime to the Technological Catch-Up: Analyzing Korea and Taiwan Using the US Patent Data.” Industrial and Corporate Change، 15 (4): 715–753. doi: 10.1093/icc/dtl016
WIPO (2023). World Intellectual Property Indicators. https://www.wipo.int
World Bank (2023). World Development Indicators. https://data.worldbank.org
OECD (2022). Main Science and Technology Indicators. https://www.oecd.org/sti/msti.htm
UNIDO (2022). Industrial Development Report. https://www.unido.org/resources-publications