2024

Pakistan- Iran Prosperity in Collaborative Innovation Economy

The report is based on workshop on Sustainable Economic

Growth through Establishing Science and Technology Parks
hosted by IRIS and UNESCO. It was supported by ISTT, ECOSF
and COMSTECH. The report is also based on interaction with
experts of S&T parks from Iran, Russia and Korea, exposure visits to
various S&T Parks of Iran and discussion with industry and academic
people. I would like to especially acknowledge ECOSF for sponsoring Rahmat Ullah Gill,
ED, IRP
my visit to Iran and my sincere gratitude to Prof. Seyed Komail Tayebi
Director ORIC, IISAT, Gujranwala
for his generous facilitation in Isfahan and Tehran. rahmat@irp.edu.pk

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Report Outline:
• Pakistan and Regional Innovation Economies
• Strengthening People to People Connect
• Replicating Iran Technology Park Experience in Pakistan
• Funding Program for Pak-Iran Joint Technology Initiatives
• Policy Recommendations for S&T in Pakistan
1. Pakistan and Regional Innovation Economies
Pakistan bordering countries Iran, China, and India have embarked on the innovation economy
successfully. Pakistan has established science base and capacity but lost the race of
commercialization and wealth creation. Pakistan universities can make and execute a catchup plan
by setting up technology parks and providing startup ecosystem in collaboration with regional
partners.
1.1. The Innovation Ecosystem of Iran
This research shows that Iran has established STI policy in three stages since the 1990s. The first
round of measures to advance higher education began in 1990. A second wave that emerged in
2000 focused on research and technology advancement, especially in the areas of emerging
technologies and the infrastructure required to support them. The third wave that signaled the
transition to an innovation- and knowledge-based economy started in 2010. The country's greatest
prized assets to this day are the large pool of young, educated, skilled workers and growing
research capability that the third wave developed. 2010 saw the passage of the Law Supporting
Knowledge-based Firms, which is the responsibility of the Vice President, ST (UNCTAD. 2016).
1.2. Iran Journey of Innovation Economy
1. One model of technology park was successfully developed by Isfhan University
2. Iran got sanctions
3. Political will was high and legislation backup was provided
4. Industry was incentivized to invest in startups backed by policy consistency
5. Knowledge based firm creation was incentivized by law, regulations and funding
6. International integration was promoted
7. Universities were encouraged to replicate Isfhan success
8. Financial resources were provided
9. The strong incubation and production support was provided
10. Industrial facilities in the universities were initiated
Source: https://www.undp.org/publications/mapping-existing-innovation-ecosystem-ir-iran
1.3. Innovation Economy of China
• China ranked 10th in the world and the first in East Asia in 2022
• There were over 368 “unicorns” in 2022
• Valuation of China’s unicorns in 2022 to be at RMB 9.4 trillion ( US$1345.5 billion).
• In 2022, an average of 23,800 new companies were established every day
• VC investments in China has reached 5,208 investments worth a combined RMB 371
billion (approx. US$53.7 billion) in 2021
Source: https://www.china-briefing.com/news/china-startup-landscape-industries-investment-and-incentive-policies

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1.4. Innovation Economy of India

• India has emerged as the 3rd largest ecosystem for startups globally with over 1,12,718
DPIIT-recognized startups across 763 districts of the country as of 03rd October 2023
• India is home to 111 unicorns with a total valuation of $ 349.67 Bn by 2023
• 22 unicorns with a total valuation of $ 29.20 Bn were born in 2022
• 891 funding deals were recorded in H1 2022, 82.8% higher from H1 2021
• Over $ 17 Bn funding was raised by startups, 1.8x of funding raised in 2021 ($ 9.4 Bn)
• 56 companies world over have achieved the decacorn status by 2023.
• India has five startups namely, Flipkart, BYJU’s, Nykaa and Swiggy, added in decacorn
cohort
Source: https://www.investindia.gov.in/indian-unicorn-landscape
1.5. S&T Bottlenecks in Pakistan
• Lack of awareness and orientation of modern STI trends
• Lack of global integration, exchange and connectivity
• Lack of advocacy and promoter agencies providing leadership
• Absence of one successful model to replicate
• Lack of training and capacity building programs
• Absence of legislation and regulatory backup
• Lack for venture capital
• Lack of incentives for academia, startup and industry
• Lack of grant schemes for startups
• Lack of grants for tech part development
1.6. S&T Capacity of Pakistan
Pakistan being USD 400 billion GDP, USD 30 billion export, around USD 60 billion import and
6th largest population in the world, presents great demand for technology consumption and good
market size. Similarly Pakistan is home for 200 plus universities, 300 plus R&D institutes, around
50 centers of excellence and specialized research labs.

Pakistan needs Technology Parks as connecting hubs between market demand and science
capacity. These technology parks along with startup ecosystem will bridge the gap and convert
science resource into technology resource producing economic returns.

Pakistan recently established Special Technology Zone Authority with legal foundation to backup
S&T Parks. Now universities of Pakistan need to gear up, setup technology parks, bring industry
into campuses and drive the wheel of startup economy

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2. Strengthening People to People Connect

Pakistan and Iran have historical linkages that provide the groundwork for improved cooperation
in an innovation-based economy. This report seeks to provide specific recommendations for
enhancing relationships across a range of industries, acknowledging the importance of this
collaboration.
2.1. Connectivity between Businesses
● Forming cooperative business forums, providing incentives for investment, and promoting
cooperation in important sectors.
● Planning business summits, creating a plan for bilateral trade promotion, and simplifying
laws pertaining to trade and customs.
2.2. Connectivity between Universities
● Starting collaborative research projects, organizing faculty-student exchanges, and setting
up research centers to tackle common issues.
● Sponsoring scientific conferences, putting exchange programs into place, and encouraging
collaborative research initiatives.
2.3. Expanding Trade between the Two Nations
● Improving agreements for economic cooperation and lowering trade obstacles.
● Consistently examining and revising trade agreements, as well as putting policies in place
to enhance infrastructure and logistics.
2.4. Increasing Travel
● Facilitating traveler visa applications and encouraging collaborative travel initiatives.
● Creating programs for cultural interaction and marketing packages for cooperative travel.
3. Replicating Iran Technology Park Experience in Pakistan
The initiative seeks to promote innovation, entrepreneurship, and information sharing in Pakistan
by imitating the success of Iran's Technology Parks. This plan lays forth a multimodal strategy
that includes joint events, workshops for increasing capacity, and exposure trips.
3.1. Pakistani Universities' Exposure Visits to Iran Tech Parks
● Set up visits by university delegations to well-known tech parks in Iran.
● Encourage communication between park administration, entrepreneurs, and players in the
innovation ecosystem.
● Promote the sharing of knowledge through seminars, workshops, and group discussions.
3.2. Capacity Building and Exposure Workshop in Pakistan by Iran Tech Park
● Work together with Iranian Tech Parks to host workshops in Pakistan that will increase
capability.
● Promote S&T awareness including promoting an innovative culture, best practices for
incubation, and technology commercialization.

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● Encourage communication between S&T experts and ORICs from Pakistan and Iran.
3.3. Tech Park Expo in Pakistan for Iran Startups
● Plan Tech Park Expos with Iranian startups in prominent Pakistani cities.
● Arrange business-to-business meetings between prospective Pakistani industry and Iranian
startups.
● Encourage international cooperation and investment by holding networking events.
3.4. Program to Promote Pak-Iran Tech Park Exchange under ECOSF
● ECOSF to serve as a long-term partnership facilitator.
● Create a defined program of exchange for scholars, tech experts, and startups.
● Consistently evaluate and improve the program in response to development exchange
regarding S&T parks of both countries
4. Funding Program for Pak-Iran Joint Technology Initiatives: A Vision for Collaborative
Innovation
This grant program needs to support the potential for cross-border technical collaboration between
Iran and Pakistan and fund collaborative actions in technology development, innovation, and
startup incubation. The program's objectives are to create collaborative technology parks and
encourage business partnerships between business owners in the two nations.
Objectives:
• To fund joint technology development and commercialization projects between Iranian
and Pakistani startups and incubators.
Actions Plan:
• Create a joint fund specifically intended to assist projects that are technology-driven.
• Request research proposals from academic institutions, tech businesses, and research
centers in both nations.
• Establish a committee of specialists from both countries to assess and choose projects to
sponsor.
• Promote initiatives that deal with issues that both countries face and advance their
economies.

5. Policy Recommendations for S&T in Pakistan

5.1. Creation of a National Technology Park Strategy

Pakistan needs to develop a thorough national strategy for technology parks based on the
successful model of Iran. This strategy should specify objectives, timetables, and key performance
indicators (KPIs) to guide the establishment and growth of technology parks around the nation.
5.2. Government Incentives for Technology Park Initiatives
Encourage the establishment of technology parks in Pakistan by providing tax breaks and other
incentives, in addition to financial support. This would attract outside funding and create an
environment that would facilitate the growth of innovation clusters.

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5.3. Integration of Technology Parks with Academic Institutions

Technology parks should be systematically connected with universities and institutions to foster
collaborative research, talent exchange, and the seamless translation of academic discoveries into
practical applications.
5.4. International Networking and Collaboration
Encourage foreign collaboration and partnerships for Pakistani technology parks by modeling your
approach after Iran's. One way to do this could be to establish memorandums of understanding
with global tech clusters, support collaborative research initiatives, and encourage knowledge
sharing.
5.5. Establishment of Incubation Support Programs
Technological parks need to establish comprehensive programs for incubation support. These
programs should provide resources for mentorship, financing access, and company growth in order
to assist businesses and creative activities.
5.6. Flexible Regulatory Framework
Establishing a framework for regulations that is adaptable and flexible to encourage innovation in
technology parks. This would facilitate the establishment of a dynamic ecosystem that is quick to
adjust to new technological advancements.
5.7. Strategic Infrastructure Development
Encourage the development of technology parks' strategic infrastructure by making sure they have
state-of-the-art buildings, labs, and co-working areas. In order to foster an atmosphere that is
favorable to research and development, this investment is essential.
5.8. Initiatives for Government-Industry Collaboration
The creation of a robust system for routinely observing and assessing Pakistan's technology parks
in order to ascertain their effectiveness. This would make it easier to make decisions based on
evidence, to keep improving, and to adjust to changing conditions.
5.9. Tech Park Expo and Showcasing Events
To organize technology exhibitions that are modeled after Iran's Tech Park Expo for both national
and international audiences. These events would provide entrepreneurs with a platform to
showcase their innovations, attract investors, and promote global collaboration.
5.10. Framework for Continuous Monitoring and Evaluation
Within technological parks, industry and government collaborate more closely. This may need
collaborative efforts, public-private partnerships, and industry-sponsored research in order to
connect innovation with customer requirements.

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