President of Innovation and Prosperity Fund Highlights Biotech as a Priority
According to Iran digital economy annotation,In the 52nd Startup Monday event focused on “Biotechnology,” the President of the Innovation and Prosperity Fund emphasized the sector’s priority status and the fund’s ongoing support for it.
According to the public relations department of the Innovation and Prosperity Fund, this event took place on Tuesday, August 13, 2024, and was organized by the fund in collaboration with the National Elite Foundation of Alborz Province, Alborz Innovation and Creative Industries Hub, and the knowledge-based accelerator C1. The event covered key areas such as diagnostic kits, stem cells, laboratory equipment, recombinant drugs, nano-biotechnology, and regenerative engineering.
The President of the Innovation and Prosperity Fund, Dr. Mohammad-Sadegh Khayyatian, highlighted the significance of such events for fostering the growth of knowledge-based companies and attracting top talents. He noted that approximately 16 innovation factories are currently active across the country, providing a solid foundation for the establishment and development of startups. The fund has allocated around 150 billion Toman (approximately 2.5 million USD) in loans to these innovation factories.
Dr. Khayyatian emphasized that innovation factories play a crucial role in advancing the country’s innovation and technology landscape. He pointed out that while science and technology parks have historically been established in both public and private sectors, innovation factories must be managed and operated by the private sector. The successful implementation of innovation factories has created a robust support system for nurturing the country’s elite talents.
Over the past decade, significant progress has been made in developing the innovation and technology ecosystem, with Iran’s innovation and technology ecosystem now considered among the leading ones in the region. This ecosystem, supported by more than 10,000 knowledge-based companies, has matured considerably, with strong backing from the government and related authorities.
Tax Incentives for Investors in Knowledge-Based Companies
Dr. Khayyatian also discussed the tax incentives provided to investors in knowledge-based sectors. He highlighted the positive impact of laws such as the “Support for Knowledge-Based Companies” enacted in 2010 and the “Knowledge-Based Production Leap” law of 2022. These laws offer tax credits and other benefits to investors in technology and knowledge-based fields.
Additionally, the 7th Development Plan includes provisions for investors who support the Innovation and Prosperity Fund by increasing its capital. Such investors will benefit from tax credits without the need for specific evaluations or audits. This regulation, recently approved by the Council of Ministers, is part of a broader strategy to enhance the knowledge-based economy. The share of the knowledge-based economy in GDP is currently around 2.7%, with a target of reaching 7% by the end of the 7th Development Plan.
Biotechnology as a Priority Sector
Dr. Khayyatian stressed that human capital is a crucial element of the knowledge-based economy. He argued that addressing national priorities such as strengthening the country, solving unemployment among university graduates, and boosting exports can all be achieved through the knowledge-based sector.
The fund has identified three key technology areas for focused support: biotechnology, artificial intelligence, and microelectronics. Additionally, three critical issues—energy efficiency, food security, and water management—are being prioritized. Thus, biotechnology is considered a key area of focus for the fund.
Impact of the Startup Monday Event
Regarding the significance of the Startup Monday event in “Biotechnology,” Dr. Khayyatian noted its role in connecting idea owners with investors in the venture capital (VC) industry. While the process might seem lengthy, it is expected to yield substantial results over time. To date, approximately 480 teams have participated in these events, and there has been significant growth in investment and investor confidence in the sector. The goal is to further develop the VC industry in Iran, potentially leading to the emergence of major companies like Digikala and Snapp.
Dr. Khayyatian also encouraged startups not to become disheartened in their quest for investment. The Innovation and Prosperity Fund, through its provincial research and technology funds, remains committed to supporting startups and technology-driven companies, ensuring that financial concerns do not become the primary focus for these businesses.
Event Overview
The 52nd Startup Monday event featured nine biotechnology startups presenting their projects to venture capitalists. The participating startups included 3ES, HelFORK, Novin Parsian Tissue, Novin Irsa Energy, Topaz Gen Kavosh, Vira Thermal Processing, WELLPRO, Neday Gene Patente, and Neday Fan Danesh. Each startup showcased its innovative solutions aimed at advancing biotechnology and attracting investment.
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