The Vice President for Science and Technology in the 13th government stepped down two years after promising to develop 10 unicorns and just days after the unveiling of ‘Ghazal.’
During his tenure, it was claimed that the number of knowledge-based companies grew by 50%, technology development centers increased, and efforts were made to create a ‘domestic Tesla.’ Dehghani was a strong proponent of ‘tiered internet’ and considered Iran a paradise for real entrepreneurs and elites.
According to Fanzy, Rouhollah Dehghani Firouzabadi, a Sharif University graduate and faculty member, was appointed as the interim Vice President for Science and Technology on September 19, 2022, marking the one-year anniversary of the 13th government and following the resignation of Sorena Sattari. Three months later, he was also appointed as the head of the National Elites Foundation, while retaining his vice presidency position.
This report focuses on Dehghani’s promises and statements over the past years. A detailed evaluation of his performance from various perspectives will be conducted in Fanzy, incorporating feedback from knowledge-based sector professionals.
Discrimination: Dehghani’s Legacy for the Public and Innovation Sector
Dehghani was a staunch advocate of tiered internet. His tenure as Vice President coincided with the blocking of popular social media platforms and widespread internet disruptions. He made significant efforts to institutionalize discrimination within the innovation ecosystem, a goal he ultimately achieved.
In May 2023, he referred to tiered internet as an intermediate strategy for the current internet situation, stating that ‘professional internet’ was a request from some startup entrepreneurs.
In the final sessions of the 13th government, tiered internet was approved by the cabinet for innovation sector stakeholders. According to the cabinet’s decree for establishing the International Innovation Zone of Iran, the Ministry of Communications is tasked with addressing or modifying internet access restrictions in Pardis Park by the end of this year.
This decree was one of the proposals put forward by the Vice Presidency for Science and Technology. There is hope that the 14th government will address this clear discrimination.
50% Increase in Knowledge-Based Companies
During Dehghani’s tenure, the number of approved knowledge-based companies reportedly increased by nearly 50%, reaching over 10,000. Currently, there are 6,803 startup knowledge-based companies, 2,358 innovative companies, and 871 technology companies.
This new categorization of knowledge-based companies was also implemented during Dehghani’s tenure. The new evaluation and support system for knowledge-based companies was unveiled in August 2023, with one of its goals being to prevent discrimination. Prior to this, knowledge-based companies were divided into two types.
According to the website of the Vice Presidency for Science and Technology, 1,892 supports were provided to these companies last year. These supports included ‘tax exemptions,’ ‘specialized military service,’ ‘residential use approval,’ ‘empowerment, commercialization, and consulting,’ ‘obtaining a commercial card,’ and ‘exemption from contract insurance fees.’
Focus on Exporting Knowledge-Based Products
Dehghani placed significant emphasis on exporting knowledge-based products during these years. Supporting knowledge-based companies to enter global markets and establishing necessary infrastructure to facilitate exports were among his actions.
According to the Vice Presidency for Science and Technology, exports by knowledge-based companies reached $2.5 billion. Other reported achievements include a sixfold increase in collaboration between major industries like oil and knowledge-based companies, an increase in foreign contracts, and growth in both quantity and quality of knowledge-based and creative companies.
However, excessive focus on large industries has been a point of criticism for Dehghani. Some sector professionals believe that these actions primarily enhanced his record and that greater attention should have been paid to foundational and infrastructural work.
What Happened to the 10 Unicorn Promise?
Dehghani, acknowledging the country’s need for unicorns, viewed them as engines for smaller companies and believed that with the implementation of the Knowledge-Based Production Leap Law, 10 unicorns could be achieved within three years.
In December 2021, during a television program called ‘Saf-e Aval,’ he highlighted the need for unicorns, stating: ‘One of our serious policies is to help medium-to-large knowledge-based companies that have the potential to grow, acquire smaller companies, and become unicorns. Unicorns will drive smaller companies and become resilient economies.’
A few months later, he spoke about a program to create 10 unicorns in the country within three years. However, this goal was never achieved. Instead, the Vice Presidency introduced the concept of ‘Gazal.’
Gazal refers to companies with more than 200 employees and a knowledge-based sales figure of at least $1 million. In August of this year, a ceremony was held by the Vice Presidency to award the ‘Gazal Knowledge-Based’ insignia to 12 companies. These were capable companies that experienced continuous and sustainable growth and made significant contributions to the employment of specialized human resources, knowledge-based exports, and value creation.
Proposal to Support Revolutionary Movements to Establish a Competitor to Digikala
In August 2023, Digikala and Azki were shut down due to issues related to employee hijab regulations, and Taqche was also filtered for the same reason. This incident further disheartened Iranian entrepreneurs.
At that time, Dehghani made a noteworthy statement on a domestic social media platform, expressing concerns about some startup ecosystem companies having serious cultural anomalies. He attributed this issue to the influence of Western and foreign cultural elements in previous years, which he believed had caused significant damage.
Dehghani proposed two solutions to address this issue: One approach was to support genuine and culturally revolutionary movements to create serious competitors to existing startups.
This statement coincided with remarks by Hussein Shariatmadari, the editor-in-chief of the Kayhan newspaper. Shariatmadari suggested that the ownership of online platforms should be transferred to the state, as some of them had become parallel governments, violating the country’s laws.
Some connected these remarks to Dehghani’s statements. However, Dehghani responded with a delay of a few months in May 2024, clarifying his position. He said, “I did not suggest that you transfer their shares; that would be wrong. But some unrelated individuals in the same space took positions that poisoned the atmosphere. I said do not close down businesses; instead, support revolutionary movements like student Basij to create something like Digikala. Is it possible for the government to spend money and create something like Digikala?”
Increase in Technology Development Headquarters
During Dehghani’s tenure, the number of technology development headquarters increased from 11 to 19. These headquarters were categorized into two groups: “Strategic Technology Development” and “Knowledge-Based Economy.”
The Strategic Technology Development headquarters examine the country’s needs in line with global trends and gather opinions from experts. The Knowledge-Based Economy headquarters aim to accelerate technological innovations in large economic chains, develop investment opportunities in the knowledge-based economy, support market development for technological products, create conditions for the emergence of major technology players, and ultimately increase the share of knowledge-based companies in national GDP and improve the country’s trade balance.
Efforts to Develop Indigenous Tesla
In an episode of the TV program “Bi-Vaseete,” Firoozabadi revealed that Tesla cars were brought to Iran and disassembled for research purposes. While he clasped his hands and laughter from the host was heard in the background, he responded to a question about the legality of disassembling Tesla vehicles by saying, “In the world, yes, but we did this as researchers.” A few seconds later, he added, “We bought the car, wanted to open it, and didn’t commit any sin.”
He emphasized that their intention was to draw inspiration from these vehicles, not to copy them: “We disassembled the Tesla car and took as much inspiration as we could. However, after a certain point, it becomes a matter of software that does not allow entry and examination.”
Following these statements, there was no further news about the indigenous Tesla until a few weeks ago when some media reported that technology extracted from these imported Teslas would be directly used in the “Jetco JX10” vehicle—a medium-sized sedan, with plans for an electric version to be released.
The Promised Land of Entrepreneurship: From Dream to Reality
Dehghani’s remarks about talents and entrepreneurs also sparked significant reactions. In December 2022, he stated in a brainstorming session with accelerator managers that Iran could be a paradise for entrepreneurs, provided they are true talents and not just nominal ones. According to him, a true talent is someone who is not disheartened by “not hearing back” and “not getting responses” from officials and ministries, and whose goal is not to leave the country.
On July 5, 2023, Dehghani also mentioned that the elite community should not exacerbate the migration trend, and that the idea of “everyone leaving” was incorrect. He believed that a major reason for the increased migration slope from Iran was the COVID-19 pandemic in recent years.
This comes amid the widespread disruption of the internet following the fall of 2022, the death of some startups, and official statistics showing a rise in migration in 2023.
Now, with a change in this position, all eyes are on the future to see what approach the new Vice President will take towards startups and innovative companies. What is clear is the country’s need for a real leap in technology and innovation that goes beyond mere naming and brings about a fundamental transformation in the startup and knowledge-based ecosystem.
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