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Law of Supporting Knowledge-Based Firms and Commercialization

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The law of Supporting Knowledge-Based firms and Commercialization

The present report tries to provide a summary of the mentioned law. The law was approved by parliament in November 2010. Important events related to knowledge-based firms law are summarized as table below:

Activity

Date

Preparing the bill of law in vice presidency for science and technology

January, 2008

Approval of the law in parliament

November, 2010

Approval of the "Implementing Regulations" by the government

November , 2012

Launch of qualification system of knowledge-based firms and enrolling applicants

March, 2013

Announcement of tax exemption of firms located in the science and technology parks by Iranian National Tax Administration(ITNA)

August, 2013

Approval of the first list of verified knowledge-based firms

September, 2013

Approval of second edition of evaluation guideline and criteria of knowledge-based firms that recognizaed industrial companies with knowledge-based activities as potential applicants for the law

March, 2014

The first financial facilities provided for knowledge-based companies by Innovation and Prosperity Fund (IPF)

June, 2014

Approval of detailed methodology of customs exemption

October, 2014

Implementing knowledge-based products leasing program by IPF

February, 2015

Implementing program for support and development of of knowledge-based products and services export

May, 2015

Article 1. The law define knowledge-based firms as private or cooperative enterprises that aimed to make a synergy between science and wealth, help to growth of knowledge based economy, meeting scientific and economic goals and a mean for facilitation of commercialization of research and development results (including design and production of goods and services) in the high-tech areas with considerable added-value.

Article 2. Supreme Council of Science, Research and Technology (that will be called SCSRT for the rest of the report) is responsible for overseeing and implementing the law.

Article 3. Support and facilitate grants to firms including:

  • Exemption from taxes, duties, , and export duties for and interval of fifteen years.
  • Providing all or part of the production cost, supply or use of innovation and technology by granting low-interest long-term or short-term loans.
  • Prioritizing the establishment of research, engineering and production units of knowledge based firms in the science and technology parks, incubators and science and technology districts.
  • Prioritizing the cession of public research institutions shares based on Principle 44[1] of the constitution law to knowledge based firms.
  • Providing insurance to reduce risks associated with innovative and technological products in all stages of production, supply and use.

Article 5. In order to assist the commercialization of innovations,inventions and also applying know-how knowledge by providing financial services to knowledge based firms, the Innovation and Prosperity Fund (IPF) was established in 2011. It`s financial resources include state aid, credits allocated to the fund in government annual budget, investment of persons and public companies and institutions, NGOs,municipalities and commercial banks. The government should allocte at least a half percent of it`s public budget to IPF anually, after absorbing the seed capital in three years.

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