Iranian Association for Management of Technology Journal of Science and Technology Policy 20080840 18 1 2025 04 21 Identifying Challenges of Utilizing R&D Tax Credit Program in Selected Industries Identifying Challenges of Utilizing R&D Tax Credit Program in Selected Industries 37 50 14110 10.22034/jstp.2025.11919.1862 FA Mitra Karami PhD in Technology Management, Technology Studies Institute, Tehran, Iran Meysam Narimani Associate Professor of Science & Technology Policy, Technology Studies Institute, Tehran, Iran Alireza Shojamoradi Master of Science in Chemistry Engineering, Technology Studies Institute, Tehran, Iran Mohammad Sahebkar Khorasani Assistant Professor of Mechanical Engineering, Technology Studies Institute, Tehran, Iran Journal Article 2025 03 10 ‏ One of the supportive tools for promotion of research and development which has been recently introduced to the country's science and innovation ecosystems is the Research and Development Tax Credit Program (subject of Section "B" of Article 11 of the Knowledge-Based Production Leap Law). Given that more than two years have passed since the mentioned program has been launched, it is necessary to review the implementation of the aforementioned program in various industries.In this article, using the qualitative content analysis method, challenges to utilizing the tax credit program in five selected industries (Information & communication technology, medicine & diagnostic treatment products, chemicals, equipment & heavy machinery & electronics)in form of common unifying themes (lack of trust, non-user friendliness design of the tax credit system & lack of mechanisms to guide R&D  projects) have been identified & the policy recommendations to address these challenges have been addressed. In order to resolve the mentioned challenges, on one hand, it is necessary that tax credit managers review the acceptable expenses in tax credit program in accordance with characteristics of projects in different industries, and on the other hand, to consider activities to support implementation of the program. These activities include reviewing the implementation processes of the existing system, setting up mechanisms to guide R&D projects towards acceptance into the tax credit program, and preparing and updating a list of national priority projects. Only in this way can the tax credit program can be expected to lead to increased R&D intensity in the country. ‏ One of the supportive tools for promotion of research and development which has been recently introduced to the country's science and innovation ecosystems is the Research and Development Tax Credit Program (subject of Section "B" of Article 11 of the Knowledge-Based Production Leap Law). Given that more than two years have passed since the mentioned program has been launched, it is necessary to review the implementation of the aforementioned program in various industries.In this article, using the qualitative content analysis method, challenges to utilizing the tax credit program in five selected industries (Information & communication technology, medicine & diagnostic treatment products, chemicals, equipment & heavy machinery & electronics)in form of common unifying themes (lack of trust, non-user friendliness design of the tax credit system & lack of mechanisms to guide R&D  projects) have been identified & the policy recommendations to address these challenges have been addressed. In order to resolve the mentioned challenges, on one hand, it is necessary that tax credit managers review the acceptable expenses in tax credit program in accordance with characteristics of projects in different industries, and on the other hand, to consider activities to support implementation of the program. These activities include reviewing the implementation processes of the existing system, setting up mechanisms to guide R&D projects towards acceptance into the tax credit program, and preparing and updating a list of national priority projects. Only in this way can the tax credit program can be expected to lead to increased R&D intensity in the country. https://jstp.nrisp.ac.ir/article_14110_c45fc4c90d2b62eda04743d2ff934b3c.pdf