Descriptive Investigation of Value Chain Position in Iran’s Nanotechnology Companies

This study aims at investigating Iranian nanotechnology companies based on their positions in the value chain. Activities and behaviors of nanotechnology companies were investigated in a three-year period, from 2007 to 2010. The research adopts a descriptive approach to portray the emerging nanotechnology industry in Iran using the concept of value chain. All companies active in the field of nanotechnology in Iran were investigated during the study period. Data collection has been done through semi-structured interviews with managers of nanotechnology companies, their business customers, and partner organizations like other companies, universities, laboratories or research centers. In addition, formal and informal company documents, letters, reports and company websites were used as secondary data sources. Analysis of the data shows that the general approach of nanotechnology companies in Iran was more supply-oriented than demand-oriented. Some companies in the upstream part of the value chain have developed their activities to produce end products and moved toward downstream parts of the value chain. Results of the study reveal that industrial firms that have enhanced their products through adoption of nanotechnologies enjoy higher rates of return and profitability, compared to firms that are active in the upstream or midstream parts of the value chain. The research provides a comprehensive understanding of situation of Iranian nanotechnology companies for businesses and policy makers. It recommends support and empowerment of the intermediary firms and industrial firms to enable and facilitate cooperation of nanotechnology companies with the established industries.