The Vicious Circles of Underdevelopment and Their Impacts on the National Innovation System in Iran

Abstract

The path of technology development in Iran is embedded in a rentier society. This paper aims to introduce, first, the concept of rentier paradigm and its impact on the mechanism of selection, variation and self replication and then show how this paradigm leads to a bifocal innovation system in which a dynamic and integrated sub-system of strategic dual use innovation system juxtaposes with a fragmented and inactive one in the civilian sector. This paper concludes that the persistent bifocality of the innovation system causes vicious cycles, which create the phenomena of "lock-in" and transition system failures and sustains the underdevelopment of the economy.

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