The Journal of Modern Research on Administrative Law

The Journal of Modern Research on Administrative Law

Analysis of administrative challenges of supporting knowledge-based companies and ways to improve it

Document Type : Original Article

Authors
1 PhD Student, Private Law, Saveh Branch, Islamic Azad University, Saveh, Iran.
2 Associate Professor, Department of Jurisprudence and Fundamentals of Islamic Law, Saveh Branch, Islamic Azad University, Saveh, Iran.
3 Professor, Department of Education and Law, Saveh Branch, Islamic Azad University, Saveh, Iran
10.22034/mral.2022.549449.1278
Abstract
Having the technology of knowledge-based products, depending on the type of industry, can give a lot of power to governments, and therefore it is necessary to support these companies. The legislature has also required the government to support these companies, but due to administrative inconsistencies and the lack of some infrastructure, these protections have not yielded the expected returns. In this descriptive-analytical study, the administrative challenges of supporting knowledge-based companies were investigated. It was concluded that the custodian of the companies' rating is not very specialized and considers only the ownership of the accelerator company as a criterion for the research score, which only leads to the presence and enjoyment of the benefits of knowledge-based companies by parent companies that do not have the expected return. On the other hand, some of the benefits provided to knowledge-based companies have in practice been ineffective by other institutional administrative regulations. The Tax Affairs Organization, by incorrect division of jobs, has deprived the knowledge-based companies of the benefit of tax exemption benefits, and the Customs of the Islamic Republic of Iran, by enacting regulations to protect sailors, has allowed the import of goods similar to knowledge-based products into the country. In the silence of the law, intellectual property cannot be mortgaged and there is a need to administratively consider such a privilege for the said property, which is a kind of protection for knowledge-based companies.

Highlights

New products / services, in addition to creating employment and economic prosperity, can give each country a special power that results from its particular monopoly. Although many inventors and innovators do not have much academic literacy, the production of innovative products / services has a scientific basis. The superpowers are now turning monopolies on certain technologies into tools of pressure to impose their demands on other countries, and this shows the importance of science-based products. Therefore, governments around the world have pursued a policy of supporting knowledge-based companies in order to contribute to the country's economic prosperity by developing important products / services. In our country, the law on the protection of knowledge-based companies was adopted somewhat later than expected in 2010 and the definition of these companies according to Article 1 of the same law was that "knowledge-based companies and institutions are private companies or cooperatives or cooperatives that Development of knowledge-based economy, realization of scientific and economic goals (including expansion and application of inventions and innovations) and commercialization of research and development results (including design and production of goods and services) in the field of high technologies and value-added, especially in software production "It will happen." Despite legislation requiring the government to support knowledge-based companies, these protections did not meet the expectations of the innovators, and large numbers of experts emigrated abroad each year. If the desired effect is not achieved in the correct legislative situation; Several modes are conceivable. First, legislation has its drawbacks. Second, administrative inconsistencies neutralize the supportive effect. Third, due to the lack of infrastructure, it is not possible to enforce the law. In this study, the second possibility, which is administrative inconsistency, has been investigated.

There are different opinions about supporting the creation of original works. Some argue that the government should support any innovative initiative. Others, on the other hand, argue that not every innovative project can be commercialized, leaving the government only obliged to support useful projects. The second idea is more popular, as a small percentage of innovative designs become commercially profitable.

Another aspect of supporting knowledge-based companies is risk-free partnerships, which are provided with financial assistance to these companies. According to the first idea about helping knowledge-based companies, the necessary financial resources should be provided for any innovative project, and this investment will eventually lead to the birth of a high-yield project. This type of financing is a kind of grants, and unlike accelerators that operate in the form of partnerships, the funds are spent on a non-profit basis in line with government objectives. Financing can not be gratuitous and can be paid in the form of facilities to activists in this field. Due to the non-profit nature of these types of expenses, the Science and Technology Park is administratively directly responsible for this important issue, which uses the government resources at its disposal to finance knowledge-based companies. It is noteworthy, however, that no mention of gratuitous aid is mentioned in the ICC, and facilities are mainly mentioned. This means that the government is focusing on providing facilities to knowledge-based companies, and therefore the procedure for granting grants is not clear. Articles 7 to 13 of the Executive Regulations of the Law on the Protection of Companies and Institutions of Knowledge-Based Institutions and the Commercialization of Innovations and Inventions, adopted in 2012, refer in part to gratuitous aid, but it is understood that the granting of such aid is subject to full assurance. These companies do not receive any grants and are only granted facilities during this legal period.

To solve this challenge, it is necessary to first change the special custodian of corporate scoring to specialized business custodians. Secondly, research points should not be awarded at the expense of the ownership of the accelerator company, and the amount of successful acceleration should be a criterion for granting facilities and points.

Therefore, the model of Turkey can be used and accelerator companies can be considered as "partners" and not "subordinates" of the Science and Technology Park. Priority should be given to the facilities of science and technology park centers with knowledge-based companies, and in case of providing some facilities such as offices to accelerator companies, its free cost will be calculated. In this way, the government's allocated resources are spent directly on knowledge-based companies, and at the same time, due to the lack of special benefits for accelerator companies, the ground for their better cooperation is provided.

The bottom line is that the legislative aspects of the policy support for knowledge-based companies are weak and the implementation of these laws is not compatible with the current infrastructure. At the same time, in the silence of the law, administrative inconsistencies have been evident, which in general has led to the sterility of government protection policies against knowledge-based companies. Therefore, in order for these institutions to move directly in the direction of supporting knowledge-based companies, it is necessary to create basic and legitimate incentives for these companies. Given that the coordination of all executive departments is done by the government as the highest executive body, it is necessary to establish coordination between different institutions to accurately implement support for knowledge-based companies, which is possible only by government orders. Based on the discussions, the following suggestions are made:

  1. It is suggested to the executive branch that by appointing a specialized trustee for the ranking of companies, the sole use of ownership in accelerating companies be the criterion for research score. And set the criterion of complete efficiency of the plan as a criterion of points.
  2. The science and technology park centers are suggested to register and save the draft plans in the electronic archive so that in case of any misuse, it can be used as evidence to prove the claim.
  3. Science and Technology Park centers are recommended to use economic experts to determine the economic future of innovative projects.
  4. It is suggested to the Ministry of Science, Research and Technology, while modifying the mechanism of support of accelerating companies for innovative projects, that the relationship of the mentioned companies with the Science and Technology Park be horizontal and of cooperation type and not of vertical and subordinate type.
  5. It is suggested to the Ministry of Economic Affairs that while issuing a circular, it determines the criterion of the authenticity of customs manifestos in order to eliminate the loophole of unauthorized import of products similar to those of Danesh Bonyan.
  6. It is proposed to the Ministry of Economic Affairs that by issuing the directives of the Tax Affairs Organization, it be required to amend the classification criteria of jobs and to give a special place for knowledge-based companies in order to benefit from tax exemptions.
  7. The officials of the Central Bank are suggested to issue a circular on the ability to mortgage intellectual property documents. A similar proposal is made to the judiciary and other government agencies.
  8. The Center for Intellectual Property of the Judiciary is advised to determine a reasonable period of time to support various innovative works in the silence of the Supreme Court and to have administrative authority to determine the duration of protection, in consultation with experts.
  9. It is proposed to the Ministry of Science, Research and Technology to determine the amount of investment and the share of accelerator companies in innovative projects in terms of inflation each year.
  10. It is recommended to the Ministry of Justice to train the field of intellectual property among experts so that thefts in this field can be technically identifie

Keywords
Subjects

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Legal resources
Regulation on the establishment and operation of science and technology parks, approved in 2016.
Executive Regulations of the Law on Protection of Companies and Institutions of Knowledge-Based Institutions and Commercialization of Innovations and Inventions, approved in 2012.
Regulations for the import of goods by sailors of traditional sea vessels with a capacity of less than (500) tons (commercial dinghies) and the organization and renovation of those vessels, approved in 1397.
Law on Execution of Sentences, approved in 1977.
5.Trade Law, approved in 1311 with the latest amendments.
Law on Support of Knowledge-Based Companies and Institutions and Commercialization of Innovations and Inventions, approved in 2010.
7.Law on Protection of the Rights of Authors, Writers and Artists, approved in 1348.
Law on Combating Commodity and Currency Smuggling, approved in 2013.
Volume 4, Issue 13
Fourth year, 13th issue, ّWinter 2022
Autumn 2022
Pages 13-39

  • Receive Date 23 February 2022
  • Revise Date 06 June 2022
  • Accept Date 07 July 2022