This study aims at designing a model for dynamic capabilities evaluation in equipment manufacturing enterprises of Iran power industry. In so doing, enablers and indices of dynamic capabilities four elements (i.e., seizing opportunities, sensing opportunities, innovation implementation and reconfiguration) are identified. Since dynamic capabilities literature is rooted in developed countries, localization of dynamic capability concepts in Iran as a developing country and in the power industry as a main infrastructure of development is a matter of great magnitude. Considering data gathered from more than 100 power industry equipment manufacturers in Iran and gaining the opinions of experts in such fields as innovation management and technology development, the model has been designed and its accuracy will be assessed in the present study.
Purpose – The purpose of this paper is to describe the current status of the knowledge-based economy (KBE) in Iran in comparison to Turkey, the challenges encountered and the appropriate policies toward Iran’s Outlook 2025 based on which the country is expected to be ranked first in science and technology within the Middle East region. Design/methodology/approach – This study is a descriptive research. The methodology used for this study is qualitative/quantitative secondary research. The method will be used for two main goals. First, we used the World Bank’s Knowledge Assessment Methodology, and the data are mostly collected from secondary sources such as the World Bank’s Development Indicators for Iran and Turkey. Second, desktop research will be used to summarize and synthesize available studies on the consideration of policy-making toward KBE, especially among developing economies. Findings – The paper provides policy considerations around four pillars: information and communications technology (ICT), innovation system, education and human resources development and economic incentives and institutional regime. It suggests that regarding ICT indicators, Iran has to join international programs to attract senior public authorities’ involvement and accountability. Regarding its innovation system, lessons for policymakers are implementing development plans and coordinating science and technology policies in the country. Moreover, the quality of education, in-company training, post-secondary technical education and scientific and technological workforce need to be improved. Finally, considering the weak macroeconomic circumstances, legislative measures are needed in addition to, establishing a promotion agency for foreign direct investment to coordinate the inflow and to grant incentives for attracting more investment. Research limitations/implications – Because of the chosen research approach, the research results have not been confirmed by an experts group. Therefore, using some group decision-making methods, such as panel of experts, could be proposed to further test the findings. Practical implications – The paper includes implications for public policymakers, especially in developing countries, and for moving toward a KBE. Originality/value – This paper fulfills an identified need to learn from similar countries experiences in policymaking about the same problem.
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