TEHRAN (IRNA) -- Minister of Industry and Mines Es'haq Jahangiri said here Tuesday that industrial units' research centers should incorporate two pivotal factors of industrial exports and productivity increases.

Speaking at the fourth seminar on research centers and expansion of industries and mines, he added the sustainable economic development is a central aim of the fourth five-year development plan (March 2005-2010) and major section of Iran's 20-year plan.

He refereed to the industrial sector as an engine of economic development. To ensure progress three factors of competition, constructive contact with the world and enlarging the economy are all essential, the minister underlined.

He said industrial exports are indicator of economic growth. The non-oil exports have risen from $600 million in the past years to $6 billion currently. "The share of industrial exports as of the total non-oil exports stands at 15 percent."

Jahangiri added among the countries, which embarked on industrial development about the same time, the above figure is 70-90 percent. Hence, he added 'we are long way off'.

He also forecast that by 2010 the total non-oil exports would top $15 billion, of which $12 billion will comprise industrial exports. Presently, over 65-75 percent of industrial exports are items, which are derived from natural resources. "But, from now on exports should become more advanced so that the sector's current one percent share can be raised."

He said based on figures for the last 30 years the share of factors of production in economic growth has not been positive. But experiences of other nations indicate that in a longer period over 50 percent of economic growth rates is directly related to productivity increases of factors of production. He also stressed on provisions for elements that increase productivity. Higher per capita income is solely sustainable through that of achieving higher productivity rates. "Industrial units should pay great attention to this issue."

He said that training, more advanced technology, internal and external structural reforms are pivotal factors and are influential in raising productivity.

Jahangiri said here last month that low productivity is a major factor hindering industrial development. He added that a major factor is the low level of education and skill of labor in industry. He said a major part of growth in industrial countries is related to higher labor productivity. "Unfortunately the average education of labor in Iran's industrial sector is lower than the average in the other sectors of the economy." He said to achieve an eight percent annual growth in the economy a 20-year span is needed. "Such a growth rate needs sustained industrialization as well as 10-fold increase in the non-oil exports or at least a 10-year period." Jahangiri underlined. "If we intend to reach such the desired outcome, our products should become more competitive in the world markets." Furthermore, re-evaluation of officials' mindset is the pre-requisite for the industrial sector to become more competitive. NB/AH/210 End ::irna 18:56 ????????????????? 18-56-38.F18 ô‘?• ?‘?—÷? ?????????????????