TEHRAN – Iranian Transport and Urban Development Ministry on Saturday inked memorandums of understanding (MOU) with the vice presidency for science and technology and the New Towns Development Company for cooperation in establishing a new science and residential town.

The signing ceremony was attended by the Transport Minister Mohammad Eslami and heads of the mentioned entities, the portal of the ministry reported.

Speaking at the ceremony, Eslami pointed to the emergence of new opportunities for the activities of knowledge-based companies in science parks in recent years, and said: "over the past few years, the mechanism for the growth of knowledge-based companies has been provided in the country and the Ministry of Transport and Urban Development has also been involved in this process.”

The official further noted that his ministry is determined to support knowledge-based companies in order to help them develop their activities.

The law for promoting and supporting knowledge-based companies was approved by the Majlis (Iranian parliament) in 2010, paving the way for a jumpstart in the march toward scientific progress.

Over the past couple of years, the concept of ‘knowledge-based company’ has changed to ‘knowledge-based society’, meaning that supporting knowledge-based companies will lead to many social and economic advantages for the public.

According to Mehdi Elyasi, the deputy vice president for science and technology, the number of knowledge-based companies has increased from around 50 in 2013 to more than 5,700 in the current year.

Currently, many knowledge-based companies are active in different fields, ranging from information and communication technology to health, agriculture, and energy with an estimated total sale of 1,200 billion rials (around $28 billion at the official rate of 42,000 rials).

Various knowledge-based companies have made advancements in different fields, however, the level of progress in the fields of health, ICT, agriculture, and energy has been more noticeable. Of course, other sectors such as the automotive industry have removed many bottlenecks so far. At present, 40 knowledge-based companies with large turnovers are listed on the stock market.

EF/MA