What is knowledge-based firm (KBF)?

In simple terms, a knowledge-based firm is created to commercialize the ideas and inventions of scientific elites and researchers, including university faculty members. Essentially, what happens in a knowledge-based firm is entrepreneurship based on science and knowledge that leads to high added value. In addition to generating knowledge and advancing science, it should also have economic justification.

In these types of companies, research and development are expanded towards commercializing knowledge by attracting university experts. The aim is to create both economic and scientific progress.

Knowledge-based firms are a combination of scientific and economic development aimed at offering products or services at their optimal point.

Types of knowledge-based firms:

Knowledge-based firms are classified into two types: governmental and commercial. If the university owns the company and holds more than 50% of its shares, it is called a governmental knowledge-based firm. However, if only university faculty members are shareholders and own less than 50% of the shares, it is called a commercial knowledge-based firm.

Another categories of knowledge-based firms are as follows:

  • New Technology-Based Firms (NTBFs)
  • Manufacturing companies
  • Industrial companies

NTBFs are classified as knowledge-based firms if they have been established for less than three years.

How to Become a Knowledge-Based Firm?

Many people mistakenly believe that to become a knowledge-based enterprise, they must initially register a company or institute as a knowledge-based entity. However, that's not the case. In other words, it's not necessary for the company or institute to be registered as a knowledge-based entity from the outset, or for the term "knowledge-based" to be mentioned in its activities.

In general, the process of becoming a knowledge-based firm involves obtaining approval from the The Vice Presidency for Science, Technology, and Innovation. To do this, companies can register on the reg.daneshbonyan.ir system and undergo evaluation.

Steps for Registering a Company in the System:

  1. Accessing the Registration System: Companies must log in to the system under "Registration and Evaluation" and then "System for Registering Knowledge-Based Companies and Institutions."
  2. Initial Company Registration: Companies entering the system for the first time should select "Registration" and then confirm the necessary commitments and information. They need to provide the company name, national ID, and email address for completion of the registration process. An activation link will be sent to the provided email address.
  3. Initiating Company Information Registration: After activating the link, the company can log in using the national ID and chosen password. Then, they should enter their information in seven sections: General Information, Board of Directors, Shareholders, Licenses and Standards, Existing Human Resources, Goods and Services, and Financial Information.
  4. Completing Information: The applicant must complete the information fields in each section displayed on the right side of the page. After completing each section, they should click on the "Save" button at the bottom of the page to ensure the entered information is saved.
  5. Sending a Knowledge-Based Evaluation Request: Once all information is completed and relevant documents are uploaded, the company must proceed to the "Submit Knowledge-Based Request" section and click on the final request button. Upon confirmation of the request submission, an acceptance receipt will be provided. For more information, visit: https://daneshbonyan.isti.ir

How can faculty members establish a knowledge-based Firm?

Do members of the board of directors of the applicant company have to be university faculty members? And is university ownership in knowledge-based companies necessary?

No, companies in which the university is not a shareholder and whose primary members are not university faculty members can enter the evaluation process for knowledge-based firms.

How can applicant companies benefit from the exemption from the law on prohibiting government employees from engaging in government transactions?

Applicant companies, after registration and submission of relevant documents on the daneshbonyan.ir system, are evaluated by the "Evaluation and Qualification Determination Committee for Knowledge-Based Firms and Institutions and Oversight of Implementation," in accordance with Article (3) of the Executive Regulations of the Law on Support for Knowledge-Based Firms, Institutions, and Commercialization of Innovations and Inventions. If confirmed, they can benefit from the exemption from the "Law on Prohibition of Intervention by Ministers, Members of Parliament, and Government Employees in Government Transactions."

Can universities participate in establishing and managing knowledge-based companies? And are these companies subject to the law prohibiting government employees from engaging in government transactions?

According to Article 43 of the Law on the Addition of Some Articles to the Law on the Regulation of Some Financial Regulations of the Government - ratified on 2/23/2015 - universities and higher education and research institutions (governmental and nongovernmental) are authorized to commercialize the research results of their faculty members and students by establishing and participating in knowledge-based firms, where up to forty-nine percent (49%) of the shares belong to universities, research institutions, and other government entities, and the remaining shares belong to faculty members, students, and other shareholders in the private sector. The establishment of the company and the share percentages and other conditions will be subject to the approval of the relevant institution's board of trustees. These companies are not subject to the Law on the Prohibition of Intervention by Ministers, Members of Parliament, and Government Employees in Government Transactions of 1958.

Can faculty members and government employees participate in managing or establishing companies, or can they be shareholders of knowledge-based firms?

Establishing a company by university faculty members and employees of universities and research institutions is not prohibited, and in cases where faculty members participate in establishing or managing a company that has not yet been approved as a knowledge-based company by the "Evaluation Committee for Knowledge-Based Firms," no illegal action is taken.

The only limitation in this regard is the prohibition of government employees' intervention in government transactions. This issue only becomes important in cases where the company in question intends to enter into a contract with the government. Therefore, in cases where these companies only sell their goods and services to the private sector, they are not subject to legal restrictions and will not naturally be subject to the law prohibiting intervention by ministers, members of parliament, and government employees in government transactions. Additionally, government employees cannot serve as the managing director of a company.

Information about Zanjan Non-Governmental Research and Technology Fund

The non-governmental Research and Technology Fund of Zanjan Province was established on 07/26/2018 with a license issued by Iran National Innovation Fund(INIF). The fund started its official activities in 2020 with private and governmental shareholders.

Its main objectives include:

  • creating a suitable platform for private sector participation and investment in supporting innovative ideas
  • facilitating the process of transforming ideas into value-added products
  • fostering collaboration between banks and technology units, assuming risk tolerance and commitment to investing in startup units for industrialization
  • establishing effective communication between universities and industries as a means of technology transfer
  • promoting management sciences within startup companies and serving as a central hub for communication between knowledge-based firms and technology developers to enhance B2B interactions in the province's entrepreneurial ecosystem.

Services provided by the fund are generally categorized into four areas: venture capital, investment, facilitation, guarantees, and commercialization consulting.

These services encompass activities such as:

  • providing financial resources for semi-industrial and industrial production.
  • investing in knowledge-based projects, offering technical, legal, and financial consulting services to researchers and research institutions.
  • providing necessary guarantees for banks and financial institutions.
  • analyzing research projects and preparing them for commercialization.
  • providing financial and operational support for patent registration at national and international levels.
  • establishing connections with industries to create industrial production opportunities. and empowering and training startup companies in basic business principles.