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Determination of science-based companies and institutions

Science-based companies

Definition: A company or institution (that has completed all the legal stages of registration in the country, either as "private" or as "cooperative") that is formed with the objective of synergy between science and wealth, the development of science-based economy, the realization of scientific and economic objectives (including expansion and functionality of innovations and inventions) and the commercialization of the research results and development (including design and production of products and services) in the area of higher technologies, with increased added value, especially in  producing related software.

Indicators for determining science-based companies

The indicators for determining science-based companies are categorized into two groups: general and specific.  Requesting companies in addition to conforming to the general indicators, should conform to the conditions mentioned in one of the three specific indicator groups.

General Indicators

  1. At least two thirds of the company's board of directors should meet at least two of the following conditions:
    1. Possess at least a bachelors degree
    2. Have at least 3 years of work or scientific experience in the operating field of the company, or have a managerial background.
    3. Have at least one domestic registered and evaluated invention or an international invention related to the operating field of the company.
  2. At least half of the company's income during the past fiscal year, be it through the sales of technology, merchandise or science-based services (including research, development, and engineering design services related to science-based merchandise list, and specialized science-based services) should be through contracts.

Note: Companies that are commercializing their first science based product, if they have a successful pilot production, have obtained the required standards from competent domestic or international entities, and have a sure market or a valid need-announcement along with a production contract, are exempt from clause 1-2.

  1. The insurance paid for at least 3 of the company's full-time personnel should be at least 6 months.

Note: The case of companies that have defaults in performing their commitments (finances, supports, taxation, insurance and …) will be examined according to the attached instructions.

Specific Indicators:

In addition to conforming to the general indicators, the requesting company must conform to all the specific conditions in one of the following categories:

 

2-1 Companies producing science-based products

2-1-1 The company should produce science-based product (s) according to the science-based merchandise list, and should have offered them as new or improved products within the last 2 years and have institutionalized and localized its technical knowledge by transferring or generating technical knowledge through research and development activities.

Note: The company's new or improved products must have domestic or global approvals and standards (if applicable), and I case of lack of a standard, must have obtained the confirmation of competent user.

2-1-2 The ratio of its full-time staff in non-support sections of the company having a bachelors degree or higher active in sections of the company related to the production of science-based products, to all the full-time staff should be at least 30 percent.

2-1-3 The company should have an active R&D operation, with its R&D expense being at least 7% of the company's annual sales.

 

2-2 R&D and engineering design services companies

2-2-1 R&D activities or engineering design services companies, should be related to science-based merchandise list, and the output of R&D or engineering design services should have resulted in at least two cases in the last 2 years (or one case within the last year) of "product improvement" or "producing and supplying a new or improved product and service"(in the form of a contract).

2-2-2 The ratio of its full-time staff in non-support sections of the company having a bachelors degree or higher active in sections of the company related to R&D and engineering design, to all the full-time staff should be at least 50 percent.

2-2-3 The production of the company should be at most experimental samples or pilots.

Note: The R&D or engineering design unit of an industrial company, in case it is registered as a separate legal entity can be included in section 2-2.

 

2-3 Companies offering science-based specialized services

2-3-1 Their services should match the approved "science-based services list".

2-3-2 The ratio of its full-time staff in non-support sections of the company having a bachelors degree or higher active in sections of the company related offering specialized science-based services, to all the full-time staff should be at least 50 percent.

2-3-3 The sum of R&D expenses related to the specialized science-based services offered by the company, should be at least 7 percent of the company's annual income.

2-3-4 The company's annual income from specialized science-based services should be at least one billion rials (as of 2012).

2-3-5 Should have at least one contract of offering specialized science-based services, within the last year.