Embeddedness of State-Pioneer Entrepreneurs and Technological Change; The Case of Biopharmecutal Catch-Up in Iran

According to the views of leading theorists in the field of industrial development studies, specifically those who have focused on developing countries like Rodrick, Evans, Chang and Block industrial policy making should take place in realm of "strategic network cooperation" or a kind of "embeddedness" among government and pioneer entrepreneurs. In this study, we tried to study mechanisms through which such "embeddedness" has occurred (transpired) in the rapid growth of the biopharmecutal sector in Iran. Through such processes and mechanisms, the policy needs of the private section has been swiftly transfered to policy makers in the government section. Based on a qualitative strategy, empirical data gathered through interviews with 39 influential persons in Biopharmaceutical sector. Then data has been thematically analyzed and codified, and finally, three main embeddedness mechanisms and procedures has been identified. The most important mechanism was, university researchers, take ‘consecutive’ administrative (management, executive) positions in both government and industry. In this process which we name "institutional circulation" policy needs of the private section as well as essential information and knowledge transfers easily to the policy makers in the government and put the government and industry section in a mutual learning process.