Identifying homogenous production opportunities with the current state of Iran's' parts and equipment manufacturing industry based on the approach of economic complexity.
Despite the importance of diversification and industrial development, finding a suitable way to determine homogeneity and relevance is one of the main challenges in implementing this type of strategy. For this reason, applied studies using new methods of determining homogeneity seems necessary for solving real problems in the world of policy and strategy. Therefore, the purpose of this research is to identify products that are homogenous with the current products of the countrychr('39')s parts and equipment manufacturing industry. The method used in this research is the economic complexity approach that identifies homogenous production opportunities with the current capabilities of the Iranian parts and equipment manufacturing industry, based on the export data of 669 commodity codes under the parts and equipment manufacturing industry between years 2002 to 2017. The findings of this study indicate the existence of 28 homogenous production opportunities with the current situation of Iranchr('39')s parts and equipment manufacturing industry, which moving towards them will make the industry more diverse and complex. By producing these products, technological capabilities can be accumulated, and more export earnings can be achieved. Accordingly, the production of some types of turbines, engines, vehicle parts, tubes, machine parts and locomotives constitute a significant part of production opportunities in line with the Iranian parts and equipment manufacturing industry. Findings and methods used in this article can be used as a practical guide by industry policymakers and managers.
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