Assessment of the Technology Contribution to industry Value Added; Case study Chemical Industries Value Chain in Fars Province

This study is done to define the technological contribution in the value chain of chemical industries and assess the effects of this on industrial’s value added. The value network contains 581 active firms in 5 stages and 21 groups, and date gathered with 141 questionnaires by snowball method. Then the technology contribution and economic value added are defined for each stage and group. Besides the descriptive analysis, the role of technology contribution in value creation is evaluated with correlation analysis. The findings show that value added has a positive correlation to the technology contributionand a reduction of technology share in each firm leads to decreasing operating profit decline and increasing non-technological capital cost, and finally the reduction of value added. Assessment of the groups shows that intermediate, petrochemical, coating, insulation and detergents groups have more impression with technology contribution. With respect to the low relative technology contribution of these groups in Fars province, technology reconstruction and modernization investment in these firms could upgrade value chain.