How Diversity and Dynamism of Government Policies Affect the Formation and Evolution of Strategic Industries: A Case Study of Iran's Gas Turbine Industry

Many scholars have highlighted the role of government policies in the formation and evolution of complex product systems (CoPS) industries. On the other hand, Iran has made plenty of effort to acquire knowledge, skills, and technologies of manufacturing gas turbines as a CoPS industry and consequently it has achieved favorable and remarkable outcomes. Gas turbine industry is one of the strategic industries that incorporate technologies and products used in a wide range of industries such as energy, oil and gas, and defense. This paper aims at investigating the effects of variety and dynamism of government policies on the formation and evolution of this industry in Iran, through employing a qualitative approach and case study strategy. The data were collected through interviews with industry and policy experts, documents and observation. Research findings indicate that government have created a proper condition for the formation and evolution of this industry in Iran via acting as leader and coordinator, investor and financer, client and operator and enabler and facilitator and adopting appropriate policies for each role. The innovation of this research is to examine the diversity and dynamism of government policies affecting the formation and development of a strategic industry with complex products and systems in Iran, under certain conditions, including international sanctions.