Institutional Requirement of Acknowledge Based Economy: How The Fourth Development Plan of Islamic Republic of Iran Has Paid Its Due Attention?

Structural changes in the world economy and necessity of national adjustment to face competition have made knowledge based development inevitable. Acquiring necessary knowledge is bounded by pre-existing institutions in a path-development framework and would be flourished only if the necessary Socio-economic institutions are setup and work efficiently. In this process government play an important sole. In this paper we show that although our fourth Development plan recognized the importance of institutions in knowledge based economy but it failed to realize an integrated approach to institutional building as generally emphasized by Institutional economists.