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Comparative Analysis of Sectoral Innovation System and Diamond Model: The Case of Telecom Sector of Iran

Porter’s model of Competitive advantage of nations (named as Diamond Model) has been widely used and criticized as well, over recent two decades. On the other hand, non-mainstream economists have tried to propose new frameworks for industrial analysis, that among them, Sectoral Innovation System (SIS) is one of the most influential ones. After proposing an assessment framework, we use this framework to compare SIS and Porter’s models and apply them to the case of second mobile operator in Iran. Briefly, SIS model sheds light on the innovation process and competence building and focuses on system failures that are of special importance in the context of developing countries, while Diamond model has the advantage of brining the production process and the influential role of government into focus, but each one has its own shortcomings for analyzing industrial development in developing countries and both of them fail to pay enough attention to foreign relations and international linkages.