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A Comparative Analysis of Research and Development in Iran and Four Leading Countries

Research and Development (R &amp; D) are indicative of countries' advancement and investment in R &amp; D units is considered as a competitive advantage. Nowadays, only countries which attempt to pave the way for rapid scientific advance and economic success through pursuing new technological advances and bridging their knowledge and technology gaps can take part in global competition. The present paper aims at contributing to the extant literature and investigates various R &amp; D success factors and their status in Iran and developed countries including Japan, the U. S., China, and Germany. Then, a contrastive analysis of the countries follows, and ultimately, some suggestions are postulated to develop research status in Iran. In the light of the results, industrial countries in comparison with Iran view investment in R &amp; D as an indispensible principle of economy and have increasingly developed the requisite infrastructures for its growth as well as full bloom of science and technology.

phases. In other words, R & D refers to the needs or talent analysis, emergence of ideas, creating, designing, production, representation, and propagation of a product or technology.
Today, R & D is known as a decisive factor to economic development and success of economic enterprises and countries in the global competition. In fact, R & D units are the starting points for the generation and the cultivation of ideas as well as managing and directing them toward completion and commercialization. Economists believe that science and technology as powerful aids can have a pivotal role in the development process. In today's world, only countries which enjoy high levels of science and technology deserve the name developed countries. The presence of many advanced products, methods, tools, and technologies is attributed to the development and growth of the countries in science and technology. In contrast, lagging and developing countries are all at a low level of science and technology. The studies enacted by economists on developed countries have revealed that high growth rate of these countries is due to the application of huge technological innovations. These technological innovations stem from increasing advances in storing scientific knowledge as surplus wealth (Movahhedi, 1995). Growth and success of enterprises are feasible through improvement of technology levels and since such improvement occurs in R & D sector, investment in this sector can be increasingly influential in enterprise's success.
The high institute of research in planning and development urges that in order to R & D investment to stimulate the growth of enterprises, there must be a well-defined system for successful management of R & D activities. Through planning and organization of research activities such a system will not only induce greater R & D efficiency, but also spur the enterprises' future growth. This paper, through comparison of R & D in Iran with leading countries, undertakes an identification of scientific and research gaps to render preparation of principled plans and policies for scientific advances possible and aids bridging the existing gaps.
Studying research and technology commercialization is particularly relevant since such analysis provides reliable evidence for policymakers and managers. Accordingly, the topic has moved beyond a nice field and is now a scholarly subject matter (Rothaermel, Agung, & Jiang, 2007). As Dumbleton (1986) asserted, modeling R & D process is useful since it helps one identify the key factors in R & D success. However, he himself admits that, to date, no such model has been identified. Rather than seeking a general model, he presented a linear model as shown in Figure 1. Dumbleton also believed that R & D inputs can be divided into two categories of resources and information. Resources include human forces, equipment, Electronic copy available at: https://ssrn.com/abstract=3331808 devices, and building. Put differently, they are the amount of money spent on R & D. It is imperative to mention that return on investment (ROI) is of great importance to managers. In addition, for universities and public research centers, the tendency towards commercialization represents pressures to expand social return on public investment in research and attempt to contribute to universities' self sustenance (Markman, Siegel, & Wright, 2008).
According to Dumbleton (1986), due to the long-term return of R & D costs, managers are reluctant to invest in this area. This is an unsound approach to research. Knowledge is a central part of input, and R & D process is the process of knowledge generation and transfer.
Arguably, a large percentage of outputs are in the form of primary design of product, article, and information related to its improvement and extension.
As depicted in Figure 1, the first stage of commercialization, i.e., R & D is comprised of three dimensions, namely technical analysis, business analysis, and market evaluation.
Technical analysis refers to defining the concept, confirming the assumptions, gauging knowledge, identifying the main impediments, and assessing applicability. Market evaluation is defined as identification of price structure, market barriers, hazards, distribution channels, trends, and competitors. Ultimately, business analysis represents the assessment of potential benefits, commercialization, and identification of capital and professional needs. Product development, which is the next stage, deals with technical feasibility including development of a business model, examining technical features, evaluation of initial productivity, and environmental and safety features. Finally, the last stage means production, includes preparation of commercial design, quality control, provision of facilities, mass production, and finalization of internal distribution system.   Figure 4 by Zabihi and Zavari (2010).  (Zabihi & Zavari, 2010) A systematic look at development issue helps one claim that sheer advance in one R & D indicator will not bring about real development. For example, Iran has substantially and exclusively increased the number of ISI published papers in science and technology, but it still lags behind in industrial development. As another example, according to the statistics released, Iran's industrial import has been four times as large as its industrial production whereas industrial growth has surpassed growth in other sectors.
It is obvious that the growth of any system requires growth in all elements of it. This Other important R & D criterion in a country is ratio of scientists and engineers in a million which presented in Figure 5 (vertical axis). In this regard, Finland with over 7000 scientists and engineers per million has the first place followed by Denmark, the U.S., Singapore, Electronic copy available at: https://ssrn.com/abstract=3331808 Japan, and South Korea with over 6000.  South Korea, and Taiwan in 2014 is assessed as mediocre. Middle East countries will also experience a desirable GDP growth in 2014. However, passing through growth stages is not straightforward and will be challenged by infrastructure weaknesses and limitations. This is not the case for Zionist regime and Qatar. In addition, 20 countries will experience a growing trend due to over 600-billion-dollar R & D expenditure which is the highest relative compared to other regions in the world. Such costs are merely about 500 billion dollars for 21 American countries and over 350 billion dollars for 34 European countries by 2014.

Pinto and Slevin (1987) have put factors affecting R & D success in four categories
including market-related, technology-related, environment-related, and organization-related factors. Market-related factors which concern with current demand analysis and potential future power of market for the product or the technology, identification of primary market, introducing the product to the market, market analysis with regard to expenditures, profitability, and sales prediction in the future. Furthermore, technology-related factors which include the presence of a creative source for idea generation and bringing innovations in the product, perceived value of the product, patent and technical knowledge, demand pull, and technology propulsion. The next factor is environment-related factors such as momentary geography of technology in which Japan has been strongly involved through employing committed individuals to identify its technology gaps compared with other countries and, thus, set plans and policies based on it. Finally, organization-related factors which deal with support plans for sales and marketing, quantitative use of techniques, developing tactics for project purposes, and aligning financial policies with business ideas.

R & D in Germany
In economic downturn turbulence and when industrial and manufacturing sectors were struggling for their survival, German government decided to invest substantially in private and governmental R & D sectors and, accordingly, increased its governmental investment in

R & D by 25 per cent and in its private investment in R & D by 19 per cent. This incentivized
German companies to increase market share of their products through concentrating on R & D by 3.6 per cent. This is very appealing in comparison with the U. S. and European Union annual growth rates of 2.9 per cent and 1.85 per cent, respectively. Therefore, some plans and policies of German federal government for economic growth through R & D investment include public support for advancing in different research areas, establishing linkages between governmental and private sectors, using skilled graduates as aids to technology transfer, and institutionalizing strong linkages between industry and university.
Firstly, the federal government attempts to enhance research and innovation culture in the community, particularly in universities and research institutes, support the superior design plan, and allocate considerable funds to attract professionals, researchers, and scientists from all over the world through accomplishing the goals of high schools, universities, and research centers. To date, it has attracted 4200 researchers and scientists which 25 per cent of them come from overseas. also worth mentioning that buying and selling technology is much more difficult than buying and selling products (Arora, Fosfuri, & Gambardella, 2001;Bidault & Fischer, 1994;Rappert & Webster, 1997;Teece, 1981). Today, around 20 per cent of scientists in Europe are attracted to Germany due to current innovation and research environment.
Finally, although in Europe scientific training had started prior to industrialization, there were no strong linkages between industry and university since the industrial revolution.
Advances and inventions in scientific and technical issues were made by affluent individuals who were not experts and who were driven solely by personal interests. However, the condition dramatically changed in the second half of 19 th century, and individuals who had received academic training entered the industry. Many institutes provided these experts with laboratories. This was considered a part of Germany's general approach to global industrial management science which is at the service of industry.
In addition, education enthusiasm and respect to university's top professors brought about different outcomes in Germany. A close relationship was formed among industries, universities, and innovators and chemistry professors were considered as actual innovators in synthetic industry. German government also allocated a large sum of money for research and train chemistry in technical schools and universities. For instance, after two decades of research and spending millions-dollar governmental funds Neil Synthetic generated coal from tar in 1880. Consequently, thousands of well-trained chemists with average salaries formed a scientific and open-minded cohort. Surprisingly, an English board which was visiting Germany in 1872 found that the number of chemistry students at a German university (Munich) is greater than the number of chemistry students in all English universities.
Germany has established strong linkages between science and industry in other areas, too.

R & D in China
Over   A key feature of this project is the presentation model design for piloting the plans which is followed by correcting defects, optimizing the plans, and extending them from regional to country levels. It is possible to conclude that this country is on the road to technological and scientific growth by taking into account the long history and old civilization of China and its national determinations as well as its motto which stated that knowledge and technology are primary production powers.

R & D in Japan
Rapid and tremendous development of Japan after World War II prompted many countries to exploit its management pattern. Many countries unanimously contend that Japan owed this great postwar reconstruction success to its specific management techniques which play an active part in planning and executing research strategies. In fact, Japan's the most important

R & D in Iran
In the late 1970s Iran and Turkey were two of the largest Middle East countries. They had common historical experiences until the 1950s. They were colonized in the 19 th century and both as remainders of two empires in the region have a long history of national identity. Their oil-free economic structures were very similar up to 1970. In both in the period from 1960 to 1970 the share of agriculture declined from one thirds of GDP to one fourths of it, whereas the share of industry and services increased (Shambayati, 2009).
To shift away from dependence on oil to a knowledge-based economy (wisdom economy) and to turn into a country with appealing science and technology production capacities, largescale science and technology policies should be taken, all components of neurological integration system (NIS) should cooperate as an integrated, coherent, and purposeful system; and research institutes and universities should be developed. Therefore, it can be stated that there is a direct relationship between development of research sector on the one hand and rapid development of countries on the other. Research should be a tool based on which decisions should be made and actions should be taken. The more scientists exist in a society, the more scientific, social, and political advances can be observed.
In 1992  From among 227 countries, America with annual 239000 articles published in academic journals and conferences is the top as far as absolute science production is concerned.
However, Swiss trails other countries concerning the ratio of science production to population. Japan with 78000 articles ranks the second behind America and is followed by Germany, England, France, China, and Italy, respectively. In general, the top 7 countries Electronic copy available at: https://ssrn.com/abstract=3331808 enjoy approximately 60 per cent of global science production. It appears that this is also the case for economic growth. Turkey which had previously outperformed Iran in producing science now stands in 19 th place. By  Electronic copy available at: https://ssrn.com/abstract=3331808 As Table 3 shows, according to the predictions of international institutes, America, China, Japan, and Germany will have the largest R & D investments and Iran will rank 24 th in the world. Although the law emphasizes allocation of budget to R & D, official bureaucracy and impeding rules inhibit favorable applications.

Active Participation of Private Sector
Developed countries have facilitated the involvement of private sector, and the government grants significant support to it.
The specific economic structure of the country leas to the dominance of governmental sector, and the activity of private sector is ruled and controlled by government.

International Participations
Majority of countries follow open innovation policies to seize new scientific opportunities.
Iran seldom partakes in global competition.
Thorough Strategies and Policies Developed countries utilize thorough strategic policies which coordinate all social, academic, economic, and cultural components in an attempt to enhance economic growth and development.
Although science and technology plans and policies are specified, existing contrasts among various components have impeded attainment of these goals, and thus, scientific and economic growth.

Commercialization of Research Results
The presence of various organizations and institutes with specified plans and budgets for commercialization of research findings not only motivated research, but also prepared the context for the emergence of new ideas.
In spite of the existence of science and technology parks and science cities, we still lag far behind in commercialization of research findings.

Discussion and Conclusion
In order to investigate the difference in growth rates between developed countries and Iran based on their research activities and the use of it as a guide for decision-making in R & D and enhancing country's research status, some suggestions are proposed for our country, Iran.
First of all, policies formulation and strategic research plans in a large-scale system suffer from having no nuanced policy and bright outlook. Moreover, the size of budget for research activities and innovation in developed countries is clearly determined in advance. Therefore, we need a principled mechanism to allocate this budget to overcome this crisis. Regarding to economic and political structure in a country, public sectors are generally responsible for