Introduction: In the last decade, many efforts have been made to expand innovative businesses in various economic sectors in Iran. Despite this fact, the share of the knowledge-based sector in the national economy is still insignificant. In the meantime, the agriculture, biotechnology and food industry sectors have a more limited share, relatively. According to the available statistics, there are about 7,000 certified knowledge-based firms in the country, many of which are known as start-ups and have not had a significant impact on Iran's economy, while innovation and technology driven sector has become the engine of global economic growth. The World Intellectual Property Organization (WIPO) annually evaluates the performance of different countries in the form of the Global Innovation Index (GII) using a wide range of indicators related to innovation. This index helps policy makers and decision makers to gain a clear understanding of how the process of innovative activities and its effects on economic growth and development. The purpose of this study is to examine the contribution of the factors that constituted this index, including institutional factors, human capital and research, infrastructure, market complexity, business complexity, knowledge creation and creative products in Iran. Materials and Methods: The approach of the global innovation index was applied to investigate the factors affecting the development of the knowledge-based economy in Iran. The necessary data and information were obtained from the website of the World Intellectual Property Organization (WIPO, 2021). The Global Innovation Index consists of two main components, Innovation Input Sub-Index and Innovation Output Sub-Index, with seven key sub-indices of "Institutions and Institutions", "Human Capital and Research", "Infrastructure ", "market complexity", "business complexity", "knowledge and technology" and "creative outputs" Results and Discussion: Based on the results of the global innovation index for 2021, Iran achieved a ranking of 60th out of the 132 countries that were surveyed. An analysis of the factors constraining innovation in Iran, as compared to leading nations, reveals that Iran's position is significantly hindered by its low placement in key categories. Specifically, Iran's standing is notably low in the index of institutions and complexity of businesses, and it also fares poorly in the complexity of markets. These particular aspects emerge as the primary obstacles curbing innovation and impeding the growth of a knowledge-based economy within Iran. Conversely, Iran demonstrates considerable strengths in terms of human and research capital. To elaborate, the country excels in areas such as the generation of knowledge, the development of inventive products, and the cultivation of a skilled human workforce. These facets collectively underscore Iran's prowess within the knowledge-based sector. However, a distinct picture emerges when assessing the limitations. Institutional factors, the expansion of businesses, the progression of markets, and the development of essential infrastructure are identified as the pivotal bottlenecks constraining the advancement of an innovation-driven economy. In essence, while Iran possesses commendable strengths in its knowledge-oriented endeavors, it grapples with systemic challenges in fostering an environment conducive to broader innovation and economic growth. Conclusions: Based on the findings of the study, it is evident that the political, economic, and legislative institutions have thus far been unable to establish a consistent and conducive atmosphere for the advancement of innovation and the growth of knowledge-based enterprises. Consequently, rather than relying solely on optimistic aspirations and anticipating miraculous outcomes from innovation and creativity, it becomes imperative for the nation to prioritize a thorough reassessment, adjustment, and modernization of these institutions in alignment with effective global paradigms. |