Export Performance of Iran's Knowledge-based Production with Emphasis on Competitiveness Approach

Enhancing the competitiveness in knowledge-based industries is critical for national economies of developing countries due to its direct role in creating the value-added and bringing in foreign exchange. Evaluating the export competitiveness of Iran's knowledge based products in multilateral trading system is a primary goal of this paper. The method used is based on shift-share market analysis whose indicator relies on the value of backward-looking (actual) export and import of Iran and all of its trade partners during 2000-08 based on HS tariff lines and ISIC classification. Findings indicate that Iran is competitive in just a limited number of such products in a global market with a value of $ b 1345.8, Iran is competitive in only 30 product which contstitute 25.7 percent of total value of global demand. If this situation continues, Iran will lose its market share. To increase Irans competitiveness in knowledge-based industries and enhance its position in regional and global trade, two key points should be addressed: 1. Extending the skills and innovation at national level. 2 Preparing the grounds for further use of advances in global technology through productive diplomacy and increased access to regional markets, absorption of foreign investment, and technology transfer.