Prioritization of Industries of Iran Based on Indicators of Economic Catch-up

Selecting a suitable approach to achieve sustainable economic growth, particularly in developing nations, has always been a central theme in economic research. Economists continually seek a universal factor driving this phenomenon. The theory of economic catch-up, rooted in the Schumpeterian school and informed by the developmental experiences of East Asia (South Korea, China, and Taiwan) offers a framework for understanding this growth and development. Since different sectors offer different potentials for developmental entry, selecting industries becomes a crucial question in transitioning from poverty to prosperity. Through an exploration of theoretical foundations and existing research, we've distilled four key indicators: technology life cycle, modularity of technology, explicit knowledge levels, and the extent of embodied technology transfer. These indicators serve as a framework for prioritizing and selecting industries in alignment with the catch-up approach. To determine priorities, we've assigned weights to these indicators using the hierarchical analysis method. Employing the PROMETHEE method to rank stock market industries in Iran, three industries emerged in the following order: computer and electronics, medical, optical, and measuring instruments, and automobile and spare parts. These findings provide a framework for identifying key industries in Iran's seventh development plan and industrial policy document, facilitating informed decision-making.