Regulatory Policies and Instruments for Innovation Development in the Global Automotive Industry: Lessons for Iran

Eliasi, Mahdi; Goodarzi, Mahdi; Ghazinoori, Sorush; Monji, Hamidreza

doi:10.22034/bs.2026.2087323.3221

Regulatory Policies and Instruments for Innovation Development in the Global Automotive Industry: Lessons for Iran

Document Type : Original Article

Authors

Mahdi Eliasi

Mahdi Goodarzi

sorush Ghazinoori

Hamidreza Monji

Allameh Tabatabaei

10.22034/bs.2026.2087323.3221

Abstract

As one of Iran's largest strategic industries, the automotive sector plays a vital role in employment generation, technological value creation, industrial competitiveness, and innovation capacity. However, the country's current regulatory framework and policy instruments have, rather than fostering innovation, contributed to technological lock-in, weakened incentives for research and development (R&D), and widened the gap between Iran's automotive industry and global technological trends. This study employs documentary analysis and comparative policy analysis to examine innovation-oriented regulatory policies and governance instruments adopted in selected developing countries with significant automotive industries. Based on a systematic comparison, the study identifies key policy lessons and proposes a framework for restructuring Iran's automotive innovation governance system. The findings suggest that strengthening innovation requires a gradual transition from administrative control toward market-oriented and mission-driven regulation. Specifically, the study recommends the phased elimination of mandatory price controls in favor of competitive market mechanisms; the establishment of an independent and unified automotive regulatory authority; the implementation of targeted policies to upgrade domestic component manufacturers into platform development and technology partners; and the formulation of a long-term national strategy for emerging automotive technologies, particularly electric and hybrid vehicles. Overall, the article argues that Iran's automotive regulatory paradigm should shift from a model centered on direct intervention, price control, and administrative oversight to one emphasizing strategic guidance, standardization, innovation incentives, and mission-oriented governance

Keywords

Automotive Industry / Innovation Policy / Regulatory Governance / Innovation Regulation / Mission

Oriented Policy / Iran

Subjects

‌Foresight and Future Studies in Industry, Mining and Trade‌

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