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Innovation Center Proposal: Supporting Domestic Production

Khat Group's Innovation Center proposal — a practical framework based on global and domestic experience to support domestic manufacturing. Covers technology transfer, risk-sharing models, public-private partnerships, and policy recommendations for sustainable industrial development in Iran.

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Khat Group Team
Khat Group
Innovation center proposal

Drawing on years of experience in technology acquisition and production line commissioning, Khat Group has developed a comprehensive Innovation Center Proposal — a practical framework to support domestic manufacturing in Iran through structured technology transfer, risk mitigation, and public-private collaboration.

Innovation center concept

Core Concept

An Innovation Center acts as a structured intermediary between:

  • Industry needs (identified via customs data & industry engagement)
  • Technology providers (universities, research institutes, tech companies)
  • Investors & government (funding, policy, guarantees)

The center manages the full lifecycle: Need identification → Lab prototype → Pilot scale → Industrial demo → Commercial production

Six-Step Implementation Model

1. Need Identification

Intermediary firms analyze customs data & engage industries to map technology gaps — prioritizing import substitution opportunities.

2. Process Design Model

Four-stage maturity gate:

  1. Lab prototype — 50% of import quality
  2. Semi-industrial pilot — 70% quality
  3. Industrial demo — 75% quality
  4. Commercial grade — 100%+ (match/exceed import)

3. Investment Model Design

Flexible financing structures:

  • Venture capital / risk capital
  • Interest-free long-term loans (innovation funds)
  • Pre-purchase agreements
  • Government-backed capital guarantees
  • Crowdfunding / collective investment

4. Executor Selection

Multi-disciplinary teams:

  • University research teams
  • Tech startups / knowledge-based firms
  • Specialized engineering companies Selected via transparent evaluation by intermediary, client, and experts.

5. Government Support & Policy

Smart legislation with time-bound measures:

  • Gradual tariff reduction on target imports
  • Quality milestones tied to protection periods
  • Tax incentives for domestic R&D investment
  • Streamlined permitting for pilot plants

6. Execution & Oversight

Contracted execution with multi-stakeholder steering committee:

  • Executors, intermediary, clients, government reps
  • Periodic milestone reviews
  • Adaptive management for course correction

Equity Structure (Flexible)

  • Client company (industrial end-user)
  • Importers (mandated to co-invest)
  • Collective investment / public participation
  • Venture capital / risk funds
  • Government funds & banks
  • Intermediary firm (center operator)

Khat Group’s Role

With a track record of commissioning multiple production lines (ceramic magnets, advanced ceramics, SrCO₃, textile ceramics), Khat Group is positioned to operate such an Innovation Center — bridging lab-scale research to commercial production.

Reference: Slideshare presentation by Dr. Mohammad Talaeizadeh (CEO, Khat Group).


Khat Group — Building the bridge from laboratory to production line.

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How to Support Domestic Production: A Two-Pronged Policy Framework

Khat Group's comprehensive policy proposal for supporting domestic manufacturing in Iran — diagnosing three core problems (production, imports, liquidity) and presenting a two-track solution: (1) Innovation Center model with risk-sharing & technology transfer, (2) Import reform with mandatory local content & smart tariffs. Includes six-step implementation, equity models, and government policy levers.

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