A Framework For Deepening Local Content by Using Technology Ecosystem Perspective: A Case Study of Local Content Project in Subway Car

Document Type : Research Paper


1 PhD Student Technology Management, Department of Management and Accounting, Allameh Tabataba’i University, Tehran, Iran

2 Faculty Member, University Complex of Management and Soft Technology, Malek Ashtar University of Technology, Tehran, Iran

3 Faculty Member, Department of Management and Accounting, Allameh Tabataba’i University, Tehran, Iran


Despite the great concern about achieving  local content  in Iran, the various policies and tools, mainly the supply-oriented ones in this regard have not been much successful in most industries in this country. This research introduces the technology ecosystem approach as a demand-driven tool to tackle the problem. In this regard, the case study of the local content project on subway cars, which was approved in 2019, has been reviewed and the data collection was done by holding 10 sessions of the focus group through  constant comparative analysis method. Based on the findings of this case study, deepening local content in subway cars is linked to the four topics of planning and strategy formulation, designing an operational model, identifying the internal capacities and implementing the strategy which are very similar to the four phases of analysis, design, deployment and implementation in the ecosystem lifecycle framework. As a result, findings of the case study confirm the influence of ecosystem perspective in the local content issues  and it can be tried in future researches more clearly to show the real performance of ecosystem perspective in local content studies.


-          Acheampong, T., Ashong, M., & Svanikier, V. C. (2016). An assessment of local-content policies in oil and gas producing countries. The Journal of World Energy Law & Business9(4), 282-302. https://doi.org/10.1093/jwelb/jww019 
-          Adner, R., & Kapoor, R. (2010). Value creation in innovation ecosystems: How the structure of technological interdependence affects firm performance in new technology generations. Strategic Management Journal31(3), 306-333. https://doi.org/10.1002/smj.821 
-          Adomavicius, G., Bockstedt, J. C., Gupta, A., & Kauffman, R. J. (2007). Technology roles and paths of influence in an ecosystem model of technology evolution. Information Technology and Management8(2), 185-202. https://doi.org/10.1007/s10799-007-0012-z 
-          Adomavicius, G., Bockstedt, J., Gupta, A., & Kauffman, R. J. (2006). Understanding patterns of technology evolution: An ecosystem perspective. In Proceedings of the 39th Annual Hawaii International Conference on System Sciences (HICSS'06) (Vol. 8, pp. 189a-189a). IEEE. https://doi.org/10.1109/hicss.2006.515 
-          Afshin, H. & Azhdari, A.A. (2019). An analysis of the real demand of the rail transport fleet in the country and the local content capability [In Persian]. Energy, Industry and Mining Studies, Deputy of Infrastructure Research and Production Affairs Office, Islamic Parliament Research Center of the Islamic Republic of Iran. https://rc.majlis.ir/fa/news/show/1200142
-          Arasti, M.R., Akbari Jokar, M.R., & Karimpour Kalow, A. (2014). A model for integrated and strategic planning of manufacturable technology groups at supply chain networks in a corporation: The case of Saipa corporation [In Persian]. Journal of Technology Development Management, 2(3), 9-48. https://doi.org/10.22104/jtdm.2015.180
-          Dedehayir, O., Mäkinen, S. J., & Ortt, J. R. (2018). Roles during innovation ecosystem genesis: A literature review. Technological Forecasting and Social Change136, 18-29. https://doi.org/10.1016/j.techfore.2016.11.028 
-          Eltejaie, E., & Pourbagher Z. (2014). A survey on the direction of Iran’s foreign trade policy  [In Persian]. Quarterly Journal of Fiscal and Economic Policies, 2(7), 109-134. http://qjfep.ir/browse.php?a_code=A-10-197-1&slc_lang=fa&sid=1
-          Farhady A. (2004). Survey of foreign trade effects on Iran's economic growth [In Persian]. The Journal of Planning and Budgeting, 9(1), 27-58. http://jpbud.ir/browse.php?a_id=117&sid=1&slc_lang=fa
-          Garshasbi, A., Esmaeilipour Masoule, E., & Miandoabchi, E. (2017). Key components of industrial policy with a new approach to improving regional competitiveness [In Persian]. Journal of Business Reviews, 14(4), 1-14. http://barresybazargani.itsr.ir/article_28144.html
-          Geels, F. W. (2005). The dynamics of transitions in socio-technical systems: a multi-level analysis of the transition pathway from horse-drawn carriages to automobiles (1860–1930). Technology Analysis & Strategic Management17(4), 445-476. https://doi.org/10.1080/09537320500357319 
-          Glaser, B.G. (1978). Theoretical sensitivity: Advances in the methodology of grounded theory. Sociology Press.
-          Gobble, M. M. (2014). Charting the innovation ecosystem. Research-Technology Management57(4), 55-59. https://www.tandfonline.com/doi/abs/10.5437/08956308X5704005
-          Hufbauer, G. C., Schott, J. J., & Cimino-Isaacs, C. (2013). Local content requirements: A global problem (Vol. 102). Columbia University Press. https://www.piie.com/sites/default/files/publications/papers/hufbauer20131007ppt.pdf
-          Iansiti, M., & Levien, R. (2004). Keystones and Dominators: Framing the Operational Dynamics of Business Ecosystems. Harvard Business School Press. Retrieved from https://www.hbs.edu/faculty/Pages/item.aspx?num=16920
-          Kazemi Najafabadi, A., & Ghafari, A. (2018). Developing industry of oil and gas upstream equipment production in iran: Assessment of the legal regime within the framework of the overall policy of "science and technology" [In Persian], Journal of Researches Energy Law Studies, 4(1), 239-211. https://doi.org/10.22059/JRELS.2018.220781.65
-          Kazzazi, A., & Nouri, B. (2012). A conceptual model for local content development in petroleum industry. Management Science Letters2(6), 2165-2174. https://doi.org/10.5267/j.msl.2012.05.031 
-          Kinyondo, A., & Villanger, E. (2017). Local content requirements in the petroleum sector in Tanzania: A thorny road from inception to implementation?. The Extractive Industries and Society4(2), 371-384. https://doi.org/10.1016/j.exis.2017.01.007 
-          Krueger, R.A. (1998). Moderating focus groups. Sage. https://doi.org/10.4135/9781483328133 
-          The Law on Maximum Utilization of Service and Production Capabilities in Supply of the Country Requirements. No. 354/19091. (2019). https://rc.majlis.ir/fa/law/show/1148732
-          Miller, C. (2017). Value creation, appropriation, and product design strategies in technology ecosystems: Three essays on the role of complementary technologies [Doctoral dissertation, University of Minnesota, Minneapolis, US]. https://core.ac.uk/download/pdf/211345293.pdf
-          Moore, J. F. (1993). Predators and prey: A new ecology of competition. Harvard Business Review71(3), 75-86. https://hbr.org/1993/05/predators-and-prey-a-new-ecology-of-competition
-          Morgan, D.L. (1998). The focus group guidebook. Sage. https://doi.org/10.4135/9781483328164 
-          Naghizadeh, R., Hajari, M., & Rahman Khasmakhi, Z. (2019). The effective factors of policy pattern of tax support from knowledge based activities [In Persian]. Journal of Technology Development Management, 7(2), 161-194. https://doi.org/10.22104/jtdm.2019.3432.2190
-          Nambisan, S., & Sawhney, M. (2011). Orchestration processes in network-centric innovation: Evidence from the field. Academy of Management Perspectives25(3), 40-57. https://doi.org/10.5465/amp.2011.63886529 
-          Narimani, M., Elyasi, M., & Attarpour, M.R. (2019). Proposing an institutional framework to increase the effectiveness of government and public’s role in enhancing technological capacity of internal productions: A case study of the maximal use of internal capabilities law [In Persian]. Innovation Management Journal, 8(2), 21-47. http://www.nowavari.ir/article_92222.html
-          Oh, D. S., Phillips, F., Park, S., & Lee, E. (2016). Innovation ecosystems: A critical examination. Technovation, 54, 1–6. https://doi.org/10.1016/j.technovation.2016.02.004 
-          Ovadia, J. S. (2014). Local content and natural resource governance: The cases of Angola and Nigeria. The Extractive Industries and Society1(2), 137-146. https://doi.org/10.1016/j.exis.2014.08.002 
-          Rabelo, R. J., & Bernus, P. (2015). A holistic model of building innovation ecosystems. IFAC-PapersOnLine48(3), 2250-2257. https://doi.org/10.1016/j.ifacol.2015.06.423 
-          Ritala, P., Agouridas, V., Assimakopoulos, D., & Gies, O. (2013). Value creation and capture mechanisms in innovation ecosystems: A comparative case study. International Journal of Technology Management63(3-4), 244-267. https://doi.org/10.1504/ijtm.2013.056900 
-          Rong, K., Liu, Z., & Shi, Y. (2011). Reshaping the business ecosystem in China: Case studies and implications. Journal of Science and Technology Policy in China, 2(2), 171–192. https://doi.org/10.1108/17585521111155228 
-          Safdari Ranjbar, M., Rahman Seresht, H., Manteghi, M., & Ghazinoori, S.S. (2016). The pattern of building and accumulating technological capabilities for producing complex product systems in developing countries: The case study of oil turbo compressor company [In Persian]. Journal of Technology Development Management, 4(4), 9-38. https://doi.org/10.22104/jtdm.2017.1933.1669
-          Taklif, A., Faridzad, A., & Ghafari, A. (2018). Economic and legal considerations of oil equipment production used in upstream sector in Iran with emphasis on technology transfer in IPC [In Persian]. Iranian Journal of Trade Studies, 22(1), 89-124. http://pajooheshnameh.itsr.ir/article_31799.html
-          The Islamic Republic News Agency (2019, September 23). 420 subway cars join public transport [In Persian]. IRNA. https://www.irna.ir/news/834877645
-          Tordo, S., Warner, M., Manzano, O., & Anouti, Y. (2013). Local content policies in the oil and gas sector. The World Bank. https://doi.org/10.1596/978-0-8213-9931-6 
-          Velu, C., Barrett, M., Kohli, R. A. J. I. V., & Salge, T. (2010). Thriving in open innovation ecosystems: Toward a collaborative market orientation. Judge Business School, University of Cambridge. https://www.jbs.cam.ac.uk/wp-content/uploads/2020/08/wp1004.pdf
-          Walrave, B., Talmar, M., Podoynitsyna, K. S., Romme, A. G. L., & Verbong, G. P. (2018). A multi-level perspective on innovation ecosystems for path-breaking innovation. Technological Forecasting and Social Change136, 103-113. https://doi.org/10.1016/j.techfore.2017.04.011 
-          Wareham, J., Fox, P. B., & Cano Giner, J. L. (2014). Technology ecosystem governance. Organization Science25(4), 1195-1215. https://doi.org/10.2139/ssrn.2201688 
-          White, S. (2017). Regulating for local content: Limitations of legal and regulatory instruments in promoting small scale suppliers in extractive industries in developing economies. The Extractive Industries and Society4(2), 260-266. https://doi.org/10.1016/j.exis.2016.08.003 
-          Yin, R. K. (2003). Case study research: Design and Methods. Sage. https://doi.org/10.1046/j.1365-2648.2003.02790_1.x 
-          Yin, R. K. (2011). Applications of case study research. Sage. Retreived from https://us.sagepub.com/en-us/nam/applications-of-case-study-research/book235140