Guideline for Granting “Product Development Credit” Finalized in ICT Park

Engr. Mohammad Ali Jafari reported on ICT Park’s support for the resident Techno-companies’ Product Development projects in the form of a credit called the “Product Development Credit”.

He added: “considering the type and age of the companies located in the Park, and the Park’s mission to develop companies’ products and markets, helping the companies in their development and increasing their research capacities, and laying the foundations for the production of new products or improvement of the existing ones, and increasing the companies’ market shares, is one of the noteworthy measures always considered in system design. 

Therefore, in order to support the Techno-companies and assist their Product Technology Development, ICT Park supports the resident Techno-companies’ Product Development projects in the form of “Product Development Credit”.

This credit is a kind of risk-taking one and the payment and reimbursement for this credit are in accordance with the conditions of such credits. 

The Director of ICT Park’s Techno-units’ Development Center emphasized the conditions for paying the Product Development Credit and said: “the Product Development Credit would be paid to those products whose company, written on the product, has the Minimum Viable Product (MVP) or Laboratory Products (BSP). MVP is an example of services or products that presents the main and basic function of the final product, but it neither has all the final specifications of a product nor can it be mass-produced or created in the laboratory. BSP is also another sample of a service or product that possesses all the technical characteristics of the final product and can be manufactured and sold at the stage of Lab.”

He pointed out: “the payment for this credit is based on the technical and business evaluations of the project, through certain processes, which in each Call, will be publicly announced to eligible individuals. However, the general conditions for granting the Product Development Credit are as follows:

• The Product Development Credit belongs exclusively to the companies located in the ICT Park and their branches.
• ICT Park’s support is for those companies whose Product Development Project is selected through evaluations for the Technology Development Grant. In other words, not all companies based in the Park will be necessarily subject to this credit.
• Granting credit to companies will be based on the “Service” Approach:

1. Notification on the basis of allocation;
2. Allocation based on the work progress and periodical evaluations;
3. Payment based on the presentation of financial documents aimed at developing the accepted product and based on credit lines. 

• The prerequisite condition for the companies applying for the credit is to be listed on the Stock Exchange or having ICT Park’s Financial Transparency Certificate.
• This credit is considered as Research Credit and is paid with the intention of improving product technology and consequently increasing their readiness for entering into the market.
• The degree of support in the Park’s prioritized areas can be increased up to 50 percent of the announced credits in each Call. The prioritized fields are selected from those approved by the Park’s Science Council and then announced in each Call.
• The maximum allowed time for the young techno-companies to spend this credit and present the final product is 18 months past the notification date. This deadline is 12 months for  techno-companies.
• Each company cannot receive more than one research support unit at a time.
• The Grant's credit lines are as follows:

1. Purchase of equipment and services in line with product development;
2. Market analysis;
3. Technical and commercial consulting;
4. Salaries for R&D personnel;
5. Budget for training and empowerment of R&D personnel.

• The evaluation method of the Technology Development Grant will be based on the presentation of a written report on work progress audit in the interim (based on the steps announced at the time of application) and at the end of the year.
• The reimbursement method for the credit is decided based on the results of the year-end evaluation and the company’s success or failure in product development. The details related to this matter, in addition to other items, is provided in the relevant guideline.

Engr. Jafari announced next summer, as the time of the first Call for the Product Development Grant and remarked: “the applicant companies can accordingly register themselves in the system introduced during the call. As it was mentioned, one of the requirements for applying for this credit is obtaining ICT Park’s Financial Transparency Certificate.

Therefore, it is suggested that companies which  are members of the Park and based in it, should  respond as soon as possible since many of the Park’s credits and financial supports are devoted to other programs and goals dependent on the companies’ financial transparency.

Finally, the Director of ICT Park’s Techno-units’ Development Center noted: “our colleagues at the Techno-units’ Development Center are ready to respond to all questions and requests of the companies in the field of Technology Development Credit. This Center is ready to use the applicants’ and the audience’s constructive suggestions and thereby improve its procedures in consistence with the companies’ needs.”
It must be noted that the call time and its terms will be announced through the Center's email and ICT Park’s website.