Impact of Covid-19 on Iran startups at biotech, pharmaceutical, engineering and other innovative industries

Peoples’ Friendship University of Russia (RUDN University), Miklukho-Maklaya Street, 6, 117198 Moscow, Russian Federation

^* Corresponding author: mailto:1032205254@pfur.ru

Abstract

This research reviews Corona’s spread that caused many governments to take serious actions; limitations in many aspects of society and economic life as an exogenous shock for many economic actors, especially innovative ones. This review examines an entrepreneurial ecosystem to deal with the problem facing them during the crisis and how to use them to deal with that. As a response to Corona’s expansion, limitations threaten many innovative startups. Our research response first represents entrepreneurs’ challenges as a result of the situation. Second, we show how entrepreneurs support their investment by considering the crisis’s effects and what they do. Finally, we will provide measures that policymakers can use to help entrepreneurs who face a challenge. After reviewing the previous research on the crisis and entrepreneurship, this research investigates the main challenges of high-tech startups in a heavily sanctioned developing economy like Iran. The research shows that while the SMEs successfully use their available resources as the first response to the crisis, their growth and innovation potential are at risk. Therefore, policy measures can provide immediate help to innovation by reducing the pressures resulting from limited cash circulation and long-term actions taken by the more expanded entrepreneurship ecosystem and support it to ensure rapid recovery and growth.