Abstract
This paper will begin with a background review of current Iranian science, technology, investment and Intellectual Property (IP) activities, followed by a discussion of the role of IP protection in technology transfer through Foreign Direct Investment (FDI) from the perspective of both Iran as a developing country and transnational firms from industrial countries. As an example the model of technology transfer in the Iranian car industry has been reviewed by comparing the route of mechanism with other models, assuming that Iranian recent policy toward open market and export oriented industries will be continued. In this paper the costs and benefits of modernisation of IPRs was investigated and it was emphasised that IPRs without technology capacity building can do little for Iran.
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