ABSTRACT
The importance of financing technologies and innovations in moving towards a technology-based economy has led countries to use various institutional arrangements to solve the problem of financing technology-based firms. In Iran, the limited efficiency of conventional methods such as direct government financing and venture capital has pushed the focus onto credit guarantee instruments in recent decades. Accordingly, despite the prevalent use of credit guarantees, its total capacity is still not used in Iran. After reviewing the credit guarantee literature, this chapter presents an analysis framework highlighting ownership structure, execution considerations, and legislative and monitoring aspects. According to the presented framework, 8 case studies of credit guarantee schemes worldwide (Japan, Germany, the U.K., Chile, China, Argentina, Brazil, and South Africa) are reviewed. Then, the Iranian credit guarantee schemes are presented and analyzed. Finally, policy implications for developing the Iranian credit guarantee system for technology-based firms are recommended based on the literature review, multiple case studies, and profound analysis of the Iranian case.
