Transition from oil-based economy to knowledge based-economy and analyzing the role of science, technology and industrial policies

This series of articles are intended to provide an analysis for the transition process of oil-based economy to knowledge-based economy, which specially highlights the role of science, technology and industrial policies. Although there has been numerous studies concerning the role of these policies in achieving knowledge-based economy, this role is rarely discussed in the case of countries that have an economy based on natural resources, particularly oil-based countries. In this series of articles it is assumed that analyzing policy making in any sector, like science, technology and industry should not take place independently and without considering the relevant settings and surroundings. In this article characteristics of oil-based economies are considered as the base for policy making and its impacts. Long-term decrease in trade balance and income shock, Dutch disease and substitution effect, poor ties with the economy, political economic factors and political, social and cultural effects, are discussed as five categories of characteristics of countries with oil- based economies. Though focus of this article –influenced by literature based on disaster of resources- is on the negative aspects of oil based economies, there have been examples of positive effects of natural resources on a country’s economy. The scope and depth of such characteristics vary from country to country, but they can emerge in all of such countries. Policy making in any sector such as science, technology and industry, requires careful consideration of these defacto and potential characteristics and their limitation and opportunities resulted from them. In the next articles, the relation of these characteristics with knowledge-based economies, and the role of science, technology and industrial policies in the transition process are discussed.