Abstract

This study was conducted with the aim of identifying and analyzing the dimensions of inefficiency in the innovation system of the Iranian automotive industry. First, three main dimensions and thirteen sub-components were identified using exploratory factor analysis. Then, the cause-effect relationships between the dimensions and components were examined using the fuzzy DEMATEL method. The results showed that some of the components such as weak administrative structure, international sanctions, and limited infrastructure appeared more in the causal role. Also, in the next stage, based on the Best-Worst Method (BWM), the experts prioritized these components as the most important challenges of the innovation system. This shows that these factors play a direct role in the network of causal relationships and, from a policy-making and management perspective, are of the greatest importance for institutional and strategic reforms. The findings emphasize the necessity of reengineering administrative structures, strengthening the intellectual property system, and reducing the effects of sanctions through the development of indigenous technologies.