How Government Intervention Challenges Innovation in Iranian Startups: Insights from Causal Loop Diagrams and Narrative Thinking

Effective solutions to complex issues require a deep understanding of both the visible and hidden dynamics of the problem. This research aims to identify the complex dynamics of government intervention in the innovation ecosystem of Iranian startups and propose policies to address these challenges. To achieve this, a novel multi-methodology combining causal loop diagrams and narrative thinking is introduced and applied to the case of Iranian startups. The research adopts a qualitative approach, with the primary data collection tools being a focus group and semi-structured interviews with experts. Five key causal loop diagrams were identified: the venture capital cycle, the impact of sanctions, the capital return/inflation cycle, the regulatory effect, and the effect of socio-cultural capital. The blind sides in the decision-making of key actors—namely, the government as the regulator, supporter of startups, and provider of infrastructure, along with large scale startups, small startups, professional investors, and traditional investors—are analyzed through a critical narrative approach. Finally, policies are proposed. The theoretical, methodological, and practical insights presented in this study offer valuable guidance for researchers, policymakers, entrepreneurs, and managers.

کلیدواژه ها:

Causal loop diagram ، Government intervention ، Narrative thinking ، Qualitative system dynamics ، Startup