Bahman Kargar Shahamat - PhD in Technology Management, Allameh Tabataba i University, Tehran, Iran- Faculty member of Islamic Azad University, Astara Branch, Astara, Iran
Mohamad Reza Taghva - Associate Professor of Management and Accounting School, allameh tabataba'i university, Tehran, Iran
Seyyed Habibollah Tabatabaiean - Associate Professor of Management and Accounting School, Allameh Tabatabai’ University, Tehran, Iran
Jamshied Salehi Sadaghiani - Professor of Management and Accounting School, allameh tabataba'i university, Tehran, Iran

By reviewing economic performance, two main phenomena could be identified: The first phenomenonis prior to the third wave of the Industrial Revolution in which limited resources are the predominantinput; in other words, physical and natural resources are much more credited than human resources.The second phenomenon resonates with the third wave of industrial revolution to the present time,suggesting the pivotal role of humans in production and accumulation of wealth, in which limitedresources are no longer considered as predominant input. The present research seeks to understand thebehavioral logic of the players of Iran s pharmaceutical sector so as to infer the innovative treatment ofthe firms in this sector. The concept of innovative system is indebted to the efforts economists andother scientists have made by analyzing economic development based upon technologicaldevelopment. Meanwhile, sectoral innovation system (SIS) is a tool for analyzing a technologicalsector in the context of evolutionary economics with an emphasis on institutional capabilities. Thestructure of such an approach is composed of some components through which performance analysisof certain technological sector could be made possible. The current study wishes to explain structuralmodel of institutional elements in this technological sector. Subsequently, in light of such anexplanation, structural elements of this sector would be analyzed through identification of legal andregulatory framework, innovative culture, innovative infrastructure, financial resources, informationresources, technology transfer mechanisms, commercialization support and marketing.

Evolutionary Economics, Institutional Approach, Technological Development, Sectoral Innovation System (SIS), Iranian Pharmaceutical Sector (IPS)