Analyzing the Role of Knowledge Spillovers, Absorptive Capacity, and Innovation Ecosystems in the Transformation of the Petrochemical Industry: A Comparative Study of Germany and Iran with a Mixed-Methods Approach (2024–2026)

Hossein Aliabadi¹

IOI Code : ABDE-ABGGDB
Publication : 6th International Conference on Advanced Research in Management And Humanities(huconf.com)
Abstract :
    The petrochemical industry, as one of the most knowledge-intensive spheres of industrial production, not only serves as the primary engine of economic growth in both developed and developing nations but also continually redefines the frontiers of innovation in catalysis, advanced polymers, and green processes. However, the profound value-added gap between Iran and Germany—exceeding $2,100 per ton of polymer products—raises a fundamental question: what are the root causes of this disparity, and how can pioneering experiences be leveraged to bridge it? Drawing upon the theoretical frameworks of Knowledge Spillover Theory of Entrepreneurship (KSTE), Absorptive Capacity, and Tacit Knowledge, and utilizing up-to-date data from 2024 to 2026, this paper conducts an in-depth comparative study of the petrochemical industries in both countries. The findings reveal that Germany is systematically advancing its digital and green transformation through a multi-layered strategy, highlighted by a €30 million investment in the ASCEND project for AI-driven next-generation catalyst discovery, the €1.18 billion ($1.6 billion) UPM biorefinery in Leuna, the Process-X shared data space initiative, and the pioneering QKnows knowledge management system at BASF. In contrast, despite achieving a nominal capacity exceeding 100 million tons per year, localizing catalyst and membrane technologies, and initiating projects such as Panorama and the development of a Data Lake, Iran s petrochemical sector continues to grapple with structural challenges, including underinvestment in R&D, an incomplete value chain, and critical infrastructural vulnerabilities exposed by recent crises. Finally, by proposing concrete and actionable managerial and policy-oriented recommendations, this article outlines a strategic vision for the transition from a feedstock-based petrochemical industry to one driven by knowledge, artificial intelligence, and sustainability.

Keywords : knowledge spillovers absorptive capacity innovation ecosystems petrochemical industry artificial intelligence knowledge management