Cultural industries are engaged in creation, production and commercialization of themes with cultural nature within the framework of goods or employment services and include such cases as publication, cinema, toys, fashion and clothes. The cultural industries innovation system refers to a network of governmental, private or public institutions and their interactions to create, product, distribute and exploit cultural products and services.
The objective of this paper is to conduct a pathological study of the cultural industries innovation system of the Country. Using "institutional mapping" and "stakeholder analysis" methods to analyze the innovation system, authors diagnose 5 selected clusters of the cultural industries including publication, toys, computer games, fashion, clothes and stationaries. The results show several institutional issues in cultural industries innovation systems: lack of interactions of Hawza and academia with cultural firms in generating basic concepts required for cultural products and services; redundancy in institutions assessing and supervising cultural products and services; lack of effective supervision of cultural products imports; ineffectiveness of cultural and public diplomacy institutions in foreign marketing and cultural products exports; lack of effective communications between cultural industries firms and institutions supporting entrepreneurship, technology development and knowledge economy including incubators, technology parks, and technology development funds; lack of institutions for communication and networking within the innovation system like unions and guilds, lack of effective relations between effective institutions such as the Islamic Republic of Iran Broadcasting, the Basij Organization, and the Education Ministry for information dissemination, publicity and promotion of cultural industries.