The present study aims to investigate the impact of knowledge trade on the pattern of Iranian Islamic progresswith environment-biased technical progress approach, and presents a new theoretical model of knowledge trade based on the new economic growth theory. The MSIH-VAR model was used to test the impact of three forms of knowledge trade (direct introduction of technology, technological spillovers of foreign direct investment (FDI), and reverse deconstruction of imported products) on sustainable development, production technology, and environmental technology in the period 2009 - 2020 and 20 Industry . The impulse response equation indicates that developing countries can only improve their environmental technology levels through the direct introduction of technology. The research results : a ) knowledge trade in the form of both direct introduction of technology and reverse deconstruction of imported products can improve sustainable development locally. b) Below a certain level of environmental technology, knowledge trade has a positive impact on sustainable development, irrespective of its form. c) even though knowledge trade acquired through FDI has negative effects on sustainable development, it could still have positive effects when environment-biased technology reaches a certain level. d) the economy could grow stably and sustainably in the long term if improved its independent innovation ability, technology absorbing capacity, technical level, and management experience. Finally, the The government needs to direct resources toward R&D and education through preferential tax policies and gradually accumulate vast quantities of knowledge and human capital.

Nowadays, knowledge trade can increase the productivity of production factors and facilitate the advancement of technical knowledge and reduce the consumption of natural resources and environmental pollution and stimulate green and sustainable development. Therefore, the current research was considered with the aim of investigating the effect of knowledge trade and environment-biased technical progress on sustainable (green) development. In order to investigate the effect of knowledge trade caused by direct technology imports, foreign direct investment technology spillovers and reverse engineering of imported products and environment-biased technical progress on sustainable development, the GMM estimator has been used in the time period of 2012- 2022 and 15 industries. The results showed: Import trade is a method of absorbing technical spillovers. Domestic companies can acquire general or partial knowledge by importing advanced products. However, the ability to learn advanced knowledge from advanced products is limited by human capital. The higher and more efficient human capital is, the easier it is to take advantage of the knowledge spillover. Environmental knowledge can only be improved through the direct import of knowledge. Neither foreign direct investment nor imports can improve the level of environmental knowledge. Technical spillover and reverse engineering require efficient and knowledgeable human capital. At a certain level of environmental technology, knowledge trade, regardless of its form, has a positive effect on sustainable and green development. Therefore, although the effects of knowledge trade on green development may be limited, if a country improves its independent innovation ability, technology absorption capacity, technical level and managerial experience, the country's economy can grow stably and sustainably in the long term.

Economis growth is one of the main factors for evaluating the performance of governments. Economic growth itself is influenced by other factors that have been addressed in growth theories. Among the factors examined in growth theories, technical progress is of particular importance due to its long-term effects on growth. In recent growth models, the technological progress considered an endogenous factor which is influenced by the other variables. The present study seeks to investigate the effect of monetary shocks on technical progress in Iran during 1996-2004, using the Dynamic Stochastic General Equilibrium Model. The results of this study showed that the shock of increase in money base through increasing the amount of investment in knowledge would lead to an increase in technology growth. Considering the impact of monetary policy on technical progress in a recession-inflationary situation which there is a need of production increase, especially for a monetary authority to stimulate supply in the economy, is the policy recommendation of this paper.