Abstract
Amid heightened global technological competition and geopolitical tensions, policy interventions such as sanctions, trade conflicts, tariffs, and industrial strategies exert substantial influence on domestic innovation outcomes in affected economies by redirecting resource allocation The World Trade Organization highlighted in its research report titled "The Impact of Geopolitical Conflicts on Trade, Growth and Innovation" that trade barriers significantly impede the flow of goods and hinder sanctioned countries from accessing advanced cross-border technologies and innovative ideas.(WTO). Protectionism, to a large extent, weakens the technological integration capacity of the target country. Fortunately, some countries have become self-reliant in the face of technological barriers.In the Science, Technology and Innovation Policy Review conducted by the United Nations Conference on Trade and Development (UNCTAD), the report on Iran highlights that, in response to severe international sanctions imposed by certain countries, there has been a notable impetus for the development of science, technology, and innovation (STI). Furthermore, countries facing sanctions are likely to foster the establishment of localized innovation systems and knowledge-based economies. For example, Iran has experienced what can be termed "crisis-driven innovation" as a result of these pressures.(UNCTAD). This paper aims to employ a combination of quantitative and qualitative methods to conduct an in-depth analysis of the impact of sanctions and industrial policies on domestic technological innovation in targeted countries.
Keywords: Sanctions and Trade Barriers, Localized Innovation Systems, Crisis-Driven Innovation
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