Abstract

This essay analyzes how political measures such as sanctions, tariffs, and industrial policies influence indigenous technological innovation. While restrictions often shrink markets and weaken private R&D incentives, they can also drive states to mobilize resources and pursue self-reliance. Historical and contemporary cases show divergent outcomes: U.S. and Chinese policies converted external pressures into innovation through industrial investment and skilled labor, whereas Russia’s weaker institutions led to technological decline. Economic theory helps explain this contrast: the market size effect highlights short-term losses, while the induced innovation hypothesis shows how scarcity can stimulate substitutes. The essay argues that outcomes depend on policy design, institutional strength, and human capital.

Keywords: Institutional Strength, Indigenous Technological Innovation, Political Measures

Copyright © 2025 Scholar of Tomorrow. All SoT articles are distributed under the attribution non-commercial, with no derivative license. This means that anyone is free to share, copy, and distribute an unaltered article for non-commercial purposes, provided the original author and source are credited.