Abstract

In a mutually connected world, indigenous technology innovation is a key driver of national prosperity, which is deeply affected by political measures. This essay investigates how sanctions, trade wars, tariffs and domestic industrial policy encourage and impede local technical advancement. While limits and conflicts of trade can, in violation of self-confidence, they often give rise to large economic costs and risk insulation. The tariff, “to protect the infant industry,” often leads to decency. Conversely, well-designed domestic industrial policy, by fostering national innovation systems and investing in human capital, can promote innovation, even if it confronts difficulties such as price demand. This essay claims that lasting innovation requires a holistic approach: Balanced strategic protection with global involvement, prioritizes basic investments and cultivates a social culture that encourages learning and adaptability, ensuring that technology supports human wellbeing.

Keywords: Tariffs and Domestic Industrial Policy, Sustained Innovation, Technical Advancement

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