A global turn in national industrial strategies: the move towards technological self-sufficiency

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Abstract

The paper examines the global phenomenon of industrial policy securitization in the early 2020s, marked by various countries’ synchronous transition toward technological self-sufficiency/sovereignty in priority sectors (TS course). We show why countries have shifted from economic efficiency priorities to economic security dominance, identify typical common features and national characteristics of the TS course in leading developed and developing economies (USA, EU, China, India, Brazil), as well as reveal these countries’ costs and risks in achieving their goals. Against the backdrop of this global trend, we analyze the Russian TS course specifics under sanctions and demonstrate objective limits for its successful implementation in internal and external contexts. We conclude that the securitization trend will intensify, but the accumulated costs from geopolitical fragmentation of the world economy will eventually return countries to their former economic openness.

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About the authors

Nataliya Smorodinskaya

Institute of Economics (RAS)

Author for correspondence.
Email: smorodinskaya@gmail.com

Ph.D. in Economics, Leading Researcher

Russian Federation, Moscow

Daniel Katukov

Institute of Economics (RAS)

Email: dkatukov@gmail.com

Researcher

Russian Federation, Moscow

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2. Fig. 1. Asymmetry of U.S.-China production interdependencies (by value added flows), 1995-2020.

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3. Fig. 2. Asymmetry of production interdependencies between Russia and China, 1995-2020 (by value added flows)

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