For citation:
Tsedilin, L. I. (2026). Technological Sovereignty: State Support, Market Mechanisms, and Industrial Policy. AlterEconomics, 23(3), 827–844. https://doi.org/10.31063/AlterEconomics/2026.23-3.15
Abstract:
Technological sovereignty is a central objective of contemporary science and economic policy. Russian scholarship has largely favoured state-led approaches rooted in Soviet-era institutions and public funding, with less attention to market mechanisms. Contemporary science and technology policy retains a Soviet-era emphasis on technological performance and systemic competition, but this focus has not always been matched by sufficient attention to commercial viability. Public funds allocated to R&D and subsequent stages of technological development are often committed without adequate mechanisms for ensuring economic returns on investment. Such approaches may also encourage firms to rely on long-term state support rather than develop commercially sustainable products and technologies. From an economic perspective, an import-substitution project can be considered successful when the resulting product is not only comparable to its imported counterpart in terms of consumer characteristics, but also competitive in terms of its price–quality ratio. In practice, achieving this objective is challenging, as firms must navigate the constraints imposed by sanctions while reducing dependence on external suppliers and technologies. Nevertheless, some industries have demonstrated that import substitution can be commercially viable, as illustrated by generic pharmaceuticals and China’s automotive industry. However, some industries have demonstrated commercially viable approaches to technological import substitution, including generic pharmaceuticals and China’s automotive industry. These cases demonstrate that technological products can, under certain conditions, achieve both cost recovery and profitability without relying exclusively on budgetary financing. Technological sovereignty can also be pursued through an active industrial policy employing a broader range of policy instruments. Against this background, the article examines industrial-policy approaches that promote technological development and sustainable economic growth. Particular attention is given to horizontal industrial policy and its role in supporting technological advancement and competitiveness across strategically important sectors.
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