Balancing through Technonationalism and its Impact on India’s National Innovation System: A Case Study of Techgentsia

A nation’s competitive advantage in the modern world is determined by its access to emerging technologies like artificial intelligence, 5G and cloud computing. This competition has led to the imposition of neo-mercantilist policies to promote and protect domestic industries and substantially reduce foreign investments in the technology sector, especially from rival countries. This phenomenon, termed technonationalism, and the reasons for its emergence in the contemporary world and its variants across major economies are analysed using the neo-realist framework of international relations, particularly the theory of internal balancing. An attempt is made to trace the existence of technonationalism in India by examining six overarching policies of the government. The article elucidates how technonationalism drives the national innovation system in a country through the case study of Techgentsia, an Indian company whose software products are promoted by the Government of India towards strengthening India’s national security. It concludes that India’s technonationalist policies are driven by the heightened threat perception in the international system.