Strategic trade theory, which explores how governments can use trade policies to benefit domestic companies in competitive global markets, remains theoretically sound but hasn't been thoroughly examined in today's context. The modern economy, with its digital platforms, interconnected supply chains, and geopolitical tensions, creates a gap between traditional models and current policy needs. One way to address this could be through a structured analysis that updates strategic-trade theory for today's economic realities.

Modernizing Strategic-Trade Analysis

The project could involve three key components: first, organizing and evaluating the core ideas of strategic-trade theory; second, testing how well these ideas apply to current trade situations like semiconductor restrictions or green energy subsidies; and third, developing updated policy recommendations. The output might include an academic paper for economists and a simplified policy brief for government and industry use.

Practical Applications and Stakeholders

This analysis could help trade policymakers make better decisions, provide economists with updated models, and give businesses clearer insights into global competition. For example, it might examine how digital platforms change traditional trade dynamics since they operate differently from industrial-era companies. The project could start with a focused case study, such as electric vehicle battery production, to demonstrate its approach before expanding to broader industries.

Differentiating From Existing Work

While previous research laid the theoretical groundwork or tracked trade policies, this approach could bridge the gap by combining rigorous analysis with modern examples. Unlike general industrial policy studies, it might specifically focus on how governments can strategically influence competitive outcomes in sectors like technology and renewable energy.

By systematically examining both theory and current trade conflicts, this project could offer valuable insights for academics and policymakers navigating today's complex global economy.