Opinion piece published by Les Echos – 22 July 2026
The conflict with Iran has exposed a shift in global power dynamics—one less tied to the sophistication of weaponry and more to industrial capacity. Superiority no longer depends solely on cutting-edge technology or GDP but on the ability to design, manufacture, and integrate diverse components rapidly, then deploy that firepower in service of a coherent strategy. What is most striking is not Iran’s performance—despite its economic struggles—but the United States’ failure to adapt to this new reality.
Western economies struggle to translate their historic scientific lead into tangible production. Weapon shortages are a symptom of this. The misallocation of resources into financial bubbles—AI, real estate—at the expense of industrial expertise only deepens the problem. Yet the often-underestimated Generation Z represents a potential turning point.
Engineering as a Source of Power
Emerging nations are leveraging their growing base of versatile engineers and technicians. In Iran and Ukraine alike, drones, ballistic missiles, and electronic warfare systems exemplify this approach: mass-produced, simple devices prove more decisive than a limited number of ultra-sophisticated systems. The Shahed drones, for instance, owe their effectiveness to a modular industrial architecture—standardized components, accessible manufacturing, and continuous improvement.
This operational necessity has even forced the United States to rethink its drone and missile production, shifting toward cheaper, more scalable models. Innovation now emerges not just from research labs but from production lines and the battlefield, where the ability to rapidly adapt systems has become a critical advantage.
The depth of technical expertise matters more than the stock market valuations of a few firms. Emerging nations—particularly the geopolitical bloc of China, Russia, and Iran—now produce a proportionally higher number of scientific and technical professionals than the West. Organizations led by individuals with a technical background make decisions grounded in technological realities rather than bureaucratic or political logic.
Modularity and Industrial Sovereignty
Supply chains are now structured around modular architectures, combining electronics, embedded software, sensors, or radio frequency components, often sourced through international networks. China occupies a central role, lowering entry barriers for many countries. Full mastery of every industrial process is no longer essential; the advantage lies in integrating components and swiftly substituting critical elements. Iran has capitalized on this, relying on Chinese supply chains for affordable electronics while developing certain components locally under sanctions.
Industrial sovereignty is no longer about absolute self-sufficiency but about resilience: identifying critical dependencies and ensuring production can continue despite logistical disruptions or infrastructure destruction. Economic warfare, once an American prerogative, has now been turned against them—whether through Iran’s control of the Strait of Hormuz or China’s dominance in rare earth materials.
China’s progress stems from the gradual integration of value chains in key sectors such as batteries, electric vehicles, and robotics. While U.S. restrictions on semiconductors may temporarily hinder China, they also accelerate its investments in domestic capabilities, particularly around Huawei.
The Decline of Western Productive Culture and the Potential of Gen Z
The United States retains major assets, such as its university system and energy independence. Yet an increasing share of capital flows into financial activities disconnected from production. AI investments, though promising, often focus on consumer applications or ad-driven models rather than structural transformations of the productive apparatus. Moreover, cronyism often prevails, as seen in the civilian nuclear industry, where so-called “nuclear bros”—entrepreneurs whose nuclear physics expertise is barely more advanced than that of top diplomatic negotiators—exert undue influence.
In Europe, the situation is even more concerning. Despite world-class scientific sectors, strategic decisions are increasingly driven by administrative or political logic, as evidenced by the shortcomings of the FCAS program or the limitations of the Chips Acts, which overlook the integration of value chains (electronics, materials, software). Failures in battery production, such as Northvolt’s collapse, highlight the urgency of a more incremental substitution strategy.
Yet recovery remains possible. Despite educational challenges, Generation Z is developing a strong technical culture, often outside traditional institutions, thanks to unprecedented access to knowledge and open communities. European economies will not regain their industrial momentum through short-term spending plans or calls for financial unity but by empowering those who understand technology, control production chains, and can turn innovation into productive capacity. This is the battleground on which the hierarchy of global powers and prosperity will now be decided.