The political economy of Iran, in the face of international pressures and the productivity paradox, encountered the inefficiency of traditional models based on physical resources and static advantages. This study examined the dynamic role of technological pull in industrial value-added fluctuations and the impact of sanctions on production performance. The applied and quantitative-analytical research utilized time-series data extracted from the Central Bank of Iran via the census method. Machinery capital accumulation and the sanctions dummy variable were assessed, and data were analyzed using descriptive and inferential statistics including the Augmented Dickey-Fuller unit root test and Maximum Likelihood Estimation. The findings indicated that technological capital accumulation was the primary driver of industrial value-added; however, the sector faced diminishing returns due to a lack of digital intelligence. Furthermore, the results confirmed that upon considering production lags and structural inertia, shocks arising from sanctions did not significantly affect the long-term trajectory of industrial production. Based on the results, digital transformation was considered a strategic necessity rather than a managerial choice to overcome stagnation and enhance organizational agility in turbulent environments. Finally, the activation of latent physical capital capacities was deemed possible only through the enhancement of digital maturity and the substitution of systemic intelligence for rigid hardware accumulation.