Information Communication Technology And Economic Development: Learning from the Indian Experience PDF
Preview Information Communication Technology And Economic Development: Learning from the Indian Experience
Information Communication Technology and Economic Development TThhaattcchheennkkeerryy 0000 pprreelliimmss ii 1111//1111//0055 1111::0000::3388 This material is based upon work supported by the National Science Foundation under Grant No. 0218126. Any opinions, fi ndings, and conclusions or recommendations expressed in this material are those of the author(s) and do not necessarily refl ect the views of the National Science Foundation. TThhaattcchheennkkeerryy 0000 pprreelliimmss iiii 1111//1111//0055 1111::0000::3388 Information Communication Technology and Economic Development Learning from the Indian Experience Edited by Tojo Thatchenkery George Mason University, USA Roger R. Stough George Mason University, USA Edward Elgar Cheltenham, UK • Northampton, MA, USA TThhaattcchheennkkeerryy 0000 pprreelliimmss iiiiii 1111//1111//0055 1111::0000::3388 © Tojo Thatchenkery and Roger R. Stough, 2005 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical or photocopying, recording, or otherwise without the prior permission of the publisher. Published by Edward Elgar Publishing Limited Glensanda House Montpellier Parade Cheltenham Glos GL50 1UA UK Edward Elgar Publishing, Inc. 136 West Street Suite 202 Northampton Massachusetts 01060 USA A catalogue record for this book is available from the British Library ISBN 1 84542 175 2 Printed and bound in Great Britain by MPG Books Ltd, Bodmin, Cornwall TThhaattcchheennkkeerryy 0000 pprreelliimmss iivv 1111//1111//0055 1111::0000::3388 Contents List of contributors vii Acknowledgements x 1 Introduction 1 Tojo Thatchenkery and Roger R. Stough PART I INFORMATION COMMUNICATION TECHNOLOGY AND ECONOMIC DEVELOPMENT OF INDIA 2 Economic development theory and practice: the Indian development experience 11 Roger R. Stough, Kingsley E. Haynes and Maria Elena Salazar 3 Information communication technology and economic development: the Indian context 29 Tojo Thatchenkery, Roger R. Stough, Govindasamy Balatchandirane and Rupa Ranganathan 4 Recent developments in India’s service economy and the role of the information technology industry 47 Cherian Samuel 5 An analysis of factors responsible for the Indian information technology sector growth: signaling quality 69 Aparna Sawhney PART II KNOWLEDGE SPILLOVERS AND INNOVATION IN THE ICT SECTOR 6 Diffusion innovation: a pattern of information communication technology innovation in the Indian economy 87 Mary Mathew 7 Development through knowledge: capability replication in global innovation communities 106 Gita Surie v TThhaattcchheennkkeerryy 0000 pprreelliimmss vv 1111//1111//0055 1111::0000::3388 vi ICT technology and economic development 8 Inimitability of network resources in the research and development services domain of the Indian information technology industry 127 Nagarajan Dayasindhu PART III INDUSTRY ISSUES AND PATTERNS 9 Creating information technology industrial clusters: learning from strategies of early and late movers 149 Kavil Ramachandran and Sougata Ray 10 Managerial synergies and related diversifi cation: software services and the business process outsourcing sector in India 167 Suma Athreye and Vasanthi Srinivasan 11 Intellectual property in the Indian software industry: past role and future need 184 Stanley Nollen 12 Does India’s information technology industry need labor mobility in an age of offshore outsourcing? 211 Ron Hira Index 231 TThhaattcchheennkkeerryy 0000 pprreelliimmss vvii 1111//1111//0055 1111::0000::3399 Contributors Suma Athreye is a Senior Lecturer in Economics at the Faculty of Social Sciences at the Open University, UK. Her research interests include public policy towards technological and industrial development, clustering and innovation, hi-tech entrepreneurship, development of the software industry and outsourcing. She has published extensively in all these areas. Govindasamy Balatchandirane is a faculty member in the Department of East Asian Studies, University of Delhi, India. He is involved in several international research projects on information communication technology (ICT), higher education, and economic development of India and its potential transferability to East Asia. He has been a visiting faculty at Kanazawa University and Yokohama National University, Japan. Nagarajan Dayasindhu is a Senior Research Associate, Software Engineer- ing Technology Labs with Infosys Technologies Ltd, Bangalore, India. His research interests include information technology (IT) outsourcing strategies and competitiveness in the IT services industry. His papers have been published in leading journals and conferences. Kingsley E. Haynes is Dean of the School of Public Policy and University Professor of Public Policy at George Mason University, Fairfax, Virginia. His research activity is in the area of infrastructure investment and economic development. He has had extensive experience in managing projects in energy, water resources, telecommunications and transportation in the USA, Canada, Brazil, Egypt, Jordan, Sudan and Malaysia. Ron Hira is Assistant Professor of Public Policy at the Rochester Institute of Technology in Rochester, NY, where he specializes in technology policy and offshore outsourcing. He is the author of Outsourcing America published by the American Management Association, and is Vice- President of Career Activities for the Institute of Electrical and Electronics Engineers (USA). He is also a licensed professional engineer. Mary Mathew is an Assistant Professor in the Department of Management Studies, Indian Institute of Science (IISc), Bangalore, India. She is also vii TThhaattcchheennkkeerryy 0000 pprreelliimmss vviiii 1111//1111//0055 1111::0000::3399 viii ICT technology and economic development the Associate Faculty of the Intellectual Property Cell and Center for Product Design and Manufacturing, IISc and the resource executive for the Society for Innovation Development, IISc. Her various research projects on ICT-related issues have been sponsored by India’s Ministry of Science and Technology, Ministry of Communications and IT and the European Commission, Brussels. Stanley Nollen is Professor of International Business at the Georgetown University McDonough School of Business in Washington, DC. His research interests center on the performance of fi rms in the IT industry in India and the experiences of fi rms in the transition economies of central Europe. He was previously a Fulbright scholar in Delhi and a visiting professor at the London School of Economics and Antwerp University. Rupa Ranganathan works with the Operations Evaluation Department at the World Bank. She holds a Bachelors in Political Science from Allegheny College and a Masters in Public Policy from George Mason University. She has been working on a number of issues dealing with economic development including the impact of ICT on development. Kavil Ramachandran is a Professor of Entrepreneurship and Strategy at the Indian School of Business (ISB), Hyderabad, India. His research is centered on entrepreneurship, knowledge clusters and growth strategies of Indian fi rms. He is also the head of the ISB K-Hub, a semi-virtual business accelerator for supporting new ventures in India. Sougata Ray is an Associate Professor of Strategy at the Indian Institute of Management, Calcutta, India. His research interests include strategic management, knowledge clusters, competitive strategies and strategic alliances of Indian fi rms. He is the recipient of several awards for research and teaching and consults with large Indian organizations on various aspects of corporate strategy. Maria Elena Salazar is a Ph.D. candidate in the School of Public Policy at George Mason University, Fairfax, Virginia, USA. Her research interests focus on local economic development, specifi cally in Mexico and other developing countries. Cherian Samuel works as a Monitoring and Evaluation specialist for the World Bank in Washington, DC and has been with the Bank Group for the past ten years. His research interests include ICT and economic TThhaattcchheennkkeerryy 0000 pprreelliimmss vviiiiii 1111//1111//0055 1111::0000::3399 Contributors ix development, structural change, corporate governance and investment climate issues. Aparna Sawhney is an Assistant Professor in the Department of Economics and Social Sciences at the Indian Institute of Management, Bangalore and is a consultant for trade and environmental studies at the Indian Council for Research on International Economic Relations in New Delhi. Her teaching and research interests are in the areas of trade, environment, development and the World Trade Organization. Vasanthi Srinivasan is an Assistant Professor in the area of Organizational Behavior and Human Resources Management at the Indian Institute of Management, Bangalore. Her research interests are in careers, international human resources management and team-based organizations. Her teaching, consulting and research have largely focused on the software industry in India. Gita Surie is a Senior Fellow at the Wharton School of the University of Pennsylvania and Assistant Professor at Adelphi University, USA. Her current research focuses on innovation, entrepreneurship and multinational corporations. Roger R. Stough holds the NOVA Endowed Chair and is a Professor of Public Policy at George Mason University, Fairfax, Virginia. He directs the Mason Enterprise Center and is Associate Dean for Research in the School of Public Policy. He has published 15 books and many journal articles in the fi elds of economic development and transport policy. Tojo Thatchenkery is an Associate Professor at the School of Public Policy, George Mason University, Fairfax, Virginia, USA. His research interests include ICT and economic development of South Asian countries, social capital and economic advancement of ethnic groups, and organizational mobility of Asian Americans in US organizations. TThhaattcchheennkkeerryy 0000 pprreelliimmss iixx 1111//1111//0055 1111::0000::3399 Acknowledgements We wish to acknowledge the generous support received from the United States National Science Foundation in organizing the international conference on ICT and Development in Bangalore, India, which laid the foundation for this book. Most of the chapters in this book are enhanced, revised, or adapted versions of the papers presented at the conference. We also wish to acknowledge George Mason University’s School of Public Policy Dean Kingsley Haynes and Professor Don Kash, who provided invaluable intellectual support from the very beginning of this project. Professor K.B. Akhilesh of the Management Department at the Indian Institute of Science, Bangalore, our Indian partner for the conference, provided significant support including excellent conference facilities. We are indebted to several talented individuals in the endeavor of putting the book together. M. G. Gopakumar of the Tata Management Training Center, Pune, India; Mucket Joshi, Independent Consultant, Gordon Shockley, Daisy Botros, and Donna Sherrard of the School of Public Policy helped in various aspects of editing and preparing the manuscripts. We thank Alan Sturmer, Senior Acquisitions Editor of Edward Elgar Publishing for enthusiastically commissioning our book, Tara Gorvine for early support, Katy Wight, Promotions Manager for her publicity efforts, Caroline McLin, Managing Editor and Bob Pickens, Desk Editor for their excellent production support all through the project. Without their active assistance and commitment, this project would not have been possible. Last, but not the least, we are indebted to our families – Tessy and daughter Sruthi, Barbara and children Jon and Brandon for their love and constant support. Tojo Thatchenkery and Roger R. Stough x TThhaattcchheennkkeerryy 0000 pprreelliimmss xx 1111//1111//0055 1111::0000::3399
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