[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/bla/ijurrs/v28y2004i3p664-685.html
   My bibliography  Save this article

India's Silicon Valley or Silicon Valley's India? Socially Embedding the Computer Software Industry in Bangalore

Author

Listed:
  • Balaji Parthasarathy
Abstract
Since the 1980s, the changing character of the Indian state has allowed it to move away from a highly regulated, autarkic development model to pursue lighter regulation and closer integration with the global economy. This move created the incentives for India‚s emergence as a leading software exporter. Within India, Bangalore emerged as the leading software–producing region and the large number of domestic and foreign firms there has led to popular references to it as India‚s Silicon Valley. This essay, however, argues that referring to Bangalore as Silicon Valley‚s India is more appropriate, as it struggles to transform itself from a region that develops software for global markets to one that defines new products and technologies. Driving the growth of the Indian software industry is the export of labour–intensive services, while the relatively small and slow–growing domestic market has limited the nurturing of original ideas. The essay explains the limitations in terms of social constraints on the state despite its changed character. The analysis of how changing state–society relations have shaped the software industry in Bangalore provides a means of addressing debates on the importance of social embeddedness in agglomeration and late industrialization in newly industrializing countries. Depuis les années 1980 et le changement de nature de l'Etat indien, ce dernier s'éloigne d'un modèle de développement autarcique très réglementé, allant vers un contrô le allégé et une intégration plus étroite à l'économie mondiale. Cette évolution a suscité des mesures d'incitation favorisant l'émergence de l'Inde comme premier exportateur de logiciels. Dans le pays, c'est la région de Bangalore qui est en tête de la production de logiciels, et la concentration d'entreprises nationales et étrangères y est connue sous le nom de `Silicon Valley indienne'. Pourtant, `l'Inde de la Silicon Valley' conviendrait mieux, puisque la région s'efforce de passer du développement de logiciels destinés à des marchés mondiaux à la définition de nouveaux produits et technologies. La dynamique du secteur indien des logiciels tient a` l'exportation de services demandeurs de main‐d'uvre, tandis que le marché intérieur, relativement restreint et à croissance lente, a limité les sources d'idées originales. L'article explique les limitations en termes de contraintes sociales sur l'Etat malgré sa nouvelle nature. Analyser comment les relations Etat‐société et leur évolution ont modelé l'industrie des logiciels à Bangalore permet ainsi d'aborder le débat sur l'importance de l'intégration sociale dans une agglomération et une industrialisation tardive propres aux pays d'industrie récente.

Suggested Citation

  • Balaji Parthasarathy, 2004. "India's Silicon Valley or Silicon Valley's India? Socially Embedding the Computer Software Industry in Bangalore," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 28(3), pages 664-685, September.
    • Handle: RePEc:bla:ijurrs:v:28:y:2004:i:3:p:664-685
    DOI: 10.1111/j.0309-1317.2004.00542.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.0309-1317.2004.00542.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.0309-1317.2004.00542.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ashish Arora & Jai Asundi, 1999. "Quality Certification and the Economics of Contract Software Development A Study of the Indian Software Industry," NBER Working Papers 7260, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Deepak Chandrashekar & M. H. Bala Subrahmanya & Kshitija Joshi & Tathagat Priyadarshi, 2019. "Effect of Innovation on Firm Performance — The Case of a Technology Intensive Manufacturing Cluster in India," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 16(07), pages 1-31, November.
    2. Jue Wang & Shaoming Cheng & Sukumar Ganapati, 2012. "Path dependence in regional ICT innovation: Differential evolution of Zhongguancun and Bangalore," Regional Science Policy & Practice, Wiley Blackwell, vol. 4(3), pages 231-245, August.
    3. Ernesto Noronha & Premilla D’Cruz & Muneeb Ul Lateef Banday, 2020. "Navigating Embeddedness: Experiences of Indian IT Suppliers and Employees in the Netherlands," Journal of Business Ethics, Springer, vol. 164(1), pages 95-113, June.
    4. Suma Athreye & Martha Prevezer, 2008. "R&D offshoring and the domestic science base in India and China," Working Papers 26, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    5. Yuanqing Wang & Liu Yang & Sunsheng Han & Chao Li & T. V. Ramachandra, 2017. "Urban CO2 emissions in Xi’an and Bangalore by commuters: implications for controlling urban transportation carbon dioxide emissions in developing countries," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 22(7), pages 993-1019, October.
    6. Weiping Wu, 2005. "Dynamic cities and creative clusters," Policy Research Working Paper Series 3509, The World Bank.
    7. Sonderegger, Petra & Täube, Florian, 2010. "Cluster life cycle and diaspora effects: Evidence from the Indian IT cluster in Bangalore," Journal of International Management, Elsevier, vol. 16(4), pages 383-397, December.
    8. Monica Plechero & Mandar Kulkarni & Cristina Chaminade & Balaji Parthasarathy, 2021. "Explaining the past, predicting the future: the influence of regional trajectories on innovation networks of new industries in emerging economies," Industry and Innovation, Taylor & Francis Journals, vol. 28(7), pages 932-954, August.
    9. Riccardo Crescenzi & Andrés Rodríguez-Pose, 2012. "An ‘Integrated’ Framework For The Comparative Analysis Of The Territorial Innovation Dynamics Of Developed And Emerging Countries," Journal of Economic Surveys, Wiley Blackwell, vol. 26(3), pages 517-533, July.
    10. Chaminade, Cristina & Vang, Jan, 2008. "Globalisation of knowledge production and regional innovation policy: Supporting specialized hubs in the Bangalore software industry," Research Policy, Elsevier, vol. 37(10), pages 1684-1696, December.
    11. Ludovic Halbert & Hortense Rouanet, 2014. "Filtering Risk Away: Global Finance Capital, Transcalar Territorial Networks and the (Un)Making of City-Regions: An Analysis of Business Property Development in Bangalore, India," Regional Studies, Taylor & Francis Journals, vol. 48(3), pages 471-484, March.
    12. Sugam Agarwal & Smruti Ranjan Behera, 2022. "Geographical concentration of knowledge and technology-intensive industries in India: empirical evidence from establishment-level analysis," Indian Economic Review, Springer, vol. 57(2), pages 513-552, December.
    13. Pandey, Poonam & Pansera, Mario, 2020. "Bringing Laxmi and Saraswati together: Nano-scientists and academic entrepreneurship in India," Technology in Society, Elsevier, vol. 63(C).
    14. Hortense Rouanet & Ludovic Halbert, 2016. "Leveraging finance capital: Urban change and self-empowerment of real estate developers in India," Urban Studies, Urban Studies Journal Limited, vol. 53(7), pages 1401-1423, May.
    15. Noronha, Ernesto & D'Cruz, Premilla, 2020. "The Indian IT industry: A global production network perspective," IPE Working Papers 134/2020, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    16. Manuel Gonzalo & Hugo Kantis, 2021. "The Indian venture capital emergence, development, and boom: A southern contextualization," Growth and Change, Wiley Blackwell, vol. 52(2), pages 687-705, June.
    17. Kenney, Martin & Breznitz, Dan & Murphree, Michael, 2013. "Coming back home after the sun rises: Returnee entrepreneurs and growth of high tech industries," Research Policy, Elsevier, vol. 42(2), pages 391-407.
    18. Rao, P.M. & Balasubrahmanya, M.H., 2017. "The rise of IT services clusters in India: A case of growth by replication," Telecommunications Policy, Elsevier, vol. 41(2), pages 90-105.
    19. Chaminade, Cristina & Vang, Jan, 2008. "Upgrading in Asian clusters: Rethinking the importance of interactive-learning," Papers in Innovation Studies 2008/21, Lund University, CIRCLE - Centre for Innovation Research.
    20. Thakur, Sudhir K., 2008. "Identification of temporal fundamental economic structure (FES) of India: An input-output and cross-entropy analysis," Structural Change and Economic Dynamics, Elsevier, vol. 19(2), pages 132-151, June.
    21. Dharm P.S. Bhawuk, 2009. "Intercultural Communication in a Dynamic Environment," Psychology and Developing Societies, , vol. 21(2), pages 161-181, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arun Natarajan Hariharan & Arindam Biswas, 2020. "A Critical review of the Indian knowledge‐based industry location policy against its theoretical arguments," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(3), pages 431-454, June.
    2. Ernesto Noronha & Premilla D’Cruz & Muneeb Ul Lateef Banday, 2020. "Navigating Embeddedness: Experiences of Indian IT Suppliers and Employees in the Netherlands," Journal of Business Ethics, Springer, vol. 164(1), pages 95-113, June.
    3. Supriyo De, 2009. "Intangible Determinants Of Market Value In The New Economy: A Dynamic Panel Data Analysis Of The Indian Software Industry," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 54(03), pages 379-398.
    4. Ghosh, Saibal, 2009. "Productivity and Financial Structure: Evidence from Indian High-Tech Firms," MPRA Paper 19467, University Library of Munich, Germany.
    5. Arun Natarajan Hariharan & Arindam Biswas, 2021. "A temporal review of global recognition of India's knowledge‐based industry through an institutional viewpoint," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 759-776, June.
    6. Paulo G. Correa & Ana M. Fernandes & Chris J. Uregian, 2010. "Technology Adoption and the Investment Climate: Firm-Level Evidence for Eastern Europe and Central Asia," The World Bank Economic Review, World Bank, vol. 24(1), pages 121-147, January.
    7. Noronha, Ernesto & D'Cruz, Premilla, 2020. "The Indian IT industry: A global production network perspective," IPE Working Papers 134/2020, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    8. K. J. Joseph, 2002. "Growth of ICT and ICT for Development: Realities of the Myths of the Indian Experience," WIDER Working Paper Series DP2002-78, World Institute for Development Economic Research (UNU-WIDER).
    9. Francis Xavier Rathinam, 2008. "Determinants of Inter-Firm Contractual Relations: A Case of Indian Software Industry," The IUP Journal of Financial Economics, IUP Publications, vol. 0(4), pages 73-85, December.
    10. Saibal Ghosh, 2009. "Productivity and Financial Structure," Global Business Review, International Management Institute, vol. 10(2), pages 261-278, July.
    11. Arora, Ashish & Arunachalam, V. S. & Asundi, Jai & Fernandes, Ronald, 2001. "The Indian software services industry," Research Policy, Elsevier, vol. 30(8), pages 1267-1287, October.
    12. Javorcik, Beata & Sawada, Naotaka, 2018. "The ISO 9000 certification: Little pain, big gain?," European Economic Review, Elsevier, vol. 105(C), pages 103-114.
    13. Balaji Parthasarathy, 2010. "The computer software industry as a vehicle of late industrialization: lessons from the Indian case," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 15(3), pages 247-270.
    14. Alfonso Gambardella & Myriam Mariani & Salvatore Torrisi, 2001. "How Provincial is your Region? Effects on Labour Productivity and Employment in Europe," LEM Papers Series 2001/04, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    15. Arti Grover, 2007. "International Outsourcing and the Supply Side Productivity Determinants," CESifo Working Paper Series 2088, CESifo.
    16. Sarosh Kuruvilla & Aruna Ranganathan, 2008. "Economic Development Strategies and Macro-and Micro-Level Human Resource Policies: The Case of India's “Outsourcing†Industry," ILR Review, Cornell University, ILR School, vol. 62(1), pages 39-72, October.
    17. Michael A. Clemens, 2013. "Why Do Programmers Earn More in Houston Than Hyderabad? Evidence from Randomized Processing of US Visas," American Economic Review, American Economic Association, vol. 103(3), pages 198-202, May.
    18. Melissa A. Valentine & Tom Fangyun Tan & Bradley R. Staats & Amy C. Edmondson, 2019. "Fluid Teams and Knowledge Retrieval: Scaling Service Operations," Manufacturing & Service Operations Management, INFORMS, vol. 21(2), pages 346-360, May.
    19. Lamin, Anna & Dunlap, Denise, 2011. "Complex technological capabilities in emerging economy firms: The role of organizational relationships," Journal of International Management, Elsevier, vol. 17(3), pages 211-228, September.
    20. Qiu, Larry D., 2006. "A general equilibrium analysis of software development: Implications of copyright protection and contract enforcement," European Economic Review, Elsevier, vol. 50(7), pages 1661-1682, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ijurrs:v:28:y:2004:i:3:p:664-685. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0309-1317 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.