IDEAS home Printed from https://ideas.repec.org/a/bla/rgscpp/v12y2020i3p431-454.html
   My bibliography  Save this article

A Critical review of the Indian knowledge‐based industry location policy against its theoretical arguments

Author

Listed:
  • Arun Natarajan Hariharan
  • Arindam Biswas

Abstract

“Location,” “Location,” “Location” determine the policy dynamics of industrial development in today's globalized world. These words also define a spatial unit with resources, labour, and proximity to the consumer base. The advent of information and communication technologies (ICTs) and transportation networks have increased the concentration of industries at a particular location in this globalized world. This paper discusses two aspects of regional development, first the apprehensions in understanding location policy for industrial development. Second, the choice of location of India in providing the skilled labour force for knowledge‐based software services industry and the consequent urban regional dynamics in the spatial growth of the Bangalore metropolitan region (BMR). La "ubicación", la "ubicación" y la "ubicación" determinan la dinámica de las políticas de desarrollo industrial en el mundo globalizado actual. Estas palabras también definen una unidad espacial con recursos, mano de obra y proximidad a la base de consumidores. La llegada de las tecnologías de la información y la comunicación (TIC) y las redes de transporte han aumentado la concentración de industrias en lugares determinados de este mundo globalizado. Este artículo examina dos aspectos del desarrollo regional. En primer lugar, las aprensiones en el entendimiento de la política de localización para el desarrollo industrial. En segundo lugar, la elección de ubicación de la India para proporcionar mano de obra cualificada para la industria de servicios de software basado en conocimiento y la consiguiente dinámica regional urbana en el crecimiento espacial de la región metropolitana de Bangalore. 「Location, Location, Location (まず立地、次に立地、最後に立地)」という諺は、まさにグローバル化を遂げた今日の世界における産業発展の政策のダイナミクスを表現している。これは、リソース、労働力、そして顧客ベースとの近接性がある空間単位を定義するものでもある。これまで、グローバル化情報通信技術と交通ネットワークが出現したことにより、このグローバル化した世界の特定の場所に産業が集中してきた。本稿では地域発展の二つの側面を考察する。はじめに、産業発展のための立地政策を理解することの懸念について。次に、知識ベースのソフトウェアサービス産業にスキルのある労働力を供給するための、インドにおける立地の選択と、その結果として起こる、バンガロール都市圏の空間的成長における都市部のダイナミクスについて述べる。

Suggested Citation

  • 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.
    • Handle: RePEc:bla:rgscpp:v:12:y:2020:i:3:p:431-454
    DOI: 10.1111/rsp3.12257
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/rsp3.12257
    Download Restriction: no
    File URL: https://libkey.io/10.1111/rsp3.12257?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. Karl, Helmut & Matus Velasco, Ximena Fernanda, 2004. "Lessons for regional policy from the new economic geography and the endogenous growth theory," Studies in Spatial Development: Chapters, in: Employment and regional development policy: Market efficiency versus policy intervention, pages 71-89, ARL – Akademie für Raumentwicklung in der Leibniz-Gemeinschaft.
    2. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    3. Thomas Farole, 2013. "The Internal Geography of Trade : Lagging Regions and Global Markets," World Bank Publications - Books, The World Bank Group, number 13817, December.
    4. Francisco L. Rivera-Batiz & Luis A. Rivera-Batiz, 2018. "Economic Integration and Endogenous Growth," World Scientific Book Chapters, in: Francisco L Rivera-Batiz & Luis A Rivera-Batiz (ed.), International Trade, Capital Flows and Economic Development, chapter 1, pages 3-32, World Scientific Publishing Co. Pte. Ltd..
    5. Basant, Rakesh, 2006. "Bangalore Cluster: Evolution, Growth and Challenges," IIMA Working Papers WP2006-05-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
    6. Joseph E. Stiglitz, 1989. "Markets and Development," NBER Working Papers 2961, National Bureau of Economic Research, Inc.
    7. K. J. Arrow, 1971. "The Economic Implications of Learning by Doing," Palgrave Macmillan Books, in: F. H. Hahn (ed.), Readings in the Theory of Growth, chapter 11, pages 131-149, Palgrave Macmillan.
    8. 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.
    9. Douglass C. North, 1955. "Location Theory and Regional Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 63, pages 243-243.
    10. 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.
    11. Uwe Deichmann & Somik V. Lall & Stephen J. Redding & Anthony J. Venables, 2008. "Industrial Location in Developing Countries," The World Bank Research Observer, World Bank, vol. 23(2), pages 219-246, May.
    12. Mathew J. Manimala, 2017. "Bangalore: Development Through Intercultural Interaction," Innovation, Technology, and Knowledge Management, in: Piero Formica (ed.), Entrepreneurial Renaissance, chapter 0, pages 57-80, Springer.
    13. François Perroux, 1950. "Economic Space: Theory and Applications," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 64(1), pages 89-104.
    14. Stiglitz, Joseph E, 1989. "Markets, Market Failures, and Development," American Economic Review, American Economic Association, vol. 79(2), pages 197-203, May.
    15. Saikia, Dilip, 2009. "Industrial Location in India under Liberalization," MPRA Paper 27821, University Library of Munich, Germany.
    16. 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.
    17. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    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. Arun Natarajan Hariharan & Arindam Biswas, 2022. "Global advantage of Bangalore as a location choice for knowledge‐based industries in India," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(2), pages 328-351, April.
    2. Ivan Paunović & Cathleen Müller & Klaus Deimel, 2022. "Building a Culture of Entrepreneurial Initiative in Rural Regions Based on Sustainable Development Goals: A Case Study of University of Applied Sciences–Municipality Innovation Partnership," Sustainability, MDPI, vol. 14(19), pages 1-19, September.

    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, 2022. "Global advantage of Bangalore as a location choice for knowledge‐based industries in India," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(2), pages 328-351, April.
    2. Benarroch Michael & James Gaisford, 2002. "Learning, experience and the dynamics of north-south Trade and technology transfer," International Economic Journal, Taylor & Francis Journals, vol. 16(2), pages 65-83.
    3. Eckey, Hans-Friedrich & Türck, Matthias, 2007. "Convergence of EU-Regions. A Literature Report," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 10, pages 5-32.
    4. Michael Benarroch & James Gaisford, 2002. "Learning-Driven Product Cycles, New Product Adoption and North-South Inequality," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 27(1), pages 1-23, June.
    5. Christos N. Pitelis, 2009. "The Sustainable Competitive Advantage and Catching-up of Nations: FDI, Clusters and the Liability (Asset) of Smallness," Management International Review, Springer, vol. 49(1), pages 95-120, February.
    6. Derrick M. Anderson & Andrew B. Whitford, 2015. "Developing Knowledge States: Technology and the Enhancement of National Statistical Capacity," Papers 1502.07625, arXiv.org.
    7. V. V. Chari & Patrick J. Kehoe & Ellen R. McGrattan, 1996. "The Poverty of Nations: A Quantitative Exploration," NBER Working Papers 5414, National Bureau of Economic Research, Inc.
    8. Richard E. Baldwin & Philippe Martin & Gianmarco I. P. Ottaviano, 2021. "Global Income Divergence, Trade, and Industrialization: The Geography of Growth Take-Offs," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 2, pages 25-57, World Scientific Publishing Co. Pte. Ltd..
    9. Wu, Mingran & Zhao, Min & Wu, Zhaodan, 2019. "Evaluation of development level and economic contribution ratio of science and technology innovation in eastern China," Technology in Society, Elsevier, vol. 59(C).
    10. Gancia, Gino & Zilibotti, Fabrizio, 2005. "Horizontal Innovation in the Theory of Growth and Development," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 3, pages 111-170, Elsevier.
    11. Carlos Humberto Ortiz & Javier Andrés Castro, 2008. "Technological Integration and Income Gaps," Revista Lecturas de Economía, Universidad de Antioquia, CIE, June.
    12. Hans-Friedrich Eckey & Reinhold Kosfeld & Matthias Türck, 2007. "Regionale Entwicklung mit und ohne räumliche Spillover-Effekte," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 27(1), pages 23-42, February.
    13. Christos N. Pitelis, 2011. "Foreign Direct Investment and Economic Integration," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume III, chapter 1, Edward Elgar Publishing.
    14. repec:ebl:ecbull:v:2:y:2002:i:1:p:1-15 is not listed on IDEAS
    15. Backus, David K. & Kehoe, Patrick J. & Kehoe, Timothy J., 1992. "In search of scale effects in trade and growth," Journal of Economic Theory, Elsevier, vol. 58(2), pages 377-409, December.
    16. Gene M. Grossman & Elhanan Helpman, 1994. "Endogenous Innovation in the Theory of Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 23-44, Winter.
    17. Diana Cibulskienė & Mindaugas Butkus, 2007. "The Influence of Cumulative Causation Process on Regional Divergence in Lithuania during 1995–2003," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 27(1), pages 59-87, February.
    18. Koen Frenken & Frank G. van Oort & Thijs Verburg & Ron A. Boschma, 2004. "Variety and regional economic growth in the Netherlands," Papers in Evolutionary Economic Geography (PEEG) 0502, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2004.
    19. Michael Peneder & Karl Aiginger & Gernot Hutschenreiter & Markus Marterbauer, 2001. "Structural Change and Economic Growth," WIFO Studies, WIFO, number 20668, Juni.
    20. Jérôme Creel & Maurizio Iacopetta, 2015. "Macroeconomic policy and potential growth," Working Papers hal-03459896, HAL.
    21. Maria João Ribeiro, 2003. "Endogenous Growth: Analytical Review of its Generating Mechanisms," NIPE Working Papers 4/2003, NIPE - Universidade do Minho.

    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:rgscpp:v:12:y:2020:i:3:p:431-454. 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=1757-7802 .

    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.