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Globalisation of knowledge production and regional innovation policy: Supporting specialized hubs in the Bangalore software industry

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  • Chaminade, Cristina
  • Vang, Jan

Abstract

This paper is concerned with the changing role of regional innovation systems and regional policies in supporting the transition of indigenous firms in developing countries from competing on low costs towards becoming knowledge providers in global value chains. Special attention is paid to policies supporting the emergence and development of the regional innovation system in this transition process. Regional innovation systems in developing countries have very recently started to be conceptualised as specialized hubs in global innovation and production networks (Asheim, B., Coenen, L., Vang-Lauridsen, J., 2007. Face-to-face, buzz and knowledge bases: socio-spatial implications for learning, innovation and innovation policy. Environment and Planning C: Government and Policy 25 (5), 655-670; Chaminade, C., Vang, J., 2006a. Innovation policy for small and medium size SMEs in Asia: an innovation systems perspective. In: Yeung, H. (Ed.), Handbook of Research on Asian Business. Edward Elgar, Cheltenham; Maggi, C., 2007. The salmon farming and processing cluster in Southern Chile. In: Pietrobello, C., Rabellotti, R. (Eds.), Upgrading and Governance in Clusters and Value Chains in Latin America. Harvard University Press). A specialized hub refers to a node in a global value chain that mainly undertakes one or a few of the activities required for the production and development of a given good or service or serves a particular segment of the global market. In global value chains, firms in developing countries have traditionally been responsible for the lowest added-value activities. However, a few emerging regional innovation systems in developing countries are beginning to challenge this scenario by rapidly upgrading in the value chain. There is, however, still only a poorly developed understanding of how the system of innovation emerges and evolves to support this transition process and what the role of regional innovation policy is in building the regional conditions that support indigenous small and medium size enterprises (SMEs) in this transition process. This paper aims at reducing this omission by analyzing the co-evolution of the strategies of indigenous SMEs and the regional innovation system of Bangalore (India).

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Bibliographic Info

Article provided by Elsevier in its journal Research Policy.

Volume (Year): 37 (2008)
Issue (Month): 10 (December)
Pages: 1684-1696

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Handle: RePEc:eee:respol:v:37:y:2008:i:10:p:1684-1696

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Web page: http://www.elsevier.com/locate/respol

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Keywords: Regional innovation systems Evolution Globalization of innovation Software industry Bangalore;

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  1. 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.
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  3. Chaminade, Cristina & Vang, Jan, 2006. "Innovation policy for Asian SMEs: Exploring cluster differences," CIRCLE Electronic Working Papers 2006/3, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
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  6. Chaminade, Cristina & Vang, Jan, 2005. "Innovation Policies for Small and Medium Size Enterprises in Asia: An Innovation Systems Perspective," CIRCLE Electronic Working Papers 2005/6, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  7. Castellacci, Fulvio, 2006. "The interactions between national systems and sectoral patterns of innovation: a cross-country analysis of Pavitt’s taxonomy," MPRA Paper 27601, University Library of Munich, Germany.
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Citations

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Cited by:
  1. Chaminade, Cristina & de Fuentes, Claudia, 2012. "Competences as drivers and enablers of globalization of innovation: Swedish ICT industry and emerging economies," CIRCLE Electronic Working Papers 2012/6, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  2. Chaminade, Cristina, 2012. "Exploring the role of regional innovation systems and institutions in global innovation networks," CIRCLE Electronic Working Papers 2011/15, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  3. Vertesy, Daniel & Szirmai, Adam, 2010. "Interrupted innovation: Innovation system dynamics in latecomer aerospace industries," UNU-MERIT Working Paper Series 059, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
  4. Chaminade, Cristina & Plechero, Monica, 2012. "Do regions make a difference? Exploring the role of different regional innovation systems in global innovation networks in the ICT industry," CIRCLE Electronic Working Papers 2012/2, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  5. Snejina Michailova & Elena Sidorova, 2010. "Knowledge Management In Transition Economies: Selected Key Issues And Possible Research Avenues," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 1(1).
  6. Ping Lv & Monica Plechero & Basant, Rakesh & Xie-Lin Liu, . "International Competitive Strategy Choices: Comparing Firms in China and India," IIMA Working Papers WP2012-01-05, Indian Institute of Management Ahmedabad, Research and Publication Department.
  7. José Guimón* & Sergey Filippov, 2012. "Competing for High-quality FDI: Management Challenges for Investment Promotion Agencies," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 4(2), pages 25-44, July.

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