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Understanding Sectoral Economic Growth in India: The Potential for Services

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  • Kaliappa Kalirajan

    ()
    (Crawford School of Public Policy, The Australian National University)

  • Kanhaiya Singh

    ()
    (National Council of Applied Economic Research, New Delhi)

Abstract

Trust among agents (or persons) involved in the process of innovation is intrinsic to successful innovation. An examination of the firm’s trust in its agents at various stages of the innovation process will therefore contribute practical insights into best business practices, as well as policy implications for competitive and strategic advancement. This paper focuses on the development of a framework for the evolution of trust in the firm’s innovation process. The trust a firm has in its employees at the micro level, and in the agents who are part of a sectoral, regional and national innovation system consisting of firms (including multi-national corporations or MNCs at both the national and transnational/global levels), academic institutions, and government and non-government bodies with which the firm interacts, is crucial to the firm’s successful innovation. Trust in the process of innovation is viewed as consisting of two components – concerns regarding how firms feel about being trusted and about having to trust others. Three types of trust are identified in the paper, namely, competence, predictability and goodwill trust. These are described in terms of their evolution at different stages of the firm’s innovation process as the firm interacts with its micro, meso and macro level agents. By examining the role of the firm’s trust at these different stages, the paper seeks to contribute to a better understanding of the role of trust in the innovation process

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Bibliographic Info

Article provided by Faculty of Economics and Administration, University of Malaya in its journal Institutions and Economies (formerly known as International Journal of Institutions and Economies).

Volume (Year): 5 (2013)
Issue (Month): 1 (April)
Pages: 91-112

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Handle: RePEc:umk:journl:v:5:y:2013:i:1:p:91-112

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Related research

Keywords: environmental goods and services; global financial crisis; India; sectoral economic growth; services sector;

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References

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  1. Robert J. Barro, 2012. "Inflation and Economic Growth," CEMA Working Papers 568, China Economics and Management Academy, Central University of Finance and Economics.
  2. Timothy Besley & Robin Burgess, 2004. "Can Labor Regulation Hinder Economic Performance? Evidence from India," The Quarterly Journal of Economics, MIT Press, vol. 119(1), pages 91-134, February.
  3. Jeffrey D. Sachs & Nirupam Bajpai & Ananthi Ramiah, 2002. "Understanding Regional Economic Growth in India," Asian Economic Papers, MIT Press, vol. 1(3), pages 32-62.
  4. Kaliappa Kalirajan & Shashanka Bhide, 2004. "The Post-reform Performance of the Manufacturing Sector in India," Asian Economic Papers, MIT Press, vol. 3(2), pages 126-157.
  5. Dani Rodrik & Arvind Subramanian, 2004. "Why India Can Grow At 7 Percent a Year or More," IMF Working Papers 04/118, International Monetary Fund.
  6. Kaliappa Kalirajan & Shashanka Bhide & Kanhaiya Singh, 2009. "Development Performance Across Indian States and The Role of the Governments," ASARC Working Papers 2009-05, The Australian National University, Australia South Asia Research Centre.
  7. Kochhar, Kalpana & Kumar, Utsav & Rajan, Raghuram & Subramanian, Arvind & Tokatlidis, Ioannis, 2006. "India's pattern of development: What happened, what follows?," Journal of Monetary Economics, Elsevier, vol. 53(5), pages 981-1019, July.
  8. Mary Amiti & Shang-Jin Wei, 2006. "Service Offshoring and Productivity: Evidence from the United States," NBER Working Papers 11926, National Bureau of Economic Research, Inc.
  9. G. Rajan, Raghuram, 2006. "India: The Past and Its Future," Asian Development Review, Asian Development Bank, vol. 23(2), pages 36-52.
  10. Karsten Bjerring Olsen, 2006. "Productivity Impacts of Offshoring and Outsourcing: A Review," OECD Science, Technology and Industry Working Papers 2006/1, OECD Publishing.
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Cited by:
  1. Santra, Swarup & Kumar, Rajesh & Bagaria, Nidhi, 2014. "Structural change of Bihar economy during 1999 to 2010: a district level analysis," MPRA Paper 53285, University Library of Munich, Germany.

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