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Globalisation of Knowledge Production and Regional Innovation Policy: Supporting Specialized Hubs in Developing Countries

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Author Info
Chaminade, Cristina ()
Vang-Lauridsen, Jan

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Abstract

This paper sheds light on the role of the regional innovation system facilitating the transition from competing on low cost activities/services towards competing in innovation, using Bangalore software industry as an example. Recent research has documented that Bangalore has become one of the most important IT clusters outside the US. According to this stream of literature a combination of easy access to qualified and relatively cheap technical human capital has attracted a number of transnational corporations (TNCs) during the nineties (eg. IBM, Motorola, Hewlett-Packard, Siemens, 3M, Texas). The TNCs have stimulated a tremendous development of the IT software industry either through outsourcing of routine activities or though establishing offshore subsidiaries. This literature however has not yet paid much attention to the evolutionary aspects of the system of innovation, that is, how the system of innovation emerges and evolves encompassing the changes in the strategies of the indigenous firms. This chapter attempts to contribute to reducing these omission by paying specific attention to the evolutionary aspects of the system of innovation, analyzing the emergence and evolution of the regional system of innovation of the software industry in Bangalore, India. The case clearly illustrates that the move from cost competition to innovation-base competition of the Bangalore firms is seriously compromised by the existing weaknesses in systemic aspects of the regional system of innovation. The interactions with Universities are weak and so are the interactions among the indigenous firms. Furthermore, the connections with the final users and lead users are also quite limited. The paper concludes suggesting some policy measures that take the specific systemic propensities of the Bangalore cluster into account.

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Publisher Info
Paper provided by CIRCLE (Centre for Innovation, Research and Competence in the Learning Economy), Lund University in its series CIRCLE Electronic Working Paper Series with number 2006-15.

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Date of creation: 2006
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Handle: RePEc:cil:wpaper:5

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Find related papers by JEL classification:
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes
O34 - Economic Development, Technological Change, and Growth - - Technological Change - - - Intellectual Property Rights
O38 - Economic Development, Technological Change, and Growth - - Technological Change - - - Government Policy
N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
R58 - Urban, Rural, and Regional Economics - - Regional Government Analysis - - - Regional Development Policy

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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    Other versions:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Padilla, R & Vang-Lauridsen, Jan & Chaminade, Cristina, 2008. "RIS and Developing Countries: Linking firm technological capabilities to regional systems of innovation," CIRCLE Electronic Working Paper Series 2008-13, CIRCLE (Centre for Innovation, Research and Competence in the Learning Economy), Lund University. [Downloadable!]
  2. Chaminade, Cristina & Vang-Lauridsen, Jan & Coenen, Lars, 2007. "Learning from the Bangalore Experience: The Role of Universities in an Emerging Regional Innovation System," CIRCLE Electronic Working Paper Series 2007-04, CIRCLE (Centre for Innovation, Research and Competence in the Learning Economy), Lund University. [Downloadable!]
  3. Borras, Susana & Chaminade, Cristina & Edquist, Charles, 2008. "The Challenges of Globalisation: Strategic Choices for Innovation Policy," CIRCLE Electronic Working Paper Series 2008-09, CIRCLE (Centre for Innovation, Research and Competence in the Learning Economy), Lund University. [Downloadable!]
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