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New Technologies and Indian SMEs

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Author Info
Lal, Kaushalesh () (United Nations University, Institute for New Technologies)

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Abstract

The study identifies and analyses the factors that influenced the adoption of new technologies in SMEs. Information and communication technologies (ICTs) have been used as proxy of new technologies. The findings of the study suggest that industry-specific characteristics such as skill- and export-intensiveness have bearings on the type of ICT adoption. The size of operation measured in terms of sales turnover influenced the adoption of new technologies. The results also suggest that there are marginal differences in the labour productivity and profitability of firms that adopted varying degree of ICTs. In view of the fact that that MFA provisions are no more available to garments sector firms since January 1, 2005, the government needs to embark on providing technological, physical, and communication infrastructure at a globally competitive rate so that SMEs can withstand onslaught posed by large domestic firms and MNCs.

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Paper provided by United Nations University, Institute for New Technologies in its series Discussion Papers with number 06.

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Date of creation: 2005
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Handle: RePEc:dgr:unuint:200506

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Web page: http://www.intech.unu.edu

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Keywords: small and medium enterprises SMEs technological change information and communication technologies ICT India competitiveness technology policy industrial policy

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  1. David Card & Francis Kramarz & Thomas Lemieux, 1996. "Changes in the Relative Structure of Wages and Employment: A Comparison of the United States, Canada, and France," NBER Working Papers 5487, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Lal, K., 1999. "Determinants of the adoption of Information Technology: a case study of electrical and electronic goods manufacturing firms in India," Research Policy, Elsevier, vol. 28(7), pages 667-680, September. [Downloadable!] (restricted)
  3. Kramarz, F., 1998. "Computers and Labour Markets: International Evidence," Research Paper 152, World Institute for Development Economics Research.
  4. Erik Brynjolfsson, 1992. "The Productivity of Information Technology: Review and Assessment," Working Paper Series 130, MIT Center for Coordination Science. [Downloadable!]
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  5. DiNardo, John E & Pischke, Jorn-Steffen, 1997. "The Returns to Computer Use Revisited: Have Pencils Changed the Wage Structure Too?," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 291-303, February.
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  6. Doms, Mark & Dunne, Timothy & Troske, Kenneth R, 1997. "Workers, Wages, and Technology," The Quarterly Journal of Economics, MIT Press, vol. 112(1), pages 253-90, February.
  7. Donald Siegel & Zvi Griliches, 1991. "Purchased Services, Outsourcing, Computers, and Productivity in Manufacturing," NBER Working Papers 3678, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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