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Social Capital, Diversity and (Economic) DEvelopment: Evidence from Indian IT Industry, Bangalore

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Author Info
Florian A. Taube ()
Abstract

This paper addresses two sets of questions related to IT development and lessons to be drawn for other regions both in and outside India. Firstly, based on original fieldwork an additional argument to traditional location literature is deployed. Secondly, related research on the financial services industry conjectures an intersectoral upgrading of the software industry clustered in Bangalore. Hence, the question is whether other regions can duplicate the success factors of Bangalore for both innovative technological development and an eventual industrial diversification. The major empirical finding is that the open and cosmopolitan nature of Bangalore has contributed a large share to the existing diversity of the city which, ultimately, has led to an innovative and thriving (economic) development.

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Paper provided by esocialsciences.com in its series Working Papers with number id:345.

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Date of creation: 2006
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Handle: RePEc:ess:wpaper:id:345

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Related research
Keywords: IT; economic development; diversity; social capital; regional culture; value-chain upgrading; REgional Studies; Karnataka; Economics; Industry;

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  1. Klemm, Konstantin & Eguiluz, Victor M. & Toral, Raul & Miguel, Maxi San, 2005. "Globalization, polarization and cultural drift," Journal of Economic Dynamics and Control, Elsevier, vol. 29(1-2), pages 321-334, January. [Downloadable!] (restricted)
  2. Marini, Matteo, 2004. "Cultural evolution and economic growth: a theoretical hypothesis with some empirical evidence," The Journal of Socio-Economics, Elsevier, vol. 33(6), pages 765-784, December. [Downloadable!] (restricted)
  3. Ajay Agrawal & Iain Cockburn & John McHale, 2003. "Gone But Not Forgotten: Labor Flows, Knowledge Spillovers, and Enduring Social Capital," NBER Working Papers 9950, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Montalvo, Jose G. & Reynal-Querol, Marta, 2005. "Ethnic diversity and economic development," Journal of Development Economics, Elsevier, vol. 76(2), pages 293-323, April. [Downloadable!] (restricted)
  5. Alberto Alesina & Eliana La Ferrara, 2004. "Ethnic Diversity and Economic Performance," NBER Working Papers 10313, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Deshpande, Ashwini, 2000. "Recasting Economic Inequality," Review of Social Economy, Taylor and Francis Journals, vol. 58(3), pages 381-99, September. [Downloadable!] (restricted)
  7. Akerlof, George A, 1976. "The Economics of Caste and of the Rat Race and Other Woeful Tales," The Quarterly Journal of Economics, MIT Press, vol. 90(4), pages 599-617, November. [Downloadable!] (restricted)
  8. Frederking, Lauretta Conklin, 2002. "Is there an endogenous relationship between culture and economic development?," Journal of Economic Behavior & Organization, Elsevier, vol. 48(2), pages 105-126, June. [Downloadable!] (restricted)
  9. Michael H Grote & Florian A Täube, 2006. "Offshoring the financial services industry: implications for the evolution of Indian IT clusters," Environment and Planning A, Pion Ltd, London, vol. 38(7), pages 1287-1305, July. [Downloadable!] (restricted)
  10. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July. [Downloadable!] (restricted)
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