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U.S.-India Technology Cooperation and Capability Building: The Role of Inter-Firm Alliances in Knowledge-Based Industries

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  • Rakesh Basant

    (Economics, Indian Institute Management, Ahmedabad, India)

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    Abstract

    The paper reviews some Indo-US technology cooperation initiatives and analyses data on inter-firm alliances in knowledge based industries, especially Information Technology (IT). It snows that the market driven increase in the alliances between Indian and US enterprises has significantly enhanced the variety of linkages between Indian and US entities, both public and private. And that these linkages have contributed to capability building and diversification by Indian partners. A variety of spillover benefits of international technology alliances are highlighted. It is suggested that issues relevant for Indo-US co-operation at different levels need to be analyzed together in order to appreciate the complementarities across linkages of various types. For example, linkages between the public sector entities of the two nations may enhance the potential private sector networking initiatives. The paper also argues that while building of public institutions and policies relating to trade, technology and investment remain important for Indo-US technology co-operation, as shift in policy focus to "market induced" inter-firm alliances may be desirable.

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    File URL: http://www.eastwestcenter.org/fileadmin/stored/pdfs/ECONwp053.pdf
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    Bibliographic Info

    Paper provided by East-West Center, Economics Study Area in its series Economics Study Area Working Papers with number 53.

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    Length: 45 pages
    Date of creation: Mar 2003
    Date of revision:
    Handle: RePEc:ewc:wpaper:wp53

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    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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    1. Dieter Ernst, 2000. "Global Production Networks and the Changing Geography of Innovation Systems: Implications for Developing Countries," Economics Study Area Working Papers 09, East-West Center, Economics Study Area.
    2. Arora, Ashish & Athreye, Suma, 2001. "The Software Industry and India's Economic Development," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    3. Evenson, R.E. & Westphal, L.E., 1994. "Technological Change and Technology Strategy," Papers 709, Yale - Economic Growth Center.
    4. Rakesh Basant & Pankaj Chandra & Lynn Mytelka, 2001. "Inter-Firm Linkages and Development of Capabilities in the Indian Telecom Software Sector," Economics Study Area Working Papers 14, East-West Center, Economics Study Area.
    5. Ernst, Dieter & Kim, Linsu, 2002. "Global production networks, knowledge diffusion, and local capability formation," Research Policy, Elsevier, vol. 31(8-9), pages 1417-1429, December.
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