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Globalisation of Knowledge Production and Regional Innovation Policy: Supporting Specialized Hubs in the Bangalore Software Industry

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  • Chaminade, Cristina

    ()
    (CIRCLE, Lund University)

  • Vang, Jan

    ()
    (Copenhagen Institute of Technology, Aalborg University)

Abstract

This paper is concerned with the changing role of regional innovation systems and regional policies in supporting the transition of indigenous firms in developing countries from competing on low costs towards becoming knowledge providers in global value chains. Special attention is paid to policies supporting the emergence and development of the regional innovation system in this transition process. Regional innovation systems in developing countries have very recently started to be conceptualised as specialized hubs in global innovation and production networks (Asheim, B., Coenen, L., Vang-Lauridsen, J.,2007. Face to- face, buzz and knowledge bases: socio-spatial implications for learning,innovation and innovation policy. Environment and Planning C: Government and Policy 25(5), 655–670; Chaminade, C., Vang, J., 2006a. Innovation policy for small andmedium size SMEs in Asia: an innovation systems perspective. In:Yeung, H. (Ed.), Handbook of Research on Asian Business. Edward Elgar, Cheltenham; Maggi, C., 2007. The salmon farming and processing cluster in Southern Chile. In: Pietrobello, C., Rabellotti, R. (Eds.), Upgrading and Governance in Clusters and Value Chains in Latin America. Harvard University Press). A specialized hub refers to a node in a global value chain that mainly undertakes one or a few of the activities required for the production and development of a given good or service or serves a particular segment of the global market. In global value chains, firms in developing countries have traditionally been responsible for the lowest added-value activities. However, a few emerging regional innovation systems in developing countries are beginning to challenge this scenario by rapidly upgrading in the value chain. There is, however, still only a poorly developed understanding of how the system of innovation emerges and evolves to support this transition process and what the role of regional innovation policy is in building the regional conditions that support indigenous small and medium size enterprises (SMEs) in this transition process. This paper aims at reducing this omission by analyzing the co-evolution of the strategies of indigenous SMEs and the regional innovation system of Bangalore (India).

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Bibliographic Info

Paper provided by Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy in its series Papers in Innovation Studies with number 2008/20.

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Length: 28 pages
Date of creation: 01 Dec 2008
Date of revision:
Handle: RePEc:hhs:lucirc:2008_020

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Postal: CIRCLE, Lund University, PO Box 117, SE-22100 Lund, Sweden
Phone: +46 (0) 46 222 74 68
Web page: http://www.circle.lu.se/
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Keywords: Regional innovation systems; Evolution; Globalization of innovation; Software industry; Bangalore;

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Citations

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Cited by:
  1. Ping Lv & Monica Plechero & Rakesh Basant, 2013. "International competitive strategy choices: comparing firms in China and India," Asia Pacific Business Review, Taylor & Francis Journals, vol. 19(4), pages 542-558, October.
  2. Alvandi , Keyvan & Chaminade , Cristina & Lv, Ping, 2013. "Commonalities and differences between production-related FDI (PFDI) and technology-related FDI (TFDI) in developed and emerging economies," CIRCLE Electronic Working Papers 2013/47, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  3. Gosens, Jorrit & Lu, Yonglong & Coenen , Lars, 2013. "Clean-tech Innovation in Emerging Economies: Transnational Dimensions in Technological Innovation System Formation," CIRCLE Electronic Working Papers 2013/10, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  4. Giuliani, Elisa, 2014. "Human Rights and Corporate Social Responsibility in Developing Countries’ Industrial Clusters," CIRCLE Electronic Working Papers 2014/9, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  5. Lema, Rasmus & Quadros, Ruy & Schmitz, Hubert, 2012. "Shifts in Innovation Power to Brazil and India: Insights from the Auto and Software Industries," MPRA Paper 49591, University Library of Munich, Germany.
  6. Binz, Christian & Truffer, Bernhard & Coenen, Lars, 2014. "Why space matters in technological innovation systems—Mapping global knowledge dynamics of membrane bioreactor technology," Research Policy, Elsevier, vol. 43(1), pages 138-155.
  7. Chaminade, Cristina, 2012. "Exploring the role of regional innovation systems and institutions in global innovation networks," CIRCLE Electronic Working Papers 2011/15, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  8. Chaminade, Cristina & de Fuentes, Claudia, 2012. "Competences as drivers and enablers of globalization of innovation: Swedish ICT industry and emerging economies," CIRCLE Electronic Working Papers 2012/6, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  9. Harirchi, Gouya & Chaminade, Cristina, 2014. "Exploring the Relation Between the Degree of Novelty of Innovations and User–Producer Interaction Across Different Income Regions," World Development, Elsevier, vol. 57(C), pages 19-31.
  10. Lema, Rasmus, 2010. "Adoption of Open Business Models in the West and Innovation in India's Software Industry," MPRA Paper 49589, University Library of Munich, Germany.
  11. Kinnear, Susan & Ogden, Ian, 2014. "Planning the innovation agenda for sustainable development in resource regions: A central Queensland case study," Resources Policy, Elsevier, vol. 39(C), pages 42-53.
  12. Karlsson, Charlie & Johansson, Börje & Kobayashi, Kiyoshi & Stough, Roger R., 2014. "Knowledge, innovation and space," Working Paper Series in Economics and Institutions of Innovation 367, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  13. Snejina Michailova & Elena Sidorova, 2010. "Knowledge Management In Transition Economies: Selected Key Issues And Possible Research Avenues," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 1(1).
  14. Liu, Ju & Chaminade, Cristina & Asheim, Bjørn, 2012. "The Geography and Structure of Global Innovation Networks: A Knowledge Base Perspective," CIRCLE Electronic Working Papers 2013/15, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  15. Chaminade, Cristina & Plechero, Monica, 2012. "Do regions make a difference? Exploring the role of different regional innovation systems in global innovation networks in the ICT industry," CIRCLE Electronic Working Papers 2012/2, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
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  18. José Guimón* & Sergey Filippov, 2012. "Competing for High-quality FDI: Management Challenges for Investment Promotion Agencies," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 4(2), pages 25-44, July.
  19. Vertesy, Daniel & Szirmai, Adam, 2010. "Interrupted innovation: Innovation system dynamics in latecomer aerospace industries," MERIT Working Papers 059, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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