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Growth drivers: ICT and inclusive innovations

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  • Ashima Goyal

    ()
    (Indira Gandhi Institute of Development Research
    Institute of Economic Growth)

Abstract

The paper explores the contribution of innovations to Indian growth. Inclusive innovations aid catch-up and close productivity gaps. An analytical framework helps to characterize policies that contribute to such innovations. Recent telecommunication and mobile banking policies are assessed against these. While policy can directly encourage it, if innovation depends on market size above a threshold, policies that expand size can be more effective in inducing innovation. While policy successfully expanded mobile use, increasing revenue has recently taken precedence over expanding the market. Poor provision of the relevant infrastructure continues to exclude sections of the population and limit spillovers. Regulatory measures that limited market size were partly responsible for India's lack of success in mobile banking, compared to Pakistan.

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Bibliographic Info

Paper provided by Indira Gandhi Institute of Development Research, Mumbai, India in its series Indira Gandhi Institute of Development Research, Mumbai Working Papers with number 2013-018.

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Length: 29 pages
Date of creation: Sep 2013
Date of revision:
Handle: RePEc:ind:igiwpp:2013-018

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Keywords: Inclusive innovation; technology policy; telecom; mobile banking;

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  1. Dale W. Jorgenson, 2001. "Information Technology and the U. S. Economy," Harvard Institute of Economic Research Working Papers 1911, Harvard - Institute of Economic Research.
  2. Goyal, Ashima, 2007. "Distant labour supply, skills and induced technical change," Information Economics and Policy, Elsevier, vol. 19(2), pages 133-150, June.
  3. Gino Gancia & Fabrizio Zilibotti & Daron Acemoglu, 2012. "Offshoring and Directed Technical Change," 2012 Meeting Papers 688, Society for Economic Dynamics.
  4. Daron Acemoglu, 2000. "Technical Change, Inequality, and the Labor Market," NBER Working Papers 7800, National Bureau of Economic Research, Inc.
  5. Ronald Jones & Henryk Kierzkowski, 2005. "International trade and agglomeration: An alternative framework," Journal of Economics, Springer, vol. 10(1), pages 1-16, December.
  6. Goyal, Ashima, 2005. "New technology and labour Markets: Entrants, outsourcing and matching," MPRA Paper 24620, University Library of Munich, Germany.
  7. Dale W. Jorgenson, 2001. "Information Technology and the U.S. Economy," American Economic Review, American Economic Association, vol. 91(1), pages 1-32, March.
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