Adoption of Open Business Models in the West and Innovation in India's Software Industry
AbstractOver the last three decades, outsourcing has had a big influence on the international division of labour. It is clear that it has been a major reason for the enormous build-up of production capabilities in the developing world, in particular in the export platforms of Asia. However, the influence of outsourcing on innovation capabilities is less clear. Recent literature shows that innovation capabilities have emerged in the software cluster of Bangalore in India. This report asks whether and how the adoption of open business models in OECD countries had an influence on the rise of innovative software services in Bangalore. This requires detailed research on both the demand side and the supply side of outsourced software services. On the demand side, this report compares three software buyer segments, exploring the relationship between business models and outsourcing patterns. The study shows that the adoption of open business models in OECD countries has a major influence on the ‘space’ for innovation that accrues to suppliers in the software industry in India. On the supply side, the study investigates the factors that determine whether the new spaces are filled and how advanced innovation capabilities are built. The key feature of this study is that it examines the interaction between demand- and supply-side dynamics. Most studies tend to focus on only one side, but the key is to see them in conjunction. The study shows that their co-evolution over time changes not only the scale of outsourcing but also the ‘quality’ of the contents and the division of labour.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 49589.
Date of creation: Jan 2010
Date of revision:
outsourcing; open business models; global value chains; ODIP; innovation; integrated innovation; problem framing; software; Bangalore; India;
Find related papers by JEL classification:
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
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.:
- Myriam Mariani, 2002.
"Next to Production or to Technological Clusters? The Economics and Management of R&D Location,"
Journal of Management and Governance,
Springer, vol. 6(2), pages 131-152, May.
- Mariani,Myriam, 1999. "Next to Production or to Technological Clusters? The Economics and Management of R&D Location," Research Memorandum 027, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
- Timothy Sturgeon & Johannes Van Biesebroeck & Gary Gereffi, 2008. "Value chains, networks and clusters: reframing the global automotive industry," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 297-321, May.
- Peter Maskell & Torben Pedersen & Bent Petersen & Jens Dick-Nielsen, 2005.
"Learning Paths to Offshore Outsourcing - From Cost Reduction to Knowledge Seeking,"
DRUID Working Papers
05-17, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Peter Maskell & Torben Pedersen & Bent Petersen & Jens Dick-Nielsen, 2007. "Learning Paths to Offshore Outsourcing: From Cost Reduction to Knowledge Seeking," Industry and Innovation, Taylor & Francis Journals, vol. 14(3), pages 239-257.
- Drejer, Ina, 2004. "Identifying innovation in surveys of services: a Schumpeterian perspective," Research Policy, Elsevier, vol. 33(3), pages 551-562, April.
- Arie Lewin & Silvia Massini & Carine Peeters, 2009.
"Why are companies offshoring innovation ?The emerging global race for talent,"
ULB Institutional Repository
2013/9073, ULB -- Universite Libre de Bruxelles.
- Arie Lewin & Silvia Massini & Carine Peeters, 2008. "Why are companies offshoring innovation ?the emerging global race for talent," Working Papers CEB 08-009, ULB -- Universite Libre de Bruxelles.
- Williamson, Oliver E, 1981. "The Modern Corporation: Origins, Evolution, Attributes," Journal of Economic Literature, American Economic Association, vol. 19(4), pages 1537-68, December.
- Hobday, Michael & Rush, Howard & Bessant, John, 2004. "Approaching the innovation frontier in Korea: the transition phase to leadership," Research Policy, Elsevier, vol. 33(10), pages 1433-1457, December.
- Richard Whitley, 2006. "Project-based firms: new organizational form or variations on a theme?," Industrial and Corporate Change, Oxford University Press, vol. 15(1), pages 77-99, February.
- Hubert Schmitz & Simone Strambach, 2009. "The organisational decomposition of innovation and global distribution of innovative activities: insights and research agenda," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 2(4), pages 231-249.
- Andrea Morrison & Carlo Pietrobelli & Roberta Rabellotti, 2008.
"Global Value Chains and Technological Capabilities: A Framework to Study Learning and Innovation in Developing Countries,"
Oxford Development Studies,
Taylor & Francis Journals, vol. 36(1), pages 39-58.
- Andrea Morrison & Carlo Pietrobelli & Roberta Rabellotti, 2007. "Global Value Chains and Technological Capabilities: A Framework to Study Learning and Innovation in Developing Countries," Working Papers 117, SEMEQ Department - Faculty of Economics - University of Eastern Piedmont.
- Srilata Zaheer & Shalini Manrakhan, 2001. "Concentration and Dispersion in Global Industries: Remote Electronic Access and the Location of Economic Activities," Journal of International Business Studies, Palgrave Macmillan, vol. 32(4), pages 667-686, December.
- Ram Mudambi, 2008. "Location, control and innovation in knowledge-intensive industries," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 699-725, September.
- Humphrey, John & Chen, Martha, 2004. "Upgrading in global value chains," ILO Working Papers 369852, International Labour Organization.
- Paulo N. Figueiredo, 2003. "Learning, capability accumulation and firms differences: evidence from latecomer steel," Industrial and Corporate Change, Oxford University Press, vol. 12(3), pages 607-643, June.
- Stephen Flowers, 2007. "Organizational capabilities and technology acquisition: why firms know less than they buy," Industrial and Corporate Change, Oxford University Press, vol. 16(3), pages 317-346, June.
- Andrea Morrison & Carlo Pietrobelli & Roberta Rabellotti, 2006. "Global Value Chains and Technological Capabilities: A Framework to Study Industrial Innovation in Developing Countries," KITeS Working Papers 192, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Dec 2006.
- Gallouj, Faiz, 2002. "Innovation in services and the attendant old and new myths," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 31(2), pages 137-154.
- John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
- Chaminade, Cristina & Vang, Jan, 2008.
"Globalisation of Knowledge Production and Regional Innovation Policy: Supporting Specialized Hubs in the Bangalore Software Industry,"
CIRCLE Electronic Working Papers
2008/20, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
- Chaminade, Cristina & Vang, Jan, 2008. "Globalisation of knowledge production and regional innovation policy: Supporting specialized hubs in the Bangalore software industry," Research Policy, Elsevier, vol. 37(10), pages 1684-1696, December.
- Dieter Ernst, 2008. "Innovation offshoring and outsourcing: what are the implications for industrial policy?," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 1(3), pages 309-329.
- Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
- Mañé Estrada, Aurèlia & Soldevila Lafon, Maria Victòria & Cámara Arilla, Carmen de la & Puig Gómez, Albert, 2012. "New stakeholders, spaces and instruments of analysis in the context of energy relationships: Case studies from Kazakhstan and Turkmenistan," Working Papers 2072/203154, Universitat Rovira i Virgili, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.