Economic Adversity and Entrepreneurship-led Growth: Lessons from the Indian Software Sector
AbstractIt is commonly believed that the business environment in developing countries does not allow productive technology-based entrepreneurship to flourish. In this paper, we draw on the experience of Indian software firms where entrepreneurial growth has belied these predictions. This paper argues that the business models chosen by Indian firms were those that best aligned the country’s abundant labour resources and advantages to global demand. Many potentially higher value added opportunities struggled to attain success, but the qualitative value of experimental failures and the capability gaps they exposed was invaluable for collective managerial learning in the industry. Second, the paper also shows that the presence of growth opportunities and the success of firms stimulated institutional evolution to promote entrepreneurial growth. Last we show that the distinctive aggregate contribution of entrepreneurial firms was that they outperformed business houses and multinational subsidiaries in their more productive use of available capital resources whilst achieving similar levels of growth in output and employment. This paper draws upon an earlier shorter paper co-authored with Mike Hobday and titled 'Overcoming Development Adversity: How Entrepreneurs Led Software Development in India'.
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Bibliographic InfoPaper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Working Paper WP2010/04.
Length: 20 pages
Date of creation: 2010
Date of revision:
Technology entrepreneurship; institutions and economic development; Indian software; intellectual property rights;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-02-13 (All new papers)
- NEP-CSE-2010-02-13 (Economics of Strategic Management)
- NEP-CWA-2010-02-13 (Central & Western Asia)
- NEP-ENT-2010-02-13 (Entrepreneurship)
- NEP-HRM-2010-02-13 (Human Capital & Human Resource Management)
- NEP-IPR-2010-02-13 (Intellectual Property Rights)
- NEP-SBM-2010-02-13 (Small Business Management)
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