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Innovation through Long-distance Conversations? Lessons from Offshoring-based Software Clusters in Bangalore

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  • Aya Okada

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Abstract

This paper is aganist the popular assertion regarding the links between innovation and clustering and it is found that the main sources of knowledge transfer and innovation among key firms in Bangalore’s software cluster are their external linkages outside the cluster rather than face-to-face interactions between firms within the cluster. Moreover, the rich pool of skilled labor, made available through clustering has played an important role in facilitating learning, that is, diffusing the knowledge brought in by foreign networks.

Suggested Citation

  • Aya Okada, 2009. "Innovation through Long-distance Conversations? Lessons from Offshoring-based Software Clusters in Bangalore," Working Papers id:2300, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:2300
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    References listed on IDEAS

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    1. Breschi, Stefano & Lissoni, Francesco, 2001. "Knowledge Spillovers and Local Innovation Systems: A Critical Survey," Industrial and Corporate Change, Oxford University Press, vol. 10(4), pages 975-1005, December.
    2. Okada, Aya, 2004. "Skills Development and Interfirm Learning Linkages under Globalization: Lessons from the Indian Automobile Industry," World Development, Elsevier, vol. 32(7), pages 1265-1288, July.
    3. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, January.
    4. Patibandla, Murali & Petersen, Bent, 2002. "Role of Transnational Corporations in the Evolution of a High-Tech Industry: The Case of India's Software Industry," World Development, Elsevier, vol. 30(9), pages 1561-1577, September.
    5. Breschi, Stefano & Malerba, Franco, 2001. "The Geography of Innovation and Economic Clustering: Some Introductory Notes," Industrial and Corporate Change, Oxford University Press, vol. 10(4), pages 817-833, December.
    6. Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics,in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171 Elsevier.
    7. Saxenian, AnnaLee & Hsu, Jinn-Yuh, 2001. "The Silicon Valley-Hsinchu Connection: Technical Communities and Industrial Upgrading," Industrial and Corporate Change, Oxford University Press, vol. 10(4), pages 893-920, December.
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    Keywords

    innovation; clustering; transfer; Bangalore; software; cluster; linkages; labor; skilled labour; foreign; knowledge; firms; knowledge; economies of scale; economy; information; human resources; competitive environment; biotechnology; India;

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