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US-India Technology Co-operation and Capability Building: The Role of Inter-firm Alliances in Knowledge Based Industries

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  • Basant, Rakesh

Abstract

The paper reviews some Indo-US technology cooperation initiatives and analyses data on inter-firm alliances in knowledge based industries, especially Information Technology (IT). It shows that the market driven increase in the alliances between Indian and US enterprises has significantly enhanced the variety of linkages between Indian and US entities, both public and private. And that these linkages have contributed to capability building and diversification by Indian partners. A variety of spillover benefits of international technology alliances are highlighted. It is suggested that issues relevant for Indo-US co-operation at different levels need to be analyzed together in order to appreciate the complementarities across linkages of various types. For example, linkages between the public sector entities of the two nations may enhance the potential private sector networking initiatives. The paper also argues that while building of public institutions and policies relating to trade, technology and investment remain important for Indo-US technology co-operation, a shift in policy focus to "market induced" inter-firm alliances may be desirable.

Suggested Citation

  • Basant, Rakesh, 2003. "US-India Technology Co-operation and Capability Building: The Role of Inter-firm Alliances in Knowledge Based Industries," IIMA Working Papers WP2003-02-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    • Handle: RePEc:iim:iimawp:wp00065
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    References listed on IDEAS

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    1. Arora, Ashish & Athreye, Suma, 2002. "The software industry and India's economic development," Information Economics and Policy, Elsevier, vol. 14(2), pages 253-273, June.
    2. Dieter Ernst, 2002. "Global production networks and the changing geography of innovation systems. Implications for developing countries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(6), pages 497-523.
    3. Basant, Rakesh & Chandra, Pankaj, 1997. "Linking Telecom Technologies: Complementarities, Capabilities and Policies," IIMA Working Papers WP1997-04-01_01444, Indian Institute of Management Ahmedabad, Research and Publication Department.
    4. Rakesh Basant & Pankaj Chandra & Lynn Mytelka, 2001. "Inter-Firm Linkages and Development of Capabilities in the Indian Telecom Software Sector," Economics Study Area Working Papers 14, East-West Center, Economics Study Area.
    5. Rakesh Basant & Pankaj Chandra, 2002. "Building Technological Capabilities In A Liberalising Developing Economy: Firm Strategies And Public Policy," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(4-5), pages 399-421.
    6. Dieter Ernst & Linsu Kim, 2001. "Global Productions Networks, Knowledge Diffusion, and Local Capability Formation. A Conceptual Framework," Economics Study Area Working Papers 19, East-West Center, Economics Study Area.
    7. Rakesh Basant & Pankaj Chandra, 2002. "Building technological capabilities in a liberalising developing economy: Firm strategies and public policy," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(6), pages 1-23.
    8. Ernst, Dieter & Kim, Linsu, 2002. "Global production networks, knowledge diffusion, and local capability formation," Research Policy, Elsevier, vol. 31(8-9), pages 1417-1429, December.
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    Cited by:

    1. Mitra, Raja M., 2009. "IT industry in transformation: opportunities and challenges for India," LSE Research Online Documents on Economics 38353, London School of Economics and Political Science, LSE Library.
    2. D'Costa, Anthony P., 2006. "Exports, university-industry linkages, and innovation challenges in Bangalore, India," Policy Research Working Paper Series 3887, The World Bank.

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