The Impact of Export and Research and Development in Knowledge Production: The Case of Indian IT Sector
The spurt in the growth of IT sector in India has been the mainstay of recent knowledge based economic revival. The sector has been able to meet the challenges of international competitiveness and emerged as one of the powerful players in the IT market. The growth of this sector is largely based on exports to the world market which has integrated India’s economy with the world. Further, IT is a sector which is based on the networking among the compatible partners and systems. Therefore, the growth of the IT sector in India also signifies the evolution of a successful cross country network. This networking has its effect on the society, politics and institutions of the country.
Interactions in India followed a typical project based collaborative approach in the case of IT. However, it has been argued that the developments in the other nodes of the network follow a collaborative model that give rise to hybrid institutions of research, in India, such type of development cease to exist despite getting fully integrated to the network. Such a variance is conditioned by the difference of economical, political and institutional set up. The capability of India to provide adequate skilled professionals for the sector despite having a different conditional set up of that of the nodal points of the network explicates the success of the strategies followed over the years in terms of creation of pool of skilled professionals. We have already observed over the years that the country’s niche is in the software and ITES based products and services which require highly skilled professionals, which is reflected in our analysis in terms of large wage costs of firms. However, the type of knowledge produced remained largely lower end products for the maximum number of firms, excepting the top 10-20 firms.
Keywords: Cross Country Network, Collaborative Approach, ITES
Ph D Research Scholar, Jawaharlal Nehru University, New Delhi, India, Zakir Hussian Centre for Educational Studies