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Seoul Journal of Economics
[ Article ]
Seoul Journal of Economics - Vol. 23, No. 2, pp.263-281
ISSN: 1225-0279 (Print)
Print publication date 31 May 2010
Received 10 Oct 2009 Revised 20 Apr 2010

Catch-up in Technology-driven Services: The Case of the Indian Software Services Industry

Rishikesha T. Krishnan ; Swarna Kumar Vallabhaneni
Corresponding Author, Professor, Corporate Strategy & Policy, Indian Institute of Management Bangalore, Bannerghatta Road, Bangalore 560076, India, Tel: +91-80-2699-3160, Fax: +91-80-2658-4050 rishi@iimb.ernet.in
Research Associate, Corporate Strategy & Policy, Indian Institute of Management Bangalore, Bannerghatta Road, Bangalore 560076, India, Tel: +91-80-2699-3701 swarnakumar@gmail.com

JEL Classification: O14, O32, O33, L86

Abstract

Past studies on catch-up processes have focused primarily on manufacturing industries. The present paper studies catch-up processes in the context of the Indian software services industry and finds that the existing models are unable to comprehensively explain the catch-up processes in this industry. The authors provide a fresh perspective on catch-up processes based on scientific intensity and production maturity of individual technologies, and propose catch-up paths for individual companies from a technological perspective. Firms initially focus on productionizing highly mature technologies, and then leverage that learning to move into technologies of higher scientific intensity. External factors such as product market conditions play a major role as well in firms’ ability and motivation to make such moves.

Keywords:

Technological Catch-up, Catch-up processes and paths, Indian software services industry

Acknowledgments

Paper presented at the 17th Seoul Journal of Economics International Symposium held at Seoul National University, Seoul, 16 October 2009.

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