New industries from new places : the emergence of the software and hardware industries in China and India
Software comes from India, hardware comes from China. Why is that? Why did China and India take such different paths to global dominance in new high-tech industries? Will their paths continue to diverge or converge? How can other countries learn from their successes – and failures – in reaching glob...
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Stanford, Calif
World Bank
2009
Washington D.C Stanford University Press World Bank Publications Washington, DC: World Bank and Stanford University Press Stanford Univ. Press [u.a.] |
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| ISBN: | 9780804762816, 0804762805, 0821364782, 0804762813, 9780821377857, 9780804762809, 9780821364789, 082137785X, 0821377841, 9780821377840 |
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| Abstract | Software comes from India, hardware comes from China. Why is that? Why did China and India take such different paths to global dominance in new high-tech industries? Will their paths continue to diverge or converge? How can other countries learn from their successes – and failures – in reaching global scale in new industries? To answer these questions, this book presents the first rigorous comparison of the growth of the IT industries in China and India, based on interviews with over 300 companies. It explains the different growth paths of the software and hardware sectors in each country, providing insights into the factors behind the emergence of China and India as global economic powers. It provides a compelling case study of how differences in economic policies and the investment climate affect industrial growth. This book sheds new light on common debates on 'China versus India', on why India is the software capital of the world while China is a manufacturing powerhouse. It refutes common myths about the growth of these industries – for example, the role of Non-Resident Indians or the Y2K problem in the growth of the Indian software industry, the role of government intervention in industrial growth, and the relative size of China and India's software industries. |
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| AbstractList | China and India have grown rapidly in importance in the global economy over the past two decades the same period in which hardware and software have become important tradable products in the global economy. China has reached global scale in the hardware industry but not in software; India has achieved the reverse. These recent developments offer new insights into the ways in which new industries can take root and flourish within the broader context of developing economies. This progress has attracted widespread comment, most of it anecdotal or based on partial explanations of industrial growth. This study seeks to provide a fuller explanation based on an empirical analysis of the macro and micro underpinnings of these contrasting growth stories. In doing so, the study sheds a broader light on the economic development paths that China and India have taken since 1990, and also on the process by which developing economies can enter and succeed in new markets. Software comes from India, hardware comes from China. Why is that? Why did China and India take such different paths to global dominance in new high-tech industries? Will their paths continue to diverge or converge? How can other countries learn from their successes - and failures - in reaching global scale in new industries?To answer these questions, this book presents the first rigorous comparison of the growth of the IT industries in China and India, based on interviews with over 300 companies. It explains the different growth paths of the software and hardware sectors in each country, providing insights into the factors behind the emergence of China and India as global economic powers. It provides a compelling case study of how differences in economic policies and the investment climate affect industrial growth.This book sheds new light on common debates on 'China versus India', on why India is the software capital of the world while China is a manufacturing powerhouse. It refutes common myths about the growth of these industries - for example, the role of Non-Resident Indians or the Y2K problem in the growth of the Indian software industry, the role of government intervention in industrial growth, and the relative size of China and India's software industries. This book represents the first rigorous comparison of China and India's new growth sectors. It compares the emergence of India and China as global leaders in hardware and software production as well as the growth performance of private enterprise in the IT manufacturing and IT services sectors in China and India. Context for the study of the software and hardware industries in China and India -- A framework for understanding industry performance differences -- The legacy of China's and India's investment climates -- Software industry performance in China and India : an introduction -- The influence of factors of production in differences in the software industries of China and India -- The influence of management on the software industries in China and India -- The effects of the business environment and competition on software industries in China and India -- Summary of factors behind the success of India's and China's software industries -- Hardware industry performance in China and India : an introduction -- The influence of factors of production on the hardware industries in China and India -- The influence of management on the hardware industries in China and India -- The effects of business environment and competition on Chinese and Indian hardware industries -- Summary of explanations for the different outcomes for China's and India's hardware industries -- Why software and hardware industries differed in China and India -- Emerging trends in the Chinese and Indian software and hardware industries |
| Author | Tenev, Stoyan Gregory, Neil F. Nollen, Stanley D. |
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| Notes | A copublication of Stanford Economics and Finance Includes bibliographical references (p. 229-239) and index 47970 SourceType-Books-1 ObjectType-Book-1 content type line 7 |
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| Snippet | Software comes from India, hardware comes from China. Why is that? Why did China and India take such different paths to global dominance in new high-tech... This book represents the first rigorous comparison of China and India's new growth sectors. It compares the emergence of India and China as global leaders in... China and India have grown rapidly in importance in the global economy over the past two decades the same period in which hardware and software have become... Context for the study of the software and hardware industries in China and India -- A framework for understanding industry performance differences -- The... |
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| SubjectTerms | Advanced Technology back office Balance of Payments bandwidth best practices broadband broadband connectivity BUSINESS & ECONOMICS Business Environment business environments business function Business Indicators business process business process outsourcing Business services business Software business strategies business strategy businesses call centers capabilities Capability Capital Needs capital requirements catalytic role China collaboration communities competitive advantage Competitiveness components Computer Computer equipment Computer hardware Computer industry Computer industry -- China Computer industry -- India Computer software Computer software industry Computer software industry -- China Computer software industry -- India computer storage Computers Connectivity consumer electronics Copying Copyright Corporate Culture Corporate cultures cultural norms customer relations customer service data collection data entry data sources data storage devices digital digital video Disk drives economic activities economic development Edible Oils electrical machinery electronic equipment engineering engineers Enterprise applications enterprise development expert opinion export markets Factors of Production financial flows financial institutions financial resources financial services financial support financial system financial systems Fiscal Deficits foreign direct investment Foreign Investment global economy global market Government Policies Government Policy Hardware hardware manufacturing high technology high technology industries higher education institutions human capital IKT-Sektor India Industrial development Information and communication technologies information services information technology information technology industry innovation innovations intangible assets intellectual property intellectual property rights Interest Rates International Business international comparisons international competition international competitiveness international trade Internet service providers internet software IT services keyboards knowledge sharing Labor Costs land use learning licenses local area networks localization Mainframe Mainframe computers mainframes Manufacturing Manufacturing Industries manufacturing industry market economies market share marketing material medium enterprises menu microelectronics Middleware mobile telephones modems monitors motherboards natural resource natural resources Networking new markets office operations open access operating systems outsourcing Peripherals personal computer personal computers photo physical infrastructure policy framework power supplies printed circuits private investment Private Sector Private Sector Development procurement product development production process Production Processes Productivity Programming programs protection of intellectual property publishing purchasing power purchasing power parity queries R&D radios regulatory framework result results routers satellite scanners searches Semiconductor Semiconductor Industry Semiconductors servers social services Software Software Companies software exports Software Industries software product software Production software products Software Services software services industry Softwareindustrie Standardization storage devices subsidiary supply chain Systems integration Systems software technical knowledge technical skill technical skills technical support technological change Technological innovations technology development technology park Technology Transfer Telecom telecom infrastructure Telecommunications telecommunications connectivity Telecommunications equipment telecommunications industry Telecommunications services Telephone televisions transaction users uses video wide area networks Workstations |
| TableOfContents | Intro -- Contents -- Foreword -- Acknowledgments -- About the Authors -- Abbreviations -- Part I Foundations -- 1 Context for the Study of the Software and Hardware Industries in China and India -- 2 A Framework for Understanding Industry Performance Differences -- 3 The Legacy of China's and India's Investment Climates -- Part II Software -- 4 Software Industry Performance in China and India: An Introduction -- 5 The Influence of Factors of Production on Differences in the Software Industries of China and India -- 6 The Influence of Management on the Software Industries in China and India -- 7 The Effects of the Business Environment and Competition on Software Industries in China and India -- 8 Summary of Factors behind the Success of China's and India's Software Industries -- Part III Hardware -- 9 Hardware Industry Performance in China and India: An Introduction -- 10 The Influence of Factors of Production on the Hardware Industries in China and India -- 11 The Influence of Management on the Hardware Industries in China and India -- 12 The Effects of Business Environment and Competition on Chinese and Indian Hardware Industries -- 13 Summary of Explanations for the Different Outcomes for China's and India's Hardware Industries -- Part IV Summary and Conclusions -- 14 Why Software and Hardware Industries Differed in China and India -- 15 Emerging Trends in the Chinese and Indian Software and Hardware Industries -- References and Other Resources -- Index -- Boxes -- 3.1 China's Early Approach to Science and Technology (S& -- T) -- 5.1 The China Brain Drain Problem -- 5.2 Infosys Technologies: Software Startup with Early Self-Financed Growth -- 6.1 UFIDA Software Ltd.: Risk-Taking Pays Off -- 6.2 Tata Consultancy Services: A Hard Alliance as a Springboard to Software Success -- 6.3 HiSoft: A Wholly Foreign-Owned Enterprise in China 6.4 NRI Founds Software Companies -- 7.1 SUPCON: Technology and Management Support from the Chinese Government -- 7.2 Wipro: From Edible Oils to Hardware to Software -- 10.1 EVOC Intelligent Technology: Access to Flexible Labor and Advanced Technology -- 11.1 Technology Transfer through FDI: Suzhou -- 11.2 Huawei Technologies: International Leadership through Advanced Technology and Chinese Government Support -- 11.3 Moser Baer: An Exception to the Rules -- 11.4 Siemens: A Foreign-Owned Company's Success in China -- 11.5 HCL Perot in India: From Import-Protected Hardware to Software -- 12.1 Hical: Indian Hardware Supplier -- 12.2 The Development of the Semiconductor Industry in China: Governments Pitch In -- 12.3 China's Hardware Companies Go Global -- Figures -- 3.1 Manufacturing as Percentage of GDP in China and India, 1968-2002 -- 3.2 GDP Growth in India -- 3.3 Foreign Investment in India: 1993-2005 -- 3.4 Annual Exports of Goods and Services from India: 1990-2004 -- 3.5 Average Telecommunications Tariff Rates in China and India -- 4.1 Software Industry Revenue over Time for China and India -- 4.2 Software Industry Domestic and Export Sales Revenue over Time for China and India -- 5.1 Framework for Explaining Labor Productivity and Unit Labor Cost for Firms -- 9.1 Hardware Market Size, 1991-2006 -- 9.2 Domestic and Export Hardware Markets -- 10.1 Labor Regulation as a Bottleneck to Business Growth -- 10.2 Hardware Firm Labor Costs per Employee, 1999-2002 -- 10.3 Real Interest Rates and Fiscal Deficits, China and India -- 12.1 Factors Identified as Bottlenecks to Growth in China and India -- 12.2 Infrastructure as Obstacles to Growth -- 12.3 Growth in Telecommunications Lines in China -- 12.4 Indicators of Power Supply Deficiency from the Public Grid -- 12.5 Indicators of Infrastructure Bottlenecks -- Tables -- 1.1 Software Industry 1.2 Size and Growth of the Global Software and Services Industry Worldwide -- 1.3 Leading Software Services Exporting Countries -- 1.4 Hardware Industry -- 1.5 Size and Growth of the Global Hardware Industry -- 1.6 Size of Firms in the World Bank Investment Climate Survey -- 1.7 Number of Firms in the IFC Sample -- 1.8 Main Lines of Business and Production Processes of Firms in the IFC Sample -- 1.9 Characteristics of Firms in the IFC Sample -- 1.10 Export Intensity of Software and Hardware Firms in the IFC Sample -- 1.11 Firm Ownership in the IFC Sample -- 3.1 China: GDP and Investment Trends -- 3.2 India: Average Effective Rate of Protection -- 3.3 India: GDP and Investment Trends -- 3.4 Comparative Performance, 2004 -- 4.1 Software Industry Revenues in China and India -- 4.2 Contribution to Software Industry Revenue by Product and Service Type -- 5.1 Labor Demand and Supply -- 5.2 Labor and Management Skill Features of Chinese and Indian Software Firms -- 5.3 Labor Productivity and Value Added by Labor for Chinese and Indian Software Firms -- 5.4 Explaining Labor Productivity and Value Added by Labor in Chinese and Indian Software Firms -- 5.5 Differences between Chinese and Indian Software Firms in Determinants of Labor Productivity and Value Added in 2002 -- 5.6 Wage Rates in Chinese and Indian Software Firms -- 5.7 Physical and Financial Capital Needs -- 5.8 Importance of Geographic Location -- 6.1 Management Experience and Firm Growth -- 6.2 Quality Certifications -- 6.3 Entrepreneurship and Independence of Action -- 6.4 Technology Inputs and Outputs -- 6.5 Entrepreneurial Orientation and Technology Activities -- 6.6 Types of International Links -- 6.7 Ownership of the 25 Largest Indian Software Companies in 2004 -- 6.8 Ownership of 10 Largest Chinese Packaged Software Companies, 2005 -- 6.9 Cumulative FDI Inflows into China, 1998-2004 12.12 Hardware Market Competitiveness -- 15.1 Chinese and Indian Selected Macroeconomic Trends 7.1 Impact of Government Policies on Firm Growth -- 7.2 Infrastructure Impact on Growth -- 7.3 Similarities in Perceptions of Chinese and Indian Institutions -- 7.4 Software Market Competitiveness -- 9.1 Size of Hardware Industry in China, India, and Worldwide -- 9.2 Contributions to Growth of Output of the Nation, 1980-99 -- 9.3 Proportion of Hardware Market by Type of Hardware Product and Process, 2002 -- 9.4 Export Intensity of Firms in the IFC Survey -- 10.1 Labor Force and Manufacturing Employment in China and India -- 10.2 Labor Flexibility Indicators -- 10.3 Educational Attainment of the Workforce in China and India -- 10.4 Labor Force Composition and Education -- 10.5 Labor Productivity -- 10.6 Wages and Benefits and Labor Cost per Worker, 2003 -- 10.7 Unit Labor Costs -- 10.8 Physical and Financial Capital -- 10.9 Multicountry Comparison of Savings Rates -- 10.10 Capital Inflows into China and India from Balance of Payments Data, 2004 -- 10.11 Importance of Geographic Location -- 11.1 Experience of Top Managers -- 11.2 Quality Certifications -- 11.3 Independence of Action -- 11.4 Technology Output -- 11.5 Technology Inputs and Outputs -- 11.6 Foreign Ownership -- 11.7 Nonequity Strategic Alliances -- 11.8 Role of Overseas Residents -- 12.1 Doing Business Indicators in China and India, 2005 -- 12.2 Indicators of Investment Climate Constraints for Medium to High Tech Manufacturing Industries -- 12.3 Manufactured Exports by Technology Intensity -- 12.4 Growth Rates of Manufactured Exports, 1990-96 -- 12.5 Impacts of Government Policies on Growth -- 12.6 Government Policies with Negative Impact -- 12.7 Effects of Regulations -- 12.8 Government Policies with Positive Impact -- 12.9 Investments in Infrastructure, 1996-2006 -- 12.10 Computers and Connectivity, China and India, 2002 -- 12.11 Infrastructure Impacts |
| Title | New industries from new places : the emergence of the software and hardware industries in China and India |
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