From Underdogs to Tigers: The Rise and Growth of the Software Industry in Brazil, China, India, Ireland, and Israel
From Underdogs to Tigers: The Rise and Growth of the Software Industry in Brazil, China, India, Ireland, and Israel
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DOI:
10.1111/j.1468-0297.2006.01069_1.x
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发表时间:
2006-02
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影响因子:
--
通讯作者:
S. Kapur
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文献类型:
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作者:
S. Kapur
The success of the software industry is largely a story of private enterprise and, as such, offers mixed lessons for policy makers. Naturally, it reiterates the value of investing in human capital, especially in science and technology education. But investment in more technology is not enough. In Israel, the government catalysed the growth of a vibrant R&D sector through defence procurement contracts. Irish success owes to the emergence of a more favourable policy towards investment per se rather than to any policies targeting the software industry. More tellingly, in India the sector may have benefited from benign neglect, as the pioneering firms arose below the radar of policy interventions: what a dysfunctional bureaucracy could not see, it could not destroy. On the whole, the success stories offer only limited support for national strategies to jump start a technology-intensive industry. It may be more important to allow firms to experiment to find out what works well. Over time, the ‘halo effect’of successful firms and industries can be used to make inroads into other skill-intensive exports, as India as done in business process outsourcing.To what extent does the software industry offer an alternative model of development for other emerging economies? On this issue, this book is, at best, speculative. The high growth rates of the software industry in these countries must be seen against the backdrop of rapid global growth in this sector. While there is some evidence that the software industry in these emerging economies maintained its growth rate in the face of the global downturn in technology markets, continued growth may require the ability to extend the initial advantages to related skillintensive sectors. Besides, growth from a relatively small base seems stellar partly because the comparison is made with the lacklustre performance of other industries, especially in countries like India. If the industry has to play a transformational role. the successful lessons must trickle down to the broader economy. On the whole, this is a well-coordinated collection of essays on an important subject. The individual country studies engage with each other and will naturally appeal to policy makers in those countries. But the strength of the book lies in the three thematic chapters that bring together the country experiences to study the industry evolution, and the role played by migration and multinational corporations in this industry: these should be essential reading for all development economists and policy makers.