Information Society Watch
A Southern Lens on the Information SocietyInnovation systems in India’s IT industry: An empirical investigation
September 30, 2006, Rey A L Taganas & Vijay Kumar Kaul, Economic and Political Weekly
This paper explores the supposed innovative behaviour of firms in the Indian IT sector. Although substantial efforts have been made over the past fifty years by the Indian government in implementing various policy measures, building institutions, and putting strong emphasis on higher education, there has been a systemic failure to promote the emergence of networks of innovation. This, in turn, has impeded the innovation performance of the IT industry. Yet, the stellar performance of India’s information technology sector has been acclaimed worldwide. In contrast, the authors highlight that although India’s export success in IT is widely attributed to its human capital, it is not clear whether this has also been accompanied by industry-wide innovation. They point to a need to direct policy to address systemic failure in innovation promotion (Adapted from author).