Mapping the multi-tiered impacts on the growth of IT industries in India: A combined scale-and-scope externalities perspective
✍ Scribed by Robert J. Kauffman; Ajay Kumar
- Publisher
- Taylor and Francis Group
- Year
- 2008
- Tongue
- English
- Weight
- 272 KB
- Volume
- 14
- Category
- Article
- ISSN
- 0268-1102
No coin nor oath required. For personal study only.
✦ Synopsis
Externalities occur among agglomerated firms. Scale externalities occur between firms in the same industry. Scope externalities occur when heterogeneous industries are collocated. Combined scaleand-scope externalities exist when the scale of one industry is beneficial to the growth of another collocated industry. In the Sein and Haridranath ( ) framework of information technology (IT) impacts on development, scale externalities correspond to second-order impacts, while combined scale and scope eternalities correspond to third-order impacts. We use an agglomeration perspective to explain the growth of IT industries in India. We study growth patterns of four specific IT industries: computer and peripheral equipment manufacturing, semiconductor and other electronic components manufacturing, software, and IT-enabled services. Our analysis of the IT agglomerations of Bangalore and Hyderabad in India suggests the existence of scale, scope and combined scale-and-scope externalities played an important role in IT industry growth. We also show that the growth of IT industries has second-and third-order impacts on national development.