From Underdogs to Tigers: The Rise and Growth of the Software Industry in Brazil, China, India, Ireland, and Israel

Ashish Arora · Alfonso Gambardella

Mar 2005 · OUP Oxford

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In 1980 the Indian software industry was practically non-existent. By the 1990s the industry was one of the largest employers in manufacturing. Similar patterns of growth can be found in other emerging economies. So given that the software industry is commonly viewed as a high-tech industry, how is it that such spectacular growth has occurred in countries where high-tech industries would not seem likely to develop? This book examines the reasons behind this phenomenon, and asks whether it suggests a new model of economic development. The contributors explore the implications of the rise of these newcomers to the software market for the global industry, and whether there are things to be learnt about the role of human capital in economic growth, firm formation and capabilities, business and managerial models, and industry structure. Chapters include country studies on Brazil, China, India, Ireland, and Israel, and are complemented by cross-cutting chapters on some of the key issues highlighted by the growth patterns of software in these nations, most notably the role of the multinational companies, the globalization of the skilled worker flows, and the formation of firm capabilities. The novelty of the growth patterns in the regions that studied makes this book useful for understanding analytical and empirical issues underlying new microfoundations of economic growth in some emerging regions of the world.

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Ashish Arora is Associate Professor of Economics and Public Policy at Carnegie Mellon University, Pittsburgh. He is also co-director of the Software Inustry Center at Carnegie Mellon University, funded by the Alfred P. Sloan Foundation, and co-director of the Sustainable Computing Consortium at Carnegie Mellon University. He is co-author of Markets for Technology: Economics of Innnovation and Corporate Strategy (MIT Press, 2001) with Alfonso Gambardella and Andrea Fosfuri. Alfonso Gamberdella is Professor of Economics and Management at the Sant' Anna School of Advanced Studies, Pisa, Italy. He is co-author of Markets for Technology: Economics of Innnovation and Corporate Strategy (MIT Press, 2001) with Ashish Arora and Andrea Fosfuri, and has published in leading international journals, and participated in several international research projects.