2012
DOI: 10.1080/1097198x.2012.10845611
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A Process Model of Government Intervention and Capability Development: Lessons from the Technology Cluster Formation in Hyderabad, India

Abstract: This study examines the path taken by the government of the Indian state ofAndhra Pradesh that recently established an information technology (IT) cluster in Hyderabad, the capital city. The city went from virtually no presence in IT to developing one of the world's most vibrant IT clusters in the world A retrospective case study research was conducted guided by two research questions: (1) how institutional actions influenced the capability development that shaped the IT cluster formation in Hyderabad and (2) … Show more

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Cited by 6 publications
(6 citation statements)
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References 27 publications
(26 reference statements)
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“…Investments are needed for infrastructural development, which is more important than the proposed tax benefits to potential tenants (Aggarwal, 2012;Meng, 2005;Zeng, 2019). At the same time, the government should provide in-time financial support; otherwise, the benefits will be delayed or more modest than expected (Aritenang and Chandramidi, 2019;Montealegre, 2012).…”
Section: Discussionmentioning
confidence: 99%
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“…Investments are needed for infrastructural development, which is more important than the proposed tax benefits to potential tenants (Aggarwal, 2012;Meng, 2005;Zeng, 2019). At the same time, the government should provide in-time financial support; otherwise, the benefits will be delayed or more modest than expected (Aritenang and Chandramidi, 2019;Montealegre, 2012).…”
Section: Discussionmentioning
confidence: 99%
“…These measures attract FDI, which brings more sophisticated technologies and managerial experience with it. The localisation of foreign companies produces significant spillovers, which lead to processes of knowledge, skill and technology sharing (Aritenang and Chandramidi, 2019;Montealegre, 2012) This concept is linked to the cluster model. Many scholars suggest that it is necessary for successful development of the SEZs (Aggarwal, 2011a;Bräutigam and Tang, 2014;Hsu, Lai, and Lin, 2013;Nel and Rogerson, 2014;Zeng, 2012).…”
Section: The Concept Of Special Economic Zonesmentioning
confidence: 99%
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“…Interestingly, Montealegre (2012) contends that if governments are to gain an advantage through investing in government information technology innovation, then they are required to think about how they conduct their work by redesigning government strategy.…”
Section: Relationship Between Information Technology Readiness and Information Technology Innovativenessmentioning
confidence: 99%
“…They report that the digital divide exists not only between rural and urban areas but also across urban locations. Montealegre (2012) develops a model to bring out the role of subsidies, knowledge building, guideline setting, knowledge deployment and innovation directives/mobilization as institutional interventions to build up an IT cluster in Hyderabad, Andhra Pradesh. There have been claims that the fiscal priority granted to the Indian IT sector is misplaced because the sector has had a limited impact on less educated people resulting in uneven development.…”
Section: Introductionmentioning
confidence: 99%