Extensive Growth and Innovation Challenges in Bangalore, India

Reorganising global value chains and building innovation capabilities in Brazil and India

“…Most of the literature seeking to explain the advances in automobiles and software has concentrated mainly or even exclusively on the factors within the rising powers (Quadros and Consoni, 2009;Chaminade and Vang, 2008); or it saw the global links between old powers and new powers as largely constraining local innovation in the latter D'costa, 2009). This article has examined how the old powers themselves are contributing to the shift in innovation capabilities.…”

“…Narula and Zanfei, 2003). In the Indian software industry, foreign and local suppliers have acquired capabilities in high-level design despite bleak predictions about the prospects for innovation in local firms (Arora et al, 2008;D'costa, 2009).…”

Offshore outsourcing and innovation capabilities in the supply base: evidence from software firms in Bangalore

“…The study was informed by the general literature on supplier capabilities in outsourcing and value-chain relationships (Schmitz, 2007;Mudambi, 2008;Hansen et al, 2008) and the specific literature on the software industry in Bangalore/India (Arora et al, 2008;D'Costa, 2009;Dossani, 2006;Chaminade and Vang, 2008). Running through both of these literatures is the clear view that supplier capability in the outsourcing context extends at best to basic innovative capability.…”

“…This study was designed to examine the relevance of the dominant hypothesis in the literature. This hypothesis posits that the acquisition of innovative capability within Bangalore software suppliers does not occur at all (D'Costa, 2009;Arora, 2006) or is limited to process and organisational capability (Athreye, 2005b(Athreye, , 2005a; problem-framing capability does not spread to suppliers in the outsourcing business because buyers keep these in-house or close to home (Schmitz, 2007). This hypothesis is meant to function as focusing devises for an exploration, not as a statement that can be tested in the statistical sense.…”

“…The emphasis on 'productive' capacity is strong in the dominant literature on the Bangalore software supply platform and the Indian software industry more generally (D'Costa, 2006(D'Costa, , 2009Chaminade and Vang, 2008). D'Costa argues that the rootedness of India's competitive advantage in low labour costs gave rise to 'extensive growth', the linear expansion of the work force, without a corresponding increase in the deepening of skills (D'Costa, 2003(D'Costa, , 2004.…”