Development and innovation in the IT industries of India and China

This paper presents an analytic framework for analyzing innovations in the IT industries of India and China. To recognize the structural characteristics of innovation, a model is proposed based on the concept of a national system of innovation as a policy framework for studying innovations in India's and China's IT industry. I discuss the extensive diffusion of new technologies in the IT industry, including technical knowledge and human resource development, industrial cluster, market information and management skills, research and development, financial resources, domestic and international markets, and the interaction between these factors and the government. In addition to describing the role and performance of particular institutions, this framework also explores interactions among these institutions to illustrate the dynamics and efficiency of innovation systems. The framework reveals that the IT industries in both India and China have unique characteristics, but they also share numerous complementary features.