List of Figures

xi

List of Tables

xiii

Foreword

xvii

Preface

xxi

Acknowledgments

xxv

Abbreviations

xxvii

Chapter 1: Introduction

1

Regional Development of the Software Industry After Reforms: The Puzzle

2

Research Methodology

8

Plan of the Book

10

Chapter 2: Conceptual Framework and the Main Arguments

13

Development Strategies for the Software Industry: A Conceptual Framework

14

A Brief Historical Description of the Three Cases

29

The Rise of Tamil Nadu, Andhra Pradesh, and Kerala—The Argument in Brief

43

Chapter 3: Evolution of the Software Industry in India—The Role of National Policies

49

Policy Initiatives by the Central Government

50

The Origins of the Industry—The Early Phase (1960s Until 1984)

53

The Steady Growth Phase—1984 to 1991

55

The Explosive Growth Phase—Post 1991

57

Chapter 4: Determinants of Regional Variation in Software Exports From India

61

Analysis of the Growth in Software Exports From India

62

Regional Variation in Software Exports

65

Chapter 5: The Development of the Software Industry in Tamil Nadu—Getting the Basics Right: Focusing on Factor Conditions

81

The Development of the Software Industry in Tamil Nadu

82

Policy Initiatives by the State for the Development of the Industry

89

The Impact of the State's Policies on the Growth of the Software Industry

99

The Role of the State in the Development of the Software Industry

104

Chapter 6: The Development of the Software Industry in Andhra Pradesh—Attracting the Big Multinational Firms and Charismatic Leadership

107

The Development of the Software Industry in Andhra Pradesh

108

Policy Initiatives by the State for the Development of the Industry

111

The Impact of the State's Policies on the Growth of the Software Industry

127

The Role of the State in the Development of the Software Industry

133

Chapter 7: The Development of the Software Industry in Kerala—Reining in Labor and Shedding the Leftist Image

137

The Development of the Software Industry in Kerala

138

Policy Initiatives by the State for the Development of the Industry

143

The Impact of the State's Policies on the Growth of the Software Industry

151

The Role of the State in the Development of the Software Industry

155

Chapter 8: Comparative Analysis of the Role of the State in the Three Regions

159

The Role of Government Policies

160

The Impact of the States' Policies on the Growth of the Industry

170

Chapter 9: Competitive Flexibility: A New Theoretical Framework for Development Strategies for High-Technology Industries in Developing Regions

177

Regional Development Strategies in Tamil Nadu, Andhra Pradesh, and Kerala

178

The Differences Between the Strategies of These States and the Existing Paradigms

185

Competitive Flexibility: A New Theoretical Framework for Regional Development

192

Appendix: Data Used in Statistical Analysis

201

Notes

213

References

217

Index

231