Abstract
What impedes the success of late mover IT clusters despite economically favorable environments? A case study of an Indian IT cluster
Highlights
A “cluster” is a concentration or agglomeration of an industry that develops over time based on geographical proximity, in a way that boosts competition and collaboration that results in innovation
This paper uses both primary and secondary data to probe into the factors and contexts that have hindered the successes of late mover Information Technology (IT) clusters despite an economically favorable environment, using Gujarat IT clusters as a case study
An increase in Business Process Management (BPM) and Engineering and Research and Development (ER&D) activities indicates Indian IT clusters moving towards high-end value-added services
Summary
A “cluster” is a concentration or agglomeration of an industry that develops over time based on geographical proximity, in a way that boosts competition and collaboration that results in innovation. Gujarat has many of the enabling factors identified as important for becoming the successful entrant in the IT industry These include –a historical and growing concentration of innovative high-tech firms from diverse industries with software needs, temperate climate, entrepreneurial culture, connections between local entrepreneurs and MNCs, supportive state and local government policies, and established connections with the Indian diaspora. Despite these favorable conditions, India’s State of Gujarat has not been able to make a mark in the IT industry This paper uses both primary and secondary data to probe into the factors and contexts that have hindered the successes of late mover IT clusters despite an economically favorable environment, using Gujarat IT clusters as a case study.
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