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Computer Industry in India: Strategies for Late-Comer Entry
Economic and Political Weekly
Vol. 24, No. 42 (Oct. 21, 1989), pp. 2375-2379+2381-2384
Published by: Economic and Political Weekly
Stable URL: http://www.jstor.org/stable/4395492
Page Count: 9
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The traditional import-substituting approach is unlikely to be cost-efficient in a high-tech sphere such as information technology. What is needed is a different approach based on the country's relative strengths as well as the available options. For, from the user's angle, the benefits of developments in information technology are far too valuable to be missed, while from the manufacturer's angle, the stakes of meaningful participation in global information technology trade are high. It is necessary to evolve suitable late-comer strategies after carefully weighing the available options. This paper attempts to review the late-comer options available to India, taking into account not merely the structure of the domestic computer industry as it has evolved in recent times but also the ineluctable international linkages of the information technology industry which would render vertical integration and import substitution neither feasible nor necessary. Our relative strengths and weaknesses are discussed in a comparative perspective, against the strategies followed by the successful late-comers of the Pacific rim.
Economic and Political Weekly © 1989 Economic and Political Weekly