Scale and Scope Externalities in Growth of IT Industries in India: An Agglomeration Perspective

Author

Kauffman, Robert J. ; Kumar, Ajay

Author_Institution

MIS Res. Center, Minnesota Univ., Minneapolis, MN

fYear

2007

fDate

Jan. 2007

Abstract

Externalities occur among agglomerated firms. Scale externalities occur between firms in an industry with similar activities. Scope externalities occur when heterogeneous activities are placed in proximity. Combined scale-and-scope externalities exist when the scale of one industry is beneficial to the growth of another collocated industry. We use the agglomeration perspective to explain the growth of IT industries in India. We study growth patterns of four IT industries: computer and peripheral equipment manufacturing, semiconductor and other electronic components manufacturing, software and IT-enabled services. Our analysis suggests the existence of scale, scope and combined scale-and-scope externalities in IT industry growth. We also find that the growth of IT industries has had a significant positive effect on national development

Keywords

DP industry; information technology; social aspects of automation; IT industry; India; agglomeration perspective; peripheral equipment manufacture; scale-and-scope externality; Cities and towns; Computer aided manufacturing; Computer industry; Computer peripherals; Data processing; Electronic equipment manufacture; Jacobian matrices; Manufacturing industries; Production; Semiconductor device manufacture; Agglomeration; IT industry; India; collocation; economic analysis; knowledge spillovers.; scale/scope economies;

fLanguage

English

Publisher

ieee

Conference_Titel

System Sciences, 2007. HICSS 2007. 40th Annual Hawaii International Conference on

Conference_Location

Waikoloa, HI

ISSN

1530-1605

Electronic_ISBN

1530-1605

Type

conf

DOI

10.1109/HICSS.2007.472

Filename

4076835