Khan_RD Policy of India

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    IndiaIndia s R&D policy and its influence ons R&D policy and its influence on

    technology development and societytechnology development and society

    MohsinMohsin U. KhanU. Khan

    National Institute of Science Technology andNational Institute of Science Technology andDevelopment Studies, New DelhiDevelopment Studies, New Delhi --110012110012

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    Technology import policy of IndiaTechnology import policy of India

    Period of liberalization until mid sixties.Period of liberalization until mid sixties.Period of tight regulations from then until thePeriod of tight regulations from then until theend of seventies.end of seventies.Period of relaxation of regulations from thenPeriod of relaxation of regulations from thenuntil the end of eighties.until the end of eighties.Regulations were then relaxed and the policyRegulations were then relaxed and the policybecame once again liberal.became once again liberal.

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    Why India gone for liberalization in 1991Why India gone for liberalization in 1991

    IndiaIndia s economy grew at the rate of about 5% durings economy grew at the rate of about 5% during1980s.1980s.Domestic inflation gone up to 17% in 1991.Domestic inflation gone up to 17% in 1991.Foreign exchange reserves reduced to $ 1.2 billionForeign exchange reserves reduced to $ 1.2 billionbarely sufficient to pay for two weeks imports.barely sufficient to pay for two weeks imports.Central government fiscal deficit as a percentage of Central government fiscal deficit as a percentage of

    GDP touched the all time high of 8.4%.GDP touched the all time high of 8.4%.Current account deficit widened to $ 8 billion (2.6%Current account deficit widened to $ 8 billion (2.6%of GDP)of GDP)

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    Policy changes since 1991Policy changes since 1991

    Drastically reduced number of industriesDrastically reduced number of industries

    reserved for public sector.reserved for public sector.Abolished industrial licensing except for aAbolished industrial licensing except for ashort list of industries related to security andshort list of industries related to security andstrategic concerns, hazardous chemicals.strategic concerns, hazardous chemicals.The restrictions imposed by MRTP Act onThe restrictions imposed by MRTP Act onlarge firms expansion, merger, amalgamationlarge firms expansion, merger, amalgamationand take over etc..have been abolished.and take over etc..have been abolished.

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    Cont.// Cont.//

    The protection provided to the small firmsThe protection provided to the small firms

    being reduced.being reduced.NowNow TNCsTNCs are free to decide whether they willare free to decide whether they willuse imported or local raw material.use imported or local raw material.NowNow TNCsTNCs are free to use their brand names.are free to use their brand names.NowNow TNCsTNCs can increase the permissible extentcan increase the permissible extentfor foreign equity from 40 to 51 percentfor foreign equity from 40 to 51 percent

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    FUNDS POURING INFUNDS POURING IN

    Figures inFigures in$billion$billion

    27.8027.8028.4028.4014.6014.6015.4015.40RussiaRussia

    37.4037.4014.8014.8015.1015.1018.2018.20BrazilBrazil

    82.7082.7070.0070.0072.4072.4060.6060.60ChinaChina

    24.5724.5715.715.75.55.53.23.2IndiaIndia

    20072007200620062005200520042004

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    FDI leaps 56% in 2008FDI leaps 56% in 2008

    FDI in 2007FDI in 2007 --08 will be $30 billion. Mauritius and08 will be $30 billion. Mauritius andSingapore are the two biggest investors in the country.Singapore are the two biggest investors in the country.The major sectors that attracted FDI areThe major sectors that attracted FDI are telcomtelcom , real, realestate, construction activities electrical equipments,estate, construction activities electrical equipments,software and hardware and banking sector. Lot of software and hardware and banking sector. Lot of investment is expected to flow into petroleum,investment is expected to flow into petroleum,manufacturing and electronics hardware sector.manufacturing and electronics hardware sector.

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    Science and Technology PolicyScience and Technology PolicyResolutionsResolutions

    Scientific Policy Resolution 1958Scientific Policy Resolution 1958

    Technology Policy Statement 1983Technology Policy Statement 1983Science and Technology Policy 2003Science and Technology Policy 2003

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    Technology policy statement of 1983,Technology policy statement of 1983,emphasized the need to plan collaborationemphasized the need to plan collaboration

    agreements in ways that would ensure effectiveagreements in ways that would ensure effectivetransfer of basic knowledge, knowtransfer of basic knowledge, know --whywhy

    important inputs to the importing firms forimportant inputs to the importing firms forsubsequent absorption, adaptation and upsubsequent absorption, adaptation and up --

    gradation of the initially acquired knowledge.gradation of the initially acquired knowledge.

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    SectorSector --wise percentage share of R&Dwise percentage share of R&Dexpenditureexpenditure

    Central governmentCentral government 64.9%64.9%

    State governmentsState governments 8.6%8.6%Public sectorPublic sector 10.1%10.1%Private sectorPrivate sector 16.4%16.4%

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    Expenditure on R&D in IndiaExpenditure on R&D in India

    19941994 --9595 RsRs. 6,820. 6,820 crorescrores19951995 --9696 RsRs. 7,753. 7,753 crorescrores20052005 --0606 RsRs 20,55320,553 crorescrores

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    R&D OrganizationR&D Organization

    OrganizationOrganization NumberNumber StrengthStrength

    CSIRCSIR 4242 Scientists 10,934Scientists 10,934ICARICAR 8989 Scientists 6,281Scientists 6,281ICMRICMR 2626 Scientists 3732Scientists 3732DBTDBT 88 Scientists 800Scientists 800

    DRDODRDO 5252 Scientists 6,500Scientists 6,500DAEDAE 1717 Scientists 5,000Scientists 5,000ISROISRO -- Scientists 10,000Scientists 10,000

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    Institutions of Higher EducationInstitutions of Higher Education

    Higher EducationHigher Education NumberNumber StrengthStrengthUniversitiesUniversities 253253 Faculty 4,11,628Faculty 4,11,628CollegesColleges 13,115 Students 83,99,43313,115 Students 83,99,433

    IITsIITs 7 Faculty 2, 5007 Faculty 2, 500Students 23,000Students 23,000

    EnggEngg . Colleges 3,500 Students 2,62,000. Colleges 3,500 Students 2,62,000

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    Internationalization trend in GlobalizationInternationalization trend in Globalizationof R&Dof R&D

    R&D spending abroad by USA and otherR&D spending abroad by USA and other

    developed countries rising faster than domesticdeveloped countries rising faster than domesticspending. IBM and Hewlettspending. IBM and Hewlett --Packard spendingPackard spending30% on R&D outside USA.30% on R&D outside USA.

    1000 companies of Japan, Germany, UK, France,1000 companies of Japan, Germany, UK, France,and South Korea have about 250 R&D facilities inand South Korea have about 250 R&D facilities inUSA.USA.

    More than 150 R&D centers set up in India byMore than 150 R&D centers set up in India byMNCsMNCs ..

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    IndiaIndia s S&T Policy on Globalization of s S&T Policy on Globalization of R&DR&D

    To promote international science and technologyTo promote international science and technology

    cooperation towards achieving the goals of cooperation towards achieving the goals of national development and security and to make it anational development and security and to make it akey element of international relations.key element of international relations.

    Scientific research and technological developmentScientific research and technological developmentcan benefit greatly by international cooperationcan benefit greatly by international cooperationand collaboration.and collaboration.

    Emphasis now shifting to external technologyEmphasis now shifting to external technologyacquisition to complement internal efforts.acquisition to complement internal efforts.

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    Cont.// Cont.// For success in global market the most importantFor success in global market the most importantfactor is technical skills to produce superiorfactor is technical skills to produce superiorproducts at competitive rates.products at competitive rates.Convenient mechanism for technology transferConvenient mechanism for technology transferinside and across countries.inside and across countries.Free and flexible movement of R&D personnel.Free and flexible movement of R&D personnel.Suitable/appropriate legal framework forSuitable/appropriate legal framework for

    facilitating collaborative R&D and disputefacilitating collaborative R&D and disputesettlement.settlement.

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    IndiaIndia s S&T Agreementss S&T AgreementsS&T agreements with more than 50 countries.S&T agreements with more than 50 countries.S&T and IPR agreements with France, EU andS&T and IPR agreements with France, EU andRussian Federation.Russian Federation.Joint R&D programs on material science; cellularJoint R&D programs on material science; cellularand molecular biology,and molecular biology,Laser and electroLaser and electro --optics.optics.Information technology.Information technology.

    Medical sciences and human genome researchMedical sciences and human genome researchGeophysicsGeophysics

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    Why R&D Alliance with India?Why R&D Alliance with India?

    US giant GE has a large R&D set up in India, ItsUS giant GE has a large R&D set up in India, Its

    CEO observedCEO observed

    India is a developing country. But it is developed India is a developing country. But it is developed country as regards its superb infrastructure. It iscountry as regards its superb infrastructure. It is

    for this reason that we want to shift a part of GE for this reason that we want to shift a part of GE ssdevelopment efforts to Indiadevelopment efforts to India

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    Cont. // Cont. // Low cost R&DLow cost R&DIndia is the second largest market, therefore, theIndia is the second largest market, therefore, the

    companies through their products sale earn morecompanies through their products sale earn morethan what is spent by them on R&D and theirthan what is spent by them on R&D and theirproduction center in India.production center in India.

    India allow foreign investors 100% foreignIndia allow foreign investors 100% foreignownership and full repatriation of capital andownership and full repatriation of capital andprofits.profits.India has also accepted the R&D programs underIndia has also accepted the R&D programs underthe chapter of trade in services of WTOthe chapter of trade in services of WTO

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    Cont. // Cont. // India has large pool of English speaking skilledIndia has large pool of English speaking skilledmanpowermanpowerIndiaIndia s telecom infrastructure is comparable tos telecom infrastructure is comparable tothat in many countries.that in many countries.IndiaIndia s geographical location enables 24x7 services geographical location enables 24x7 serviceofferings.offerings.Good regulatory framework.Good regulatory framework.

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    IndianIndian PharmaPharma PolicyPolicy --20022002100% foreign investment automatically permitted.100% foreign investment automatically permitted.Foreign technology agreements automaticForeign technology agreements automaticapproval through reserve bank of India.approval through reserve bank of India.Abolition of industrial licensing for all bulk drugs,Abolition of industrial licensing for all bulk drugs,intermediates and formulations.intermediates and formulations.Drug control restricted only to essential drugs toDrug control restricted only to essential drugs todeal with diseases like malaria and diabetesdeal with diseases like malaria and diabetes(insulin)(insulin)

    The only exceptionsThe only exceptions the drugs based on DNAthe drugs based on DNAtechnology have been cleared for potential healthtechnology have been cleared for potential healthand environmental risks.and environmental risks.

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    Emerging TrendsEmerging TrendsForeign Direct Investment (FDI) permitted up toForeign Direct Investment (FDI) permitted up to100% through automatic routes.100% through automatic routes.India had agreed to implement a product patentIndia had agreed to implement a product patentregime with effect from 1regime with effect from 1 stst January 2005 as perJanuary 2005 as perWTO agreement.WTO agreement.MNCsMNCs have started strengthening their business inhave started strengthening their business inIndia. They have increased their stakes in existingIndia. They have increased their stakes in existingventures of set up new wholly owned subsidiariesventures of set up new wholly owned subsidiaries(e.g. Pfizer)(e.g. Pfizer)

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    Cont.// Cont.//

    Increased focus by IndianIncreased focus by Indian PharmaPharma companies oncompanies onR&D.R&D.R&D can be performed in India at 15R&D can be performed in India at 15 --20% of the20% of thecost in Europe and USA. In dollar terms the costcost in Europe and USA. In dollar terms the costadvantage is about 10advantage is about 10 --15 times.15 times.The Indian companies are pursuing contractThe Indian companies are pursuing contractmanufacturing for supply of bulk drugs/ manufacturing for supply of bulk drugs/ intermediates forintermediates for MNCsMNCs ..

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    Cont.// Cont.//

    With low cost of production India has become aWith low cost of production India has become a

    base for outsourcing drugs.base for outsourcing drugs.Indian companies are setting up subsidiariesIndian companies are setting up subsidiariesabroad or seeking strategic alliances to exploreabroad or seeking strategic alliances to explore

    tremendous opportunities in the generics markettremendous opportunities in the generics marketexpected in the next 5expected in the next 5 --10 years.10 years.

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    IndiaIndia ------A Global hub for testing andA Global hub for testing and

    development of new drugsdevelopment of new drugsPharmaPharma industry today takes $300industry today takes $300 --700 million and700 million and

    1010--15 years to introduce a new drug in the market.15 years to introduce a new drug in the market.A large pool of well qualified and skilledA large pool of well qualified and skilledmanpower available at low cost.manpower available at low cost.

    Availability of large number of patients with allAvailability of large number of patients with allforms of diseases.forms of diseases.Also patients available who have not received anyAlso patients available who have not received any

    other medical treatment.other medical treatment.

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    Cont.// Cont.//

    Clinical trials cost half or one third of what aClinical trials cost half or one third of what a

    developed country does and also takes much lessdeveloped country does and also takes much lesstime to complete.time to complete.Regulations permit testing of new drugs withRegulations permit testing of new drugs with

    necessary protective measures.necessary protective measures.

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    Software revenuesSoftware revenues

    During 2006During 2006 --07 the industry grew 28.2%07 the industry grew 28.2%to touch $ 25.9 billion (15.5 billionto touch $ 25.9 billion (15.5 billion

    exports and $ 5.4 billion domesticexports and $ 5.4 billion domesticmarket).market).NasscomNasscom estimates software exports andestimates software exports andITES to grow at 30ITES to grow at 30 --32% in 200632% in 2006 --07. That07. Thatwould take the industry towould take the industry to $ 30 billion$ 30 billionmark, of which export will amount tomark, of which export will amount to25.3 billion.25.3 billion.

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    The money makers,The money makers, NasscomNasscom rankingranking

    as per revenueas per revenueRankRank CompanyCompany Exports in 2006Exports in 2006 --0707

    RsRs inin crorecrore__________________________________________________________________________________________________11 TCSTCS 5,963 ($ 1 billion)5,963 ($ 1 billion)

    22 WiproWipro 5,881 ($ 1 billion)5,881 ($ 1 billion)33 InfosysInfosys 4,761 ($ 1 billion)4,761 ($ 1 billion)44 SatyamSatyam 2, 6232, 623

    55 HClHCl 2,4002,400

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    Cont.// Cont.//

    US continues to be major market forUS continues to be major market forIndian software services with a share of Indian software services with a share of 70% while Europe accounted for 23.5%70% while Europe accounted for 23.5%in 2006in 2006 --07.07.The number of 500 companies that haveThe number of 500 companies that havebeen outsourcing their requirements hasbeen outsourcing their requirements hasalso been steadily growing with as manyalso been steadily growing with as manyas 254 outsourcing their requirementsas 254 outsourcing their requirementsfrom India.from India.

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    Cont.// Cont.// One of the major reasons that Indian software exportsOne of the major reasons that Indian software exportsis gaining recognition across the world is because of is gaining recognition across the world is because of quality certification. Out of 23quality certification. Out of 23 SEISEI --CMM level 5CMM level 5

    certified companies world over, 15 are from India. Thiscertified companies world over, 15 are from India. Thisnumber is expected to grow as there are severalnumber is expected to grow as there are several

    companies that have already reached to level 4companies that have already reached to level 4 ..

    Another encouraging sign is that small office segmentAnother encouraging sign is that small office segmentof the market has grown by 70% in 2005of the market has grown by 70% in 2005 --06. Besides06. Besideslarge corporate market like ERP segment grew bylarge corporate market like ERP segment grew by23%,e23%,e --commerce solutions by 300% CAD/CAMcommerce solutions by 300% CAD/CAMmarket 41% and banking by 70%.market 41% and banking by 70%.

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    Cont.// Cont.// The number of software exportingThe number of software exportingcompanies has grown to a record. Atcompanies has grown to a record. At

    present it is 2,250 and expected to growpresent it is 2,250 and expected to growto 2660 mark next year.to 2660 mark next year.Number of software companies loggingNumber of software companies loggingexports toexports to RsRs 500500 crorecrore now stands at 37.now stands at 37.The top 100 exporters accounted for 61%The top 100 exporters accounted for 61%

    of the export resources in 2006of the export resources in 2006 --0707

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    Projections for IndiaProjections for India s IT industrys IT industryAccording toAccording to NasscomNasscom --McKinseyMcKinsey reportreport

    Annual revenue for IT industry in 2008 will be aroundAnnual revenue for IT industry in 2008 will be aroundUS $ 50 billion.US $ 50 billion.

    Thus a number of opportunities to be createdThus a number of opportunities to be created

    Potential for 2.2 million jobs in IT by 2008.Potential for 2.2 million jobs in IT by 2008.IT will attract Foreign Direct Investment (FDI) of US $IT will attract Foreign Direct Investment (FDI) of US $44--5 billion.5 billion.

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    Benefits of S&T on SocietyBenefits of S&T on SocietyScience relieves pressure of ignorance; Science isScience relieves pressure of ignorance; Science is

    universal; no patents; no IPRuniversal; no patents; no IPRTechnology changes our life style:Technology changes our life style:Green RevolutionGreen RevolutionWhite RevolutionWhite RevolutionBlue RevolutionBlue RevolutionNuclear EnergyNuclear EnergyDefenseDefenseDrug RevolutionDrug RevolutionICT RevolutionICT Revolution

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    CSIRCSIR ss PerformancePerformance

    Over 50,000 tractors valued over 200Over 50,000 tractors valued over 200 crorescrores have beenhave been

    manufactured based on CSIR knowmanufactured based on CSIR know

    --how.how.

    Petroleum refining processes and novel catalyst developedPetroleum refining processes and novel catalyst developedby CSIR in association with consulting engineering designby CSIR in association with consulting engineering designorganizations and industry have enabled India to emerge asorganizations and industry have enabled India to emerge asone of the few major technology licensors in the world inone of the few major technology licensors in the world inthis high tech fieldthis high tech fieldA whole range of pesticides with low residual effectsA whole range of pesticides with low residual effects

    developed by the chemical groups of CSIR laboratories aredeveloped by the chemical groups of CSIR laboratories arebeing manufactured by a number of private sector unitsbeing manufactured by a number of private sector units

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    Cont.// Cont.//

    The productivity in number of sugar mills hasThe productivity in number of sugar mills has

    been significantly enhanced by the use of been significantly enhanced by the use of instrumentation system developed by CSIRinstrumentation system developed by CSIRAppropriate leather processing techniquesAppropriate leather processing techniquesdeveloped and popularize by CSIR have enableddeveloped and popularize by CSIR have enabledIndia to emerge as an exporter of value addedIndia to emerge as an exporter of value addedfinished goods.finished goods.High level capabilities in CSIR for testing andHigh level capabilities in CSIR for testing anddesign of aircraft have enabled safety evaluationdesign of aircraft have enabled safety evaluationand enhancement in operational life of aircraft.and enhancement in operational life of aircraft.

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    Cont.// Cont.//

    SuccessesSuccesses

    Our ancestors were compulsive observerOur ancestors were compulsive observerThey new how to draw inferencesThey new how to draw inferencesThey learnt from trials and errorsThey learnt from trials and errors

    FailuresFailuresLack of tradition of reasoning and questioningLack of tradition of reasoning and questioning

    Unable to remove urban poverty as well as ruralUnable to remove urban poverty as well as rural

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    Work places in traditional sectors of Work places in traditional sectors of

    developing economiesdeveloping economiesWork places should be created in areas where peopleWork places should be created in areas where peoplenow live, rather being concentrated in metropolitannow live, rather being concentrated in metropolitancities.cities.They should be cheap enough to be created in largeThey should be cheap enough to be created in largenumbers without requiring large capital investment ornumbers without requiring large capital investment or

    imports.imports.The production involved as well as organizationalThe production involved as well as organizationalmethods must be relatively simple with only a moderatemethods must be relatively simple with only a moderate

    degree of skill required for their successful operationdegree of skill required for their successful operationThe production should be from local materials andThe production should be from local materials andintended from local useintended from local use

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    Cont.// Cont.//

    What we should do:What we should do:

    Strengthen scientific cooperation of Global scale.Strengthen scientific cooperation of Global scale.Enhance network between industry and researchEnhance network between industry and researchand industrial application.and industrial application.

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    China Vs IndiaChina Vs IndiaAttributeAttribute ChinaChina IndiaIndia______________________________________________________________________________________________

    Population (in billion)Population (in billion) 1.31.3 1.031.03literacy rateliteracy rate 82%82% 54%54%AreaArea 9.69.6 bnbn sq kmsq km 3.33.3 bnbn sq kmsq km

    Total GDPTotal GDP $ 1 trillion$ 1 trillion 500500 bnbnGDP growth (CAGR)GDP growth (CAGR) 10%10% 6%6%Per capita GDPPer capita GDP $ 735$ 735 $ 495$ 495Total exports (inTotal exports (in bnbn )) $ 249$ 249 $47$47Share in world tradeShare in world trade 3.4%3.4% 0.8%0.8%

    Chi V I diChi V I di

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    China Vs IndiaChina Vs IndiaIT industry figuresIT industry figures CalendarCalendar 20062006 20062006__________________________________________________________________________________________________________IT spending as % of GDPIT spending as % of GDP 1.10%1.10% 1.68%1.68%

    IT industry turnoverIT industry turnover $46.1$46.1 bnbn $ 12$ 12 bnbnHardware exportsHardware exports $ 26.4$ 26.4 bnbn $ 0.4bn$ 0.4bnSoftware exportsSoftware exports $ 1.2bn$ 1.2bn $25bn$25bnInstalled PC baseInstalled PC base 22 million22 million 7 million7 million

    PC Penetration/1000PC Penetration/1000 13.213.2 3.53.5Internet user baseInternet user base 22.5 million22.5 million 3.5 million3.5 millionInternational BandwidthInternational Bandwidth 7.57.5 GbpsGbps 11 GbpsGbpsTelephone linesTelephone lines 175 million175 million 34.5 million34.5 million

    Telephone lines/100Telephone lines/100 8.68.6 3.43.4Mobile phonesMobile phones 136 million136 million 5.7 million5.7 million

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    ChinaChina s economic policy reformss economic policy reformsChinaChina s economic reforms started a full 25 years ago s economic reforms started a full 25 years agowhile in India they started a decade later in 1991.while in India they started a decade later in 1991.

    Deng Deng Xioping Xioping kicked off economic reforms when he kicked off economic reforms when he

    suggested that tens of thousands of small and medium suggested that tens of thousands of small and mediumenterprises be thrown in private waters to swim or sinkenterprises be thrown in private waters to swim or sink For most of the last two decades China For most of the last two decades China s economy has s economy has grown double digit growth with an average CAGR grown double digit growth with an average CAGR

    (Compound Aggregate Growth Ratio) of 10% in the last(Compound Aggregate Growth Ratio) of 10% in the last decades. decades. In the last decade China has paid special interest to high In the last decade China has paid special interest to high technology industries. technology industries. From exporting toys and textiles, China has today grown From exporting toys and textiles, China has today grown to be major exporter of IT hardware, overtook Taiwan in to be major exporter of IT hardware, overtook Taiwan in 2000. 2000.

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    ChinaChina s software storys software storyChinaChina s software growth is currently hampered by s software growth is currently hampered by

    number of factors: number of factors:

    China Media Intelligence (CMI) estimates that out of China Media Intelligence (CMI) estimates that out of 5,000 software companies 55% of them have less than 50 5,000 software companies 55% of them have less than 50 people. Another 42% employ 50 people. Another 42% employ 50 --100 people and there are100 people and there are only a handful of companies with an employee strength only a handful of companies with an employee strength

    of 1000 people. of 1000 people.CMI saysCMI says YongyouYongyou the largest domestic player in the largest domestic player in

    software development. The country software development. The country s largest company s largest company

    Oriental Software has a little over 1300 people compareOriental Software has a little over 1300 people compare that to 26,000 at that to 26,000 at Infosys Infosys and 24,000 at TCS. and 24,000 at TCS.

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    Cont.// Cont.// Some of the top companies had obtained CMM Some of the top companies had obtained CMM

    certification, a large number of middle level companies certification, a large number of middle level companies had not even heard it. had not even heard it.

    Lack of comfort with English language and the cultural Lack of comfort with English language and the cultural confusion that comes with it made China confusion that comes with it made China s software s softwareindustry immature.industry immature.

    India has at least five year lead in software outsourcing. India has at least five year lead in software outsourcing. India has surpassed Ireland as the prime outsourcing India has surpassed Ireland as the prime outsourcing destination of the world. The Indian companies have won destination of the world. The Indian companies have won a reputation of low cost high quality software delivery. a reputation of low cost high quality software delivery.

    Dynamic technoDynamic techno --managementmanagement

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    Dynamic technoDynamic techno managementmanagement

    capabilitiescapabilitiesResource exploitation capabilitiesResource exploitation capabilities

    Technological learningTechnological learning

    Outside technological sourcingOutside technological sourcing Human resource exploitation Human resource exploitation Resource focusing for the target Resource focusing for the target

    Managerial integrating capabilitiesManagerial integrating capabilitiesTask force team integration between R&D and productionTask force team integration between R&D and productionConcurrent development system : Managing multifaceted activitiesConcurrent development system : Managing multifaceted activities

    Production technology management Production technology management Interfaces and consensus building among functional department Interfaces and consensus building among functional departmentTop management leadership and involvementTop management leadership and involvement

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    Cont.// Cont.//

    Path navigating capabilityPath navigating capability

    Planned management Planned management Fitting into changes in environment Fitting into changes in environment Joint R&D activities Joint R&D activities

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    Korean electronics export growthKorean electronics export growth

    From meager of $ 89 million in 1971 to $ 20.638From meager of $ 89 million in 1971 to $ 20.638

    billion in 1992 an increase by a factor of 232billion in 1992 an increase by a factor of 232Between 1988 and 1992 Korean market shareBetween 1988 and 1992 Korean market shareincreased :increased :

    From 7.5% to 17.7% in US From 7.5% to 17.7% in US From 7.8% to 18.1% in Europe and From 7.8% to 18.1% in Europe and From 23.6% to 33.7% in East Asia From 23.6% to 33.7% in East Asia

    (Exclusive of Japan)(Exclusive of Japan)

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    Cont.// Cont.//

    Semiconductor export is the largest item inSemiconductor export is the largest item in

    electronics exportelectronics export From $ 7.8 billion in 1993 to $ 11 billion in1994 From $ 7.8 billion in 1993 to $ 11 billion in1994

    During the seventies electronics exportsDuring the seventies electronics exports

    CAAGR was 43% while for other sectorsCAAGR was 43% while for other sectorsCAAGR Was 35.6%CAAGR Was 35.6%