Development of and change in the software and IT-enabled services industry in Dalian, China

Yan Zhang

No 361, TERG Discussion Papers from Graduate School of Economics and Management, Tohoku University

Abstract: The software and IT-enabled services (ITES) industry in Dalian, China exhibits certain characteristics given its deep relationship with Japan. However, of late, the proportion of exports to Japan has decreased substantially. Hence, Dalian must progress from being an offshore base for Japan. This study discusses the changes in the domestic and international environments and analyzes their causes to explain the growth in the ITES industry in Dalian. In recent years, software and ITES companies in Dalian have been upgrading offshore services to Japan and expanding their business for the domestic market. Meanwhile, the positive lock-in effect to Japan has effectively advanced to upstream or high value processes in the software industry through long-term business relationships with Japanese partners. Furthermore, China's domestic business is facing a spillover effect from the use of the human resources and technology accumulated through offshore development in Japan. However, there are negative lock-in effects, too. For example, some companies cannot avoid dependence on offshore contractors because their range of business skills and knowledge is limited. Other companies are familiar with operating in the mature Japanese market, making it difficult for them to function efficiently in the highly volatile Chinese market.

Pages: 18 pages
Date: 2017-03
New Economics Papers: this item is included in nep-tra
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10097/00121009

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:toh:tergaa:361

Access Statistics for this paper

More papers in TERG Discussion Papers from Graduate School of Economics and Management, Tohoku University Contact information at EDIRC.
Bibliographic data for series maintained by Tohoku University Library ().