Globalisation of Knowledge Production and Regional Innovation Policy: Supporting Specialized Hubs in the Bangalore Software Industry

Cristina Chaminade and Vang-Lauridsen, Jan

No 2008-20, CIRCLE Electronic Working Paper Series from CIRCLE (Centre for Innovation, Research and Competence in the Learning Economy), Lund University

Abstract: This paper is concerned with the changing role of regional innovation systems and regional policies in supporting the transition of indigenous firms in developing countries from competing on low costs towards becoming knowledge providers in global value chains. Special attention is paid to policies supporting the emergence and development of the regional innovation system in this transition process. Regional innovation systems in developing countries have very recently started to be conceptualised as specialized hubs in global innovation and production networks (Asheim, B., Coenen, L., Vang-Lauridsen, J., 2007. Face to- face, buzz and knowledge bases: socio-spatial implications for learning, innovation and innovation policy. Environment and Planning C: Government and Policy 25 (5), 655–670; Chaminade, C., Vang, J., 2006a. Innovation policy for small andmedium size SMEs in Asia: an innovation systems perspective. In:Yeung, H. (Ed.), Handbook of Research on Asian Business. Edward Elgar, Cheltenham; Maggi, C., 2007. The salmon farming and processing cluster in Southern Chile. In: Pietrobello, C., Rabellotti, R. (Eds.), Upgrading and Governance in Clusters and Value Chains in Latin America. Harvard University Press). A specialized hub refers to a node in a global value chain that mainly undertakes one or a few of the activities required for the production and development of a given good or service or serves a particular segment of the global market. In global value chains, firms in developing countries have traditionally been responsible for the lowest added-value activities. However, a few emerging regional innovation systems in developing countries are beginning to challenge this scenario by rapidly upgrading in the value chain. There is, however, still only a poorly developed understanding of how the system of innovation emerges and evolves to support this transition process and what the role of regional innovation policy is in building the regional conditions that support indigenous small and medium size enterprises (SMEs) in this transition process. This paper aims at reducing this omission by analyzing the co-evolution of the strategies of indigenous SMEs and the regional innovation system of Bangalore (India).

Keywords: Regional innovation systems; Evolution; Globalization of innovation; Software industry; Bangalore (search for similar items in EconPapers)
JEL-codes: O31 O32 O33 O34 O38 N5 O47 R58 (search for similar items in EconPapers)
Date: 2008
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