Industry Associations and Technology-based Growth in India

Suma Athreye and Sachin Chaturvedi

The European Journal of Development Research, 2007, vol. 19, issue 1, 156-173

Abstract: The study of industry associations occupies an uneasy ground in development economics. There is much empirical work that shows that industry associations fulfil important developmental roles in developing countries, often compensating for inadequacies in the business environment. Yet their status as institutions capable of generating growth is compromised because of the rent-seeking behaviour they embody. We study two different technology-based industries, namely software services and biotechnology, both of which formed industry associations to influence government policy and to aid the growth of their member firms, paying attention to their motivations for setting up, detailing the policies they sought to influence and their success as organisations. L'étude des associations d'industrie occupe une position difficile dans l'économie du développement. De nombreux travaux empiriques montrent que les associations d'industrie remplissent un rôle important dans les pays en développement où elles compensent souvent un environnement des affaires inadéquat. Leur rôle en matière de développement et leur impact sur la croissance sont maintenant compromis en raison de comportements de rente. Nous étudions deux industries technologiques, à savoir les services logiciels et les biotechnologies, qui ont toutes les deux créé des associations d'industrie afin d'influer sur les politiques gouvernementales et afin d'appuyer la croissance de leurs membres, en accordant de l'attention à leur motivations d'implantation, en précisant les politiques qu'elles cherchent à influencer et les raisons de leurs succès en tant qu'organisation.

Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:taf:eurjdr:v:19:y:2007:i:1:p:156-173

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DOI: 10.1080/09578810601144426

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