Papers in Innovation Studies, CIRCLE, Center for Innovation, Research and Competences in the Learning Economy, Lund University
Globalisation of Knowledge Production and Regional Innovation Policy: Supporting Specialized Hubs in the Bangalore Software Industry
() and Jan Vang
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; (follow links to similar papers)
JEL-Codes: O38; (follow links to similar papers)
28 pages, December 1, 2008
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