A+| A| A-

The Dragon vs the Elephant

China and India have one of the largest telecommunications equipment markets in the world. This paper employs the sectoral system of innovation framework for understanding the differential outcomes in innovation capability building in the industry achieved by China and India. The two countries have pursued widely diverging strategies for developing their domestic innovation capability. India followed a very rigid policy of indigenous development of domestic technologies by establishing a stand-alone public laboratory that developed state-of-the-art switching technologies. The public laboratory was not given any strategic direction, even though it was technologically speaking, very competent. Consequently, the country, despite possessing good quality human resources was unable to keep pace with changes in the technology frontier and the equipment industry has now become essentially dominated by affiliates of MNCs. China, on the contrary, first depended on MNCs for her technology needs in this area. But subsequently encouraged the emergence of three national champions, two of which are erstwhile public laboratories. The country has built up considerable hardware capability in both fixed line and mobile communications technology and has also emerged as a major player in world markets.

To read the full text Login

Get instant access

New 3 Month Subscription
to Digital Archives at

₹826for India

$50for overseas users

Comments

(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Using data from the India Human Development Survey, this examination of toilet possession and personal hygiene in India shows that the strongest...

The paper, in three parts, examines the question of lived experience and Dalit subjectivity in a caste society. The first part argues that the...

Careful research on the inflation targeting regime’s impact on anchoring inflation expectations, as well as an empirical examination of...

The Indian labour market is characterised by a high level of informality, with large numbers of workers in poorly paid “lower tier” informal jobs...

Geoffrey Bawa (1919–2003) was Sri Lanka’s most celebrated architect in the 20th century and his half-a-century long career shaped the nation’s...

Whether the “practising Adivasi” or the practitioners of traditional knowledge are subjects of different rationality is examined here. Through a...

The Indian tea economy is undergoing acute transformations, with the divestment of tea companies from plantations leaving thousands of plantation...

Firms can avoid taxes legally, even though it is well understood that tax payment is a fundamental and measurable behaviour towards society. In...

How the pattern of inequality in maternal healthcare service utilisation has evolved after the adoption of the National Rural Health Mission in...

Following the announcement of demonetisation on 8 November 2016, India saw the withdrawal of nearly 86% of the cash in circulation. This caused...

Back to Top