Stoyan Tenev

Could China and India come to dominate the world's technology industry by bringing together Chinese hardware and Indian software production? Much attention is being paid to the fact that Asia's giant neighbors--with more than a third of the planet's population and two of the fastest-growing economies in the world--are entering a new era of cooperation. By combining these two industries, some believe it will signify the coming of the Asian century of the information technology (IT) industry. This book represents the first rigorous comparison of China and India's new growth sectors. It compares the emergence of India and China as global leaders in hardware and software production as well as the growth performance of private enterprise in the IT manufacturing and IT services sectors in these two countries.

Could China and India come to dominate the world's technology industry by bringing together Chinese hardware and Indian software production? Much attention is being paid to the fact that Asia's giant neighbors - with more than a third of the planet's population and two of the fastest-growing economies in the world - are entering a new era of cooperation. By combining these two industries, some believe it will signify the coming of the Asian century of the information technology (IT) industry. This book represents the first rigorous comparison of China and India's new growth sectors. It compares the emergence of India and China as global leaders in hardware and software production as well as the growth performance of private enterprise in the IT manufacturing and IT services sectors in China and India. It examines the economic context and the business environment for private enterprise in China and India, and considers how far differences in economic policies or the business environment explain the observed differences in growth performance. The book concludes by evaluating explanations for the growth performance of each sector in each country and by drawing conclusions for future economic policies and business strategies.

Over the past 15 years, the twin giants of Asia-China and India-have jumped on the opportunity provided by the IT revolution to turbocharge their economic growth. India has become a software services powerhouse, while China churns out much of the world's IT hardware. How did these countries achieve global competitiveness so quickly? Why did software predominate in one and hardware the other? This book represents the first attempt to go beyond anecdote and generalization in discussing the unprecedented emergence of these new industries over such a short period. It presents the first rigorous comparison of the growth performance of hardware manufacturing and software services sectors in China and India. It examines the economic context and the business environment for private enterprise in China and India, and considers how far differences in economic policies or the business environment can go in explaining the observed distinctions between the two. The book concludes by evaluating explanations for the growth performance of hardware and software in each country, drawing conclusions for future economic policies and business strategies.

Software comes from India, hardware comes from China. Why is that? Why did China and India take such different paths to global dominance in new high-tech industries? Will their paths continue to diverge or converge? How can other countries learn from their successes and failures in reaching global scale in new industries? To answer these questions, this book presents the first rigorous comparison of the growth of the IT industries in China and India, based on interviews with over 300 companies. It explains the different growth paths of the software and hardware sectors in each country, providing insights into the factors behind the emergence of China and India as global economic powers. It provides a compelling case study of how differences in economic policies and the investment climate affect industrial growth. This book sheds new light on common debates on 'China versus India', on why India is the software capital of the world while China is a manufacturing powerhouse. It refutes common myths about the growth of these industries for example, the role of Non-Resident Indians or the Y2K problem in the growth of the Indian software industry, the role of government intervention in industrial growth, and the relative size of China and India s software industries."

Private sector growth will be key to maintaining the dynamism of the Vietnamese economy and allowing the country to achieve its development objectives, the study finds. The authors point out that, above all, private enterprises need space to grow. Regulations that run counter to the logic of normal market practices, that give entrepreneurs few opportunities to enter into contractual relationships, or that penalize them for market success are bound to be circumvented, at significant social cost. By contrast, laws and regulations that are in harmony with market forces will be easier to implement, and their implementation will be supported by the same market forces they are designed to protect. Adapting laws and regulations to the needs of the marketplace will not be enough, however. According to the authors, incentives inside the bureaucracy need to be aligned with development. A government committed to development will find it beneficial to support the growth of the private sector.