Catch-up in Technology-driven Services: The Case of the Indian Software Services Industry

Abstract

Past studies on catch-up processes have focused primarily on

manufacturing industries. The present paper studies catch-up

processes in the context of the Indian software services industry

and finds that the existing models are unable to comprehensively

explain the catch-up processes in this industry. The authors provide

a fresh perspective on catch-up processes based on scientific

intensity and production maturity of individual technologies, and

propose catch-up paths for individual companies from a technological

perspective. Firms initially focus on productionizing highly

mature technologies, and then leverage that learning to move into

technologies of higher scientific intensity. External factors such as

product market conditions play a major role as well in firms ability

and motivation to make such moves.