Table 6 - uploaded by W. Edward Steinmueller
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Context 1
... the 1980s the software activities of computer manufacturers also underwent dramatic change, as the importance of software and service activities declined significantly for computer manufacturers other than IBM. Table 6 shows software and services revenues for the major computer manufacturers for 1981 and 1991, excluding the IBM plug-compatible companies (e.g. Amdahl) that have never been prominent in software production. ...
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Citations
... The revenues from software, only on the domestic U.S. market, jumped from 6.5 billion dollars in 1975 to 40.7 billion in 1985. 31 The rapid growth of demand and lack of legal protection to software developers, associated with the loss of competitiveness of the U.S. economy in the early 80s, are reasons to explain why large multinational companies, almost all with headquarters in the United States, had aimed to have free access to the Brazilian market. Additionally, there was the risk of Brazilian software industry to use reverse engineering to produce similar softwar. ...
... Software and computer services centrally underpin the actual creation, besides the efficient utilization of core aspects of modern manufacturing and the physical products that are produced (Alic, 1994). Developments in software allows faster utilization of processing capabilities and improvements in peripheral devices, such as disk drivers, printers, etc. (Muller, 1995), the benefits in performance of which helped to improve hardware sales as well. Although it is dominated by firms based in major industrialized countries of the world, it continues to offer great prospects for economic growth and industrial development within developing economies. ...
Purpose
The purpose of this paper is to present an overview of trends of Indian information technology and business processing management (IT-BPM) sector and to analyse the determinants of IT-BPM sector during the period 1991-2014.
Design/methodology/approach
The study is based on annual data collected from National Association of Software and Service Companies and Department of Electronic and Information Technology for the period 1991 to 2014. The methodology adopted for studying the objectives are simple averages, percentages, ratios, growth rates, graphs prepared on the basis of data from the IT-BPM sector and regression analysis. Trends and patterns in key variables, such as total revenue, domestic revenue, export revenue, employment and exports of the IT-BPM sector have been examined. Factors influencing IT-BPM export growth have been analysed using ordinary least square multiple regression model, with growth rates of gross domestic product (GDP), labour productivity, exchange rate and previous year’s export, as the explanatory variables.
Findings
The export revenue from IT-BPM sector increased continuously over the years, at an average growth rate of 36.60 per cent during the period 1991 to 2014. Similarly, domestic revenue of IT-BPM sector also increased, but at a lower growth rate. This is because domestic market in India is captured by multinational giants against Indian firms, which do not possess full comparative advantage in the case of IT-BPM sector. Indian firms are producing low skill activities required for production, mainly concentrated only in the export sector. Direct employment, excluding hardware from IT-BPM sector, has grown at an average rate of 18.08 per cent over the study period. The determinants of IT-BPM exports indicated previous year’s export demand to be significantly contributing the highest to export growth rate. This was followed by GDP growth rate, implying that overall growth of the economy leads to significant increase in export growth. Increased labour productivity followed next in significantly encouraging export growth.
Research limitations/implications
Generalization of the results may not be possible, as Indian conditions and policies vary.
Practical implications
The paper has implications for the expansion of domestic market, diversification of trade and products, innovations for increasing competitiveness and sustainability in the global market in the wake of stiff competitions from new competitors.
Originality/value
This paper focuses on originality in analysis of determinants of export growth.
... See the discussion in Steinmueller (1996). supported the birth of the minicomputer industry. ...
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... In some cases, the policy linkages are overt, as with direct government subsidies for industrial research, or indirect subsidies through government procurement of military or other goods. Such research benefits both the direct recipients and related firms through spillovers to civilian applications (Nelson, 1993;Steinmueller, 1996;Bresnahan and Malerba, 1999). In this case, the government acts as what Chesbrough (2003a) terms an "innovation benefactor," creating external sources of innovation without attempting to appropriate the full returns of such innovation. ...
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