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Science Technology & Society
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Export Growth and Path Dependence: The Locking-in of Innovations in the Software Industry

Anthony P. D'Costa

Comparative International Development Interdisciplinary Arts and Sciences Programme, University of Washington, 1900 Commerce Street, Tacoma, WA 98402, USA

Based on a survey of Indian software firms, this paper analyses whether export dependence locks Indian firms into a dependent non-innovative growth path. The author argues that lock-in effects operate, placing Indian firms into a non-innovative dependent path because higher-end services are difficult to outsource. More importantly user- feedback linkages critical to innovation cannot develop with a distant client and a still more distant final user. Consequently, domain knowledge vital for innovation is not accumulated by Indian firms. He recommends diversification of export markets away from over-dependence on the USA and development of a vibrant home market.

Science Technology & Society, Vol. 7, No. 1, 51-89 (2002)
DOI: 10.1177/097172180200700104


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