Innovation Activity in the Indian Software Industry
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The study primarily investigated whether there has been a tangible shift in the activities of the Indian software firms towards higher end of the value chain and factors that helped the firms to make transitions. The objectives were examined by broad examination of thirty nine software firms and deeper investigation based on case study of three firms derived from the above selected firms. It was found that firms are active in different areas/subareas of software industry including the embedded software segment. The firms obtained various types of quality certifications but these certifications were mainly restricted to process standards. Acquisitions and joint ventures were exposing firms to new knowledge, new hardware and software platforms. It has also helped the firms to move into niche areas and enter new markets. Linkages between firms and with academia were also important factors in firm’s enhancement. From the case study it was possible to discern how the firms are developing capabilities. The three firms show that they have evolved over a period of time, moving from simple to complex operations mainly through incremental innovations. The study shows that among the thirty nine firms, a few firms have significantly moved up the value chain. Nevertheless, it is important as it shows that a few of them have broken away from the mould and achieved success.