Technology Innovations in Emerging Markets: An Analysis with Special Reference to Indian Economy

By Mishra, Bibek Prasad | South Asian Journal of Management, October-December 2007 | Go to article overview

Technology Innovations in Emerging Markets: An Analysis with Special Reference to Indian Economy


Mishra, Bibek Prasad, South Asian Journal of Management


Emerging Markets (EMs) are very volatile and risky but there are enormous opportunities for business. Yet, most of the emerging markets are not up-to-date with technology in order to tap potential business opportunities. This paper, tries to understand technology innovations from the EMs point of view, with special focus on India. R&D investments, availability of Technology Institutes, and number of working patents owned by the country are taken as proxy measures for technology innovations. It has been shown how, country specific factors such as market structure, patent laws, and fiscal incentive system as well as firm specific factors such as organizational structure and culture, influence technology innovation to a large extent. Also, a few propositions have been developed relating to technology innovations and the factors which influence them. Finally, a framework has been provided for building a successful technology portfolio.

INTRODUCTION

Technology is embodied in every 'value activity' within a firm. Value activities include not only core technologies encompassed within a firm's products and production processes, but also those in support activities, for instance procurement, office technology, transportation or design (Porter, 1985). Technological change can affect competition through its impact on any of these activities, the collection of which Porter calls the 'value chain' (Porter, 1985). Yet, most of the emerging markets are not up to date with technology in order to exploit untapped potential of business opportunities. Hence, this paper tries to explain the emerging markets first, followed by technology innovations and finally shows how technological strategies give competitive advantage in emerging markets.

EMERGING MARKETS

Arnold and Quelch (1998) have classified countries into three categories based on their economic conditions. First is the absolute level of economic development usually indicated by the average GDP per capita, or the relative balance of agrarian and industrial/commercial activity. If the economic development is low, then these countries are known as 'Less Developed Countries' (LDCs) or Third World Countries'. Second, is the relative pace of economic development, usually indicated by the GDP growth rate. Third, is the system of market governance and in particular, the extent and stability of a free market system. If the country is in the process of economic liberalization from a command economy, it is sometimes defined as a 'Transitional Economy'.

Antoine W van Agtmael, an employee of the World Bank's International Finance Corporation, is credited with coining the term "Emerging Markets" in 1981. Broadly defined, an EMs is a country making an effort to change and improve its economy, with the goal of raising its performance to that of the world's more advanced nations. EMs however, are not necessarily small or poor. India, China, and Bangladesh, for example, are considered as EMs, as all these countries have gone to considerable lengths to make their economies strong, more open to international investors, and more competitive in global markets (emdirectory, 2005). ' The US Department of Commerce, lists 18 big EMs: China, Hong Kong, Taiwan (the Chinese Economic Area), Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei (ASEAN), Vietnam, India, South Korea, Argentina, Mexico, Brazil, Poland, Turkey, and South Africa. The Economist adds Chile, Venezuela, Greece, Israel, Portugal, the Czech Republic, Hungary, and Russia (Cavusgil, 1997). Based on economic and political criteria, Hoskisson et al. (2000) have identified 64 emerging economies out of which 51 are rapidly growing developing countries and 13 are in transition from centrally planned economies often called 'Transition Economies' (Wright et al., 2005).

Even though every EM is a unique one, the most common characteristics of EMs could be summarized in the following way (Miller, 1998):

* Physical characteristics, which includes inadequate commercial infrastructure as well as inadequacy of all other aspects of physical infrastructure (communication, transport, power generation);

* Socio-political characteristics, which includes political instability, inadequate legal framework, weak social discipline, and reduced technological levels, besides (unique) cultural characteristics;

* Economic characteristics, which includes limited personal income, centrally controlled currencies with an influential role of government in economic life, and in managing the process of transition to market economy. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Technology Innovations in Emerging Markets: An Analysis with Special Reference to Indian Economy
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.