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

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.