scholarly journals Intellectual Property and Innovation: Changing Perspectives in the Indian IT Industry

2004 ◽  
Vol 29 (4) ◽  
pp. 69-82 ◽  
Author(s):  
Rakesh Basant

Indian government has undertaken significant modifications in the Intellectual Property (IP) regime of the country. This is leading to a realignment of business strategies by firms in several sectors. Similarly, with liberalization and globalization, new opportunities for IP creation seem to be emerging for Indian firms. Unfortunately, writing on these issues has been more emotional and few are willing to look at the issues dispassionately and in a pragmatic manner. A more informed debate on what is required in the new Intellectual Property Act to facilitate active participation of Indian firms in the global technology and production networks is desirable. Given the fact that IT is a growth sector for the country, one needs to assess the utility of various TRIPS compatible policy alternatives. In this context, this paper attempts to document the emerging perspectives vis-�-vis IPRs in the Indian IT industry and explore factors that are driving the change in perspectives. This paper suggests that: Perspectives on IP are changing rapidly: Large IT firms and firms in high-end niche areas are proactively seeking IP-based growth strategies. While they typically seek IP protection in Western nations and not so much in India, this has led them to perceive restrictive IP regimes more positively. IP regimes in the West are more relevant for IP creating Indian IT firms today but this may change in the near future as Indian market expands. Significant IP creation by MNC subsidiaries in India is also contributing to this change in perception. Survey data show that an average IT firm in India also perceives IP protection as an important appropriability mechanism, but access to markets and relevant complementary assets continue to be more important for appropriating profits from their economic activity. The demands for IP policy change reflect these changing perceptions: A positive view of the restrictive IP regimes also gets reflected in the demands of Indian industry associations for changes in the Indian law. Broadly, these changes in perceptions seem to be linked to the evolving global production networks, changing activity profile of Indian IT firms, emerging business opportunities, and changes in the competitive scenario. The understanding of Indian IT firms of the complexities of IP regimes remains rudimentary: Indian firms need significant preparation to deal with IP-related challenges. The policy choice among available TRIPS compatible options needs to be careful: Policy needs to facilitate the participation of Indian IT firms in emerging complex segments of the sector and contribute to new IP creation. This requires a systematic understanding of trends in technologies and global production networks to ascertain the segments in which Indian firms can potentially participate effectively and move up the value chain. However, it also needs to ensure that this sector is not mired in unnecessary IP-related litigation instead of unleashing impulses for creating new enterprises in the sector and for sustainable growth of the incumbents.

2020 ◽  
Vol 16 (1) ◽  
pp. 95-117
Author(s):  
Anna Beckers

AbstractReviewing the burgeoning legal scholarship on global value chains to delineate the legal image of the global value chain and then comparing this legal image with images on global production in neighbouring social sciences research, in particular the Global Commodity Chain/Global Value Chain and the Global Production Network approach, this article reveals that legal research strongly aligns with the value chain image, but takes less account of the production-centric network image. The article then outlines a research agenda for legal research that departs from a network perspective on global production. To that end, it proposes that re-imagining the law in a world of global production networks requires a focus in legal research on the legal construction of global production and its infrastructure and a stronger contextualization of governance obligations and liability rules in the light of the issue-specific legal rules that apply to said infrastructure.


2011 ◽  
Vol 1 (1) ◽  
pp. 1-10
Author(s):  
Brian Vejrum Waehrens ◽  
Dmitrij Slepniov

Subject area Operations strategy/global operations/value chain. Study level/applicability BA/Master level – the case can be applied to support operations strategy discussions related to the link between context, configuration and capabilities, and particularly to discuss internationalization strategy and global operations. Case overview The case examines how Gabriel, a Danish textile company, transformed itself from being a traditional textile manufacturer to becoming an innovative virtual servi-manufacturer. The case covers the main milestones in Gabriel's recent history, explores the main reasons for the transformation that started in the late 1990s and studies how this transformation towards becoming a virtual servi-manufacturer was dealt with. The case closes with the sections examining the role of innovation activities in the newly transformed company. Expected learning outcomes The case is expected to build an understanding of the organisational and operational implications of the journey towards the virtual production company. While the case is broad in its scope, it provides an opportunity to go into details on a number of interrelated topics: operations strategy; global production networks; communication and coordination; interdependencies; and outsourcing and offshoring. The story of Gabriel illustrates a highly successful globalization journey and its underlying dynamics. The case highlights how the operations configuration and the relationships between key parties do not stay constant over time. They rather shift and adapt to internal and external stimuli. The case explores these stimuli in retrospect and describes how the company attempts to reconcile market requirements with its operations configurations and capabilities. Supplementary materials Teaching note.


This study looks into Indonesia’s participation in fragmented structures within the Global Value Chain. By using a global input-output dataset and splitting gross exports into distinctive elements of value-added, the study measures vertical specialization of Indonesia against its four largest trading partners (NAFTA, East Asia, European Union and ASEAN) covering 29 countries for three periods: 1997, 2004 and 2012. Value-added is computed according to the initial source country and in the last destination. The paper also compares Indonesia to its ASEAN partners. The results show that Indonesia moved from exporting 50% of its value-added through finished products in 1997 to being a supplier of intermediates goods in 2012 (nearly 60% of its value-added). Foreign inputs in Indonesian exports account for 12%, a lower share versus ASEAN regional partners (35%) who are more vertically integrated. A total of 21% of Indonesian goods will be further exported to third countries. The degree of vertical integration in Indonesia in 2012 is 32.3%, up from 26% in 1997. Indonesia advanced in integration with East Asia and ASEAN countries (region), while it lowered its share of value-added traded with the North America and the Europe. Indonesia gained more than any other ASEAN partner in intra-regional trade


2019 ◽  
Vol 26 (5) ◽  
pp. 602-627
Author(s):  
Jaakko Salminen ◽  
Mikko Rajavuori

Several corporate disclosure and due diligence laws related to the social and environmental impacts of globalized production have been enacted across the world over the last decade. While the emergence, operation and impact of such ‘transnational sustainability laws’ have already been extensively analysed, their legal operability remains poorly understood. This a significant omission because transnational sustainability laws form a novel and increasingly important attempt to conceptualize and govern the new logic of global production networks—global value chains—and their regulatory infrastructure. Against this backdrop, this article deploys a comparison of eleven recent transnational sustainability laws and develops an analytical framework to probe legally-operative conceptualizations of global value chains. By analysing how transnational sustainability laws conceptualize the value chain, the lead firm and adequate value chain governance, we argue, these instruments emerge as proxies for a legally-operative framework that better delineates the emerging law of global value chains. Thus, our analysis contributes to growing literature on the potential and limits of transnational sustainability laws as well as to the development of nascent ‘global value chain law’.


Economies ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 12
Author(s):  
Mauro Boffa ◽  
Marion Jansen ◽  
Olga Solleder

Standard trade theory suggests that the profile of exporting firms is characterized by large firms which dominate domestic productivity distribution. Large manufacturing multinationals have increased their productivity by participating, creating and shaping global production networks. In recent decades, trade flows have become increasingly dominated by trade-in-tasks within global production networks. Given the importance of pro-competitive effects in establishing the gains from trade following trade liberalizations, it is important to look at the link between participation in global value chains and a firm’s competitiveness. The paper does so by using the International Trade Centre’s competitiveness index, for small, medium-sized and large firms, coupled with global value chain participation measures extracted from multi-regional input-output tables, and together forming a panel dataset at country and firm category level. The main finding establishes that the gains from integration into value chains are greater for small firms than for large firms. In particular, at the sample median, an increase of participation by 2.5% reduces the competitiveness gap between small and large firms by 1.25%. In addition, the analysis suggests that it is the use of foreign inputs that drives the result. In contrast, the domestic value in intermediate goods matters only in cases where value chains respond to domestic demand needs. The identification strategy relies on a fractional probit model allowing for unobserved effects, and a causal framework using the depth of trade agreements as instrument, in order to mitigate potential reverse causality.


Geografie ◽  
2013 ◽  
Vol 118 (2) ◽  
pp. 116-137 ◽  
Author(s):  
Jan Ženka ◽  
Petr Pavlínek

In this article, we draw on the global production networks (GPNs) and global value chains perspectives to examine the regional development effects of economic upgrading in the Czech automotive industry between 1998 and 2008. We investigate how the position of Czech-based automotive firms in GPNs affects the intensity of upgrading and the amount of value captured for the benefit of the host regions through wages, corporate taxes revenues and reinvested profits. Based on the statistical analysis of firm-level data aggregated at the micro-regional level, the intensity of economic upgrading and value capture is measured for groups of regions and for different tiers of the automotive value chain. The results suggest large differences in profitability and value capture between the regions hosting vehicle assembly firms and those hosting component suppliers.


Author(s):  
Pol Antràs

This chapter gives an overview of the state of global production networks in the present age, particularly in the “slicing of the value chain” phenomenon, which refers to the gradual disintegration of production processes across borders. Another important characteristic of global production networks is that they necessarily entail intensive contracting between parties located in different countries and thus subject to distinct legal systems. In a world with perfect (or complete) contracting across borders, this of course would be of little relevance. Unfortunately, this is not the case at present, and from here the chapter examines the issues surrounding the use of contracts in international trade.


2015 ◽  
Vol 11 (3/4) ◽  
pp. 340-363 ◽  
Author(s):  
Noemi Sinkovics ◽  
Rudolf R. Sinkovics ◽  
Samia Ferdous Hoque ◽  
Laszlo Czaban

Purpose – The purpose of this paper includes two interconnected objectives. The first is to provide a reconceptualisation of social value creation as social constraint alleviation. The second is to respond to the call put forward by Giuliani and Macchi (2014) to produce synergies between bodies of literature exploring the development impact of businesses. The paper focuses on ideas from the global value chain/global production networks (GVC/GPN), business and human rights, corporate social responsibility (CSR), international business (IB) and (social) entrepreneurship literatures. Design/methodology/approach – The paper offers a reconceptualisation of social value creation by building on the synergies, complementarities and limitations of existing concepts identified through the literature review. Findings – The reconceptualisation of social value creation put forward in this paper contributes to the literature in the following way. It offers a useful and clear definition of the term “social” (Devinney, 2009), and it attends to the limitations of the constraint concept as put forward by Ted London and his collaborators (London, 2011). Furthermore, it sketches out the basic ideas of a two-system approach to allow for the differentiation between symptom treatment and root cause alleviation. Finally, it offers a refinement of Wettstein’s (2012) proposed capability-based remedial action concept. The paper furthermore proposes that there are three distinct ways in which businesses generally respond to social constraints. Originality/value – The paper illustrates how the redefined concept of social value creation can connect different bodies of literature and help make sense of existing empirical results, without engaging in definitional debates.


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