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Offshore Outsourcing of Engineering: Implications for Innovation Policy Presented to Carnegie Mellon ... - page 26 / 46

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26 / 46

Ron Hira, Columbia University

rh2107@columbia.edu

26

Conflicting Goals

Developing Countries’ Industry

Ability to move labor in and out of the U.S. with no restrictions

o

Indian IT industry’s competitive advantage is highly dependent on its use of H-1B and L-1 (Hira, 2003)

Movement up the ladder of innovation

o

Infosys wants to directly compete with Accenture

o

Tata eyeing ASIC design

o

R&D Centers and Technology Incubators in China, India

Access to U.S. market

o

Largest and most sophisticated

o

Learning business practices

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