Abstract
This chapter focuses on policies, instruments and programs to develop the ICT sector, particularly IT services and ITES. It starts with measures to develop the overall IT sector ecosystem. It then covers specific instruments: competition-based grants or innovation funds, IT incubators, IT parks and cluster development and public–private partnerships (PPPs) for sector development. Specifically, this chapter addresses the following questions: How can government collaborate with the private sector to create a vibrant ecosystem for the IT services? What are some of the promising tools and practices to promote the ICT sector as a major source of growth and innovation? What lessons can we learn from experience with developing incubators, software technology parks (STPs) and ICT clusters as platforms for dynamic sector growth?
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Notes
- 1.
For full development of the e-Sri Lanka program, see Hanna (2007a, 2008).
- 2.
Hanna (2007a).
- 3.
This is the appropriate level of detail in designing innovation or small grant-making funds.
- 4.
This section draws on the experience of infoDev, a multi-donor program: Impact Assessment and Lessons Learned from infoDev’s Global Network of Business Incubators (infoDev.org website 2008).
- 5.
The global program so far supported over 70 incubators in over 50 countries.
- 6.
There has been much more research on innovation clusters in industrial countries, and particularly on Silicon Valley. See for example, The Silicon Valley Edge (2000). Edited by Chong et al., Stanford University Press. It advanced the concept of a habitat in which all resources high-tech entrepreneurial firms need to survive and thrive. This habitat includes skilled and mobile labor force, entrepreneurial firms, major universities and research centers, venture capitalists and financing institutions and specialized services and support institutions – and their dense networks and modes of interactions that promote collective learning and flexible adjustment.
- 7.
Adapted from Dahlman and Utz (2005).
- 8.
See for example, infoDev’s.rrg Website on International Good Practices for Establishment of Sustainable IT Parks. However, evaluation of IT parks continues to be a challenge in view of the different objectives of these parks, the diverse country context and conditions that influence their performance and the relatively underdeveloped indicators of performance and development impact, beyond financial sustainability.
References
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Hanna, N.K. 2007a. From Envisioning to Designing e-Development: The Experience of Sri Lanka. Washington, DC: World Bank.
Lall, S. 2001. Competitiveness, Technology and Skills. Cheltenham: Edward Elgar.
Porter, M.E. 1990. The Competitive Advantage of Nations. New York: The Free Press.
Rodrik, D. 2004. “Getting Institutions Right.” CESifo DICE Report. University of Munich, Center for Economic Studies, and Ifo Institute for Economic Research.
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Hanna, N.K. (2010). Developing the ICT Industry Ecosystem. In: Enabling Enterprise Transformation. Innovation, Technology, and Knowledge Management. Springer, New York, NY. https://doi.org/10.1007/978-1-4419-1508-5_7
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