In the global knowledge economy of the twenty-first century, Indias development policy challenges will require it to use knowledge more effectively to raise the productivity of agriculture, industry, and services and reduce poverty. India has made tremendous strides in its economic and social development in the past two decades. Its impressive growth in recent years8.2 percent in 2003can be attributed to the far-reaching reforms embarked on in 1991 and to opening the economy to global competition. In addition, India can count on a number of strengths as it strives to transform itself into a knowledge-based economyavailability of skilled human capital, a democratic system, widespread use of English, macroeconomic stability, a dynamic private sector, institutions of a free market economy; a local market that is one of the largest in the world; a well-developed financial sector; and a broad and diversified science and technology infrastructure, and global niches in IT. But India can do moremuch moreto leverage its strengths and grasp todays opportunities. India and the Knowledge Economy assesses Indias progress in becoming a knowledge economy and suggests actions to strengthen the economic and institutional regime, develop educated and skilled workers, create an efficient innovation system, and build a dynamic information infrastructure. It highlights that to get the greatest benefits from the knowledge revolution, India will need to press on with the economic reform agenda that it put into motion a decade ago and continue to implement the various policy and institutional changes needed to accelerate growth. In so doing, it will be able to improve its international competitiveness and join the ranks of countries that are making a successful transition to the knowledge economy.
Intro Contents Foreword Acknowledgments Currency Equivalents Abbreviations and Acronyms Summary Strengthening the Economic and Institutional Regime Developing Educated and Skilled Workers Creating an Efficient Innovation System Building a Dynamic Information Infrastructure Looking Ahead Launching a Process A Final Note Chapter 1 India and the knowledge economy: Opportunities and challenges The Current Economic Context Knowledge Is Key in an Increasingly Dynamic and Competitive Global Environment Assessing India's Opportunities and Challenges in the Knowledge Economy Other Global Comparisons with India Road Map for the Book: Strengthening the Four Pillars of the Knowledge Economy Chapter 2 Economic and institutional regime, including governance Benchmarking the Economic and Institutional Regime Benchmarking Governance Issues and Recent Developments in the Economic and Institutional Regime Measures to Strengthen the Economic and Institutional Regime Summary of Issues and Recommendations Chapter 3 Education and human resources Benchmarking Education Issues and Recent Developments in Education and Human Resource Development Measures to Strengthen Education and Human Resources Summary of Issues and Recommendations Chapter 4 Innovation system Benchmarking Innovation Issues and Recent Developments in the Innovation System Measures to Strengthen the Innovation System Summary of Issues and Recommendations Chapter 5 Information infrastructure Benchmarking Information Infrastructure India's Global Standing in Information Communications Technology Issues and Recent Developments in the Telecommunication and IT Sectors Measures to Strengthen the Information Infrastructure Summary of Issues and Recommendations. Chapter 6 Moving ahead with the knowledge economy in India Indian Initiatives in the Knowledge Economy Looking Ahead Taking Action Launching a Process A Final Note Annexes 1 India's Total Factor Productivity Construction: Theoretical Framework 2 Knowledge Assessment Methodology 3 Knowledge Economy Index for India and Comparator Countries, 1995 and Most Recent Period 4 Overall Knowledge Economy Scorecards for Brazil, China, Korea, Poland, and Russia, Selected Variables, 1995 and Most Recent Period 5 Data for the Scorecards for India, Brazil, and China, 1995 and Most Recent Period 6 Economic and Institutional Regime: Scorecards for Comparator Countries, Selected Variables, Most Recent Period 7 Governance Data for India 8 Various Costs of Doing Business in India, 2004 9 Education: Scorecards for Comparator Countries, Selected Variables, Most Recent Period 10 Innovation: Scorecards for Comparator Countries, Selected Variables, Scaled by Population, Most Recent Period 11 Information Infrastructure: Scorecards for Comparator Countries, Selected Variables, Most Recent Period 12 ICT Indicators for India and China, Various Years Notes References and Bibliography Figures A India: Real Gross Domestic Product Per Worker, Alternative Projections, 1995-2020 B India: Percentage Share of Global Gross Domestic Product, Years 0-1998 1-1 India: Real Gross Domestic Product Per Worker, Alternative Projections, 1995-2020 1-2 Gross Domestic Product Per Capita (Purchasing Power Parity), India and Compara-tors, 1990-2003 1-3 Growth in Per Capita Income for Korea and Ghana, 1960-2000 1-4 Knowledge Economy Index: India, Comparators, and the World, 1995 and Most Recent Period. 1-5 Cross-Country Comparison on the Four Pillars of a Knowledge Economy, India and Comparators, 1995 and Most Recent Period 1-6 India's Knowledge Economy Scorecard on Selected Variables, 1995 and Most Recent Period 1-7 Progress on the Human Development Index, India and Comparators, 1975-2002 1-8 Knowledge Economy Scorecards on Selected Variables for Brazil, China, and India, Most Recent Period 1-9 Gross State Domestic Product and Literacy Rates for Indian States, 1999-2000 2-1 Benchmarking the Economic Incentive Regime, India, Comparators, and the World, 1995 and Most Recent Period 2-2 India's Scorecard on the Economic Incentive Regime, Selected Variables, Most Recent Period 2-3 Governance Comparisons: India (1998 and 2002), with South Asia (2002), and with Low-Income Countries (2002) 2-4 Eliminating Barriers for Faster Growth in India 2-5 Share of World Merchandise Exports, India and Comparators, 1990-2003 2-6 Merchandise and Service Exports, India and Comparators, 2002 2-7 Service Exports, India and China, 1982, 1995, and 2002 2-8 Gross Foreign Direct Investment as Percentage of Gross Domestic Product, India, Comparators, and the World, 1980-2002 3-1 Benchmarking Education: India, Comparators, and the World, 1995 and Most Recent Period 3-2 India's Scorecard on Education, Selected Variables, Most Recent Period 3-3 Gross Primary Enrollment Rates, India and Comparators, 1990-2001 3-4 Gross Secondary Enrollment Rates, India and Comparators, 1990-2001 3-5 Gross Tertiary Enrollment Rates, India and Comparators, 1990-2000 4-1 Innovation by Population and Absolute Size, India and the World, 1995 and Most Recent Period 4-2 India's Scorecard on Innovation, Selected Variables, Most Recent Period. 4-3 Patents Granted by the United States Patent and Trademark Office to Brazil, China, and India, 1997-2003 4-4 Patents Granted to Indian Subsidiaries 5-1 Percentage of Total Telephone Service (Fixed and Mobile) Provided by Private Operators in India, 2000-04 5-2 Benchmarking Information and Communications Technologies, India and the World, 1995 and Most Recent Period 5-3 India's Scorecard on Information and Communications Technologies, Selected Vari-ables, Most Recent Period 5-4 Telephones, Computers, and the Internet: India and Comparators, 1995-2002 5-5 Growth of Telephony in India: Numbers of Landline and Mobile Subscribers, 1996-2004 5-6 Teledensity in India, 1995-2004 5-7 Employment in the Indian Information Technology Sector, 2000-03 5-8 India's Projected Information Technology Industry, Export and Domestic Markets, 2008 5-9 Gains from Offshoring 1 of Services from the United States (Source) to India (Host) 6-1 India: Percentage Share of Global Gross Domestic Product, Years 0-1998 Tables 1-1 India's Gross Domestic Product by Sector, 1997-2003 2-1 Custom Duty Rates in India and Other Developing Countries, Various Years 3-1 Enrollment by Educational Stages in India, 1990-91 and 2001-02 3-2 Percentage of Schools under Different Types of Management in India, Various Years 3-3 Spending on Education, India and Comparators, 2001 3-4 Scientific and Technical Personnel from Indian Universities by Level of Qualification, 1979, 1989, and 1995 3-5 Educational Attainment of the Total Population Age 15 and Older, India and China, 1980-2000 3-6 Characteristics of Traditional and Lifelong Learning Models 4-1 Selected Innovation Variables, India and Comparators, Various Years 5-1 Digital Access Index, Various Countries, 2002 5-2 Internet Usage Pattern in India in 2002 Boxes. 1-1 Assessing India's Progress on Millennium Development Goals in the 1990s 1-2 India Undergoes a Services Revolution 1-3 Four Pillars of the Knowledge Economy 2-1 Foreign Direct Investment: A Tale of Two Countries 2-2 Foreign Direct Investment Policies in India and China 2-3 Moving Up the Value Chain: India's Automobile Industry 2-4 Investment Climate Improvement: Lessons from China and India 2-5 Role of Investment Climate: The Private Sector View in India, China, and Brazil 2-6 Tapping Entrepreneurial Capabilities and Buying Power of the Poor 2-7 Building on Success: Attracting Foreign Investment in India 3-1 Reducing Illiteracy: The Computer-Based Functional Literacy Program 3-2 Community-Government Partnership Helps Get Millions into School: The Case of Madhya Pradesh 3-3 Increasing Transparency in Indian Higher Education 3-4 Expanding Distance Education in India 3-5 General Electric Actively Promotes Organizational Learning, Including in India 3-6 Reaping the Potential of Private Higher Education in India 3-7 Transforming Established Systems: The Monterrey Institute of Technology 4-1 India in the Context of Global Trends in Research and Development Investment 4-2 Industrial Research and Development in India: Recent Trends 4-3 How Well Does India Promote Innovation in the Manufacturing Sector? 4-4 China's "Jumping into the Sea" Strategy 4-5 Evolution of Bangalore as an Innovative Cluster 4-6 Highlights of International Corporate Research and Development in India 4-7 Globalization of Innovation: High-End Research and Development in India 4-8 Outsourcing Chemistry and Biology Research and Development in India 4-9 Indian Pharmaceuticals: Responding to Changes in the New Patent Regime 4-10 Indian Pharmaceuticals Have Global Ambitions. 4-11 The Evolving Innovation Landscape: Research and Development in the Corporate World.
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