New Industrialization in the Segment of Software Production Centers: India, Israel, and Russia

Tyumen State University Herald. Social, Economic, and Law Research


Release:

2018, Vol. 4. №4

Title: 
New Industrialization in the Segment of Software Production Centers: India, Israel, and Russia


For citation: Romashkina G. F., Ushakova Yu. V. 2018. “New Industrialization in the Segment of Software Production Centers: India, Israel, and Russia”. Tyumen State University Herald. Social, Economic, and Law Research, vol. 4, no 4, pp. 177-199. DOI: 10.21684/2411-7897-2018-4-4-177-199

About the authors:

Gulnara F. Romashkina, Dr. Sci. (Soc.), Professor, Head of the Department of Mathematical Methods, Information Technologies and Management Systems in Economics, University of Tyumen; g.f.romashkina@utmn.ru

Yulia V. Ushakova, Postgraduate Student, Assistant, Department of Mathematical Methods, Information Technologies and Management Systems in Economics, University of Tyumen; y.v.ushakova@utmn.ru

Abstract:

This article consists of three semantic blocks. The first block includes the analysis of a number of concepts: reindustrialization, modernization, and new industrialization — and analyzes the Russian experience of reindustrialization new industrialization in the context of the world scientific agenda. In addition, the authors explain the choice of this specific object of research according to the set tasks in this section.

The second and third blocks summarize the history of the software industry in India and Israel, respectively, as successful examples of a new digital economy industry. For each of the cases considered, the authors systematize their experience of implementing economic policy to support modern sectors of the economy (new industrialization) as the centers for the global software production. Then, the authors interpret this experience in accordance with the Russian realities, highlighting possible strategies of new industrialization in digital economy, in particular — the software industry.

The relevance of this work lies in the peculiarities of the software development industry in Russia. The authors ask the research question: why the real results have not adequately reflected the objectively favorable conditions for the development of the Russian software industry.

This article provides examples of implementing relatively successful policies to support Russian producers, which rely on India’s and Israel’s successes. The authors trace common trends in the development of reindustrialization, modernization, and technological renewal strategies; study typical business models of innovative entrepreneurship; and assess their success in India and Israel. The former case shows that an industry’s successful development does not always result in such effect for the national economy. The example of Israel highlights real mechanisms for converting the experience of financing the military-industrial complex, stimulating the civil sectors of the national economy. In addition, the Israeli software development companies in reality often continue to develop as a purely American company.

The authors conclude that for Russia, the successful development of new industrialization is possible only with an adequate assessment of the country’s potential, risks, and threats, as well as the formation of an institutional support environment for creating new industries.

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