Theoretical And Empirical Research On The Software Industry Of India

Today, with the economic integration, the software industry has become the most strategic industry in this era. All countries in the world have focused in the development of software industry. China and India develop their software industry almost at the same time. At the beginning of80%China is slightly ahead to India. But at the beginning of the90’s, India began to develop their software industry as a key industry. After20years, India’s software industry have ahead china a lot. China and India are developing countries, How to learn from the development of India software industry. How to improve the software industry of our country.And ultimately promote the development of high-tech industry, promote the development of our national economy. That is an important problem in our research.In this paper, Based on the Competitive Advantage Theory of the well-known American economist Michael E· Porter. This paper mainly analyze the competitive advantage of India’s software industry with the theory of The Diamond Model from six aspects, the production factors、demand factors、relative and supplementary industry、 the strategy、structure and the ways of enterprises、the function of the government and opportunity. Analyze the determinants of competitive advantage with the econometric. On this basis summarize the reason that why India can become a big software industry country. Finally, Give some strategies and advices to promote the proper development of the software industry in china.