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Michael Schrage, a senior advisor with MIT's Security Studies Program and a Sloan School adjunct lecturer.

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Indianovation

The breadth, variety, and style of Indian innovation astonishes ... but where the heck are its hackers?
Saturday, September 08, 2007

I'm here in Delhi for a gig with Indian CIOs--an impressive array of intelligence and intensity. India's economy is growing; it's globalizing in a fashion rather different from China's, and yes, I'm biased, in that the Indian command of the English language--on average--is superior to the Chinese.

The English-language press here is reminiscent of America's print media of the '60s--diverse, competitive, in-your-face, exuberant, and forward-looking. While mobile bandwidth continues to explode, the reality is that the populist Internet culture of, say, America, Korea, Estonia, the Nordic countries, or the U.K.--or vast swaths of urban China--simply doesn't exist.

I'm struck by the notion that despite its Wipros, Tatas, Infosyses, and, of course, IIT, India doesn't appear to have anything that rivals China's culture of netadventurism. Where are India's hackers? Are they all conformists looking for R&D jobs @ Intel or entrepreneurial opportunities overseas?

Indigenous innovation cultures are always different from global innovation cultures in ways both subtle and profound. With all due respect to Bollywood, India's digital culture doesn't seem nearly as playful or as experimental as others'. Analytical rigor and economic growth seem more "culturally appropriate" than weirdo Facebook/Orkut type technologies, Worlds of Warcraft, or Second Life.

Yes, the poverty here is grinding and heartbreaking. There's not a shred of doubt in my mind that the C. K. Prahalad Fortune at the Bottom of the Pyramid market philosophy will dramatically influence innovation investment here. There is a belief that entrepreneurial innovation--as opposed to state-sanctioned socialism--may be India's best bet for dramatically improving the lives of its poorest.

As fascinating as I find China, I think India will be the more intriguing emerging innovation superpower story over the next five years. The global reach of its diaspora entrepreneurs (Lakshmi Mittal, for example), its calibrated linkages with America and China, and a population that is bound to grow more innovative and playful as the burdens of the Bureaucratic Raj ebb should all combine to make the Subcontinent even more influential than many might expect. I'm not uncomfortable making the case that India's biggest value-added export is its human capital.

Yes, the infrastructure here is not world-class, and that will become even more of an issue gating India's future economic growth and success. But between the wealth of its human capital and a global marketplace that appears uneasy with China's grasp of both rule of law and "quality circles," India may attract more than its fair share of entrepreneurial expats and direct foreign investment.

Comments

  • Everything bad in India is due to population, .. well so is everything good
    priyesh on 09/10/2007 at 9:49 PM
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    I think population explosion has led to a lot of competition in the work environment and the focus tends to change from generl everyday things to a very set focussed and idealistic life. It's sad :(
    Rate this comment: 12345
  • ways to go
    vmirchan on 09/11/2007 at 11:13 AM
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    Great question ...where are the hackers?

    You mentioned the British Raj bureacratic influence...I would say the flirtation with socialism and the Russian influence in 70s and 80s probably had an even more negative impact on creativity, innovation etc. There is still too much protection of state and large family owned institutions.

    The clear success has been in IT and BPO - the Infosyses etc as you point out. But that is just 5-6% of economy. And its initial success was due to labor arbitrage not innovation and because of their success it is a bit diffcult for them to accept the changes they need to make to truly innovate. Also, their success was based on exports not improving the local economy. The best thing that could happen to that sector is a recession - will force them to rethink and morph.

    Also I wrote below, though it is depressing that much of the agrarian economy is not energized.

    http://dealarchitect.typepad.com/deal_architect/2007/06/lack_of_any_tec.html  
    Rate this comment: 12345
  • Stuck in rigid traditionalism
    gabrielg01 on 09/11/2007 at 10:58 PM
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    'vmirchan' above points out the socialist and the Russian influence as factors that supposedly hold back India today. This couldn't be further from the truth. The negative effects of socialism and the Soviet Union did not stop anyone who wanted to innovate, not even the Russians themselves. Eastern Europe started to have an entrepreneurial culture, and it is already world famous for its hacker culture. So it obviously cannot be socialism. Also look at "communist" China as another counterexample.

    The problem may be in India's traditionalist culture itself. You would think that the country with the world's most numerous movie productions would be a culturally very liberated place. Far from it. In India kissing on a movie screen is prohibited. That places them just one notch above Saudi Arabia, and other such 'beacons of freedom'. Also if you think that those gazillion Indian movies somehow represent a flood of creativity, you'll have to reevaluate. They are just the 'n'-th iterations of the same repackaged sap stories. It also makes you wonder about the people who can endlessly consume such repetitive stuff.

    Creativity is often tied to a maverick attitude - hence the hacker connection. India's traditionalist culture certainly does not help in this department. This brings out the real issue/question: given the rigid cultural background, it is already a miracle that India produced as much entrepreneurship as it did. So how did they do it? Easy question&answer. Most of the entrepreneurial people got out of that shackled place, and came to fulfill their dreams in the USA. It is said that the most entrepreneurial ethnic group in America are the Indians. But that observation certainly does not apply to India itself.
    Rate this comment: 12345
    • Re: Stuck in rigid traditionalism
      kaiwren on 09/13/2007 at 6:00 PM
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      Spoken like a true, smug, first-worlder. You scratch the surface, but interpret what you see through the blinkers of your limited experiences. So kissing on screen = liberation. Jeez. How naive.

      When you don't have the state covering your backside and have a family to feed, clothe and educate, you tend to be a lot more risk averse. It is dharma to care for your elders, so your family will include your parents, and often your grandparents. Most people here are married by the time they're 25, so they have children to care for too. I can afford to attempt to co-found a start-up because my parents don't need me to support them. It's that simple.
      Get something straight - when you live with 1 billion people all competing for limited resources, and the government doesn't trade fundamental rights for three square meals a day, then you have to be risk averse. Understand that this isn't a criticism of China - a full belly vs. freedom of speech is a difficult choice to make and nobody can say one is more important than the other. But fundamental rights is what we get in India and we have to live with the consequences - just like they do in China. Have you ever been there? You should go live in both countries for a bit, absorb the culture and then perhaps you'll think twice before pontificating.

      But you got one thing right at least. All Hindi movies tend to be pretty darn repetitive. Except for 'Black'. And 'Being Cyrus'. And 'Dil Chahta Hai'. And 'Rang de Basanti'. And 'Guru'. And...
      Hmm. Sorry. You got that one wrong too.
      Rate this comment: 12345
      • Re: Stuck in rigid traditionalism
        gabrielg01 on 09/14/2007 at 8:29 PM
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        The cultural reasons you bring up don’t really fly. It is very much debatable whether they are the causes of the problems, or the results of the problems. You say, you cannot develop because you’re in a hole. We say, you cannot develop because you’ve dug yourself into a hole, and you don’t even want to stop digging.

        As for the “first worlders”…perhaps you should think why that is. Perhaps the first world got something right, and that’s why it is in the position of “first”. Maybe you could learn a thing or two from us “smug” people.

        As for kissing – yeah it is a big deal. Otherwise you wouldn’t ban it.
        Rate this comment: 12345
        • Re: Stuck in rigid traditionalism
          kaiwren on 10/01/2007 at 3:11 PM
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          Like I've already said, you insist on wearing blinkers. You say 'bound in tradition'. We say 'steeped in culture and history'. It's a matter of perspective. And you natter on about kissing and topless women like it's even relevant. If you want to contradict me, do so on a point by point basis without making sweeping unsubstantiated statements like 'the cultural reasons you bring up don’t really fly'. And you should probably visit Khajuraho and read the Kamasutra at some point.

          As for what the first world got right: several centuries in which they exploited and enslaved the rest of the world. How long has the US been free? 300 years. India? 60. Don't be patronising, it's uncouth.

          Mahatma Gandhi was once asked what he thought about western civilization. He replied, 'I think it would be a very good idea.' He was probably talking about you.
          I'd suggest you learn some
          a) manners
          b) world history
          before pontificating.
          Rate this comment: 12345
    • Re: Stuck in rigid traditionalism
      nicknirm on 09/15/2007 at 3:35 PM
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      To throw a wrench into the effort to impute causality in the instance of the thriving Eastern European hacker culture despite the effects of socialism, the erstwhile Soviet bloc’s military–scientific-industrial complex (that represented a much larger share of the its economy than that in the West) had one primary focus - reverse engineering of Western products and technology. So it does not require a great leap to see that some of the Eastern European hacker culture we see today is a result of this Soviet bloc legacy. China, to a lesser degree, is also similar to Eastern Europe in this regard. Also, due to rule of law issues in the erstwhile Soviet bloc, a lot of creative talent often do not get lucrative (and legitimate but also conformist and corporate) employment and often seek outlets in the “hacker” culture. 
      Rate this comment: 12345
      • Re: Stuck in rigid traditionalism
        gabrielg01 on 09/16/2007 at 9:59 PM
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        What you say is perfectly true, but it is not a “wrench” at all. On the contrary, it indicates that one cannot really blame socialism/communism for lack of innovation in today’s world.

        Another layer of complexity is that Eastern Europeans are eager “to prove themselves” as people with Western values, and they constantly ape Western culture. Go to public beaches in Romania or Bulgaria, and you will see countless topples women there – and everyone finds that perfectly normal today. 15 years ago that was something unthinkable. Now Eastern Europeans want to be seen on par with the liberal people of Western Europe.
        Rate this comment: 12345
  • Not Hungry Enough..
    d.raiyani on 09/13/2007 at 11:37 AM
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    a. there are too many jobs.. and too many corporates chasing few graduates/post grads/mbas. the demand for talent is always more than the supply. They rather be high paid slaves than face the risk of failure.

    b. Indians have been trained to pass exams.. not to think. Blame it on over zealous parents, teachers or the entire education system where your academic performance is perceived as a measure of future success.

    c. Big ideas are not encouraged, VCs/Angels like small but definite solutions, its a better bet, however the payoffs not as great. Lack of seed stage funding.

    d. Curiosity, sense of adventure, ability to face failure is extremely low. It's the spirit they lack, not the brains.
    Rate this comment: 12345
    • Re: Not Hungry Enough..
      kaiwren on 09/13/2007 at 6:02 PM
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      You're right to some extent. The lack of seed funding really hurts. But the hunger - just attend any barcamp or open coffee club meeting and you'll see there's nothing to worry about on that front.
      Rate this comment: 12345
  • The Indian hackers are out there
    kaiwren on 09/13/2007 at 5:35 PM
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  • Orkuts and Facebooks -> Mobshare.in
    taur0105 on 09/16/2007 at 11:24 AM
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    Quite an interesting post and i would like to share more light on the back ground of my own experiences as a student entreprenuer in India, building one of the wierdo technologies and heading a piece valued at 6M$ and rated as one of India's 100 Innovative Startups by Nasscom.
    http://www.mobme.in/news

    What is said about internet and comparision with the mobile growth is right on the mark. There is quite a lot of entreprenueral activity going on with the governments at State and Center starting quite a number of support programmes under the Department of Science and Technology.

    http://www.dsir.gov.in/tpdup/tepp/tepp.htm

    and yup -> the innovation funds are starting to trickle its way to india :-)

    Sanjay

    www.sanjay.mobshare.in

    Rate this comment: 12345

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