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By Moriki Ohara, M. Vijayabaskar, Hong Lin (eds.)

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Extra info for Industrial Dynamics in China and India: Firms, Clusters, and Different Growth Paths

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At present, “a certain level” is 5 million RMB (Chinese Yuan, equivalent to 750,000 USD at the 2010 exchange rate). This means that, as time passes (and as the average size of sales per firm increases), the number of firms covered by the statistics also will increase. IED only covers industrial enterprises, and it does not include service sector enterprises. 7 ASI Data includes firms registered under the Factory Law, hiring more than 20 employees without power tools or more than 10 employees with power tools.

Source: CAIY various years. steadily invest in their technological development but has left us with the impression of less dynamism. Notes 1. This broadly reflects the time when the societies went beyond the “Lewisian Turning Point” enjoying “growth with equity” in East Asia. 2. 7% in India. 1%. 3. Gregory, Nollen, and Tenev (2009) introduce a clear contrast between China’s strength in hardware manufacturing and India’s in software services in the IT industry. 36 Moriki Ohara and Hong Lin 4. See Naughton (2007).

Regarding the average firm’s management style, we observe two attitudes: “volume-oriented” (China) vs. “profit-oriented” (India). Regarding the basic competitive environment, we observe “harsh price competition among numerous homogenous firms” in various industries (China) vs. “less-harsher competition among heterogeneous firms” (India). We may attribute the gap to the different conditions of their economic growth after the 1980s, in particular, to the different directions of technological choice (labor/capital-intensity) and the pace of homogenization of technological capability among manufacturers.

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