Institutional adaptation to entrepreneurial growth in the Indian software sector

This paper uses an evolutionary lens to study the emergence of growth-enhancing institutions to support the growth of entrepreneurial firms that began to provide software services. The paper argues that these institutions enabled “selection” in the labour and capital markets and also played an advocacy role for policies that were more likely to be supportive of service sector growth. This institutional thickness has also benefitted the growth of other sectors relying on outsourced services such as IT enabled services, auto-components and biotechnology firms.