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Fri, May 18, 2007 3:06 EDT
Role of Government in Promoting IT industry
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Posted by: Naveed Saeed in Questions Topic: Infrastructure
Current Rating: |
Can any body help me in identifying major key areas that government should focus in order to stabilize and advance IT industry within the country. This is quite a new area for me to explore and hence any ideas on policies and strategies the advanced countries are practicing, further how are they ensuring the monitoring in terms of indicators to asess the progress would be helpful.
Any good references of study materials are highly appreciated.
IT Industry
Rating:
It is surprising to me that no one in this article commented on the role of government. To speak of "stakeholders" in this critical issue and not mention the U.S. and state government roles is astounding. We can see from other countries that successful government policies bring students into the IT field. A simple solution is to provide income tax holidays for students who study in and then find employment in IT-related fields. Young people need REAL incentives. This happens in India. "Talking up" the importance and even fun side is not enough. In the past we have had national vision and goals (like "put a man on the moon") to inspire young people to enter scientific fields. We don't have that in IT so we need something concrete like tax incentives. Incentives can go to organizations as well - in Poland companies are given financial incentives for each position they create in IT. Come on - its not rocket science - we can do these simple things and begin to turn the skills famine around!
With my Economist hat on, and my fingers crossed, I would say Government should stay out of the way of entrepreneurs and that would be enough.
In reality, many countries have created significant tax incentives for IT firms. Just to level the playing field, other countries may have to do the same. For developing countries, building basic education infrastructure would be key. Lack of infrastructure such as reliable electricity, public transportation, etc. forces private firms to find ways to address these shortcoming via private generators or corporate shuttle services. These expenses are in a way a tax on the IT companies and should have been provided as a public good. Liberal labor laws are always good as companies are less willing to take risks if they can't easily fire people if the gamble does not work out.
Hope this helps. Feel free to contact me with the details of what you are doing. I may be able to connect you with some of my former professors depending on the specifics of your project.
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