Howard Anderson spoke at TiE-Boston’s dinner meeting held on 29th June at Burlington Marriott. Howard Anderson is one of the best-known technology pundits in the last 35 years. He was a Founder of The Yankee Group, a technology research firm acquired by Reuters, Battery Ventures and YankeeTek Ventures.

Mr. Anderson expressed his views on the emergence of India and China on the world's economic stage and their impact on the technology world in the United States. “The real wealth of a country is skills and the work force, and these countries have the engine going,” said Mr. Anderson. Abundance of work force, large indigenous population and work ethics are few reasons to invest in India and China.

Mr. Anderson presented factors supporting investment in China and India.

Reasons to Invest in China

• China started reforms in 1979.
• China leads in manufacturing, India is a player Intellectual Property/Software.
• China is the only country in the world that competes against USA, a developed economy and African developing economies.
• Recent developments in China include.
  • Construction and development : 65% of large building cranes are working in china.
  • Production of good quality furniture, clothing, shoes.

Reasons to Invest in India

• Rule of law, sanctity of contacts.
• Indians speak good English.
• Entrepreneurial class exists.
• Cost of communication is low: $0.50 to $0.02 per minute/high speed.
• Mass customization is very easy.
• Move up value chain. Example: Tata.
• Outsourcing is tip of iceberg. Indians are capable of taking up more projects.
• 3 million people in high tech industry.
• Growth - Example: Tata growing at 40%, Sales at $1.5B, 20% profit.

Finally he compared both the countries from entrepreneurship perspective. "In china atoms and in India electrons," said Mr. Anderson associating china to manufacturing and India to software. China has openess for outside world and is able to aggregate and implement policies.

|