| Abstract: |
This occasional paper examines the experiences of three leading global centres
of the ICT industry –
India, Silicon Valley, and Estonia – to reflect on how
the lessons of these models can be applied to the
context of countries in the
Caribbean region.Several sectors of the technology industry are considered in
relation to the suitability for their
establishment in the Caribbean.
Animation is an area that is showing encouraging signs of
development in
several countries, and which offers some promise to provide a significant
source of
employment in the region. However, the global market for animation
production is likely to become
increasingly competitive, as improved
technology has reduced barriers to entry into the industry not
only in the
Caribbean, but around the world. The region’s animation industry will need to
move
swiftly up the value chain if it is to avoid the downsides of being
caught in an increasingly
commoditized market.
Mobile applications
development has also been widely a heralded industry for the
Caribbean.
However, the market for consumer-oriented smartphone applications
has matured very quickly, and is
now a very difficult sector in which to
compete. Caribbean mobile developers would be better served
to focus on
creating applications to suit the needs of regional industries and
governments, rather than
attempting to gain notice in over-saturated consumer
marketplaces such as the iTunes App Store and
Google Play.
Another sector
considered for the Caribbean is “big data” analysis. This area holds
significant
potential for growth in coming years, but the Caribbean, which is
generally considered to be a datapoor
region, currently lacks a sufficient
base of local customers to form a competitive foundation for
such an
industry. While a Caribbean big data industry could plausibly be oriented
toward outsourcing,
that orientation would limit positive externalities from
the sector, and benefits from its establishment
would largely accrue only to
a relatively small number of direct participants in the industry.
Instead,
development in the big data sector should be twinned with the
development of products to build a
regional customer base for the industry.
The region has pressing needs in areas such as disaster risk
reduction, water
resource management, and support for agricultural production. Development of
big
data solutions – and other technology products – to address areas such as
these could help to establish
niche industries that both support the needs of
local populations, and provide viable opportunities for
the export of
higher-value products and services to regions of the world with similar needs. |