China and India are making extraordinary investment in the development of human capital, especially scientists, engineers and other technical workers. Together they graduate 12.5 times as many scientists and engineers as the U.S. graduates. This labor pool favors high-tech companies operating in these countries. Human capital drives the company performance. (Hitt et al., 2001) The larger a firm's human capital pool, the more likely it would have superior skills and behaviors that would be valuable, rare and difficult to imitate (Wright et al., 1994). It is the large pool of talent and the expectation that access to this talent will increase company performance that lures companies to China and India. China and India share very ambitious aspirations. China aspires to be a global leader in science and technology by 2050, and India proclaimed itself "the world's knowledge hub of the future" at a 2006 national research and development exposition (Teagarden et al., 2009:190). Both countries are collaborating with each other, albeit in a limited way, to learn from each other given their natural complementarities. "Yao Weimin. head of Huawei University, suggests that the primary avenue for technology transfer between India and China "is software, specifically outsourcing" (Teagarden et al., 2009:194).
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