Viewing Economy as a Network : An Exploration Through Input-Output Model

National Innovation System is a departure from viewing entrepreneurship as individual-agent based phenomenon. Viewing economy as a network system gives a perspective to make interventions for innovation at systemic level. In this paper, by identifying the network properties of the Indian economy, using input-output data sets, we provide evidence for co-movement of economic growth, employment and betweenness of the sectors in input-output network of Indian economy. We argue that by structurally repositioning the sectors of economy (by generating new ties or strengthening existing but weak ties), it is possible to create opportunities for innovation, which will have multiplier effects through chains of economy. By examining the structure of the networked Indian economic system, we identify integration of services particularly that of transportation services to be the primary challenge for growth and innovation