In the emerging knowledge-based global economy, the sustainable competitive
advantage of nations will reside not in their possession of natural resour
ces or cheap labour force, but in their ability to harness their countries'
intellectual assets. As such, the knowledge revolution offers a unique cha
nce to Leapfrog entire stages of development. This paper argues that in Ord
er to make such a leap Tamil Nadu needs to initiate a knowledge-led develop
ment policy that builds on the state's successful IT industry.:This paper p
roposes, a roadmap to raise the global competitiveness of Tamil Nadu's IT i
ndustry, through strengthening both the demand and the supply.