Emergence and Persistence of High-Tech Start-up Clusters: An Empirical Study of Six Indian Clusters Joshi Kshitija* National Institute of Advanced Studies Indian Institute of Science Campus, Bangalore, India *Corresponding author E-mail: kshitija74@gmail.com
Online published on 27 November, 2018. Abstract Of late, regional clusters have replaced national economy as the locus of economic growth. In fact, during the recent past world over, most prominent technological innovations have emerged from firms located within such start-up clusters. This study focuses on the process of emergence and growth of six such prominent clusters in India viz. Bangalore, Hyderabad, Chennai, Mumbai/Pune, Kolkata and the National Capital Region. In particular, we assess the relative competitiveness among clusters with respect to diverse dimensions and identify the attributes that cause certain clusters to emerge as front-runners vis-à-vis others. The study finds that the presence of a ‘critical mass’ as being the most important driver of start-up emergence. It also assesses the role of Physical, Financial, Human and Social Capital in impacting the cluster formation process. As a contrast to earlier studies, the study fails to establish any direct link between the R&D infrastructure within the region and its impact on the process of start-up formation therein. Interestingly, it establishes the critical role of ‘feel-good’ elements such as salubrious weather in impacting cluster emergence. The findings from the study present significant implications for Indian policy-makers that can possibly be extended to other emerging economies as well. Top Keywords Entrepreneurial Spawning, High-technology, Incubators, Infrastructure, Start-up clusters, Venture Capital. Top |