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Bangalore Cluster: Evolution, Growth and Challenges

By Rakesh Basant


The dynamism and persistence of competitiveness among industrial clusters, even in the wake of globalization and liberalization in the 1990s, has led researchers to explore the causes of dynamic efficiencies at the cluster level. Given its dynamism, the ICT cluster in Bangalore, India has attracted much research and media attention. It is often referred to as the Silicon Valley of India. While the IT sector has brought the city into limelight, it has a fairly diverse portfolio of activities with firms manufacturing machine tools, telecom equipment, electronics products and to some extent auto-components located here. In recent years, the city has also emerged as a premier bio-tech cluster in the country. This paper pools together evidence to explore reasons why Bangalore emerged as a high-tech cluster and the nature of advantages that has contributed to its growth.

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