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The Clustering Effect


Even though, STPI Centres have come-up across the country at as many as 57 locations, the major Industry concentration is at Bangalore, Noida, Mumbai, Chennai, Hyderabad and Pune, reflecting the natural technology clustering effect that has taken place in other technology clusters like Silicon Valley, Boston, Dallas, Ireland, Sweden and Tokyo.

First Phase: In 1991-92, there were very few Indian companies who were doing software exports from India. Those exporting software included few multinational companies like Texas Instruments, Hewlett Packard, and Digital. One could term this as the first phase of the developmental process.

Second Phase: In the second phase of the developmental process, the concept of the "Offshore Development Work" took birth. This second phase of the development, which started in 1993, took India, infact Bangalore,Mumbai in particular, to greater heights by 1998-99.

By the end of March 2001, the Industry has grown to US $ 5.7 billion in software exports with 380 multinational companies establishing base here, the largest concentration of the technology services. All the Global Leaders in Hi-Tech areas like IC Design, Communication Software and System Software have setup a base for their operations in India.

Third Phase: The success of the 2nd phase paved the path for the third phase of development to take place. The third phase of development led to very close and intimate relations with the Silicon Valley start-up companies. In fact, every small Hi-Technology Start-up Company in Silicon Valley valuated at millions of dollars in US market, started establishing their development Centers in Bangalore,Pune,etc.,.

Fourth Phase: During the fourth phase of the development many Indian companies started owning the intellectual property within India and earning the royalty from the global players.

 Find more about :
  STPI:The Beginning
  STPI:The Growth             Booster
  The Clustering Effect