Bangalore growth model unlikely to work elsewhere

Bangalore growth model unlikely to work elsewhere
Financial Express

While the movement for independence of India was being led by the political leaders and social reformers, there was emerging another community of leaders-scientists and technologists - whose contributions remained unnoticed and unrecognized for a long time. If the politicians laid the foundation for a democratic India, the scientists created a fertile environment for building a science-based society in the country. Amongst them were those visionaries who also comprehended the links between science, technology, and economic growth.


Drawing from the economic growth theories, this paper demonstrates how technological innovations worked as the engine propelling economic growth of cities and nations and addresses four specific questions:

• What is the basis for economic growth?

• How can this growth be improved and sustained?

• How can it be spread across the country?

• What will be the reaction of the developed countries to such challenges?

The author closely studies the case of information and communication technology-based growth of Bangalore and explores the possibilities of its extension to other cities. He attributes Bangalore’s economic growth to social, cultural, and infrastructural factors unique to the city. A comparison of Bangalore’s growth with a few other locations suggests that it is not possible to blindly replicate the success story of Bangalore in other regions of the country. What has worked for Bangalore may not be relevant for those regions. What is required is a strong base and, for that, the country should start building the infrastructure and educating the labour. For diffusion of growth, the author stresses upon the need for identifying local strengths, encouraging local innovation, intensifying educational programmes, and respecting the sociological systems and local culture.

Overall, the author draws the following lessons for India:

• Population - trained and educated - is an asset.

• Labour will be an asset only if there is adequate infrastructure for the use of the genetic pool.

• Energy, communications, and transport systems should be ubiquitous, reliable, and affordable.

• Setting up of profit-seeking R&D centres and R&T institutions should be encouraged.

• Market size and competition should be increased.

• Transaction costs will have to be minimized.

• Ideas, knowledge, and skills should be allowed to come from anywhere.

This improved understanding of the forces driving social development and economic growth offers enticing options for India to pursue.

Text extracted from Vikalpa, the Journal of IIM, Ahmedabad