Comparing the Entrepreneurial Ecosystems for Technology Startups in Bangalore and Hyderabad, India

Abstract

Technology startups are gaining increasing attention from policy makers the world over because they are seen as a means of encouraging innovations, spurring the develop- ment of new products and services, and generating employment. Technology startups tend to thrive when inserted in a conducive entrepreneurial ecosystem. Therefore, eco- system promotion is being given increasing policy support. However, the emergence and structure of entrepreneurial ecosystems for technology startups have hardly been traced and examined in detail. In India, Bangalore occupies a unique position in the startup world, and Hyderabad is fast emerging as one of the promising startup hubs in the country. Given this background, we set out to explore and examine the structure, evolution, and growth of ecosystems for technology startups in the context of Bangalore and Hyderabad. Both the ecosystems emerged due to the initial foundation laid in the form of government–industry–academia triple helix and their interactions leading to the emergence of a modern industrial cluster followed by an information technology and biotechnology cluster, which then led to R&D cluster serving both the cities. These three clusters together, gradually and steadily, facilitated an entrepreneurial ecosystem for technology startups to emerge. The ecosystem operates within the triple helix model and has a nucleus with two outer layers: i) an inner layer of primary (indispensable) factors and ii) an outer layer of supplementary (secondary) factors. Through the analys- is of the experiences of Bangalore and Hyderabad and their ecosystem evolution, its structure, and components, we derive key lessons for others within and beyond India.