Silicon Valley is perhaps the world’s greatest startup ecosystem which the entire world is trying to emulate. The efforts of the countries are mapped in this fabulous Startup Ecosystem map –
According to the Startup Ecosystem map, Bangalore is listed on the 19th position from among the 20 cities under consideration.
This begs the question to be asked – How is India doing on the front of the Startup ecosystem building? Not very well on any Global metric apparently.
Here are three big reasons why India very badly needs a Startup Ecosystem –
1. Massive educated workforce churned out by Universities – Every year we see such huge numbers among the work force churned out by Indian colleges – not only engineering but science, commerce etc
2. Relatively larger uncertainties for bigger companies – Given the retrenchment going on in many sectors, it won’t be wrong to say that Startups will provide employment to a larger audience than before.
3. Exciting opportunities with potentially larger impact – At a startup, there would be a greater opportunity to create an impact as compared to a smaller company.
Given this, is India missing a huge marketing opportunity by NOT making a city like Bangalore or Pune a Startup Hub?
I certainly think so. Given the huge fillip that IT has given to Bangalore or Pune or Gurgaon or Hyderabad – local Governments should be literally jumping at the opportunity at creating a startup ecosystem. It has the potential to attract the best talent from the globe to that city and more importantly is a better way to collect sustainable and ever growing revenue. Look at the model that the state of California built for itself with the Silicon Valley. While it is true that the state was blessed to have minds like Steve Jobs and Sergey Brin, the fact is the California and US Government also played a small but important part in the Silicon Valley development.
Look at Tel Aviv – In 2009, Israel had more IPOs on the NASDAQ than China , India and Russia combined. Thats a telling statistic. If Israel can do it, so can a focussed approach from a country like India, with the abundance of talented people .
To Quote the article –
Highly advanced ecosystem and bustling with tech companies
– In 2009, 63 Israeli companies were listed on the tech-orientated NASDAQ – more than from Europe, Japan, Korea, India, and China combined
– Almost every major tech company today has some kind of subsidiary in Israel: Intel, Microsoft, Google and Cisco etc.
– 39% of Israeli high-tech employees work in the R&D departments of multinational companies
- Closing fast on Silicon Valley due to risk-taking nature
Given all of this, it may seem as if India has already fallen behind . What is the best foot forward to build a Silicon Valley in India? Have any opinions? Let us know!
Source for diagrams and quotes: Telefonica digital