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Policy Support and Free Markets: Innovation Paths and Future Strategies in Bangalore and Silicon Valley
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Abstract
This paper compares the different urban development models of Bangalore and Silicon Valley, two global centers of technology and innovation. Bangalore, known as the "Silicon Valley of India," has grown primarily through government policies that attract outsourcing and R&D centers, while Silicon Valley thrives on a market-driven innovation ecosystem supported by venture capital. The study analyzes their entrepreneurial cultures, labor sources, and risk tolerance, highlighting the strengths and limitations of each model. Bangalore’s government-led approach has bolstered its outsourcing industry but limited its capacity for indigenous innovation. In contrast, Silicon Valley’s risk-tolerant, market-based model has fostered groundbreaking technological innovation. The research concludes that Bangalore should focus on enhancing local innovation capabilities to achieve sustained growth, while Silicon Valley must address rising living costs and income inequality to maintain its global leadership. By comparing these distinct urban development paths, the study offers valuable insights for emerging technology hubs around the world.
Keywords
Tech-Led Cities, Innovation Ecosystem, Government Policy, Market-Driven, Indigenous Innovation
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Cite this article
Yang,B. (2025). Policy Support and Free Markets: Innovation Paths and Future Strategies in Bangalore and Silicon Valley. Advances in Economics, Management and Political Sciences,148,8-13.
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Volume title: Proceedings of ICFTBA 2024 Workshop: Human Capital Management in a Post-Covid World: Emerging Trends and Workplace Strategies
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