Knowledge-based cluster development in India : opportunities and challenges

Abstract

Knowledge-based industries tend to cluster. The nature of activities illustrate the importance of networks and virtual and proximity aspects of clustering. Review of existing literature brings out the advantages of clustering for such industries. The purpose of the study is to comprehend the current status of development, both economic and real estate, in the knowledge-based industries in India. A stylized model is used as a reference to understand the status of economic development. Current body of literature and interview results from this study suggests transitioning nature of India's knowledge-based industry from being a services provider to becoming a knowledge provider. However, there are challenges in the transition process related to infrastructure and human resource. This study suggests that a large scale mixed use project may in fact be able to address some of the ongoing issues in the economic domain. The proposed development may lead to clustering of business and universities thus, giving rise to a knowledge-based cluster in India.