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Global advantage of Bangalore as a location choice for knowledge‐based industries in India

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  • Arun Natarajan Hariharan
  • Arindam Biswas

Abstract

Attractive locations based on geographic, environmental and strategic factors stimulate the concentration of economic activities, leading to urban spatial growth (Hariharan & Biswas, 2020). The onset of the knowledge‐based information and communication technology (KBICT) revolution credits the liberalization of India’s economy from the early 1980s. The advent of liberal policies in the early 1990s stimulated foreign direct investment (FDI) in Bangalore City, attributed to its environmental and geographic location advantages. Recognition of Indian skill and talent helped generate more than US$ 100 billion in export revenue and the regional diffusion of FDI, enabling competitiveness in the regional aggregation of KBICT industries. This article analyses the regional distribution of FDI through Dunning’s framework. Las ubicaciones atractivas basadas en factores geográficos, ambientales y estratégicos estimulan la concentración de las actividades económicas, lo que conduce al crecimiento espacial urbano (Hariharan & Biswas, 2020). El inicio de la revolución de las tecnologías de la información y la comunicación basadas en el conocimiento (KBICT, por sus siglas en inglés) acredita la liberalización de la economía india desde principios de la década de 1980. La aparición de políticas liberales a principios de la década de 1990 estimuló la inversión extranjera directa (IED) en la ciudad de Bangalore, atribuida a sus ventajas medioambientales y de ubicación geográfica. El reconocimiento de la habilidad y el talento de los indios contribuyó a generar más de 100.000 millones de dólares estadounidenses en ingresos por exportaciones y a la difusión regional de la IED, lo que permitió la competitividad en la agregación regional de las industrias de KBICT. Este artículo analiza la distribución regional de la IED mediante el marco de Dunning. 地理的、環境的、戦略的要因から魅力的な立地は、経済活動の集中を促進し、都市の空間的成長をもたらす(Hariharan & Biswas, 2020)。ナレッジベース情報通信技術(knowledge‐based information and communication technology:KBICT)革命は、1980年代初期のインド経済の自由化を機に起きたものである。1990年代初期の自由主義的な政策の出現は、ベンガルール市の環境面と地理的な立地の優位性が同市への外国直接投資(FDI)を呼び込んだ。インドの技術と才能が認められたことから、1,000億米ドルを超える輸出による収入がもたらされ、FDIの地方への普及が進み、地域的集積におけるKBICT産業の競争力が強化された。本稿では、Dunningのフレームワークを用いてFDIの地域分布を分析する。

Suggested Citation

  • Arun Natarajan Hariharan & Arindam Biswas, 2022. "Global advantage of Bangalore as a location choice for knowledge‐based industries in India," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(2), pages 328-351, April.
    • Handle: RePEc:bla:rgscpp:v:14:y:2022:i:2:p:328-351
    DOI: 10.1111/rsp3.12484
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