The growth of knowledge-intensive entrepreneurship in India, 1991-2007 : analysis of its evidence and the facilitating factors

Abstract

There has been a marked improvement in India's overall economic performance since 1991. One of the outcomes of this improved performance is the growth of innovations in the country. This was accompanied by or caused by the emergence of a number of knowledgeintensive enterprises. The paper takes a critical look at the available quantitative evidence on the growth of knowledge-intensive entrepreneurship. It then looks at five facilitating factors for the emergence of this phenomenon in terms of the existence of increased market opportunities, availability of financial support schemes in the form of venture capital funds, existence and enlargement of a number of government programmes, a number of private sector initiatives and education and training leading to the supply of technically trained personnel. The paper concludes with certain policy suggestions for the continued sustenance of this activity. Key words: India, knowledge-intensive entrepreneurship, knowledge process outsourcing venture capital, angel financing, business incubators. JEL Codes: L26, O16, O30, P12