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ICT Industries and Multi-layer Development of Industnal District in Bangalore, India <Article>
The purpose of this report is to unpack the agglomeration of Information and Communication Technology (ICT) Industries based in Bangalore, the city known as the "Silicon Valley of India" and as it is the destination of TNCs and major Indian companies. In this research, the company directory published in Bangalore 2004 is used as a database for statistical analysis, which is reinforced with the author's directed field researches in Bangalore, in December 2002 and 2005.
It became clear that the agglomeration of ICT industries is composed of TNCs, major Indian companies, and many diverse small and medium-size enterprises (SMEs). Moreover, it is most important to emphasize that not only the SMEs established in India but the NRI (Non-Resident Indian) type SMEs, which establish headquarters in advanced nations that are comprised in the agglomeration. There are also cases where many SMEs are not the subcontractors of both the TNCs and the major Indian companies within the agglomeration that are managing business with oversea clients. However, SMEs convert the reserved knowledge by dealing with companies in advanced countries that are developing links with the TNCs and Indian companies in India. Needless to say, SMEs oriented to the Indian domestic markets from the beginning are extending their business in Bangalore.
Consequently, it is characterized that the agglomeration of ICT industries is oriented to export their services. However, upon dissection, many diverse firms are developing businesses not as subcontractors. In other words, multi-layer industrial districts have developed hybrid conditions. It is expected that the conditions and operations of respective firms give dynamism to the industrial agglomeration in Bangalore.