Business Environment, 4th Edition by Pearson

614 | Chapter 21

of these investments is that these are all concentrated in a few Indian cities such as

Bangalore and Hyderabad because of the high concentration of innovative activities

in these areas. Bangalore has also been chosen by a number of ICT MNCs as their

base for software development, and is widely referred to as ‘India’s Silicon Valley.’

To sum up, the foregoing discussion on the FDI’s role in the software industry

and R&D activity suggests that India’s success owes largely to the cumulative

investments that were made by the government, over the past five decades in

building what is now termed as ‘National Innovation Systems.’ These ...