Bangalore blooming into innovation hothouse

Great article about how Bangalore’s innovation capability is accelerating. Key points as follows:

  • Google’s Map Maker, Intel’s six-core Xeon processor, Microsoft’s search engine Bing and HP’s Dynamic Smart Cooling Technology have all been designed or have key components built in the city. IBM and Microsoft have tens of thousands of employees based in Bangalore. Cisco is developing next-gen intelligent networking technologies in the city.
  • About 60 per cent of the country’s R&D talent is based in Bangalore. Many of the nearly 700 India-based captive multinational R&D centres are located in the city. That is not counting the R&D outsourced to large Indian software companies such as Wipro Ltd and Infosys Technologies, both headquartered in the tech hub.
  • 3M, General Electric and Honeywell see a 15 to 20 per cent revenue growth in the Asia-Pacific geographies in the next three to five years
  • The swing to greater research happened a couple of years ago when Cisco set up its globalisation centre in Bangalore, making the city virtually its second headquarters outside its base in Silicon Valley. In an unprecedented move, the company then relocated its number two executive, the Dutch-born Wim Elfrink to Bangalore. Companies like Cisco and Nokia are not just shifting R&D to India, they are also shifting R&D management to India and that is the game-changer, says Navi Radjou, executive director of the Centre for India & Global Business at the Judge Business School, University of Cambridge.
  • Costs in Bangalore are still comparable to other global R&D centres such as Shanghai in China, the Ukraine and Russia. An analysis of cost per fulltime R&D employee in Bangalore and Shanghai showed Bangalore holding a 15 to 17 per cent cost advantage.

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