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Innovation in the Silicon Valley of India (Bangalore)

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Don't know how many you already read the snippet in the Times of India today about how students from IITB have filed for another patent. This time its not on technology but on iChess (inverse chess). Over the years as I have been working in the same city in several software companies I have heard many many times that Indian companies have to graduate to develop products and not just get stuck providing software services (the cliche'd move up the value chain approach).

In my opinion making this a reality is definitely becoming easier for Indian firms - why ?

1. One of the key arguments why Indian firms cannot produce products was that we are not close to where the markets exist. Well one area where I think this argument is failing to hold is in Telecommunication. With over 100 million consumers and fast growing, we will very soon need to have products targeted for the Indian consumer and who better than we ourselves to design it.

2. At a more fundamental level, concept of software as a service is catching up. At a basic level this means that the whole world is a local market and gathering what a customer wants and delivering it to him can be done out of anywhere. I think its only a matter of time that Indian companies will have product offerings that are delivered on the web.

3. There is surely a tipping point beyond which innovation feeds itself. With the number of high technology firms in Bangalore I feel it definitely in a positive flow where growth is feeding into innovation

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