Pattern of technological innovations in small enterprises: a comparative perspective of Bangalore (India) and Northeast England (UK)

This paper presents a comparative perspective of the pattern of technological innovations carried out by small enterprises in the engineering industry in Bangalore of India and Northeast England of the UK. Despite differences in the policy support extended to technological innovations of small enterprises in the two countries, the overall pattern of technological innovations carried out by small enterprises appears to be similar. Radical product innovations emerged due to internal factors whereas incremental product innovations emerged due to external factors in both the regions. This is true despite the fact that UK is recognized as a 'technology leader', whereas India is identified as a 'dynamic adopter' of technologies. However, the two regions have similar features such as concentration of engineering industries and Bangalore, in addition, is a centre of professional colleges and R&D institutions, which would have facilitated 'innovation stimulating environment' similar to that of UK. But the 'insufficient' spread of previous inventions and innovations, low R&D intensity of small industry as well as that of Indian economy, which is reflected in India's low technology achievement index (TAI) as well as lack of technical background of entrepreneurs explains the lesser extent of radical and incremental innovations of small enterprises in Bangalore relative to that of Northeast England.