Impetus for firm entrepreneur and technology institution interaction through Indian developmental financial institutions

Abstract

The Indian government recently reduced funding to technology institutions (TIs), forcing them to seek greater commercialisation opportunities. Indian firms/entrepreneurs (f/Fs), facing increasing technological competition, are exploring indigenous R&D facilities for new technology. Providing impetus to this mutually beneficial and important trend, developmental financial institutions (DFIs) in India are encouraging F/Es to complement their internal R&D with sponsored or commercialisation projects with Tis. This paper examines the role of Indian DFIs in facilitating F/E TI interaction. These initiatives are important in the developing country context as they combine institutions, increase resource utilisation and facilitate entrepreneurship.