chapter  6
2 The Indian experience
Pages 21

The ‘Silicon Valley phenomenon’ is characterised by the continuous creation and development of high technology firms (those dedicated to the design and production of new products or processes through the systematic application of scientific knowledge and the most advanced technologies). The firms have a high proportion of scientists and engineers (at least 40 per cent) and a large expenditure in research and development (R&D). The Silicon Valley phenomenon is founded on certain critical ingredients: a nearby first-rank university (Stanford); the creation of one of the first industrial and technology parks in the United States; having an abundant supply of cheap migrant labour; having an abundant supply of venture capital from private capital investment firms and military institutions; and having a pleasant natural and cultural environment.