REGIONAL INNOVATION SYSTEMS AND THE RISE OF TIER-2 CITIES IN INDIA’S KNOWLEDGE ECONOMY

Abstract

This paper examines the nature of how Tier-2 cities in India are becoming the knowledge economy drivers in the country. It analyses the interaction between local institutions, industries, and governments in order to promote innovation using the Regional Innovation Systems (RIS) and Triple helix frameworks. A comparative case study methodology recognizes three forms of innovations based on systems; technology-led systems (Pune, Ahmedabad), cluster-based systems (Coimbatore, Bhubaneswar) and policy-driven systems (Kochi, Chandigarh). It has been found that the level of development of university-industry-government cooperation is the determinant of ecosystem performance and innovation results.

Policy suggestions are to enhance Regional Innovation Compacts, enhance access to venture capital, entrepreneurial universities, and inter-city innovation corridors to improve knowledge flow. Although the study delivers important results, its qualitative approach to the problem and use of secondary sources is insufficient, which is why longitudinal and network studies should be conducted to quantify knowledge spillovers more accurately. Finally, the paper highlights the fact that Tier-2 cities in India are becoming strategic driving forces of inclusive, decentralized, and sustainable innovation which is reshaping the geography of the Indian knowledge economy.