India's Silicon Valley, Bengaluru, has emerged as one of the top five most preferred locations for innovation centres of global companies.
Global corporates have named a new "empire" for innovation: India.
A new report by technology consulting and services firm Capgemini has listed India's Silicon Valley—Bengaluru—as one of the top five most preferred locations for multinational companies that are looking to set up innovation centres and harness technology talent.
Bengaluru wrestled its way into the fifth spot, pushing Tokyo to the sixth spot. Both Bengaluru and Boston made their debut in the top 10 list this year, replacing Chicago and Tel Aviv from last year's rankers. Only the Silicon Valley, London, Paris and Singapore are ranked ahead of Bengaluru.
Globally, 56 innovation centres have opened in 20 countries over the past year, with 11 more on the anvil soon. Capgemini analysts pegged the Asia's rise as destination for innovation centres at a growth of 29 per cent.
A number of multinational corporate giants have started setting up camp in Bengaluru—which is also home to Indian software giants Infosys and Wipro—over the past five years, including the likes of Apple, Visa and Airbus, which have either headquartered their India operations in the city or have built technology centres to tap into the local technology talent.
"The country has seen a significant increase in the number of innovation centres, often centred on Bengaluru, which some have dubbed the 'Silicon Valley of India,'" the Capgemini report stated. ""India has been rising in the ranks of favourite destinations to open innovation centres. Our previous research identified eight innovation centres in India in July 2015. India has since seen eight more innovation centres open their doors. Bangalore has been the most favoured city with four new innovation centres."
"Unicorn" start-ups Flipkart, InMobi and Mu Sigma are also headquartered in Bengaluru, and more companies, such as Alibaba, are also looking into setting up their own tech centres in the country, according to The Economic Times.
Aside from Bengaluru, Mumbai and Delhi are also becoming attractive locations for investors.
"Global firms are showing interest in other Indian cities as well. For instance, TriMas Corporation—a diversified global manufacturer of engineered and applied products—opened an innovation centre in Delhi to focus on driving innovation across its range of packaging solutions, while Puratos, a leading global food ingredient company, launched an innovation centre in Mumbai," the report said.