Our competition is with the Silicon Valley: Karnataka CM Basavaraj Bommai

Silicon Valley in the US continues its reign as the world's pre-eminent startup ecosystem, according to experts

Chief Minister of Karnataka Basavaraj Bommai said on Thursday the competition for Karnataka is Silicon Valley in the US, which serves as a global centre for high technology and innovation. He said the government would go the extra mile to support startups.

"The Karnataka government will go any miles in supporting startups. We are not worried about the competition. It keeps us going and growing. We convert the competition into acceleration," said Bommai during a conversation with Claude Smadja, President of Smadja & Smadja advisory at the India Global Innovation Connect conference in Bengaluru.

While addressing an audience of startup founders, investors, business executives and industry leaders from India and countries like Singapore, Israel, Switzerland, the US, Japan, Korea, and Germany, Bommai said everybody is welcome to be part of Karnataka’s growth as a tech hub.

“Government can change, but our policies and approach toward the development of the State and technology will never change,” said Bommai. “We have a cosmopolitan approach. We welcome everybody such as (workers) from Assam and Bangladesh. The international community in Bengaluru is huge.”

Silicon Valley experience offers several valuable lessons, according to the experts. It has earned its reputation as the global tech hub as it is home to success stories such as Apple, Google, Facebook, and countless others. Silicon Valley continues its reign as the world’s pre-eminent startup ecosystem. In 2022, the number of residents employed in tech in the region rose from 25 per cent to 29 per cent according to the 2022 Silicon Valley Index. Silicon Valley remained the top ecosystem for venture investing, with $105 billion in capital flowing to the area’s startups in 2021, double the 2020 total, according to the Startup Genome report.

Thanks to Stanford University and the region’s other top educational institutions, the ecosystem is well supplied with fresh talent. Total early-stage funding in the Silicon Valley (2019 H2-2021) was $25 billion compared to the global average of $687 million in the same period. Also, the ecosystem value (2019 H2-2021) was $2 trillion compared to the global average of $28.6 billion in the same period, according to the Startup Genome report.
 

However, Bengaluru has been described as the world’s fastest-growing tech hub and the Indian city is home to the R&D centres of some of the world’s most famous tech companies, including Amazon, Microsoft, Facebook, and Google. Its IT sector employs over four million people and accounts for an estimated $130 billion in exports every year. Total early-stage funding in the Bangalore-Karnataka (2019 H2-2021) was $2.1 billion compared to the global average of $687 million in the same period. Also, the ecosystem value (2019 H2-2021) was $105 billion compared to the global average of $28.6 billion in the same period, according to the Startup Genome report.

Bommai said Karnataka is at the forefront of startup innovation. It is home to 400 of the Fortune 500 companies and no other country in the world has as many such companies. “Startup is not new to Karnataka and Karnataka is the top destination for startups and not one of the top states,” he said.

Claude Smadja, who is also a former managing director of the World Economic Forum said India has always been a land of great entrepreneurial promise for him.

“As the 4th Industrial evolution has begun, it is pertinent to acknowledge that India will play the role of a catalyst, especially with its ability to innovate solutions for itself and the world, “said Smadja. “India now has the world's third-largest start-up ecosystem. As a result, the India Global Innovation Connect highlights the potential of how India's start-up and innovation story is becoming global. Its emergence as the new Silicon Valley of the world will lead to a greater, safer, and stronger tomorrow.”