Impetus for Firm/Entrepreneur and Technology Institution Interaction Through Indian Developmental Financial Institutions

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.