Abstract:
MSME sector is a key source of employment creation, a breeding ground for business ideas and the main driver of innovation. As per SIDBI, technological obsolescence is of major concern so far as the sustainable growth of SME is concerned .Technology identification, acquisition; transfer, adoption, and technology up gradation are some key issues relevant to this sector. Commendable progress has been made by the country in terms of the growth of scientific and technological culture with over 700 Technical Institutions including around 200 universities producing around 200 thousands young Engineers passing out every year. Initiatives namely ED cells, STEPs, Technology Parks to develop Entrepreneurship in the young Engineers has been taken up quite effectively. An increasingly popular way to look at and work with key industries is through the identification of industry clusters. Industry cluster can be potential mechanism for enhancement in economic performance through increase in productivity, driving the pace and direction of innovation and access to new knowledge and learning. The drivers for this growth have been the conditions for achieving national and firm level competitiveness in the emerging knowledge economy. In the era of liberalization, privatization and globalization the competition in industrial sector is going on knowledge based. Economic development agencies identify and focus programs and policies on key industries or clusters in an effort to promote competitiveness, raise awareness of the importance of and relationships among various industries, and promote more efficient and streamlined economic development programs and policies. The Technology Business Incubation based approach in technology management relates more closely with the factors determining the socio-economic environment in which firms operate and try to capture industry evolution and changing company capabilities. It provides a useful methodological framework and adds the regional dimension. This paper will highlight a possible linkage between industrial clusters and technology business incubators for sustainable growth of MSMEs in India.
