New Delhi: India surged back to tie the second position with China in KPMG's 2020 global technology industry innovation survey which includes responses from more than 800 global leaders in the technology industry.
With the potential innovation headwinds China is now facing and US policies encouraging more tech professionals to return to or remain in India, the future bodes well for Indian innovation.
"This is bolstered further by the urbanisation and younger demographic trends that are moving in the right direction, along with the increase in venture capital that India has seen in the last two years," said the survey findings released on Wednesday.
Satya Easwaran, Head of Markets Enablement and Technology, Media and Telecom at KPMG in India, said India's climb to the second position in the survey rankings lends credence to how the country is committed towards setting up strong innovation ecosystems.
"Bengaluru's entry in the top 10 rankings is another sign that the city is doing well in the areas of modern infrastructure, attracting skilled talent and investment," he said.
"With the country seeing tremendous evolution across various spheres, the coming years will be crucial to overcoming current hurdles which exist. Overcoming these hurdles will be imperative for India to gradually and slowly move towards becoming one of the world's leading economy in innovation," added Easwaran.
KPMG's study shows which cities, in addition to presumed global leader Silicon Valley/San Francisco, will likely be leading technology innovation hubs over the next four years.
Singapore, seventh last year, leaped to the top of this year's global rankings. Singapore offers an advanced IT infrastructure, strong government support, IP protection laws and a deep pool of talent. London moved up one notch to second.
Tel Aviv, 15th last year, rocketed to third place. Bengaluru ranked 9th, jumping from 18th a year ago.
Technology leaders regard the United States as the most promising market for developing disruptive technologies, according to the online survey conducted from December 2019 to January 2020
The findings show that the United States increased its lead over China (28 per cent versus 13 per cent) this year compared to last year (23 per cent vs 17 per cent).
Only 37 per cent of respondents, compared to 58 percent last year, said it is likely the innovation centre of the world will move from Silicon Valley in the next four years.
One possible explanation: the US stance to keep more proprietary knowledge and intellectual property within the United States will make it even harder for a city outside to overtake Silicon Valley.
The top two reasons the 37 per cent believed Silicon Valley will lose its top position are: the innovation and entrepreneurial infrastructure of other cities will match or exceed Silicon Valley, and the rise of gig economy and virtual collaboration tools enable innovation anywhere.
The cost of doing business, cost of living and congestion ranked last.