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Existing ER&D ecosystem – an important parameter while selecting an ER&D location centre
Existing ER&D ecosystem – an important parameter while selecting an ER&D location centre

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Having an already established existing engineering R&D ecosystem is a great plus for any company looking to set up an ER&D centre in another location. Presence of such an ecosystem enables companies to open new centres with ease and initiate key activities supporting innovation and product development and not reinvent the wheel. Existing ER&D ecosystem strengthens the attractiveness of a location while setting up an ER&D centres and it emerges as an important parameter to consider while selecting a location.

 

Location 7

 

 

In the NASSCOM-KPMG Engineering R&D Global Location Analysis study, while analysing the ecosystem parameter, four sub-parameters are considered –

  1. Presence of eminent educational hubs including the quantity of universities as well as the quality of those educational hubs in terms of ranking among the top institutions. Not just quantity but the quality of the educational institutions also is of prime importance. Companies routinely tie-up with universities to develop products and services to meet the customer needs. In addition, companies also hire from universities and a robust hiring strategy with the universities aids them in scaling up faster than their competitors.
  2. Presence of a thriving start-up ecosystem including tech start-ups, unicorns which are emerging as industry influencers, which reflects the strength of the ER&D industry in the region. Start-ups form an integral part of the overall ER&D ecosystem and ER&D companies often partner with them to develop innovative and cutting-edge products and services.
  3. Presence of ER&D centres – Existing ER&D centres including GCCs, and ESPs have their already developed ER&D ecosystems including suppliers, customers, logistics etc. which enables ER&D companies, looking to set up their new centres in a particular location, to not reinvent the wheel and take advantage of the existing ecosystem and scale up fast.
  4. R&D Index helps in gauging the level of economic development with respect to research and development. This also helps in selection of a location by the ER&D companies.

 

As per our analysis in the report, India has emerged as a “Leader” in the ER&D ecosystem parameter, owing to extensive R&D ecosystem featuring a strong start-up ecosystem, presence of eminent educational hubs along with among the best ER&D centres across industry verticals and a wide network of educational institutions.

With many parameters to consider, existing ER&D ecosystem also forms a vital parameter to consider while evaluating a location for setting up a new ER&D centre.

 

Read more about this in the report “Engineering Research and Development – Global Location Analysis” from the links below –

NASSCOM Website – https://nasscom.in/knowledge-center/publications/engineering-research-and-development-global-location-analysis

NASSCOM Community - https://community.nasscom.in/communities/engineering-research-design/engineering-research-and-development-global-location


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Vandhna Babu
Principal Analyst - Research

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