FDI, MNC R&D Centres, and India’s Regional Entrepreneurial Landscape

Abstract

This paper adds to the research concerning spatial factors influencing entrepreneurship in developing nations. Specifically, we consider the impact of MNCs and their research and development subsidiaries on the entrepreneurial ecosystem in India. Additionally, the study examines the impact of economic factors and policy measures on the growth of entrepreneurial enterprises and startups. As the preliminary investigation, the study used the Poisson model for the analysis. The results indicate that the presence of MNCs and their R&D subsidiaries plays a significant role in supporting the startups in India. This suggests that these multinational entities not only contribute to direct job creation and investment but also foster an environment conducive to innovation and entrepreneurship. This study highlights the shortcomings of government policies and points out the regional inequalities between affluent and aspiring states that require attention.