Convergence of Finance, Technology and Entrepreneurship: The Role of Liberal Financial System in the Making of Indias New Economic Growth Regime (NEGR)

Abstract

This paper discusses how nation-states transform or re-design their economic growth regimes (EGRs). By acknowledging the fact that the structures of finance play an important role in the shaping of EGRs, this paper argues that the introduction of liberal financial system in India is acting as a catalyst in re-designing nations EGR. It analyzes Indian venture capital industry, an important component of liberal financial system, which is rather successful in mitigating interest conflict between principal/investor and agent/entrepreneur. The resolution of this interest conflict has expressed itself in greater convergence of interests between and among finance, technology and entrepreneurship, which lies at the core of still evolving new economic growth regime (NEGR) in India. This transformed EGR is instrumental in powering Indias technology-intensive service sector. Rapid growth in Indias knowledge economy, particularly information technology service industry, serves as an empirical evidence.