Economic Contribution and Performance of Technology Parks in Punjab: The Case of IT Park Mohali

Several countries have adopted different strategies, industrial policies, and models for promoting industries by their technological capability. The concept of Technology Park is one of the steps towards the enhancement of industries that include the development of clusters, creates knowledge based industries, promote regional development and also enrich the standard of living of the people. The paper discusses the economic contribution and performance of Technology Parks in Punjab. The study is based on the case of IT Park, located at Mohali district of Punjab. The Correlation Coefficient was applied for finding the relationship between tax incentives benefits given and generated employment opportunities, capital investment and sales of IT products. A significant and highly positive relationship noticed among the mentioned economic components, which mean that the incentives are given to the entrepreneurs for promoting IT Park were more compensated by way of promoting employment opportunities, sales, and capital investment. Further for evaluating the performance of IT Park particularly in generating employment, sales, and productivity, Chi-Square Test was applied. The results revealed that IT Park proved to be a significant trial by the state government for promoting cluster development as well as regional development.