A Macro-Level Proxy Analysis of Human Capital and Technology Drivers in Bangalore’s Information Technology Export Growth

Abstract The growth of India’s information Technology (IT) sector has attracted considerable attention with discussions of knowledge-based economic development. The study examines the relationship between human capital accumulation, technology inflows and IT export growth in India’s leading cluster of Bangalore. Based on the insights from creative class theory and knowledge-economy literature, the study employs a macro-level proxy approach using employment growth, Foreign Direct Investment (FDI), and female workforce participation as indicators of broader knowledge-related processes. Utilising the annual data for the period between 1992 and 2017, an ordinary least squares regression analysis is conducted to evaluate the relationship between these variables and IT export revenue. The results indicate that employment growth exhibits the strongest and most consistent statistical association with export growth, while technology inflows show a positive but comparatively weaker relationship. Workforce diversity measured through female workforce participation is highly correlated with employment growth, creating multicollinearity that limits the reliable estimation of their independent effects. Consequently, the findings should be interpreted as evidence of association rather than as causation. The study does not directly measure knowledge spillovers, innovation networks or knowledge-based capital and therefore provides a preliminary macro-level assessment of factors associated with Bangalore’s export expansion. The findings contribute to ongoing debates on the applicability of creative class and knowledge-economy frameworks in emerging economies and highlight the need for future research incorporating direct measures of innovation, knowledge diffusion and regional learning processes.