Business

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WORKING PAPER SERIES

EU-INDIA INNOVATION NETWORK PROJECT

Contract n. IND/B7-3001/95/115-31

Website: www.it.brighton.ac.uk/research/euindia

Working Paper no: WP/eu-ind/120

SEAKE Centre, University of Brighton, UK

Gujarat Model of Entrepreneurial Innovation:

A Study of Surat diamond Industry

Keyoor Purani

SEAKE Centre

(Social and Educational Applications Knowledge Engineering)

School of Information Management

Faculty of Information Technology

University of Brighton

Moulsecoomb, Brighton, BN2 4GJ UK

Website: www.bton.ac.uk

A Research Report on

Gujarat Model of Entrepreneurial Innovation:

A Study of Surat Diamond Industry

Prepared by:

Keyoor Purani,

Faculty Member, GLS Institute of Business Management

Under Guidance of:

Prof. Dhawal Mehta,

Director, GLS Institute of Business Mangement,

Gujarat University,

Ahmedabad.

As a part of:

EU – India Cross Cultural Innovation Network Project

1999-2000

Table of Contents

Chapter : 1 The Research Overview 5

1.1 Introduction: 5

1.2 Research Objectives: 5

1.3 Research Methodology: 5

1.3.1 Exploratory Research Design: 5

1.3.2 Conclusive Research Design: 6

Chapter : 2 The Gems & Jwellery Industry 7

2.1 Indian Gems & Jwellery Industry: 7

2.1.1 Structure, Size & Growth: 7

2.2 SWOT analysis of Indian G &J Industry: 9

2.2.1 Strengths: 9

2.2.2 Weaknesses: 9

2.2.3 Opportunities: 9

2.2.4 Threats: 9

2.3 The Diamond Processing Industry: significant segment of Gems & jewellery industry in India: 9

2.3.1 Diamond & India – historical significance: 10

2.3.2 Indian diamond polishing industry & Global Diamond industry structure: 10

2.4 Diamond Processing Industry in Gujarat : Surat & other clusters: 11

2.5 Key Characteristics of Diamond Processing Industry in Gujarat: 12

Chapter : 3 Entrepreneurial Innovation at Surat 13

3.1 Entrepreneurial Innovation – the concept: 13

3.2 Innovation in Diamond Processing Industry in Gujarat: 14

3.2.1 D/D Product-mix Innovation: 14

3.2.2 Fancy cut diamonds: 14

3.2.3 Use of Indigenous machines of non-perfect crystals: 14

3.2.4 Small diamond-Export market Niche: 14

3.2.5 Small Scale, Cottage business: 14

3.2.6 Roll-over skills, on-the-job training: 15

3.2.7 Networking: 15

3.2.8 Harmonious Co-existence: 15

3.2.9 Self Finance: 15