Silicon Valley is in danger of losing its crown as home of the technology start-up as India is on course to become the new hotbed of innovation, according to the chairman of Oracle, the world's second largest software group.
America's strong track record as a developer of software would weaken in the next few years, amid burgeoning activity in Indian cities such as Mumbai, Bangalore and Chennai, Jeff Henley said.
"The US has been a big developer of software... but that's going to change over time. We're going to see more and more technology from Indian companies," the Oracle chairman told The Times.
He said the growing prominence of India would have an impact on where Oracle, which has made a string of multibillion-dollar acquisitions in recent years, would seek new acquisition targets.
"We'll buy from wherever the product is. It doesn't have to be in the US," he said.
Last August Oracle bought 41 per cent stake in i-flex, an Indian provider of software to the financial services industry. It has since hiked its stake in the company, but Henley said it had no intention of taking full control.
In 2005, Oracle also took control of PeopleSoft, a rival business software group, for $10.5 billion. It also agreed to pay $5.8 billion for Siebel, another rival. Last week, it agreed to a $220 million deal to buy Portal Software, which makes billing software.
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