The Government of Karnataka has introduced the Local Economy Accelerator Programme (LEAP), a transformative ₹1,000-crore initiative to encourage innovation and entrepreneurship across the State. Designed as a five-year roadmap, LEAP aims to expand the technology ecosystem beyond Bengaluru, fostering growth in Tier-2 and Tier-3 cities while nurturing local talent and strengthening regional economies.
LEAP Programme Overview
The Local Economy Accelerator Programme is structured to build innovation hubs in smaller towns and cities across Karnataka. The initiative includes developing plug-and-play workspaces, co-working facilities, and infrastructure for startups. In addition, LEAP provides mentorship, incubation support, and market linkages to help entrepreneurs transform ideas into scalable businesses.
The core vision is to create a sustainable entrepreneurial ecosystem that empowers local youth, supports small enterprises, and positions Karnataka as a leader in distributed innovation.
Focus on Mangaluru and Coastal Karnataka
A key highlight of LEAP is its focus on Mangaluru and the coastal Karnataka region. Plans are underway to establish a 3.5-acre technology park in Mangaluru, featuring 3.5 lakh sq. ft. of workspace capable of accommodating 3,500 professionals.
The Mangaluru cluster, which includes Udupi and Manipal, is expected to emerge as a major innovation hub. With strong human capital and active collaboration between government, academia, and industry, this cluster is envisioned to rival Bengaluru’s thriving tech ecosystem.
Beyond Bengaluru – Creating Multiple Tech Hubs
Currently, Bengaluru contributes nearly 40% of Karnataka’s GDP, with Mangaluru standing second at 5.4%. The LEAP initiative seeks to replicate Bengaluru’s success across the State by decentralizing growth and spreading opportunities.
Aligned with the ‘Beyond Bengaluru’ vision, the government aims to establish multiple technology hubs across Karnataka, reducing over-dependence on the capital city while ensuring balanced economic growth.
Government Strategy – People, Policy, Participation
The LEAP programme is guided by a 3P strategy – People, Policy, and Participation. The Karnataka government emphasizes that policies alone cannot drive growth without the active involvement of industry and academia. Through collaborative planning, the State aims to build sustainable innovation ecosystems that benefit entrepreneurs at the grassroots level.
Ambitious Sectoral Policies and Future Plans
Karnataka has consistently led with pioneering policies in sectors such as IT, biotechnology, research, electric vehicles, space technology, and cybersecurity. The government has also announced plans to establish 500 new Global Capability Centres (GCCs) over the next four years, expected to generate over 500,000 jobs.
Additionally, a circular economy policy is set to be launched soon, reinforcing the State’s commitment to sustainability and green growth.
Role of Karnataka Digital Economy Mission (KDEM)
The Karnataka Digital Economy Mission (KDEM) is playing a pivotal role in driving initiatives under LEAP. By facilitating collaborations like Mangaluru Technovanza, KDEM serves as a convergence platform for government, academia, and industry. Its efforts are vital to realizing the Beyond Bengaluru mission, enabling inclusive digital and economic growth.
With the Local Economy Accelerator Programme (LEAP), Karnataka is charting a bold course toward entrepreneurial decentralization and regional innovation. By empowering smaller cities like Mangaluru, Udupi, and Manipal, the State is setting a benchmark for balanced development, job creation, and global competitiveness.
