This paper reviews recent academic work on the proper attentiveness of entrepreneurship and innovation in Thoothukudi District, Tamil Nadu, India. We discuss the reasons for the collection of these activities and the economic consequences of clusters. We diagnose and discuss policies that are being pursued in the Tamil Nadu to encourage local entrepreneurship and innovation. While arguments exist for and against policy support of entrepreneurial clusters, our understanding of what works and how it works is quite limited. The best path forward involves extensive experimentation and careful evaluation.

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Keywords: Entrepreneurship, Innovation.