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This paper sets in perspectives the development of regional industrial clusters in India and discusses issues related to technology transfer from public-funded R&D laboratory system in India, such as the Council of Scientific and Industrial Research (CSIR), to small and medium enterprises and the impact of such transfers on the development of Indian industrial clusters. This has been done with the help of case studies of technological and managerial intervention from three specific CSIR laboratories. The paper also discusses different aspects of regional characterisation, specialisation and the role played by these national laboratories and others in trying to resolve the technological, managerial and social problems faced by industrial and artisan clusters.