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Regional Formation of High-Technology Service Industries: The Software Industry in Washington State

The development of high-technology manufacturing concentrations has attracted extensive research, but few studies have provided evidence on the genesis of regional agglomerations of software industry. In this paper findings from a survey of 152 software firms in Washington State are presented. As in US industry data, the majority of these software companies are relatively small and new organizations within the State. Results on company location and formation decisions and on international activities show that the software industry has been generated primarily by local entrepreneurs and relies on US suppliers and customers. State government and academic research programs have not affected the growth of the software industry, but over time, industry expansion has produced leading US software corporations, such as the Microsoft Corporation.