The New Software Exporting Nations: Success Factors

Abstract

Abstract Many nations are attempting to craft successful software exporting industries to emulate the remarkable success of India in this area. What are these success factors? We introduce the “Oval model” that incorporates eight factors that lead software industries to export success. The eight factors are: 1) Government vision and policies, including funding and tax benefits. 2) Human capital, including national orientation and traditions, quantity, composition, language skills, and managerial skills. 3) Wages. 4) Quality of life, since talented professionals tend to concentrate in desirable locations. 5) Linkages, which emerge between individuals, between work groups, between firms, and between nations due to geographic, cultural, linguistic, or ethnic connections. 6) Technological infrastructure. 7) Capital, which can come from domestic and foreign sources. 8) Industry characteristics, including: clustering effects, the number of firms, their size, the associations which organize the industry's firms, the industry's degree of common vision and branding, and the standards that the firms aspire to.

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