The computer software industry has experienced a dramatic nationwide boom in recent years, expanding faster than any other sector of high-technology industry. Centers of software production have the potential to generate high-paying employment without expensive infrastructure or pollution, a few factors that have captured the attention of economic development planners. However, the factors that lead to the creation of propulsion of this industry have been little studied.

This report identifies key issues and factors that have contributed to the formation and growth of the Austin software industry. By uncovering the regional development patterns of the local software industry, this report provides a thorough analysis of the formation and growth of the Austin software industry and assesses the benefits and limitations of using the industry as an engine for economic development. Specifically, the report describes:

• High tech economic development strategies and tools
• Trend and competitive forces in the U.S. software industry
• A profile of the Austin economy
• Austin's high tech history
• The role of the software industry in Austin's economy
• Key factors contributing to the formation and growth of the Austin software industry
• Benefits and limitations to using software as an economic development tool
• Recommendations for strengthening and sustaining the power of the local industry