The industry has created almost 73,000 jobs since January 1988. Between 1988 and 1992, the total number of software establishments more than doubled, from 3,392 to 7,108. California is home to one in five U.S. packaged software establishments. Total packaged software receipts more than tripled from 1987 to 1992. The Industry and World Economic Growth Packaged software is not overly influenced by variations in the business cycle.
Users often decide to upgrade software rather than hardware during tough economic times.
Nonetheless, the economic recoveries in Europe and Japan, coupled with sustained growth in Asia and Latin America, should further boost software sales. Of the world's top 10 software suppliers, six were American. They supplied 63 percent of the Western European market and 54 percent of the Japanese market, regions where domestic suppliers traditionally hold stronger positions. They hold the largest market share in countries outside Western Europe and Japan, supplying 73 percent of these markets. Several factors contribute to the competitive strength of the U.S. industry.