Entry and Survival in the US Software Market: International Linkages, Technology Competences and Firm Experience

This paper examines entry and survival in the US software market of a sample of firms based in India, Ireland and Israel. Our investigation focuses on pre-entry technological capabilities, international linkages and home based experience as determinants of the firm entry decision and post-entry survival. Our novel measure of foreign activity is the registration of software trademarks in the US. Trademark renewals and new trademark applications trace firm survival. Our analysis shows that international linkages have a positive relationship with entry and survival. Firm technological capabilities and age are not associated with entry. Instead, technological capabilities affect the likelihood of survival.