Software Firm Size

Since the foundation of national software industry bases in 2001, software industry has recognized significant development to some extent, although compared to those in the developed countries, the firm size of software industry turned out to be smaller. This passage first generally introduced the former classical research on the problem of firm size both theoretical and empirical. Then the indices measuring firm size were listed and the factors affecting firm size were analyzed. As empirical observation raised the fact that software firms in Hangzhou had even smaller size, an analysis using 145 sample points in 2010 from Beijing, Shenzhen, Shanghai and Hangzhou was made in the form of multiple regression model. The results showed that ROS didn’t have significant impact on firm size while technical expense and government support had negative impact on firm size. Firms located in a industrial cluster tended to be larger than isolate ones. The observation that software firms in Hangzhou had smaller size was confirmed by the analysis. Hundsun, a software firm in Hangzhou was selected for a case study based on the results from the empirical analysis. In the end, some related policy advises were put forward.