Resumen
While software production takes place in many countries, innovative software is not created everywhere. Moreover, there is increasing evidence of growing software development operations in countries such as India. In this article the authors summarize and extend an investigation into software innovation. They look at software developed to be sold as a standalone product, software developed to be sold as a service, and software developed by a user firm. The authors found some evidence of increasing autonomy among software development centers. In particular, they found that most organizations started by giving their Indian software labs assigned development or testing work. Yet, it rarely stopped with those assignments. A key determinant of the location of development activities in software is the location of the user. While US software firms appear to be a potential conduit for user needs, they appear to be moving their innovative activity offshore much more slowly than they are moving some programming and maintenance activity.