System Software Industry Development

The purpose of this dissertation is to prove that the success of software industry depends onits developing institutional environment and the extent of institutional effectiveness depends oninstitutional cooperative effect. Just like chess playing, institutional function does not lie on onlyone step, but an overall arrangement. This notion is crucial to software industry, high-tech industryas well as country prosperity. Theory of NIE provides a theoretical foundation and analysis framework for the paper,although theory of industry economics and management are largely used in the course ofanalyzing economics characteristics of software industry. By analyzing institutional practice ofsoftware industry development in foreign countries, we clearly show that institutional synergy is acritical reason for a successful software industry, while institutional incompleteness is a barrier tosoftware industry development, whatever it is formal or informal. Established on theoretical andstatistical data, substantial analysis for institutional provision and requirement of our countrydescribes a fundamental status of institutional environment as well as causes, formation, andvarious directions of institutional incompleteness, which offers a basis of model, approach andmeans to achieve institutional synergistic effect. Using theory of economics, the paper studies intensively on software industry, which ishighly technical and new knowledge. By making advantages of interdisciplinary theory toanalyze economic properties of software industry, research in this paper not only shows how thoseproperties lead to changes of macroeconomic equilibrium and microeconomic behavior, but alsoproposes the requirements of management and institutional changes, which is still vacant atpresent in domestic publications. Other important innovations include: (1) Institutional synergistic analysis to the softwareindustry. Institution improves the industry's development, rest with the institution synergisticeffect, which can cut the cost, improve the efficiency and boost the output. The paper bringsforward a game model and a synergistic effect model of software industry institutional change. (2)A systematic discuss on the economics characteristics of software and software industry. Theauthor figured that software industry is knowledge industry, hi-tech industry, and modern industry.At the same time, software industry affects distribution and social welfare, so all kinds ofknowledge of these Industry Economics, Development Economics, Welfare Economics andInstitutional Economics can be used to do analysis and research upon software industry. (3)Questionnaire, seminar reports, as well as case studies, are important content elements of thepaper. In the end of this paper, the author suggests software economics, because well-establishedtheory of software economics is significant to improve software industry. Hope all who areconcerned about Chinese software industry would go on searching for a better path of softwareindustry development, together with the author.