Software-export strategies for developing countries: A Caribbean perspective

The globalization of the software industry is seen to be driven in part by skill shortages in industrialised economies, the movement of software development practices away from centralised to more distributed modes and the spread of information and communication technologies to less developed economies, where skilled labour is available at lower costs. As such, a software export industry is sometimes seen as a means by which some non-industrialised countries can create competitive advantage. While many studies have explored the software-exporting strategies used by the more successful of these countries, little research has been done in other locations that lack some of the basic resources deemed necessary for success in this area. This paper describes two Caribbean software-outsourcing ventures in order to explore possible software-export strategies available within such atypical contexts. The role of government and degree of integration of the software outsourcer into the local context are found to feature significantly

Software houses: Changing from Product vendors into solution Providers

Integrating hitherto separate IT systems while keeping within with tight budgetary restrictions is becoming the dominant software trend in this decade. Optimism is currently starting to spread again in software houses. However, there are marked regional differences in potential. Contrary to some forecasts, the US software houses are in the process of consolidating their already dominant position in the global market thanks to their economies of scale, combined with the network effect. Conversely, the only chance for most of their typically small European competitors to score points is in certain niches of the market.system software, application software, CRM, ERP, SCM, Web services

The effect of regional differences on the performance of software firms in the Netherlands

In this paper, we concentrate on how evolutionary economics contributes to a better understanding of the spatial evolution of newly emerging industries. Inspired by evolutionary thinking, four types of explanations are discussed and tested in an empirical analysis of the spatial pattern of the software sector in the Netherlands. Traditionally, agglomeration economies provide an explanation for the spatial concentration of an industry. Firms located in a cluster of similar or related sectors benefit from cost reductions, due to lower transportation costs, a thick labour market, specialised suppliers and information spillovers. An evolutionary approach on agglomeration economies provides an alternative view. It focuses explicit attention on knowledge spillovers as a vehicle of local diffusion of organizational routines or competences from one firm to the other. Such transfers of (tacit) knowledge are facilitated by spatial proximity of firms and a common knowledge base. In addition, an evolutionary approach takes a dynamic perspective on the role of agglomeration economies. During the initial stage of development of a new industry, the surrounding environment is still directed to routines and competences related to existing industries. When the new industry concentrates in a particular area to a considerable degree, a supportive environment (specialized knowledge, labour with specific skills) may gradually come into being, and localization economies may arise. Other evolutionary mechanisms may also provide an explanation for the spatial formation of new industries. We distinguish another three of them. First of all, transfer of knowledge and successful routines between firms in an emerging industry may occur through spin-off dynamics. Secondly, (social) networks may function as effective channels of knowledge diffusion and interactive learning, because they can provide a common knowledge base and mutual understanding and trust. Thirdly, firms in new industries with organizational capabilities that can deal effectively with the lack of required resources (such as knowledge, skills and capital) may become dominant, due to selection and imitation. Based on cross-sectional data gathered among 265 software firms in the Netherlands in 2003, we have tested which factors have influenced the innovative productivity of these firms. Using regression techniques, the outcomes suggest that spin-offs and firms with organizational capabilities perform better, while networks relations do not seem to affect the performance of software firms. Geography matters as well: software firms located in a region with a labour market with more ICT-skills show a higher innovative productivity. Keywords: evolutionary economics, industrial location, evolution of industries, software sector, agglomeration economies, organizational capabilities, spin-off, networks

The effect of regional differences on the performance of software firms in the Netherlands

In this paper, we concentrate on how evolutionary economics contributes to a better understanding of the spatial evolution of newly emerging industries. Inspired by evolutionary thinking, four types of explanations are discussed and tested in an empirical analysis of the spatial pattern of the software sector in the Netherlands. Traditionally, agglomeration economies provide an explanation for the spatial concentration of an industry. Firms located in a cluster of similar or related sectors benefit from cost reductions, due to lower transportation costs, a thick labour market, specialised suppliers and information spillovers. An evolutionary approach on agglomeration economies provides an alternative view. It focuses explicit attention on knowledge spillovers as a vehicle of local diffusion of organizational routines or competences from one firm to the other. Such transfers of (tacit) knowledge are facilitated by spatial proximity of firms and a common knowledge base. In addition, an evolutionary approach takes a dynamic perspective on the role of agglomeration economies. During the initial stage of development of a new industry, the surrounding environment is still directed to routines and competences related to existing industries. When the new industry concentrates in a particular area to a considerable degree, a supportive environment (specialized knowledge, labour with specific skills) may gradually come into being, and localization economies may arise. Other evolutionary mechanisms may also provide an explanation for the spatial formation of new industries. We distinguish another three of them. First of all, transfer of knowledge and successful routines between firms in an emerging industry may occur through spin-off dynamics. Secondly, (social) networks may function as effective channels of knowledge diffusion and interactive learning, because they can provide a common knowledge base and mutual understanding and trust. Thirdly, firms in new industries with organizational capabilities that can deal effectively with the lack of required resources (such as knowledge, skills and capital) may become dominant, due to selection and imitation. Based on cross-sectional data gathered among 265 software firms in the Netherlands in 2003, we have tested which factors have influenced the innovative productivity of these firms. Using regression techniques, the outcomes suggest that spin-offs and firms with organizational capabilities perform better, while networks relations do not seem to affect the performance of software firms. Geography matters as well: software firms located in a region with a labour market with more ICT-skills show a higher innovative productivity.Evolutionary economics, industrial location, evolution of industries, software sector, agglomeration economies, organizational capabilities, spin-off, networks

Digital Rights Management, Intellectual Property Rights Protection and Economic development: The case of digital piracy in the South Mediterranean countries

Abstract: The potential benefits that could be gained from information technologies in South Mediterranean economies are constrained by both DRM and institutional protection related to Intellectual Property Rights. But, pervasive piracy can appear to be a major obstacle to access these benefits. This paper through a simplified theoretical decision model attempts to suggest foundations to reveal levels of protection rates. This is followed by an empirical assessment of the likely effects of different macroeconomic variables in the context of selected South Mediterranean countries using software piracy data and the protection rates derived from the above model. This is intended to reveal the most important variables that drive software protection. The results attained show how protection should be strengthened through further investments in knowledge and through openness to foreign direct investments that lead to superior economic outcomes.Key words: DRM; Information and communication technologies; piracy; South Mediterranean economies.

The effect of regional differences on the performance of software firms in the Netherlands

This paper aims to explore the effect of regional differences on the performance of software firms in the Netherlands. Inspired by evolutionary economics, we account for the impact of (1) co-location and sharing a local knowledge base; (2) pre-entry experience in the same or related industries; (3) being connected; and, (4) having organisational capabilities to cope with change. The outcomes of the regression analyses on data gathered among 265 software firms suggest that firms located in regions specialised in ICT have a higher innovative productivity. Spin-offs and firms with organisational capabilities also perform better, while network relationships do not affect the performance of software firms.evolutionary economics, agglomeration economies, innovative productivity, software industry, spin-offs

A Service based Development Environment on Web 2.0 Platforms

Governments are investing on the IT adoption and promoting the socalled e-economies as a way to improve competitive advantages. One of the main government’s actions is to provide internet access to the most part of the population, people and organisations. Internet provides the required support for connecting organizations, people and geographically distributed developments teams. Software developments are tightly related to the availability of tools and platforms needed for products developments. Internet is becoming the most widely used platform. Software forges such as SourceForge provide an integrated tools environment gathering a set of tools that are suited for each development with a low cost. In this paper we propose an innovating approach based on Web2.0, services and a method engineering approach for software developments. This approach represents one of the possible usages of the internet of the future

Can we measure Microsoft's market power ?

This paper has the objective of measuring the market power of Microsoft in the software industry. We develop a two tier arguent. Firstly we estimate the scale economies within the industry. We then make the crude hypothesis that a firm's success in this industry is linked to its size, based on the scale argument. We modelise these assumptions and then compare the expected profits and actual profits genereted by Microsoft. The results tend to show that Microsoft has posted profits in excess of those that such a firm is expected to benefit from if it does not have market power.software industry ; scale economies ; Microsoft

The Birth of a New Industry: Entry by Start-ups and the Drivers of Firm Growth. The Case of Encryption Software

The paper analyses the birth of the Encryption Software Industry (ESI), a new niche in the software industry. Using a Chandlerian perspective, this work reports the main facts about firm entry and growth, with a particular focus on start-up strategies and actions. Since scale economies do not play a major role in ESI, the paper investigates the different sources of firm competitive advantages. This work shows that innovation and product differentiation, along with investments in co-specialised assets, are variables strongly correlated to young firm probability to survive and grow. In so doing, we have collected highly detailed information on product introduction, US patents granted, worldwide alliances and biographical data of firm founders.Entry, Entrepreneurship, Innovation, Software.