Kazuyuki Motohashi
Professor, Department of Technology Management for Innovation, University of Tokyo
and Faculty Fellow of RIETI
Challenges for researchers
‹ Software as a product? or software as a service?
y Software as a product: zero marginal cost ‐> economy of scale, product innovation is important
y Software as a service: labor intensive, process innovation is also important
‹ Supplier side: vertical fragmentation
y OS ‐> Middleware ‐> Applications (‐> Contents)
y Platform competition
‹ Demand side: network externality and interactions
y Users are interconnected each other
y Supplier‐ user interactions ‐> new business models such as open source software and CGMs
Policy Instruments
‹ Innovation promotion policies
y R&D promotion: public funding to software projects
y Human capital development: IT skill standard, certifications, university industry linkages
‹ Framework condition policies
y IPR and competition policy
y IT and e‐business infrastructure
Importance of human capital development
⎛ K2 ⎞
⎛ K1 ⎞
⎛Y ⎞
ln⎜ ⎟ = α ln⎜ ⎟ + β ln⎜
⎟ + ∑ λi × x i + cons. + ε
⎝L⎠
⎝ L ⎠
⎝ L ⎠
係数
標 準誤 差
係数
標準 誤差
資 本装 備率 (固定 資 産)
0.0575
0.0128
***
0.0573
0. 0127
***
資 本装 備率 (ソフトウェア)
0.0956
0.0109
***
0.0951
0. 0109
***
情 報処 理合 格者 割合 1
0.0001
0.0000
*
0.0001
0. 0001
**
0.0462
0. 0440
-4.2408
0. 1312
情 報処 理合 格者 割合 2
ソフトウェア売 上高 ダミー
定 数項
サンプ ル数
自 由度 修正 済み 決定 係数
0.0499
0.0440
-4.2369
0.1315
***
439
439
0.2322
0.2337
***
(Minetaki and Motohashi, 2007, RIETI‐DP‐07‐J‐018)
Publicity of Skill Standards
(IS Industry Management Survey: IPA)
Stronger patents and software innovation
- software patent facilitates
independent software houses’ innovation 25%
30000
25000
20%
20000
15%
15000
10%
10000
5%
5000
0
0%
2005
2004
2003
2002
2001
Integrated Electronics
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
New Entry
Share of entry
(Motohashi, 2007)
However, there is also downside story
Share of firms with patent infringements
0%
1%
2%
3%
4%
5%
6%
Construction
Food
Textile
Drug
Chemicals
Oil and Coal
Primary metals
Fabricated metals
General Mach.
Electrical Mach.
Transport Mach.
Precision Mach.
Other Mach.
(Survey of IPR Activities, JPO)
Software Industry Structure in JP and US
Package
Custom
Own‐account
Package
Custom
Own‐account
(Jorgenson and Motohashi, 2005)
2003
2001
1999
1997
1995
1993
1991
1989
1987
0%
1985
0%
1983
10%
1981
10%
1979
20%
1977
20%
2003
30%
2001
30%
1999
40%
1997
40%
1995
50%
1993
50%
1991
60%
1989
60%
1987
70%
1985
70%
1983
80%
1981
80%
1979
90%
1977
90%
1975
100%
1973
100%
1975
US
1973
Japan
Country specificity in policy implications?
‹ Dependability issues (for IT service, custom made software) are important for Japan
‹R&D and product development are important for US (entrepreneurship, venture capital, ..)
‹Different strategies for IT service firms (high quality services v.s standardized service providers with substantial use of off‐shore development)
‹How about embedded software?: Same as computer software? (mobile phone….)