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_it E d e it s io Innovation in the Software Sector w n o This book puts a spotlight on innovation across the software universe, setting out key issues r yl and highlighting policy perspectives. It spans research and development, invention, production, Innovation in B the n distribution and use of software in the market. It also covers core innovation themes from a user O O e perspective – including security and privacy, mobility, interoperability, accessibility and reliability. D Software Sector da l For more information about this book and other OECD work in this area, see C u www.oecd.org/sti/innovation/software. by Douglas Lippoldt E e e and Piotr Stryszowski O R s n e Innovation in the Software Sector is part of the OECD Innovation Strategy, a comprehensive A r policy strategy to harness innovation for stronger and more sustainable growth and development, tu and to address the key global challenges of the 21st century. For more information about the L e c OECD Innovation Strategy, see www.oecd.org/innovation/strategy. I nnovation in the the in nnovation S oft ware ware The full text of this book is available on line via this link: S www.sourceoecd.org/scienceIT/9789264063617 ect Those with access to all OECD books on line should use this link: www.sourceoecd.org/9789264063617 or SourceOECD is the OECD’s online library of books, periodicals and statistical databases. For more information about this award-winning service and free trials, ask your librarian, or write to us at [email protected]. ISBN 978-92-64-06361-7 93 2009 05 1 P www.oecd.org/publishing -:HSTCQE=U[X[V\: _it Ed e it s io w n o r B e D l C u E e O Read Only s n e A r u Lect About OECD Browse_it editions In a traditional bookshop you can browse the display copies from cover-to-cover, free of charge. Wouldn't it be good to be able to do the same online? Now you can. OECD's Browse_it editions allow you to browse our books, online, from cover-to-cover. But, just as in a real bookshop where you can't take or copy pages from the books on display, we've disabled the print and copy functions in our Browse-it editions - they're read-only. And, just as in a real bookshop, you may choose to buy or borrow from a library some titles you've browsed, so we hope you'll buy or borrow our books when they meet your needs. Tell us what you think about our Browse-it service, write to us at [email protected]. Buying OECD Publications You can purchase OECD books and e-books from our Online Bookshop - www.oecd.org/bookshop where, if you purchase printed editions you can download the e-book edition free of charge. Our books are also available from a network of distributors, click the 'Distributors' button on this website: www.oecd.org/publications/distributors to find your nearest OECD publications stockist. OECD Publications in Libraries You'll find OECD publications in many institutional libraries around the world, especially at universities and in government libraries. Many subscribe to the OECD's own e-library, SourceOECD. SourceOECD provides online acess to our books, periodicals and statistical databases. If your institutional library does not yet subscribe to SourceOECD, tell your librarian about our free three-month trial offer. For more details about SourceOECD visit http://new.SourceOECD.org or email [email protected]. OECD has a network of Depository Libraries in each Member country where all OECD printed publications are available for consultation - www.oecd.org/deposoitorylibraries for a list. _it E d e it s io w n o r yl B n O O e D da l C u E e e O R s n e A r u L e c t in the Software Sector Innovation Douglas Lippoldt and Piotr Stryszowski ORGANISATION FOR ECONOMIC CO-OPERATION _it E d AND DEVELOPMENT e it s io w n The OECD is a unique forum where the governments of 30 democracies work together to o r address the economic, social and environmental challenges of globalisation. The OECD is also at yl the forefront of efforts to understand and to help governments respond to new developments and B n concerns, such as corporate governance, the information economy and the challenges of an O O e D ageing population. The Organisation provides a setting where governments can compare policy da l experiences, seek answers to common problems, identify good practice and work to co-ordinate C u domestic and international policies. E e e O R s The OECD member countries are: Australia, Austria, Belgium, Canada, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, n e A r Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic, c tu Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The Commission of L e the European Communities takes part in the work of the OECD. OECD Publishing disseminates widely the results of the Organisation’s statistics gathering and research on economic, social and environmental issues, as well as the conventions, guidelines and standards agreed by its members. This work is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Organisation or of the governments of its member countries. ISBN 978-92-64-06361-7 (print) ISBN 978-92-64-07676-1 (PDF) Also available in French: L’innovation dans le secteur des logiciels Cover illustration: © Veer/Fancy Photography. Corrigenda to OECD publications may be found on line at: www.oecd.org/publishing/corrigenda. © OECD 2009 You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of OECD as source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to [email protected]. Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at [email protected] or the Centre français d’exploitation du droit de copie (CFC) at [email protected]. FOREWORD – 3 _it E d e it s io Foreword w n o r yl B n OECD governments recognise the increasing importance of software for their O e D economies and the potential for public policy to have an impact on innovation in the da l sector. However, as the software sector becomes increasingly complex and dynamic, C u more quantitative and empirical analysis of how innovation is spurred is required to better E e e understand the sector. Consequently, the OECD Committee on Industry, Innovation and O R s Entrepreneurship (CIIE) tasked the Secretariat to explore issues such as economic n e processes, R&D and market environment, and user perspectives of software functionalities. A r c tu This project was launched in March 2007 with the establishment of an advisory L e expert group. Major conferences took place in Caceres, Spain (in November 2007, co- organised by the OECD, the Spanish Ministry of Industry, Tourism and Trade and the regional government of Extremadura) and Tokyo (in October 2008, co-organised by the OECD, the Japanese Ministry of Economy, Trade and Industry and Research Institute of Economy, Trade and Industry). The expert group was also hosted by the Israeli Ministry of Industry, Trade and Labour in June 2008. The authors are grateful to the support received from Israel, Japan and Spain, as well as those countries and industries that nominated experts to the advisory group. They made an essential contribution to the project’s success. This report was prepared by the Structural Policy Division of the OECD Directorate for Science, Technology and Industry. Overall direction was provided by Marcos Bonturi. The main authors were Douglas Lippoldt and Piotr Stryszowski. Desirée van Welsum and Jeoung Yeol Yu provided very significant contributions. Other important contributions were made by Sarah Cox, Kaoru Endo, Linda Haie-Fayle, Sami Mahroum, Elena Navascués and TengTeng Xu. INNOVATION IN THE SOFTWARE SECTOR – ISBN 978-92-64-06361-7 © OECD 2009 _it E d e it s io w n o r yl B n O O e D ad l C u E e e O R s n e A r u L e c t TABLE OF CONTENTS – 5 _it E d e it s io Table of Contents w n o r yl B n Executive Summary ............................................................................................................................... 7 O O e D Measurement challenges ...................................................................................................................... 8 ad l Software innovation processes ........................................................................................................... 10 C u The software sector innovation environment ..................................................................................... 13 E e e Emerging trends, changing environment and growing challenges ..................................................... 15 O R s References .......................................................................................................................................... 21 n e A r u Issues for Policy Makers and Industry to Consider ......................................................................... 23 L e c t Skilled human capital remains the most crucial factor for software innovation ................................ 23 Technical infrastructure and environment .........................................................................................
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