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
(Minetaki and Motohashi, 2007, RIETI‐DP‐07‐J‐018)
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 *
情 報処 理合 格者 割合 2 0.0001 0. 0001 **
ソフトウェア売 上高 ダミー 0.0499 0.0440 0.0462 0. 0440
定 数項 -4.2369 0.1315 *** -4.2408 0. 1312 ***
サンプ ル数 439 439
自 由度 修正 済み 決定 係数 0.2322 0.2337
ε λ
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i i
Publicity of Skill Standards
(IS Industry Management Survey: IPA)
Stronger patents and software innovation
- software patent facilitates
independent software houses’ innovation -
0%
5%
10%
15%
20%
25%
0 5000 10000 15000 20000 25000 30000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
New Entry Integrated Electronics 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
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003
Japan
Package Custom Own‐account
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003
US
Package Custom Own‐account
(Jorgenson and Motohashi, 2005)
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….)
