This study evaluates measures to strengthen knowledge competitiveness of the software industry, which is one of the major high-value and knowledge based industries.
One of the features of the software industry is that it is a knowledge-intensive industry, which depends on intellectual capacity and experience of experts. Also, market failure is likely since illegal software duplication is rampant. Additionally, maintenance is emphasized compared to other industries, mainly because maintenance is necessary for error correction, adding new functionality, improving user convenience and performance, adjusting for new environments, enhancing user satisfaction, and extending product lifecycles.
The software industry can be viewed as a knowledge based and high-value industry. However, the software industry in Korea lacks high-value features due to a shortage of knowledge competitiveness, including planning ability and technological development capability.
The annual growth rate of the global software markets was approximately 12.6 percent as of 1998, more than five times the GNP growth rate (two percent). R&D investment for the software industry hovers above 10 percent of sales, with computing environments rapidly changing, and strategic partnership between companies engaging in different fields (telecommunications, broadcasting, visual entertainment, publication, animation, games, et cetera) are forged, in line with technological convergence and digitalization. The domestic software market is growing quickly as well, but the majority of software development in Korea is application software for the domestic market, while system software and package-type application software have heavy reliance on imports.
In terms of knowledge competitiveness, including planning ability, technology development, quality management, outsourcing, and standardization, there is a huge gap between the domestic software industry and the industries in technologically advanced countries. However, some office and educational software receive favorable evaluations, and Hangul Word Processor, groupware, antivirus software, and telecommunication software are dominating domestic markets.
In order to enhance the knowledge competitiveness of the software industry, it would be necessary to take following measures:
1) Develop sophisticated products and develop service structures (expanding the market share of ERP and internet software, and increasing the service scope of SI companies)
2) Make efficient investments in human resources (quality improvements in software training and school computer education, support for company education and training, and fostering overseas marketing experts)
3) Form strategic partnerships (building information infrastructure and revising laws and systems for partnerships)
4) Expand demand and revitalize markets (establishing distribution systems, limiting illegal reproduction, investing in public IT projects, and outsourcing)
5) Make efficient divisions of labor among companies and maximize the concentration effect of software companies
6) Provide stronger protection for intellectual property
Although there has been effort to revise the Act on Protection of Computer Programs, there is still a long way to go. It is necessary to develop legal and institutional measures to protect multimedia related intellectual property, as well as computer programs, and strengthen control measures against illegal software in order to add stability to the software market.
소프트웨어산업의 지식경쟁력 강화 방안(Measures to strengthen knowledge competitiveness of the software industry)
서울 : 산업연구원
|Series Title; No||KIET 산업경제|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Industry and Technology < IT
Industry and Technology < Science/Technology