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The Computer Software Industry in East and West: Do Eastern European Countries Need a Specific Science and Technology Policy?

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  • Jürgen Bitzer

Abstract

National science and technology (S&T) systems are often mentioned as a condition for competitiveness of high technology sectors. Therefore, public S&T policies should actively support the development of national S&T systems. In particular in Eastern Europe an active S&T policy is often demanded to support the development of the supposed domestic "high technology potential". This paper shows that this hypothesis is ill-founded in the case of the software sector. With an industrial economic analysis of the software sector it is shown, that a S&T policy is widely not able to fulfil this expectation. The analysis of the different market segments: standard and individual software, shows that the competition is carried out on axes which can widely not be influenced by a S&T policy. The links between software enterprises and the S&T systems are very weak, which is the result of the conditions of software development and the competition axes used in the software industry. Therefore, only few, and very general, starting points remain for an active S&T policy. Main starting points are: the improvement of the education in modern software technology, improvement of patent protecting laws and their enforcement, and introduction of standardisation procedures and quality standards.

Suggested Citation

  • Jürgen Bitzer, 1997. "The Computer Software Industry in East and West: Do Eastern European Countries Need a Specific Science and Technology Policy?," Discussion Papers of DIW Berlin 149, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp149
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    References listed on IDEAS

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    Cited by:

    1. Radosevic, Slavo, 1999. "Transformation of science and technology systems into systems of innovation in central and eastern Europe: the emerging patterns and determinants," Structural Change and Economic Dynamics, Elsevier, vol. 10(3-4), pages 277-320, December.
    2. Kesidou, Effie & Romijn, Henny, 2008. "Do Local Knowledge Spillovers Matter for Development? An Empirical Study of Uruguay's Software Cluster," World Development, Elsevier, vol. 36(10), pages 2004-2028, October.
    3. DIEZ, Jose Ignacio & PASCIARONI, Carolina, 2022. "Analyzing The Software Sector In Bahia Blanca (Argentina) Using The Structure-Behavior-Performance And Capabilities Approach," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 22(1), pages 19-36.

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    More about this item

    JEL classification:

    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
    • L63 - Industrial Organization - - Industry Studies: Manufacturing - - - Microelectronics; Computers; Communications Equipment
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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