| We now have stepped into information era, as a knowledge product, the software has penetrated and influenced every aspect of social and economic life of human beings. The software industry is the core and soul of IT industry, is the strategic preleading industry that determines the international competence in 21st century. In this dissertation, the author try to use Marxism Labor Value Theory to thoroughly discuss the Software and Software Industry, based on the Value Source—the fundamental of economics. After definition, classification and characteristics analysis of software and software industry, the value source and the capital structure of the software—the theoretical fundamental of the dissertation— has been analyzed emphasizedly. The software is the product of human spiritual labor, and has some different unique characteristics comparing with the ordinary material production. As the spiritual product, the software value includes three parts: the newly created value, the inherited value and the transferred value. The utility becomes the primary decisive factor of software value. The software capital can be classified into the institution capital, the knowledge capital and human capital according to the contribution of value formation. From the software capital circulation formula, the reason that the software production can bring multiple value proliferation can be observed. The international software industry value chain consists of a series of value segment with value division and discrimination. Someone who takes up key value proliferation segment can control the whole value chain. Institution is also a very important spiritual product. The software possesses the strong institutional meaning, and is the internal solidification of the institution. A series of software production can make an integrated institutional system. The application of the software can reduce transaction cost, expand enterprise boundary and eliminate information asymmetry. The development of software technique is strong path dependent, and is the result of the mutual effect between technical change and institution change. The software is the knowledge product. The knowledge contained into the software can play a great role. The software capital is the capital invested to set up the software technical and application knowledge fundament that is essential to successful software development. An integrated procedure of software knowledge production, accumulation, transfer and diffusion is analyzed in detail. As a new type of scientific and technical productivity, the software commercialization realizes the knowledge transfer and diffusion. So the software knowledge can penetrate into value creation to improve the information and knowledge level, to realize benefit increase by degrees. The software spiritual production is mainly the intellectual labor, the amount and quality of software human capital can influence the final quality of software product, so the software human capital is the core issue of software industry development. According to the requirement of software talent, the core of software HR structure is the proper ratio of software designer and developer. The human capital is much more important, compare with material capital and financial capital in software industry. So the investment into all kinds of education and training must be strengthened in order to realize the accumulation of software human capital. Resent years, the software industry in China increases rapidly, takes more proportion...
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