Research On The Determinants For International Competitiveness Of China's Software Industry

As the core and soul of information industry, software industry is penetrating every aspects of the national economy and social production , becoming the strategic industry that influences the competitiveness of nations in the 21st century. In order to establish the favorable position in the global software industry chain, both developed countries and developing countries have all made the development strategies of software industry based on individual national conditions. However, China's software industry is still very backward, and it does not extremely suit with the development of the whole national economy. So there is urgent need to improve the international competitiveness of China's software industry.By using normative and empirical, qualitative and quantitative approaches, the primary goal of this research is to bring together the relative theories, such as Industrial Economics, International Economics, Management Science and Statistics, analyze the determinants for international competitiveness of China's software industry, thereby provide policy-makers with theoretical references.Major contents can be briefly described as follows:In the theoretical research aspect, this study firstly defined the international competitiveness of China's software industry. Based on Porter's "Diamond Model", through analyzing major characteristics of software industry and the features revealed in the development of China's software industry, a theoretical model of the determinants was then built.In the empirical research aspect, enlightened by the principle of stepwise regression, the author established an empirical model so as to confirm and measure the effects of determinants on the international competitiveness of software industry.According to theoretical analysis, it can be stated that human factors, demand conditions, market competition structure, technological innovation and government are the determinants for international competitiveness of China's software industry. They make up a mutually reinforcing system in which the effect of one determinant is contingent on the state of others.The quantitative research carried out reveals that the international competitiveness of China's software industry is very weak, market competition structure and technological innovation are exactly the determinants of competitiveness; There is important positive relating effect between the degree of industrial concentration and competitiveness as well as between the R&D personnel intensity and competitiveness.