Theoretical And Empirical Research Of The Development Of China's Software Industry

With the era of knowledge economy, the software industry influences whole world politics, economy and social life, becoming a national leader in the strategic competitiveness of the industry in the 21st century. China shares the same understanding of the importance of the software industry and the same start point with India, but, at present, there exists a huge and obvious difference between two countries. Why can India's software industry lead the international competition? This question deeply troubles China's officials in Ministry of Information industry, operation and management team in firms, researchers and experts in this field. They also discuss the experience and lessons of India's software industry development and study this topic from the point of theory.As theoretical study, based on the fruits of previous research results and Michael Porter's competition theory, this paper establishes the software industry internationally competitive framework for analysis of the determinants. As empirical study, this paper compares the major factors that influence the development of software industry between China and India. The goal of this paper is to provide suggestions for the growth of the software industry in China by summing up the experience of India.There are four chapters in the paper. The first one is the introduction to the main topics that the background and significance, at home and abroad, the structure, ideas and the definition of the concept.The second one establishes the software industry internationally competitive framework for developing countries based on the fruits of previous research results and Michael Porter's competition theory: production factors; domestic and foreign demand; related and support industries; corporate strategy, structure and competition; core technology and government. The six elements constitute an interrelated whole, the co-decision of international competitiveness of the software industry. The model considers government as a core factor, also brings the core technology into the model and expanses the demand to domestic and foreign. The paper analyzes the role of some factors as the game model: effective allocation of production factors game, piracy game.The third part is empirical comparison of China and India's software industry development gap. Based on the framework, this part gets into a detailed analysis for the six factors and has the reason for the gap between China and Indian: China has disadvantages in human resources, enterprise scales and government policy and also has advantages in domestic demand and related industries.The fourth one that based on the past two parts, combined with the advantages of her own comes up with strategies to promote the development of high-tech industries.