| Developing the High-tech Industry is an essential stratagem of the nation. Software Industry is one of the key parts of the High-tech Industry. However, the fact of the software Industry in China didn't turn up trumps, especially of the PC packaged software.Analyzing the reasons, the roots are not only on some peculiar factors, for example, the level of technology, or the form of the organization, or the experience of R&D, but also on the packaged software's economic characteristics and surplus pattern, and on the developing rule of software Industry.That is to say, both of the special history condition and the international competition environment are the main reasons of impeding the development of china's software Industry, in china, it is difficult for the packaged software to have a rapid development among the software Industry. If China wants to develop its software Industry, it must break up the limitation within its mind and activity, break up the path dependence, and search for a special path fitting to the china's characterastics and current of times.The free software movement give us a superexcellent chance to catch up, which stir up suddenly in the world. Some actions have been done, while we still need to do some analysis to this whole new thing in-depth, and to recognize the essence of free software.The author analyzed several reasons for China to take this must choice. First of all, the author analyzed the natures of packaged software in both economics and social attributes, and analyzed the engender mechanism of the price of packaged software, with a view of social capital and compliance costs, unveiled the source of the rack profit of packaged software.Afterward, the author took a general introduce for the free software, expatiate the history of the movement and its essential opinion, analyzed the protection of intellectuall property for free software, construed its economic and social peculiarity, and compared the free software with the packaged software.The author pointed out that free software was a Mass-Market pockaged product that differs from packaged software in the economic and social peculiarity. It is the outcome of network times. It has the lower transaction costs because of the popularization of software technology and the abjuration for the exorbitant social premium of software talents.After wards, the author analyzed the innovation mode of free software, and pointed out that the free software's innovation mode was a new one that has extreme strong survival force and energy, it has an innovative ability not in the shade of the packaged software.In conclusion, the author claimed that free software is the necessary choice for China to develop its software industry, from all point of view. That is because of the reality of Chinese society and the circumstance of international economics. Base on these, the author gave out some suggestions for the essential strategy to develop the free software industry of the nation. |