Introduction
“The involvement has become so involuntary that it has now become a dependence and an addiction, to an extent that the absence of a computer makes someone completely dysfunctional,” thus making the computer software industry an instrumental new force within the international economy (Kent & Williams 1997 p 140). Our insatiable need for new and updated technologies to accompany us through almost all walks of life has been resulting in a rapidly growing computer software industry that is featured in a number of locations around the world. Canada has seen
great success in the growth of its software industry and its ability to export
its intellectual products all over the globe.
Computer Software Industry
The computer software industry is a relatively new development on the international market
place. Only a few decades ago, there was no such industry at all. Thanks to a number of innovative software developers, the rise of the industry has become a booming success. The industry itself increased dramatically in the 1990s. It was during this period that software was growing in a number of other supporting industries. Software soon became an integral part of industries like healthcare, business applications like databases and network structures, personal finance, and education (Kent & Williams 1997). The more intertwined it became with other business applications, the more successful software became as a product to export and sell on the international market. One major trend within the industry now is the incredibly multi-faceted approach it takes to developing its software products. According to the research, “Firms often have a broad flexibility in their product-level implementation of a product variety strategy, and this is widely recognized in the software industry,” (Cottrell & Nault 2004 p 1005).
This allows the producers in the industry to bundle different product applications, and thus offer various products over a variety of competing computing platforms.
In Canada specifically, the computer software industry has proven itself to be one of the
top developing producers in the country. It has been increasingly rapidly, largely surrounding providing software for the entertainment industry as well as for the more traditional facets like
health care and personal finance. Still, most software producers in Canada focus on keeping up with trends of offering a variety of products available across computing platforms (Cottrell & Nault 2004). The industry has become a top exporter for Canadian enterprise, showing how successful Canada has been in harnessing its intellectual capital.
International Trade Theory International trade has often influenced the development and structure of the Canadian software industry. Canada has long seen its software industry export
many of the innovative software packages and platforms to other nations, like its neighbor the United States and elsewhere (Kent & Williams 1997). As many nations all over the world continue to increase their technological capabilities, more innovative and efficient software is demanded internationally. Software is now a product that is exported to other nations with less intellectual capitol or structures for generating their own unique software content. This is
incredibly interesting to see because Canada, on the other hand, is a largely consumer style country that normally imports goods produced elsewhere where more natural resources are available.
Essentially, this shows that intellectual capital can be just as lucrative as the production of raw goods into actual consumer goods. Moreover, issues with piracy and how it relates to software development have proven to be powerful in influencing contemporary international trade legislation and agreements. Here, the research suggests that “A number of countries have been in the news lately for software, music, and video piracy” causing governments to pay “more attention to these countries during trade negotiations,” (Kent & Williams 1997 p 140). The software industry, and the need to keep value to intellectual capital as a means of revenue for the nation, has begun to influence the modern applications and processes within international trade
and the agreements made between trading countries.
Competitiveness
The competitiveness of the Canadian software industry is growing dramatically. While the industry used to only support largely Canadian business needs, it now exports software all over the globe and is competing with many other major nations like the United States. Competition increased because of the Internet, but also because of the capabilities the industry has shown itself to have here in Canada (Fruend & Weinhold 2004). Essentially, the nation is providing to have the educational and training foundation to consistently generate innovative products that challenge the prowess of nations like the United States.
top developing producers in the country. It has been increasingly rapidly, largely surrounding providing software for the entertainment industry as well as for the more traditional facets like
health care and personal finance. Still, most software producers in Canada focus on keeping up with trends of offering a variety of products available across computing platforms (Cottrell & Nault 2004). The industry has become a top exporter for Canadian enterprise, showing how successful Canada has been in harnessing its intellectual capital.
International Trade Theory International trade has often influenced the development and structure of the Canadian software industry. Canada has long seen its software industry export
many of the innovative software packages and platforms to other nations, like its neighbor the United States and elsewhere (Kent & Williams 1997). As many nations all over the world continue to increase their technological capabilities, more innovative and efficient software is demanded internationally. Software is now a product that is exported to other nations with less intellectual capitol or structures for generating their own unique software content. This is
incredibly interesting to see because Canada, on the other hand, is a largely consumer style country that normally imports goods produced elsewhere where more natural resources are available.
Essentially, this shows that intellectual capital can be just as lucrative as the production of raw goods into actual consumer goods. Moreover, issues with piracy and how it relates to software development have proven to be powerful in influencing contemporary international trade legislation and agreements. Here, the research suggests that “A number of countries have been in the news lately for software, music, and video piracy” causing governments to pay “more attention to these countries during trade negotiations,” (Kent & Williams 1997 p 140). The software industry, and the need to keep value to intellectual capital as a means of revenue for the nation, has begun to influence the modern applications and processes within international trade
and the agreements made between trading countries.
Competitiveness
The competitiveness of the Canadian software industry is growing dramatically. While the industry used to only support largely Canadian business needs, it now exports software all over the globe and is competing with many other major nations like the United States. Competition increased because of the Internet, but also because of the capabilities the industry has shown itself to have here in Canada (Fruend & Weinhold 2004). Essentially, the nation is providing to have the educational and training foundation to consistently generate innovative products that challenge the prowess of nations like the United States.
Canada’s competitiveness can be analyzed using Porter’s diamond analysis. Thus, first is the examination of factor conditions that help create the strength in Canada’s competitive condition. These are essentially production factors that help give the industry its strength. Canada has a huge wealth of intellectual capital that can help increase the power of
its software production industry. Still, it is facing huge competition from the intellectual circles of the United States; but also from nations like India and Singapore, where growing educational standards is leading to increased levels of education and training, making such nations more capable of producing competitive intellectual capital (Khanna & Palepu 2004). Next is to
look at the firm strategy, structure, and rivalry. Management structures in Canada prove to
often be innovative and inspirational within the software context. Following examples set by American companies like Google, many management strategies understand the benefits of allowing employee inspiration within an openly creative atmosphere. This then creates high organizational cultural values and increased participation within Canadian firms adds value to
the employee’s work. Overall, this helps increase the competitive position of Canadian firms over other Indian firms, which tend to have much different managerial strategies. Additionally, there is the evaluation of demand conditions at home here in Canada. These help to shape emerging factor conditions. The domestic demand for the products being produced by the Canadian computer software industry helps boosts its capabilities to then be able to export.
Increased domestic demand therefore spurs more rapid development and innovative changes within the industry and creates a competitive advantage when compared to nations that have very little domestic demand and only really generate software for exporting purposes, like India (Khanna & Palepu 2004). Related and supporting industries are the final factor in this analysis.
Some suppliers include engineering companies and organizations that build hardware devices that run the software Canadian innovators are producing internally within Canada, as well as outside the nation from countries like China and India. The increases seen in the Canadian software industry then creates a situation where these industries benefit as well. Moreover, there are a number of supporting industries worldwide, including entertainment, health care, and even business development and governance. Software is needed for almost every modern industry as it evolves on a global market and is digitized to increase efficiency. It adds value to the industry by increasing competition that drives up quality and innovation of written and developed software.
The ever-increasing demand for new and innovative software systems then continuously increases the capabilities of modern software development.
its software production industry. Still, it is facing huge competition from the intellectual circles of the United States; but also from nations like India and Singapore, where growing educational standards is leading to increased levels of education and training, making such nations more capable of producing competitive intellectual capital (Khanna & Palepu 2004). Next is to
look at the firm strategy, structure, and rivalry. Management structures in Canada prove to
often be innovative and inspirational within the software context. Following examples set by American companies like Google, many management strategies understand the benefits of allowing employee inspiration within an openly creative atmosphere. This then creates high organizational cultural values and increased participation within Canadian firms adds value to
the employee’s work. Overall, this helps increase the competitive position of Canadian firms over other Indian firms, which tend to have much different managerial strategies. Additionally, there is the evaluation of demand conditions at home here in Canada. These help to shape emerging factor conditions. The domestic demand for the products being produced by the Canadian computer software industry helps boosts its capabilities to then be able to export.
Increased domestic demand therefore spurs more rapid development and innovative changes within the industry and creates a competitive advantage when compared to nations that have very little domestic demand and only really generate software for exporting purposes, like India (Khanna & Palepu 2004). Related and supporting industries are the final factor in this analysis.
Some suppliers include engineering companies and organizations that build hardware devices that run the software Canadian innovators are producing internally within Canada, as well as outside the nation from countries like China and India. The increases seen in the Canadian software industry then creates a situation where these industries benefit as well. Moreover, there are a number of supporting industries worldwide, including entertainment, health care, and even business development and governance. Software is needed for almost every modern industry as it evolves on a global market and is digitized to increase efficiency. It adds value to the industry by increasing competition that drives up quality and innovation of written and developed software.
The ever-increasing demand for new and innovative software systems then continuously increases the capabilities of modern software development.
References
Cottrell, Tom
& Nault, Barrie R. (2004). Product variety and firm survival in the
microcomputer software industry. Strategic
Management Journal, 25(10), 1005-1025.
Freund, Caroline
L. & Weinhold, Diana. (2004). The effect of the Internet on international
trade. Journal of International Economics,
62(2004), 171-189.
Khanna, Tarun
& Palepu, Krishna G. (2004). Globalization and convergence in corporate
governance: Evidence from Infosys and the Indian software industry. Journal of International Business Studies,
35(6), 484-507.
Kent, Allen &
Williams, James G. (1997). Encyclopedia
of Computer Science and Technology: Supplement 21. CRC Press.
Cottrell, Tom
& Nault, Barrie R. (2004). Product variety and firm survival in the
microcomputer software industry. Strategic
Management Journal, 25(10), 1005-1025.
Freund, Caroline
L. & Weinhold, Diana. (2004). The effect of the Internet on international
trade. Journal of International Economics,
62(2004), 171-189.
Khanna, Tarun
& Palepu, Krishna G. (2004). Globalization and convergence in corporate
governance: Evidence from Infosys and the Indian software industry. Journal of International Business Studies,
35(6), 484-507.
Kent, Allen &
Williams, James G. (1997). Encyclopedia
of Computer Science and Technology: Supplement 21. CRC Press.
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