Software Industry Competitive Strategy and Innovation: A Comparison among Typical Nations

Abstract

In order to look into the causes of the Chinese software industry implementation of outsourcing competitive strategy and innovation level, a comparison was made among typical nations, such as America, Japan, India and Ireland. Software products competitive strategy of U. S. all over the world and original innovation was analyzed, and Japanese competitive strategy in the fields of software industry viewed as high technology "hardware" products of embedded software has been spreaded worldwide. For India, outsourcing strategy and market innovation of the industry was discussed. Irish success in software industry is based on FDI, that is, competitive strategy made a showing mostly carrying out a great deal of software localization work in Ireland. Ireland has established its own particular inaugurate stratagem of the market. In a review of these different competitive strategies and innovative ways it is found that important affecting factors for choosing global competitive strategies mainly includes: timing of software enterprises entering technology market, industry policy for software industry, enterprisers playing in software industry, languages and culture. In conclusion, industrial policy is an issue in China because the significance of software industry did not get enough attention from Chinese government in an early stage of development. For the present, Chinese enterprises have made their option of outsourcing with a profit. It is the technical ability of enterprises that has been improving, but not technological innovative capabilities.