Software is an essential tool of production in
every sector of the modern economy. Enterprises of
all sorts rely on it to design products, provide services,
communicate with customers, and manage operations.
But software contributes considerably more value to
national economies if it is properly licensed than it does
if it is pirated.
Indeed, properly licensed software has a positive
impact on national economic activity that is more than
three times the impact of pirated software, according
to a new study from BSA | The Software Alliance. And
the additional economic value associated with lawful
software use is especially pronounced in developing
markets: Every dollar invested in properly licensed
software in low-income countries yields an astounding
$437 in additional national production, on average.
These are among the findings of an analysis conducted
for BSA by INSEAD, one of the world’s most prominent
business schools and respected research institutions.
Drawing on data from 95 countries, the study confirms
that increasing use of properly licensed software in a
national market corresponds to substantial positive gains
in gross domestic product (GDP). It also reveals that
licensed software has a greater economic stimulus effect
than pirated software.