Measuring and Sustaining the New Economy, Software, Growth

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Measuring and Sustaining the New Economy, Software, Growth, and the Future of the U.S Economy_ Report of a Symposium
PREFACE xv
I. INTRODUCTION 3
II. PROCEEDINGS
Introduction 31
Dale W. Jorgenson, Harvard University
The Economics of Software 36
William J. Raduchel
Panel I: The Role of Software—What Does Software Do? 47
Moderator: Dale W. Jorgenson, Harvard University
Anthony Scott, General Motors 47
Panel II: How Do We Make Software and Why Is It Unique? 54
Moderators: Dale W. Jorgenson, Harvard University
James Socas, Senate Committee on Banking
How Do We Make It? 54
Monica Lam, Stanford University
xii CONTENTS
Open-Source Software 61
Hal R. Varian, University of California at Berkeley
Making Software Secure and Reliable 72
Kenneth Walker, SonicWALL
Panel III: Software Measurement—What Do We Track Today? 82
Moderator: Kenneth Flamm, University of Texas at Austin
Measuring Prices of Prepackaged Software 83
Alan G. White, Analysis Group, Inc.
Ernst R. Berndt, MIT Sloan School of Management
Accounting Rules: What Do They Capture and 89
What Are the Problems?
Shelly C. Luisi, Securities and Exchange Commission
Greg Beams, Ernst & Young
A BEA Perspective: Private Fixed Software Investment 99
David Wasshausen, Bureau of Economic Analysis
What Is in the OECD Accounts and How Good Is It? 106
Dirk Pilat, Organisation for Economic Co-operation
and Development
Panel IV: Moving Offshore: The Software Labor Force and 118
the U.S. Economy
Moderator: Mark B. Myers, The Wharton School,
University of Pennsylvania
Hiring Software Talent 118
Wayne Rosing, Google
Current Trends and Implications: An Industry View 122
Jack Harding, eSilicon Corporation
Implications of Offshoring and National Policy 131
Ronil Hira, Rochester Institute of Technology
Offshoring Policy Options 139
William B. Bonvillian, Office of Senator Joseph Lieberman
CONTENTS xiii
Panel V: Participants’ Roundtable—
Where Do We Go from Here? Policy Issues? 150
Moderator: William J. Raduchel
Wayne Rosing, Google
Kenneth Flamm, University of Texas at Austin
Ernst R. Berndt, MIT Sloan School of Management
James Socas, Senate Committee on Banking
Ronil Hira, Rochester Institute of Technology
Concluding Remarks 156
Dale W. Jorgenson, Harvard University
III. RESEARCH PAPER
The Economics of Software: Technology, Processes, and 161
Policy Issues
William J. Raduchel
IV. APPENDIXES
A. Biographies of Speakers 179
B. Participants List 189
C. Selected Bibliography on Measuring and Sustaining the 194

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