Reduced risk and greater operating efficiencies drive value for enterprises, boosting economic output
A new study from BSA | The Software Alliance and INSEAD, one of the world’s leading business schools, finds that increasing the use of properly licensed software would have a greater impact on the economy in Cyprus than allowing similar growth in the use of pirated software.
A 1 percent increase in use of licensed software would generate an estimated 25 million Euro in national production, compared to 5 million Euro from a similar increase in pirated software -meaning properly licensed software would deliver 19 million Euro in additional economic value. Increasing licensed software use globally by 1 percent would inject an estimated $73 billion into the world economy, compared to $20 billion from pirated software – a difference of $53 billion.
Competitive Advantage: The Economic Impact of Properly Licensed Software is a groundbreaking analysis that draws on data from 95 countries to demonstrate the benefits to national economies of using fully licensed software. The study confirms that increasing use of licensed software corresponds to substantial positive gains in gross domestic product (GDP), and that the economic stimulus effect of properly licensed software is significantly greater than that of pirated software.
“Using properly licensed software reduces risk and creates operating efficiencies that go directly to the bottom line for enterprises,” said Mr. Nicolas Ktenas, BSA Representative in Cyprus. “This study confirms that licensed software is not just good for firms — it is an important driver of national economic growth. Government, law enforcement, and industry in Cyprus should take every opportunity to reap these potential gains by reducing piracy and promoting use of properly licensed software.”
The study also finds that each additional euro invested in properly licensed software has an estimated return on investment (ROI) of 120 Euro This compares to a 30 Euro return from each additional euro worth of pirated software put into use.
“Previous studies have shown that value-added services delivered with properly licensed software help firms to reduce costs and increase their productivity. This report goes one step further to ascertain the impact of software use on national production,” said Eduardo Rodriguez-Montemayor, senior research fellow at INSEAD eLab. “The results make it clear that licensed software is beneficial for business and national economies — and that licensed software has a greater economic impact than pirated software across all countries included in the study.”
Governments and enterprises wanting to embrace the economic opportunity presented by licensed software use should take action in the following areas:
• Establish strong and modern intellectual property laws that protect software and other copyrighted materials on PCs, mobile devices, and in the cloud.
• Step up enforcement of intellectual property rights with dedicated resources.
• Raise public awareness about the risks of software piracy.
• Lead by example by using only fully licensed software and implementing software asset management programs.
A full copy of the study: Competitive Advantage: The Economic Impact of Properly Licensed Software is available for download on BSA’s website: www.bsa.org/softwarevalue.
BSA
BSA | The Software Alliance (www.bsa.org) is the leading global advocate for the software industry. It is an association of world-class companies that invest billions of dollars annually to create software solutions that spark the economy and improve modern life. Through international government relations, intellectual property enforcement and educational activities, BSA expands the horizons of the digital world and builds trust and confidence in the new technologies driving it forward.
For information about the BSA brand, and how it appears in print, click here.
INSEAD eLab
As one of the world’s leading and largest graduate business schools, INSEAD brings together people, cultures and ideas from around the world to change lives and transform organizations. eLab is INSEAD’s center of excellence in the global knowledge economy. A key objective of INSEAD eLab is to strengthen links across academia, business leaders and policymakers by: drawing on a variety of global resources to develop research insights that are academically rigorous and relevant to private and public sector leaders.
Information on INSEAD eLab, including other research reports, can be found at insead.edu/elab.
