Subject: Re: need source for an oft-quoted stat
From: "Stephen J. Turnbull" <>
Date: Thu, 17 Feb 2005 21:12:09 +0900

>>>>> "Larry" == Larry M Augustin <> writes:

    Larry> I recall something from one of the big investment banks
    Larry> comparing the size of internal IT budget dollars spent on
    Larry> development from one of their CIO surveys to the number of
    Larry> dollars spent in aggregate on R&D by software companies.  I
    Larry> will poke around and see if I can find the source.

You might also take a look at the National Income and Product
Accounts.  As of the UN's System of National Accounts 1993 standard
(implemented in full by the US in late 1999, with stats going back to
1975, I believe), spending on software is now generally considered

I don't have sources offhand, but according to an adjusted NIPA (Japan
simply doesn't have the raw data to implement the 1993 SNA standard)
in Japan purchases of prepackaged software account for about 25% of
software investment, with 15% being done in-house, and 60% by custom
houses.  ISTR that the corresponding percentages for the US are 25%,
60%, and 15%, respectively, in a curious coincidence.

Institute of Policy and Planning Sciences
University of Tsukuba                    Tennodai 1-1-1 Tsukuba 305-8573 JAPAN
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