 | Globally, a 10-point reduction in software piracy over four years could generate $67 billion in new tax revenues worldwide. |
Cutting the global piracy rate of 35 percent by 10 percentage points over four years could generate 2.4 million new jobs, $400 billion in economic growth and $67 billion in tax revenues worldwide, according to a new study released by the Business Software Alliance (BSA) today.
The independent research, conducted by International Data Corporation (IDC), found that every one percentage point drop in software piracy could yield $40 billion in economic benefits by jumpstarting growth in the global information technology (IT) sector. The study also concluded that while the global IT sector is currently projected to grow 33 percent through 2009, a 10-point reduction in software piracy could spur the global IT industry to grow 45 percent larger by 2009.
Despite having the world’s lowest software piracy rate, the study found that the United States stands to gain more than any other nation in the global survey from a 10-point piracy cut over four years – boosting its economy by $125 billion. Although the U.S. IT sector is already projected to grow by almost a third between 2004 and 2009, it could grow more than 10 percentage points faster with further piracy reductions.
Countries with the highest piracy rates could capture the greatest economic gains from reducing piracy, the study found. A 10-point reduction in software piracy in China could create 2.6 million new IT jobs by 2009 – as many IT jobs as the U.S. has been able to create through 30 years of IT leadership. Russia, a country with the fifth highest software piracy rate in the world (87 percent), could see its IT industry triple in size – growing from $9.2 billion today to $30 billion in just four years.
The BSA-commissioned study, available online at http://www.bsa.org/idcstudy
