Software as Capital: An Economic Perspective on Software Engineering [Hardcover]

Howard Baetjer Jr. (Author)

Book Description

ISBN-10: 0818677791 | ISBN-13: 978-0818677793 | Publication Date: October 27, 1997 | Edition: 1

Software As Capital looks at software development through the eyes of a capital theorist, an economist fascinated by the constant evolution of new and better tools and processes. It asks, what is really happening in software development at the concept level? Why has programming practice evolved as it has? Why are certain tools and methodologies superior to others? What will it take to bring dramatic improvement to the industry? Answers lie in capital theory and the evolution of capital goods.

The concept that designing capital goods is a social learning process leads to interesting conclusions about software process models and methodologies. The book examines the main failing of the software industry when compared to other industries: the absence of an extensive division of labor for software components. It sets out the reasons for the problem, an outline for the solution, and the benefits that will result from its solution.

Editorial Reviews

From the Back Cover

Software As Capital looks at software development through the eyes of a capital theorist, an economist fascinated by the constant evolution of new and better tools and processes. Baetjer asks, what is really happening in software development at the conceptual level? Why has programming practice evolved as it has? Why are certain tools and methodologies superior to others? What will it take to bring dramatic improvement to the industry? Answers lie in capital theory and the evolution of capital goods.

The concept that designing capital goods is a social learning process leads to interesting conclusions about software process models and methodologies. The book examines the main failing of the software industry when compared to other industries: the absence of an extensive division of labor for software components. It sets out the reasons for the problem, outlines the solutions, and illustrates the benefits that will result from its solution.

Product Details

• Hardcover: 206 pages
• Publisher: Wiley-IEEE Computer Society Pr; 1 edition (October 27, 1997)
• Language: English
• ISBN-10: 0818677791
• ISBN-13: 978-0818677793
• Product Dimensions: 6.1 x 0.7 x 9.4 inches
• Shipping Weight: 14.9 ounces (View shipping rates and policies)
• Average Customer Review: 5.0 out of 5 stars  See all reviews (3 customer reviews)
• Amazon Best Sellers Rank: #2,335,024 in Books (See Top 100 in Books)

Customer Reviews

Most Helpful Customer Reviews

7 of 7 people found the following review helpful:

5.0 out of 5 stars Towards a Better Understanding of the Economics of Software, February 28, 2000

By 

James Vinoski (Atlanta) - See all my reviews

This review is from: Software as Capital: An Economic Perspective on Software Engineering (Hardcover)

Howard Baetjer, Jr., takes the reader through a highly informative and thought-provoking lesson in the economics of software engineering. Building on the solid theoretical work of the economists of the Austrian school, he identifies (through solid and thorough industry research) a number of problem areas in the existing marketplace for software, and offers viable solutions to each.

One need be neither an economist nor a software designer to gain usable knowledge from this book; its principles are applicable to any field. Baetjer does a superb job of fully explaining the underlying theories upon which he builds his thesis, using examples from other industries which make the more abstruse subject matter much easier to understand.

Regardless of your field, you will benefit from reading this well-written book.

3 of 3 people found the following review helpful:

5.0 out of 5 stars Still way ahead of its time, April 18, 2005

By 

Jorge Besada (miami, FL United States) - See all my reviews
(REAL NAME)   

This review is from: Software as Capital: An Economic Perspective on Software Engineering (Hardcover)

Just the first chapter's examples of the capital structure of knowledge is worth the price of the book. In many ways software development went through its own communism, long documents, plan the whole thing before you do it, waterfall blah blah. All the Agile stuff, quick prototying , using prototyping to gather requirements, a discovery procedure... The root of all this lies in understanding the capital structure of knowledge.

2 of 2 people found the following review helpful:

5.0 out of 5 stars Brilliant Work - A clear explanation of software as a capital good, May 2, 2007

By 

C. Chad Henson (Denton, TX) - See all my reviews
(REAL NAME)   

This review is from: Software as Capital: An Economic Perspective on Software Engineering (Hardcover)

The best part of this book was Dr. Baetjer's explanation of software as a capital good and the knowledge component of capital goods. Drawing on a rich economic tradition, he indicates that software provides a clear example of how the value of capital goods rests in embodied, unarticulated knowledge. Not only does he make this argument convincingly, he makes it clearly. I am neither an economist nor a software engineer, but found even the most difficult economic concepts relatively easy to grasp because of how he articulates them; they are made clear and concise without being dumbed-down for a lay audience. Dr. Baetjer brilliantly applies earlier theories of capital goods to the new field of software engineering.

If this sort of material interests you, I recommend:
Howard Baetjer, Review of Austrian Economics, "Capital as Embodied Knowledge: Some Implications for the Theory of Economic Growth," vol. 13 #2, September 2000
Thomas Sowell, Knowledge and Decisions, 1980 (or the 1996 edition)