This executive summary highlights findings from a study examining the state of interactions among three key stakeholder groups in the app economy—start-up and enterprise executives and government officials—with a particular focus on identifying the optimal role for governments in helping app businesses grow. In May and June 2016, the Economist Intelligence Unit conducted three surveys of representatives of app start-ups, enterprises and government, totalling 377 respondents in all and representing three key stakeholder groups in the app economy. The start-up sample numbered 125 respondents, the enterprise sample 127 and government sample 125. Each of the samples were split evenly across Europe, North America and Asia-Pacific.
More survey respondents—government officials and start-up and enterprise executives alike–choose the US than any other country to start or grow an app business. Germany, Canada, the UK and Australia also receive honourable mention.
Enterprise executives, especially those in Asia-Pacific, tend to think that their app economy is collaborative. Overall, however, more respondents in Europe reported that their app economy is collaborative than those in other regions—37% said that their app economy was extremely or moderately collaborative.
Sixty-four percent of enterprise executives find partnering with start-ups at least slightly helpful to their growth and vice versa. Partnership models range from sponsorship of events to technology integration to B2B sales.
The largest share of start-up executives (42%) believe enterprises will take market share, and around one-third believe enterprises have their eyes on start-up technology or IP, as well as on their employees. Enterprise executives are most often worried about changing industry dynamics.
Almost 40% of start-up executives see their national governments taking measures to improve public—and especially internet—infrastructure and to help start-ups expand overseas.
According to enterprise respondents, national government most often provides direct investment to app businesses, facilitates community activities and improves internet infrastructure.
Close to half of government officials say they have plans in the works to purchase app services, to update regulations for the app economy or to provide more social support for app economy employees. These plans to support growth are likely related to the benefits officials see from the app economy, most often better service to citizens and increased employment.
Businesses (start-ups and enterprises) and government respondents differ markedly on how effective the latter’s support is. This disconnect is most apparent for start-up respondents versus government respondents. *We did not ask enterprise respondents whether providing work spaces for start-ups as helpful to their growth.
Start-up and enterprise respondents alike believe that the greatest risks to their growth over the next couple of years will emanate from potential cyber-attacks and breaches of customer data.
Government officials say their plans are aligned with executives’ concerns. For example, three-quarters of government respondents expect to toughen rules and standards relating to data privacy and cyber-security in the next two years.
About the research
App nations: Start-ups, states and enterprises is a report from The Economist Intelligence Unit (EIU) sponsored by CA Technologies. In May and June 2016, The EIU conducted three integrated global surveys on the topic of the app economy, in which a total of 377 respondents took part. The start-up survey sample numbered 125 respondents; the enterprise sample 127 respondents; and the government sample 125 respondents.
CA Technologies (NASDAQ: CA) creates software that fuels transformation for companies and enables them to seize the opportunities of the application economy. Software is at the heart of every business in every industry. From planning to development to management and security, CA is working with companies worldwide to change the way we live, transact, and communicate—across mobile, private, and public cloud, distributed and mainframe environments. Learn more at ca.com.
About The Economist Intelligence Unit
The Economist Intelligence Unit is the business-to-business arm of The Economist Group, which publishes The Economist newspaper. The Economist Intelligence Unit helps executives make better decisions by providing timely, reliable and impartial analysis on worldwide market trends and business strategies. More information can be found at http://www.eiu.com/ or http://www.twitter.com/theeiu.