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Media Ownership and Concentration in America$
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Eli Noam

Print publication date: 2009

Print ISBN-13: 9780195188523

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780195188523.001.0001

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The Computer and Software Sector

The Computer and Software Sector

Chapter:
(p.185) 10 The Computer and Software Sector
Source:
Media Ownership and Concentration in America
Author(s):

Eli M. Noam

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780195188523.003.0010

The American information technology (IT) sector—hardware, software, and services—was $0.25 trillion in size in 2005. In 1984, it was $143 billion (in 2005 dollars). During these two decades, the hardware sector became less concentrated; the average level on the Herfindahl-Hirschmann Index declined from 3,153 to 2,384. For computer software, average concentration decreased from 3,439 in 1984 to 1,963 in 2005. Taken together, concentration for the entire IT sector—hardware and software—has been seen to follow a U-shaped pattern, declining until about 1992, rising thereafter considerably, but lower in 2004 than two decades earlier. Average industry concentration dropped from 3,153 to 2,384. By the standards of the US Justice Department, the aggregate IT sector is still highly concentrated. This chapter examines market concentration trends in the hardware and software sectors in the United States. The hardware section discusses semiconductor components, computers, and peripherals.

Keywords:   United States, information technology, market concentration, computers, hardware, software, semiconductor components, peripherals

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