Economic Perspective from the California Board of Equalization

The second 2012 edition of Economic Perspective from the California State Board of Equalization delves into taxable equipment and software purchases by businesses.

According to the article:

  • U.S. businesses spent over $1 trillion on equipment and software in 2011 (about  7% of GDP)
  • Information processing accounted for 54% of U.S. equipment and software in 2010
  • Software spending accounted for 25% of all equipment and software spending by in 2010.
    • 37% of business software was created internally (“own account” software)
    • 28% of business software was prepackaged, and
    • 34% was custom designed
  • Manufacturing spent more on equipment and software than any other industry, accounting for about 20 percent of all equipment and software spending.  (Read the article)

The importance of software and information processing business spending is of particular significance to California.  During the recovery from the Great Recession, industries such as computer manufacturing, software publishing, and computer system design have played an outsized role in the growth of the California economy.

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1 Comment

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One response to “Economic Perspective from the California Board of Equalization

  1. Gerd-Ulf Krueger

    This is interesting. Obviously the sizable spending on equipment and software is good for certain regions of California. fascinating is also that manufacturing is a big buyer of information processing. This fits with the notion of rationalization driven rennaissance of US manufatcuring, I wonder if California manufatcring is partcipating int hat, leading it lagging it?

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