Executive summary - App nations

Sponsored by
App Nations:
Start-ups, states
and enterprises
Executive summary

© The Economist Intelligence Unit Limited 20162
App Nations:
Start-ups, states and enterprises
Executive summary
About the study
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.

App Nations:
Executive summary
1
The US is seen as the best app business environment
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.
0
5
10
15
20
25
30
35
Which do you think is the best country to start or grow an app business?
% of respondents from each sample
Start-ups Enterprises Government
US Germany Canada UK Australia

App Nations:
Executive summary
2
Degree of collaboration among app economy
stakeholders differs significantly by region
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.
0 10 20 30 40 50
In your country, how would you rate the level of collaboration among
enterprises, start-ups and government in the app economy?
% of respondents from each region responding “extremely” or “moderately” collaborative
Europe
Asia-Pacific
North America

App Nations:
Executive summary
3
Many start-up and enterprise executives find
partnerships helpful to their growth
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.
0 10 20 30 40 50
What effect did partnerships have on your company's growth?
% of respondents
Enterprises partnering with start-ups
Start-ups partnering with enterprises
It was very helpful
It was slightly helpful
It made no difference
It was slightly hindering
It was very hindering

App Nations:
Executive summary
4
Many enterprise and startup executives also see
competitive threats in each other
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.
0 10 20 30 40 50
What are the biggest threats that start-ups or enterprises pose to your
growth in the app economy?
% of respondents Enterprise views on start-up threats
Start-up views on enterprise threats
They will change industry dynamics
They will buy or replace our technology
They will take my market share
They will recruit our employees
They will lobby for policies that
will hinder our growth

App Nations:
Executive summary
5
Governments are active ecosystem players,
according to start-up respondents
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.
0 10 20 30 40 50
In which ways do you observe different levels of government supporting
the app economy?
% of start-up respondents National State/province
Provide changes in public infrastructure that
improve internet connectivity
Provide initiatives for
international expansion
Provide specific, relevant social support for
employees (ie, health insurance for freelance talent)
Update or streamline regulations to enable
the growth of app-based businesses
Provide education, scholarships or research
funding to improve tech talent

App Nations:
Executive summary
6
Enterprise executives also observe many
government steps to support the app economy
According to enterprise respondents, national government most
often provides direct investment to app businesses, facilitates
community activities and improves internet infrastructure.
0 10 20 30 40 50
In which ways do you observe different levels of government supporting
the app economy?
% of enterprise respondents National State/province
Provide direct investment
(ie grants, seed funding)
Organise or facilitate community activities
(ie meetups, hackathons, trade shows)
Provide changes in public infrastructure
that improve internet connectivity
Provide initiatives for international expansion

App Nations:
Executive summary
7
Government officials see plans to deliver more in
several areas
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.
0 10 20 30 40 50
Government respondents whose organisations “have plans” to provide
support to the app economy in different areas
% of government respondents
Buy app services for internal processes or
better engagement with the public
Provide specific, relevant social
support for employees
Provide education, scholarships or
research funding to improve tech talent
Provide work spaces for startups

App Nations:
Executive summary
8
Opinions diverge on how effective government
support is to start-ups and enterprises
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.
0 10 20 30 40 50 60 70 80
Respondents deeming government support “very helpful” to growth
% of start-up, enterprise and government respondents
Provide specific, relevant social support for
employees (ie health insurance for freelance talent)
Provide changes in public infrastructure
that improve internet connectivity
Provide work spaces for start-ups
Provide direct investment (ie grants, seed funding)
Note: We did not ask enterprise respondents whether providing work spaces for start-ups was
helpful to their growth.

App Nations:
Executive summary
9
Cyber-security, data privacy are top risks executives
see for app economy firms both large and small
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.
0 10 20 30 40 50 60 70 80
To what extent will the severity of each of these types of risks to your
company’s success in the app economy increase or decrease over the
next two years?
% of start-up and enterprise respondents expecting risks to increase “somewhat” or “significantly”
Start-ups Enterprises
Cyber-security
Privacy
(eg risks to customer information)
Competition from app start-ups
Data sovereignty (eg geographic
location and jurisdictional legal concerns)
Compliance

App Nations:
Executive summary
10
Government officials plan to bolster regulations to
address app economy risk
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.
0 10 20 30 40 50 60 70 80
To what extent do you expect regulations or laws related to the app
economy to increase or decrease in stringency over the next two years?
% of government respondents expecting stringency to increase “somewhat” or “significantly”
Privacy
(eg risks to customer information)
Cyber-security
Compliance
Data sovereignty
Anti-trust or competition

App Nations:
Executive summary
© The Economist 2016. These materials and their contents are confidential and the exclusive
property of The Economist Newspaper Limited. Their unauthorized reproduction or
dissemination to any party other than the original recipient(s) is prohibited. These materials are
provided for information only and shall not be construed as an offer or any form of
contractual commitment by The Economist Newspaper Limited or any of its subsidiaries or
affiliates. The opportunities described herein are subject to change and editorial approval.

Executive summary - App nations

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