In Countries Where People Have High IQs, Less Software Theft

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By Douglas A. McIntyre Updated Published
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In Countries Where People Have High IQs, Less Software Theft

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Software companies have a great deal to fear in terms of theft from the people who live in nations in which the average IQ is low. One the other hand, nations with high IQ residents present a much smaller problem

A new study from the Munich Personal RePEc Archive entitled “Intelligence and Crime:  A novel evidence for software piracy” shows:

The aim of this paper is to test the hypothesis that software piracy rats are lower in  more intelligent nations. Thus, we econometrically estimate the effect of national IQ on software  piracy rates, using data for 102 nations for the year 2011.
Our findings offer strong support for the assertion that intelligence is inversely related to the software piracy rates. After controlling for the potential effect of outlier nations in the sample, software piracy rate declines by about 5.3
percentage points if national IQ increases by 10 points.

And:

In this article we utilize cross national statistics on the software piracy rate, to offer a novel  estimate of  the  association  between  intelligence,  proxied  by  national  IQ  scores,  and 16’softlifting’. We find that intelligence has statistically significant negative impact on piracy rates. We also conclude that the estimates remain robust when we address potential endogeneity of IQ and for the existence of outlier countries in the sample.

On the other hand, it is crucial to highlight that albeit our findings suggest that more intelligent societies are inversely associated with the software piracy rates, this should not be taken  as  universal  evidence  that  society  with higher  intelligent  quotient  is  a  requirement  to alleviate software piracy. Our findings indicate that if ruling elite enforces policies to decrease software piracy, intelligence provides a credible proxy of the degree of consent of such policies. Indeed, agents with higher cognitive abilities are more politically active

Because almost all of these nations are under-developed, presumably law enforcement, particularly for something as complicated as software theft does not exist, and there may be no rule of law at all.

 

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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