Joeventures

Does software create value?

The NY Times recently asked several people to comment on whether there is a coming rise in manufacturing in the U.S., which would mean a reversal of a long trend.

Bob Lutz began his argument by recalling an old adage that there have always been only three ways to add value: drill it (mining), grow it (agriculture), or make it (manufacturing). Services, he argues, help but do not create wealth in the same way.

In today’s times, could “code it” be added to the list, or is software a service? Or, does software turn service into a value add that competes with the stodgy old three ways of creating value? Or, is software part of the manufacturing sector?