In telecommunication, the term interoperability has the following meanings:
With respect to software, the term interoperability is also used to describe the capability of different programs to read and write the same file formats and utilise the same protocols.
Interoperability can have important economic consequences. If competitors' products are not interoperable (due to causes such as patents, trade secrets or coordination failures), the result may well be monopoly or market failure. For this reason, it may be prudent for governments to take steps to encouage interoperability in various situations.
In the UK there is a egovernment-based interoperability initative called e-gif.