Dependence and dependency can both be used in the state/condition of being dependent sense. By definition, all words referencing such "states" are abstract nouns, so I don't see any justification for OP's abstract/concrete distinction in that sense. As you can see from this NGram, dependency has gained ground in recent decades, but both are in common use.
The main usage difference is that dependency can be used in a second sense as a "concrete" noun to mean a person or thing which depends on something/someone else. But note that in the programming context it's not uncommon to see it used to mean a software resource upon which some piece of software depends (i.e. - reversing the need/provide relationship).
In principle, dependence could also be used with that second sense - but as OED points out, all such usages are now either obsolete or archaic.
TL;DR: If you want the easy way out (which looks like the way majority usage is going anyway), you can probably get away with using dependency all the time.
But I must be honest - as a native speaker I'd probably tend to refer to his drug dependency, but his dependence on drugs (maybe because I see one as a problem he has, and the other as something he's doing, I don't know).
This may just be my brain having a short holiday, but having come up short on gerunds that end in "-ment" (see what I did there?) I suspect that it is a grammatical phenomewnon.
The Cambridge English dictionary has gerund as
"a word ending in "-ing" that is made from a verb and used like a noun."
So it seems they agree with me.
Reading the comments, I think I see the issue. Improvement is a noun with the same etymological root as "to improve". But crucially, it is a noun. It is not a gerund.
A gerund is a verb participle acting as a noun. It is not, however, actually a noun.
Best Answer
You can be confident about someone or something else:
You can be confident about yourself at a particular time without necessarily being self-confident in general:
You probably wouldn't say in a general sense:
Though you might say:
For a general statement, you would most likely say:
You can't say:
You also can't be self-confident about someone or something else: