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Six Challenges in Platform Licensing and Open Innovation

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  • Geoffrey PARKER

    (Tulane University and Boston University / MIT)

  • Marshall VAN ALSTYNE

    (Tulane University and Boston University / MIT)

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    Abstract

    This article describes six common challenges of design, incentives, and governance that arise in establishing platform businesses. It also proposes solutions. It considers, for example, how to open a platform to decentralized innovation yet still earn a return; how to incorporate best-of-breed innovations from different sources while avoiding problems of multi-party hold-up; and how to encourage sources of good ideas to contribute those ideas despite the risk of losing them to owners of indispensible complements. We express these issues and solutions as a reduced set of tradeoffs useful for managing information and technology property.

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    File URL: http://repec.idate.fr/RePEc/idt/journl/CS7401/CS74_PARKER_VAN_ALSTYNE.pdf
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    Bibliographic Info

    Article provided by IDATE, Com&Strat dept. in its journal Communications & Strategies.

    Volume (Year): 1 (2009)
    Issue (Month): 74 (2nd quarter)
    Pages: 17-36

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    Handle: RePEc:idt:journl:cs7401

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    Related research

    Keywords: licensing; open source; free software; dual licensing; platform; intellectual property.;

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    1. James Bessen & Eric Maskin, 2006. "Sequential Innovation, Patents, and Imitation," Economics Working Papers 0025, Institute for Advanced Study, School of Social Science.
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