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Competition, Innovation and Intellectual Property Rights in Software Markets

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Author Info

  • Michiel BIJLSMA

    (CPB Netherlands Bureau for Economic Policy Analysis, the Netherlands)

  • Paul W.J. DE BIJL

    (CPB Netherlands Bureau for Economic Policy Analysis, the Netherlands)

  • Viktória KOCSIS

    (CPB Netherlands Bureau for Economic Policy Analysis, the Netherlands)

Abstract

This paper analyzes when it may be desirable for the government to stimulate open source software as a response to market failures in software markets. Our most important finding is that directly stimulating open source software, e.g. by acting as a lead customer, can improve dynamic efficiency if (i) there is a serious customer lock-in problem, while (ii) to develop the software, there is no need to purchase specific, complementary inputs at a substantial cost, and (iii) follow-on innovations are socially valuable but there are impediments to contractual agreements between developers that aim at realizing such innovations.

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File URL: http://repec.idate.fr/RePEc/idt/journl/CS7403/CS74_BIJLSMA_et_al.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: 55-74

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Handle: RePEc:idt:journl:cs7403

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Related research

Keywords: software markets; intellectual property rights; open source software; public policy.;

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