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The Economic Dynamics Of Software: Three Competing Business Models Exemplified Through Microsoft, Netscape And Linux

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  • Maureen Mckelvey
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    Abstract

    This article proposes three ideal business models to analyze innovation in knowledge-intensive goods and services. The three models are 1) Firm-based control. 2) Hybrid, and 3) Network-based. Each is defined in relation to the two sides of innovation, e.g. creation of novelty and of economic value. Defining the models this way leads to a discussion of the advantages and disadvantages of each model for organizing the development of different types of software and for appropriating economic benefits. Each business model is .also exemplified through the economic history of one example. The examples are, respectively. Microsoft, Netscape and Linux. The concluding section relates software development to the broader forms of economic dynamics in knowledge-intensive sectors.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Economics of Innovation and New Technology.

    Volume (Year): 10 (2001)
    Issue (Month): 2-3 ()
    Pages: 199-236

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    Handle: RePEc:taf:ecinnt:v:10:y:2001:i:2-3:p:199-236

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    Related research

    Keywords: Innovation; Evolutionary Economics; Micmsoft; Netscape; Linux; Software; IEL CIassification L86; 031; 032; 033;

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    Cited by:
    1. Harison, Elad & Koski, Heli, 2006. "Innovative Software Business Strategies: Evidence from Finnish Firms," Discussion Papers, The Research Institute of the Finnish Economy 1042, The Research Institute of the Finnish Economy.
    2. Harison, Elad & Koski, Heli, 2010. "Applying open innovation in business strategies: Evidence from Finnish software firms," Research Policy, Elsevier, Elsevier, vol. 39(3), pages 351-359, April.

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