Who Starts with Open Source? Institutional Choice of Start-Ups in the German ICT Sector
AbstractWe analyze the characteristics of new businesses in the German ICT industry, distinguishing them based on their choice between two IPR regimes: open source software (OSS) or closed source software (CSS). The share of new firms with an OSS-based business model has increased considerably over the last several years. OSS-based firms tend to be smaller (in terms of staff and capital) and experience less shortages of capital. Only older cohorts of OSS-intensive start-ups had more difficulty than their CSS counterparts in convincing potential financiers of their viability, indicating that OSS business models are now well established. We find no evidence that the lower entry barriers for OSS firms are particularly attractive to start-ups with low human capital endowment or to necessity-motivated entrepreneurs.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2010-049.
Date of creation: 04 Aug 2010
Date of revision:
New business formation; institutions; open source; intellectual property rights; software industry;
Find related papers by JEL classification:
- D02 - Microeconomics - - General - - - Institutions: Design, Formation, and Operations
- L17 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Open Source Products and Markets
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-08-21 (All new papers)
- NEP-BEC-2010-08-21 (Business Economics)
- NEP-ENT-2010-08-21 (Entrepreneurship)
- NEP-EUR-2010-08-21 (Microeconomic European Issues)
- NEP-INO-2010-08-21 (Innovation)
- NEP-IPR-2010-08-21 (Intellectual Property Rights)
- NEP-MIC-2010-08-21 (Microeconomics)
- NEP-SBM-2010-08-21 (Small Business Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Henrekson, Magnus & Sanandaji, Tino, 2011.
"The interaction of entrepreneurship and institutions,"
Journal of Institutional Economics,
Cambridge University Press, vol. 7(01), pages 47-75, March.
- Henrekson, Magnus & Sanandaji, Tino, 2010. "The Interaction of Entrepreneurship and Institutions," Working Paper Series 830, Research Institute of Industrial Economics.
- Harison, Elad & Koski, Heli, 2010. "Applying open innovation in business strategies: Evidence from Finnish software firms," Research Policy, Elsevier, vol. 39(3), pages 351-359, April.
- Sebastian von Engelhardt, 2008. "Intellectual Property Rights and Ex-Post Transaction Costs: the Case of Open and Closed Source Software," Jena Economic Research Papers 2008-047, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Holmes, Thomas J & Schmitz, James A, Jr, 1990.
"A Theory of Entrepreneurship and Its Application to the Study of Business Transfers,"
Journal of Political Economy,
University of Chicago Press, vol. 98(2), pages 265-94, April.
- Andrew Burke & Stuart Fraser, 2005. "The Impact of Intellectual Property Rights on Self-Employed Entrepreneurship: an International Analysis," Papers on Entrepreneurship, Growth and Public Policy 2005-13, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Elad Harison & Robin Cowan, 2004. "On substitution of intellectual property and free disclosure: an analysis of R&D strategies in software technologies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(5), pages 477-487.
- Henrekson, Magnus, 2007. "Entrepreneurship and Institutions," Working Paper Series 707, Research Institute of Industrial Economics.
- Dahlander, Linus & Wallin, Martin W., 2006. "A man on the inside: Unlocking communities as complementary assets," Research Policy, Elsevier, vol. 35(8), pages 1243-1259, October.
- Zoltan Acs & Sameeksha Desai & Jolanda Hessels, 2008. "Entrepreneurship, economic development and institutions," Small Business Economics, Springer, vol. 31(3), pages 219-234, October.
- Michael Fritsch & Alexandra Schroeter, 2009. "Are More Start-Ups Really Better? Quantity and Quality of New Businesses and Their Effect on Regional Development," Jena Economic Research Papers 2009-070, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Markus Pasche).
If references are entirely missing, you can add them using this form.