Open Source Software and Economic Growth: A Classical Division of Labor Perspective
AbstractThe article turns to classical economic insights on the division of labor and to institutional reasoning to identify some costs and benefits of Open Source Software (OSS) and proprietary software production. It suggests that, thanks to its licenses, OSS favors market expansion more than proprietary software does by tapping into spontaneous work input. The spontaneous tapping leads to a division of labor that exhibits what the article calls redundant economies. By generating a circle of knowledge growth, reuse, and sharing, redundant economies lead to increasing returns, which are crucial for economic growth.
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 University Library of Munich, Germany in its series MPRA Paper with number 3849.
Date of creation: 22 Jun 2007
Date of revision:
Division of Labor; Extent of the Market; Increasing Returns; Institutions; Knowledge; Open Source Software; Redundant Economies;
Find related papers by JEL classification:
- O34 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
- D20 - Microeconomics - - Production and Organizations - - - General
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
- L17 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Open Source Products and Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-07-07 (All new papers)
- NEP-INO-2007-07-07 (Innovation)
- NEP-IPR-2007-07-07 (Intellectual Property Rights)
- NEP-KNM-2007-07-07 (Knowledge Management & Knowledge Economy)
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.:
- Nicolai J. Foss, .
"The New Growth Theory: Some Intellectual Growth Accounting,"
IVS/CBS Working Papers
97-2, Department of Industrial Economics and Strategy, Copenhagen Business School.
- Nicolai Foss, 1998. "The new growth theory: some intellectual growth accounting," Journal of Economic Methodology, Taylor & Francis Journals, vol. 5(2), pages 223-246.
- Garzarelli, Giampaolo, 2006. "The Organizational Approach of Capability Theory: A Review Essay," MPRA Paper 4362, University Library of Munich, Germany.
- George J. Stigler, 1951. "The Division of Labor is Limited by the Extent of the Market," Journal of Political Economy, University of Chicago Press, vol. 59, pages 185.
- Langlois, Richard N., 2003.
"Cognitive comparative advantage and the organization of work: Lessons from Herbert Simon's vision of the future,"
Journal of Economic Psychology,
Elsevier, vol. 24(2), pages 167-187, April.
- Richard N. Langlois, 2002. "Cognitive Comparative Advantage and the Organization of Work: Lessons from Herbert Simon's Vision of the Future," Working papers 2002-20, University of Connecticut, Department of Economics.
- Lerner, Josh & Tirole, Jean, 2002. "Some Simple Economics of Open," Journal of Industrial Economics, Wiley Blackwell, vol. 50(2), pages 197-234, June.
- James M. Buchanan & Yong J. Yoon, 1999. "Generalized Increasing Returns, Euler's Theorem, and Competitive Equilibrium," History of Political Economy, Duke University Press, vol. 31(3), pages 511-523, Fall.
- Giampaolo Garzarelli, 2005. "Cognition, Incentives, and Public Governance:Laboratory Federalism from the Organizational Viewpoint," Public Economics 0512013, EconWPA.
- Nelson, Richard R. & Winter, Sidney G., 1977.
"In search of useful theory of innovation,"
Elsevier, vol. 6(1), pages 36-76, January.
- Richard N. Langlois & Paul L. Robertson, 1996. "Stop Crying over Spilt Knowledge: A Critical Look at the Theory of Spillovers and Technical Change," Working papers 1996-06, University of Connecticut, Department of Economics.
- Giampaolo GARZARELLI, 2003. "Open Source Software and the Economics of Organization," Industrial Organization 0304003, EconWPA.
- Aoki, Masahiko, 2007. "Endogenizing institutions and institutional changes," Journal of Institutional Economics, Cambridge University Press, vol. 3(01), pages 1-31, April.
- David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-37, May.
- Herbert A. Simon, 2002. "Near decomposability and the speed of evolution," Industrial and Corporate Change, Oxford University Press, vol. 11(3), pages 587-599, June.
- Romer, Paul M, 1986.
"Increasing Returns and Long-run Growth,"
Journal of Political Economy,
University of Chicago Press, vol. 94(5), pages 1002-37, October.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Dosi, Giovanni, 1993.
"Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change,"
Elsevier, vol. 22(2), pages 102-103, April.
- Dosi, Giovanni, 1982. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, vol. 11(3), pages 147-162, June.
- Nicolai J. Foss & Giampaolo Garzarelli, 2007.
"Institutions as knowledge capital: Ludwig M. Lachmann's interpretative institutionalism,"
Cambridge Journal of Economics,
Oxford University Press, vol. 31(5), pages 789-804, September.
- Foss, Nicolai & Garzarelli, Giampaolo, 2006. "Institutions as Knowledge Capital: Ludwig M. Lachmann’s Interpretative Institutionalism," MPRA Paper 3087, University Library of Munich, Germany.
- Paul L. Robertson & Lee J. Alston, 1992. "Technological choice and the organization of work in capitalist firms," Economic History Review, Economic History Society, vol. 45(2), pages 330-349, 05.
- Richard Langlois & Giampaolo Garzarelli, 2008.
"Of Hackers and Hairdressers: Modularity and the Organizational Economics of Open-source Collaboration,"
Industry and Innovation,
Taylor & Francis Journals, vol. 15(2), pages 125-143.
- Richard N. Langlois & Giampaolo Garzarelli, 2008. "Of Hackers and Hairdressers: Modularity and the Organizational Economics of Open-source Collaboration," Working papers 2008-53, University of Connecticut, Department of Economics.
- Liebowitz, S J & Margolis, Stephen E, 1990. "The Fable of the Keys," Journal of Law and Economics, University of Chicago Press, vol. 33(1), pages 1-25, April.
- Timothy F. Bresnahan & Alfonso Gambardella, 1997. "The Division of Inventive Labor and The Extent of The Market," Working Papers 97029, Stanford University, Department of Economics.
- T. W. Swan, 1956. "ECONOMIC GROWTH and CAPITAL ACCUMULATION," The Economic Record, The Economic Society of Australia, vol. 32(2), pages 334-361, November.
- Nathan Rosenberg, 1960. "Some Institutional Aspects of the Wealth of Nations," Journal of Political Economy, University of Chicago Press, vol. 68, pages 557.
- Ashish Arora & Alfonso Gambardella & Enzo Rullani, 1997. "Division of Labour and the Locus of Inventive Activity," Journal of Management and Governance, Springer, vol. 1(1), pages 123-140, March.
- Swan, Trevor W, 2002. "Economic Growth," The Economic Record, The Economic Society of Australia, vol. 78(243), pages 375-80, December.
- Jean-Michel Dalle & Paul David, 2005. "The Allocation of Software Development Resources In ‘Open Source’ Production Mode," Industrial Organization 0502011, EconWPA.
- Young, Allyn A., 1928. "Increasing Returns and Economic Progress," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 38, pages 527-542.
- Rosenberg, Nathan, 1969. "The Direction of Technological Change: Inducement Mechanisms and Focusing Devices," Economic Development and Cultural Change, University of Chicago Press, vol. 18(1), pages 1-24, Part I Oc.
- Giampaolo Garzarelli & Riccardo Fontanella, 2011.
"Open Source Software Production, Spontaneous Input, and Organizational Learning,"
American Journal of Economics and Sociology,
Wiley Blackwell, vol. 70(4), pages 928-950, October.
- Garzarelli, Giampaolo & Fontanella, Riccardo, 2010. "Open Source Software Production, Spontaneous Input, and Organizational Learning," MPRA Paper 22949, University Library of Munich, Germany.
- Engelhardt, Sebastian v. & Freytag, Andreas, 2013.
"Institutions, culture, and open source,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 95(C), pages 90-110.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.