The Impact of Entry and Competition by Open Source Software on Innovation Activity
AbstractThis paper presents the stylized facts of open source software innovation and provides empirical evidence on the impact of increased competition by OSS on the innovative activity in the software industry. Furthermore, we introduce a simple formal model that captures the innovation impact of OSS entry by examining a change in market structure from monopoly to duopoly under the assumption that software producers compete in technology rather than price or quantities. The paper identifies a pro-innovative effect of OSS competition.
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Bibliographic InfoPaper provided by EconWPA in its series Industrial Organization with number 0512001.
Length: 38 pages
Date of creation: 02 Dec 2005
Date of revision:
Note: Type of Document - pdf; pages: 38
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open source software; innovation; strategic interaction;
Find related papers by JEL classification:
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L30 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - General
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-12-09 (All new papers)
- NEP-COM-2005-12-09 (Industrial Competition)
- NEP-CSE-2005-12-09 (Economics of Strategic Management)
- NEP-IND-2005-12-09 (Industrial Organization)
- NEP-INO-2005-12-09 (Innovation)
- NEP-NET-2005-12-09 (Network Economics)
- NEP-TID-2005-12-09 (Technology & Industrial Dynamics)
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