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Competition, Innovation and Intellectual Property Rights in Software Markets

Author

Listed:
  • 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.

Suggested Citation

  • Michiel BIJLSMA & Paul W.J. DE BIJL & Viktória KOCSIS, 2009. "Competition, Innovation and Intellectual Property Rights in Software Markets," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(74), pages 55-74, 2nd quart.
  • Handle: RePEc:idt:journl:cs7403
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    More about this item

    Keywords

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

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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