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Patent Commons, Thickets, and Open Source Software Entry by Start-Up Firms

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  • Wen Wen
  • Marco Ceccagnoli
  • Chris Forman

Abstract

We examine whether the introduction of a patent commons, a special type of royalty free patent pool available to the open source software (OSS) community influences new OSS product entry by start-up software firms. In particular, we analyze the impact of The Commons--established by the Open Source Development Labs and IBM in 2005. We find that increases in the size of The Commons related to a software market increase the rate of entry in the market by start-ups using a new product based on an OSS license. The marginal impact of The Commons on OSS entry is increasing in the cumulativeness of innovation in the market and the extent to which patent ownership in the market is concentrated.

Suggested Citation

  • Wen Wen & Marco Ceccagnoli & Chris Forman, 2013. "Patent Commons, Thickets, and Open Source Software Entry by Start-Up Firms," NBER Working Papers 19394, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:19394
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    Cited by:

    1. Jorge L. Contreras & Bronwyn H. Hall & Christian Helmers, 2018. "Green Technology Diffusion: A Post-Mortem Analysis of the Eco-Patent Commons," NBER Working Papers 25271, National Bureau of Economic Research, Inc.
    2. Ryan Lampe & Petra Moser, 2013. "Patent pools and innovation in substitute technologies—evidence from the 19th-century sewing machine industry," RAND Journal of Economics, RAND Corporation, vol. 44(4), pages 757-778, December.

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    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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