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Innovative Software Business Strategies: Evidence from Finnish Firms

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  • Harison, Elad
  • Koski, Heli

Abstract

Our study aims at shedding light on the innovative business strategies in the soft-ware sector and particularly providing a better understanding of the economics underlying the supply of Open Source Software (OSS). We use survey data collected from 170 Finnish software companies to investigate the determinants of the choice of OSS production. Our study focuses on the role of a firms absorptive capacity in its adoption of OSS supply as a business strategy. We find that the quality of a firms human capital indeed matters : those companies that supply OSS solutions also have relatively more highly educated employees. However, our data do not indicate that a firm`s accumulated intellectual property affects in any significant way its choice to apply OSS-based strategy.

Suggested Citation

  • Harison, Elad & Koski, Heli, 2006. "Innovative Software Business Strategies: Evidence from Finnish Firms," Discussion Papers 1042, The Research Institute of the Finnish Economy.
  • Handle: RePEc:rif:dpaper:1042
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    More about this item

    Keywords

    open source; software market; innovative business strategies;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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