IDEAS home Printed from https://ideas.repec.org/p/uto/dipeco/201526.html
   My bibliography  Save this paper

Open Innovation in a Model à la Hotelling

Author

Listed:

Abstract

This paper shows a model à la Hotelling in which profit-maximizing firms use either an open or a closed strategy to develop their software products. Only in the first case they can freely interchange information about their R&D, and the spillovers are higher the closer they are. What comes out is a clustering force that drives open firms to stay closer one another in the product characteristic space and which lead to believe that a sense of community is essential to work for an organizational model that is decentralized, modular and that cannot be planned in advance, like the Bazaar development model, used by open firms, is.

Suggested Citation

  • Bottai, Carlo, 2015. "Open Innovation in a Model à la Hotelling," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201526, University of Turin.
  • Handle: RePEc:uto:dipeco:201526
    as

    Download full text from publisher

    File URL: http://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2015dip/wp_26_2015.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Nicholas Economides & Evangelos Katsamakas, 2006. "Two-Sided Competition of Proprietary vs. Open Source Technology Platforms and the Implications for the Software Industry," Management Science, INFORMS, vol. 52(7), pages 1057-1071, July.
    2. Sebastian von Engelhardt, 2010. "Quality Competition or Quality Cooperation? License-Type and the Strategic Nature of Open Source vs. Closed Source Business Models," Jena Economic Research Papers 2010-034, Friedrich-Schiller-University Jena.
    3. Bitzer, Jurgen, 2004. "Commercial versus open source software: the role of product heterogeneity in competition," Economic Systems, Elsevier, vol. 28(4), pages 369-381, December.
    4. Llanes, Gastón & de Elejalde, Ramiro, 2013. "Industry equilibrium with open-source and proprietary firms," International Journal of Industrial Organization, Elsevier, vol. 31(1), pages 36-49.
    5. Piga, Claudio & Poyago-Theotoky, Joanna, 2005. "Endogenous R&D spillovers and locational choice," Regional Science and Urban Economics, Elsevier, vol. 35(2), pages 127-139, March.
    6. Ashish Arora & Farasat A. S. Bokhari, 2007. "Open Versus Closed Firms And The Dynamics Of Industry Evolution," Journal of Industrial Economics, Wiley Blackwell, vol. 55(3), pages 499-527, September.
    7. Mai, Chao-cheng & Peng, Shin-kun, 1999. "Cooperation vs. competition in a spatial model," Regional Science and Urban Economics, Elsevier, vol. 29(4), pages 463-472, July.
    8. Gaudeul Alex, 2007. "Do Open Source Developers Respond to Competition? The LATEX Case Study," Review of Network Economics, De Gruyter, vol. 6(2), pages 1-25, June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uto:dipeco:201526. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Piero Cavaleri) or (Marina Grazioli). General contact details of provider: http://edirc.repec.org/data/detorit.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.