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Open Source Software: The New Intellectual Property Paradigm

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Author Info
Stephen M. Maurer
Suzanne Scotchmer

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Abstract

Open source methods for creating software rely on developers who voluntarily reveal code in the expectation that other developers will reciprocate. Open source incentives are distinct from earlier uses of intellectual property, leading to different types of inefficiencies and different biases in R&D investment. Open source style of software development remedies a defect of intellectual property protection, namely, that it does not generally require or encourage disclosure of source code. We review a considerable body of survey evidence and theory that seeks to explain why developers participate in open source collaborations instead of keeping their code proprietary, and evaluates the extent to which open source may improve welfare compared to proprietary development.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 12148.

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Date of creation: Apr 2006
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Handle: RePEc:nbr:nberwo:12148

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L - Industrial Organization

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Steven Weber, 2000. "The Political Economy of Open Source Software," UCAIS Berkeley Roundtable on the International Economy, Working Paper Series 1011, UCAIS Berkeley Roundtable on the International Economy, UC Berkeley. [Downloadable!]
  2. Alexandre Gaudeul, 2004. "Open Source Software Development Patterns and License Terms," Industrial Organization 0409008, EconWPA. [Downloadable!]
  3. Henkel, Joachim, 2006. "Selective revealing in open innovation processes: The case of embedded Linux," Research Policy, Elsevier, vol. 35(7), pages 953-969, September. [Downloadable!] (restricted)
  4. Lerner, Josh & Tirole, Jean, 2003. "The Scope of Open Source Licensing," IDEI Working Papers 219, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
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  5. Schmidt, Klaus M. & Schnitzer, Monika, 2003. "Public Subsidies for Open Source? Some Economic Policy Issues of the Software Market," CEPR Discussion Papers 3793, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  6. Jean-Michel Dalle & Paul David, 2005. "The Allocation of Software Development Resources In ‘Open Source’ Production Mode," Industrial Organization 0502011, EconWPA. [Downloadable!]
  7. Fabio M. Manenti & Stefano Comino & Marialaura Parisi, 2005. "From Planning to Mature: on the Determinants of Open Source Take-Off," Industrial Organization 0507006, EconWPA, revised 29 Sep 2005. [Downloadable!]
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  8. Lerner, Josh & Tirole, Jean, 2002. "Some Simple Economics of Open," Journal of Industrial Economics, Blackwell Publishing, vol. 50(2), pages 197-234, June. [Downloadable!] (restricted)
  9. Justin Pappas Johnson, 2002. "Open Source Software: Private Provision of a Public Good," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 11(4), pages 637-662, December. [Downloadable!] (restricted)
  10. Aghion, Philippe & Tirole, Jean, 1994. "The Management of Innovation," The Quarterly Journal of Economics, MIT Press, vol. 109(4), pages 1185-1209, November. [Downloadable!] (restricted)
  11. Bronwyn Hall, 2004. "Incentives for knowledge production with many producers," ESRC Centre for Business Research - Working Papers wp292, ESRC Centre for Business Research. [Downloadable!]
  12. Joachim Henkel & Eric von Hippel, 2005. "Welfare Implications of User Innovation," The Journal of Technology Transfer, Springer, vol. 30(2_2), pages 73-87, 01. [Downloadable!]
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  13. Henkel, Joachim, 2004. "The Jukebox Mode of Innovation - A Model of Commercial Open Source Development," CEPR Discussion Papers 4507, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  14. Harhoff, Dietmar & Henkel, Joachim & von Hippel, Eric, 2003. "Profiting from voluntary information spillovers: how users benefit by freely revealing their innovations," Research Policy, Elsevier, vol. 32(10), pages 1753-1769, December. [Downloadable!] (restricted)
  15. Scotchmer, Suzanne, 1991. "Standing on the Shoulders of Giants: Cumulative Research and the Patent Law," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 29-41, Winter. [Downloadable!] (restricted)
  16. Aghion, Philippe & Tirole, Jean, 1994. "On the Management of Innovation," IDEI Working Papers 36, Institut d'Économie Industrielle (IDEI), Toulouse.
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  17. West, Joel, 2003. "How open is open enough?: Melding proprietary and open source platform strategies," Research Policy, Elsevier, vol. 32(7), pages 1259-1285, July. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Robert M. Sauer, 2007. "Why Develop Open Source Software? The Role of Non-Pecuniary Benefits, Monetary Rewards and Open Source Licence Type," IZA Discussion Papers 3197, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Kristian Koerselman, 2008. "Can open sourcing lead to inferior standards?," Discussion Papers 27, Aboa Centre for Economics. [Downloadable!]
  3. Michiel Bijlsma & Paul de Bijl & Viktoria Kocsis, 2009. "Competition, innovation and intellectual property rights in software markets," CPB Documents 181, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  4. Marcello Basili & Antonio Nicita & Maria Alessandra Rossi, 2008. "Contracts and Motivations. The Case of Open Source," Department of Economics University of Siena 544, Department of Economics, University of Siena. [Downloadable!]
  5. Frank A.G. den Butter & Stefan P.T. Groot & Faroek Lazrak, 2007. "The Transaction Costs Perspective on Standards as a Source of Trade and Productivity Growth," Tinbergen Institute Discussion Papers 07-090/3, Tinbergen Institute. [Downloadable!]
  6. Blecker, Thorsten & Abdelkafi, Nizar & Raasch, Christina, 2008. "Enabling and Sustaining Collaborative Innovation," MPRA Paper 8964, University Library of Munich, Germany. [Downloadable!]
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