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Appropriation And Appropriability In Open Source Software

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  • LINUS DAHLANDER

    (Department of Technology Management and Economics, Chalmers University of Technology, Vera Sandbergs Allé 8, Gothenburg, 41296, Sweden)

Abstract

Firms in open source software (OSS) are active in a field encompassing all the characteristics of a public good, given the non-excludability and non-rivalry nature of OSS. The fact that many important inputs to the innovative process are public should not be taken to mean that innovators are prevented from capturing private returns. The objective of this paper is to explore how firms appropriate returns from innovations that are created outside the boundaries of firms and in the public domain, using the case of OSS. To do so, the paper draws upon an explorative multiple case study of five small firms that attempt to appropriate returns from OSS, with rich empirical evidence from various data sources. The cases illustrate how firms try a variety of approaches to appropriate adequate returns, and suggest that selling services is the dominant trend. Firms also balance the relative inefficiency of traditional means of intellectual property rights such as patents by putting greater emphasis on first-mover advantages and creating network externalities.

Suggested Citation

  • Linus Dahlander, 2005. "Appropriation And Appropriability In Open Source Software," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 9(03), pages 259-285.
  • Handle: RePEc:wsi:ijimxx:v:09:y:2005:i:03:n:s1363919605001265
    DOI: 10.1142/S1363919605001265
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    References listed on IDEAS

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    1. Josh Lerner, 2005. "The Scope of Open Source Licensing," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 21(1), pages 20-56, April.
    2. Josh Lerner & Jean Triole, 2000. "The Simple Economics of Open Source," NBER Working Papers 7600, National Bureau of Economic Research, Inc.
    3. David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-337, May.
    4. Ove Granstrand, 1999. "The Economics and Management of Intellectual Property," Books, Edward Elgar Publishing, number 1651.
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    Citations

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    Cited by:

    1. G. Parmentier & Vincent Mangematin, 2014. "Orchestrating innovation with user communities in the creative industries," Grenoble Ecole de Management (Post-Print) halshs-00848861, HAL.
    2. Eilhard, Jan, 2008. "Firms on SourceForge," MPRA Paper 7809, University Library of Munich, Germany.
    3. Nordine Benkeltoum, 2017. "Open source software adoption for safety-critical information systems design: the Thales case study [Adoption de l’open source pour la conception de systèmes d’information critiques : le cas Thales," Post-Print hal-04191308, HAL.
    4. G. Parmentier & Vincent Mangematin, 2014. "Orchestrating innovation with user communities in the creative industries," Post-Print halshs-00848861, HAL.
    5. Omar Carrasco-Carvajal & Mauricio Castillo-Vergara & Domingo García-Pérez-de-Lema, 2023. "Measuring open innovation in SMEs: an overview of current research," Review of Managerial Science, Springer, vol. 17(2), pages 397-442, February.
    6. David M. Waguespack & Lee Fleming, 2009. "Scanning the Commons? Evidence on the Benefits to Startups Participating in Open Standards Development," Management Science, INFORMS, vol. 55(2), pages 210-223, February.
    7. Krishnamurthy, Sandeep & Tripathi, Arvind K., 2009. "Monetary donations to an open source software platform," Research Policy, Elsevier, vol. 38(2), pages 404-414, March.
    8. Balka, Kerstin & Raasch, Christina & Herstatt, Cornelius, 2009. "How open is open source: Software and beyond," Working Papers 58, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    9. German Lambardi, 2009. "Software Innovation and the Open Source threat," Working Papers 09-15, NET Institute, revised Sep 2009.
    10. Andersen-Gott, Morten & Ghinea, Gheorghita & Bygstad, Bendik, 2012. "Why do commercial companies contribute to open source software?," International Journal of Information Management, Elsevier, vol. 32(2), pages 106-117.
    11. Parmentier, Guy & Mangematin, Vincent, 2014. "Orchestrating innovation with user communities in the creative industries," Technological Forecasting and Social Change, Elsevier, vol. 83(C), pages 40-53.
    12. Andrea Bonaccorsi & Silvia Giannangeli & Cristina Rossi, 2006. "Entry Strategies Under Competing Standards: Hybrid Business Models in the Open Source Software Industry," Management Science, INFORMS, vol. 52(7), pages 1085-1098, July.

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