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Open Source Software and Economic Growth: A Classical Division of Labor Perspective

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  • Garzarelli, Giampaolo
  • Limam, Yasmina Reem
  • Thomassen, Bjørn

Abstract

The article turns to classical economic insights on the division of labor and to institutional reasoning to identify some costs and benefits of Open Source Software (OSS) and proprietary software production. It suggests that, thanks to its licenses, OSS favors market expansion more than proprietary software does by tapping into spontaneous work input. The spontaneous tapping leads to a division of labor that exhibits what the article calls redundant economies. By generating a circle of knowledge growth, reuse, and sharing, redundant economies lead to increasing returns, which are crucial for economic growth.

Suggested Citation

  • Garzarelli, Giampaolo & Limam, Yasmina Reem & Thomassen, Bjørn, 2007. "Open Source Software and Economic Growth: A Classical Division of Labor Perspective," MPRA Paper 3849, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:3849
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    References listed on IDEAS

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    Cited by:

    1. Engelhardt, Sebastian v. & Freytag, Andreas, 2013. "Institutions, culture, and open source," Journal of Economic Behavior & Organization, Elsevier, vol. 95(C), pages 90-110.
    2. Giampaolo Garzarelli & Riccardo Fontanella, 2011. "Open Source Software Production, Spontaneous Input, and Organizational Learning," American Journal of Economics and Sociology, Wiley Blackwell, vol. 70(4), pages 928-950, October.
    3. Michael A. Peters, 2011. "Three Forms of the Knowledge Economy: Learning, Creativity and Openness," Chapters, in: Roger King & Simon Marginson & Rajani Naidoo (ed.), Handbook on Globalization and Higher Education, chapter 5, Edward Elgar Publishing.

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    More about this item

    Keywords

    Division of Labor; Extent of the Market; Increasing Returns; Institutions; Knowledge; Open Source Software; Redundant Economies;
    All these keywords.

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • D20 - Microeconomics - - Production and Organizations - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L17 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Open Source Products and Markets

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