The Impact of Entry and Competition by Open Source Software on Innovation Activity

TY - CHAP

T1 - The Impact of Entry and Competition by Open Source Software on Innovation Activity

AU - Schröder, Philipp J.H.

AU - Bitzer, Jürgen

PY - 2006

Y1 - 2006

N2 - This chapter presents the stylized facts of open source software innovation and provides empirical evidence on the impact of increased competition by OSS on the innovative activity in the software industry. Furthermore, we introduce a simple formal model that captures the innovation impact of OSS entry by examining a change in market structure from monopoly to duopoly under the assumption that software producers compete in technology rather than price or quantities. The chapter identifies a pro-innovative effect of OSS competition.

AB - This chapter presents the stylized facts of open source software innovation and provides empirical evidence on the impact of increased competition by OSS on the innovative activity in the software industry. Furthermore, we introduce a simple formal model that captures the innovation impact of OSS entry by examining a change in market structure from monopoly to duopoly under the assumption that software producers compete in technology rather than price or quantities. The chapter identifies a pro-innovative effect of OSS competition.

U2 - 10.1016/B978-044452769-1/50011-1

DO - 10.1016/B978-044452769-1/50011-1

M3 - Book chapter

SN - 978-0-444-52769-1

SP - 219

EP - 246

BT - The Economics of Open Source Software Development

A2 - Bitzer, Jürgen

A2 - Schröder, Philipp J.H.

PB - Pergamon Press

ER -