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

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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.
Original languageEnglish
Title of host publicationThe Economics of Open Source Software Development
EditorsJürgen Bitzer, Philipp J.H. Schröder
PublisherPergamon Press
Publication year2006
ISBN (print)978-0-444-52769-1
Publication statusPublished - 2006

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