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

Jürgen Bitzer () and Philipp Schröder

Industrial Organization from EconWPA

Abstract: This paper 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 paper identifies a pro-innovative effect of OSS competition.

Keywords: open source software; innovation; strategic interaction (search for similar items in EconPapers)
JEL-codes: L13 L30 L86 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-cse, nep-ind, nep-ino, nep-net and nep-tid
Date: 2005-12-02
Note: Type of Document - pdf; pages: 38
References: View references in EconPapers View complete reference list from CitEc
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpio:0512001

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