Does free/open source software enable new forms of entrepreneurship? An analysis of the start-ups created to exploit the business opportunities stemming from free/open source software

Evila Piva and Cristina Rossi-Lamastra

International Journal of Entrepreneurship and Innovation Management, 2012, vol. 16, issue 3/4, 173-190

Abstract: Many scholars have examined the free/open source software (FLOSS) strategies of large software houses. However, few studies have focused on the start-ups that enter the market just to exploit the new business opportunities stemming from the freely available technological knowledge developed by the FLOSS community (FLOSS-based start-ups). This paper aims to fill this gap by providing descriptive evidence about these firms. We address two main research questions: 1) What are the main features of FLOSS-based start-ups?; 2) What is their innovation process? We show that FLOSS-based start-ups follow a typical open innovation model that enables them to serve market niches that large incumbents are not structurally able to cover, profiting from the local production, distribution, and use of technological knowledge.

Keywords: free software; open source software; FLOSS; start-ups; business models; innovation process; open innovation; entrepreneurship; business opportunities; technological knowledge; technological know-how; niche markets. (search for similar items in EconPapers)
Date: 2012
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