This paper provides a quantitative study (N = 268) of patterns of free revealing of firm-developed innovations within embedded Linux, a type of open source software (OSS). I find that firms, without being obliged to do so, contribute many of their own developments back to public embedded Linux code, eliciting and indeed receiving informal development… (More)
There is general agreement that the quality of the management team is one of the most important characteristics of successful new firms. Accordingly, the evaluation of the venture team is central in a venture capitalist's (VC) assessment of an investment proposal. Research has shown that team characteristics such as industry experience, educational… (More)
Empirical studies of innovation have found that end users frequently develop important product and process innovations. Defying conventional wisdom on the negative effects of uncompensated spillovers, innovative users also often openly reveal their innovations to all users and manufacturers. Rival users are thus in a position to reproduce the innovation… (More)
This paper discusses the economic merits of direct or indirect governmental support for open source projects. Software markets differ from standard textbook markets in three important respects that may give rise to market failures: (i) large economies of scale, (ii) crucially important innovations, (iii) significant network effects and switching costs. We… (More)
The " open source development process " has received considerable attention. It means that loosely coordinated , geographically dispersed developers collaborate. While in prototypical open source projects developers are unpaid volunteers, the involvement of commercial firms has recently increased enormously. There are some areas of open source software… (More)
The link between firms engaging in open source software (OSS) development and the OSS community is established by individual developers. This linkage might entail a principal-agent issue due to the developer's double allegiance to firm and OSS community, and expose the firm to the risk of losing intellectual property. Using both interviews and a large-scale… (More)
In this paper, I explore the circumstances under which innovation processes without secrecy or intellectual property protection are viable, and where free revealing of innovations is a profit-maximizing strategy. Motivated by an empirical study of embedded Linux, I develop a duopoly model of quality competition. Firms require two complementary technologies… (More)
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