This article describes six common challenges of design, incentives, and governance that arise in establishing platform businesses. It also proposes solutions. It considers, for example, how to open a platform to decentralized innovation yet still earn a return; how to incorporate best-of-breed...

We study and endogenous growth model where a profit-motivated R&D sector coexists with the introduction of free blueprints invented by philanthropists. These goods are priced at marginal cost, contrary to proprietary ones, which are produced by a monopoly owned by the inventor. We show that...

One of the notable trends in the software industry is that software vendors provide their software on a platform as a service. Software users consume those software services or compose new services by combining those existing software services. The software vendors, their services, software...

We analyze the characteristics of new businesses in the German ICT industry, distinguishing them based on their choice between two IPR regimes: open source software (OSS) or closed source software (CSS). The share of new firms with an OSS-based business model has increased considerably over the...

I consider a Vickrey-Salop model of spatial product differentiation with quasi-linear utility functions and contrast two modes of production, the proprietary model where entrepreneurs sell software to the users, and the open source model where users participate in software development. I show...

Our study aims at shedding light on the innovative business strategies in the soft-ware sector and particularly providing a better understanding of the economics underlying the supply of Open Source Software (OSS). We use survey data collected from 170 Finnish software companies to investigate...

The trivialization of smartphones has given rise to an architectural reconfiguration of the mobile operating system innovation process. We have also seen the recent emergence of three ?open source? consortia: the Symbian and LiMo Foundations, and the Open Handset Alliance. In this exploratory...

This paper casts light on the role of initial code release for providing coordination of joint search processes, i.e., search processes that involve several agents who search together. We develop hypotheses about the role of initial code release for providing coordination, and for whether...

Our paper analyses the free software opportunities for developing economies. First we consider the adoption’s dimension. We show that they seem to be a credible option to support the computerization of these countries. Indeed, the free software could be an alternative to the piracy. Second we...

This paper explores survey data focusing on open source software supply collected from 170 Finnish software firms using descriptive statistical analysis. The first half of the report contains general data about software companies and the differences between proprietary and open source firms. The...