While prior research has examined the role of Information Technology (IT) investments in the process and performance of innovation, there is relatively little research on the business value of software innovation itself. In particular, whether a firm's software innovation affects the market...

While software patents have been growing steadily since 1996 when the restrictions on the patentability of software were eliminated, their value and impacts on firm’s profits remain unclear and ambiguous. Drawing on the real option theory and the literature on exploration and exploitation, we...