Abstract

This chapter focuses on software development, and identifies and analyzes properties and processes of importance to the coordination and governance of Free and Open Source (F/OS)-based innovations. The traditional model of innovation, restricted/close source (R/CS) model is based on proprietary knowledge and a private model of production. The open source model is based on non-proprietary knowledge and noneconomic motives. Between the two, there are various combinations or hybrids, referred to as free/open source-based (F/OS-based) agency. The chapter identifies avenues for future research as well as important managerial and policy implications. The chapter analyzes the looser forms of cooperation that exist in F/OS-based agency from an organizational and institutional perspective. To better understand some of the key organizational and managerial characteristics of F/OS-based innovations, it provides some practical examples of F/OS-based projects. It argues that the F/OS-based agency does not fit into contemporary microeconomic conceptualizations of the firm. The chapter also discusses the implications for managers and other policy-makers.

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