Abstract

This chapter evaluates the hypothesis that open source software can potentially help promote technological innovation. It analyzes the potential to open source software solve the tension between the need to provide firms and individuals with the incentive to innovate and the desirability of encouraging widespread use of cutting-edge technologies and examines the development and marketing of software. The analysis indicates that most firms extensively blend the development of open source and proprietary software, rather than specializing in one or the other and that they diversify between open source and proprietary software in other dimensions as well.

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