Proprietary Software's R&D Decisions When Open Source Software Appears in a Software Industry

Autor: Ming Qing Xing
Rok vydání: 2010
Předmět:
Zdroj: 2010 International Conference on E-Product E-Service and E-Entertainment.
DOI: 10.1109/iceee.2010.5660735
Popis: In recent years, the problem of open source is a very hot topic in software industries, however the studies about how open source software (OSS) affects competitive strategies of software industry are rare. Though expanding the classical Hotelling model, this paper investigates the product innovation decisions of proprietary software (PS) firm when open source software appears. In this paper, the model includes not only important factors (e.g. the network externality and software compatibility) affecting the traditional software industry competition, but also the OSS learning (maintenance or development) costs and user's software development skills. The following conclusions are found: (i) the compatibility degree between OSS and PS affects RD (ii) the RD (iii) how network externality and user's software development skills affect the R&D effort of PS depends on the compatibility degree between OSS and PS.
Databáze: OpenAIRE