Open Source Software and the "Private-Collective" Innovation Mod...

Courtesy MIT Sloan Publications  Fri, 05/29/2009 - 15:10

Currently two models of innovation are prevalent in organization science. The "private investment" model assumes returns to the innovator results from private goods and efficient regimes of intellectual property protection.

The "collective action" model assumes that under conditions of market failure, innovators collaborate in order to produce a public good.

The phenomenon of open source software development shows that users program to solve their own as well as shared technical problems, and freely reveal their innovations without appropriating private returns from selling the software.

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