Open source software from commercial firms - tools, complements, and collective invention
Joachim Henkel · 2002
In recent years, open source software such as GNU/Linux, Apache, or Perl has received considerable attention. Commonly, the term is understood to imply that the software is developed by geographically dispersed volunteers. While this is true in many cases, corporate interest in and contributions to open source software have recently increased enormously, IBM being the most prominent example. The purpose of this paper is to analyze firms’ benefits and risks from contributing to software that does not allow to charge licensing fees, and that can be freely used and even modified by anyone. Corporate contributors to open source software are classified into users of the software and sellers of complements. For both groups, one of the biggest potential benefits from contributing to open source software is that outside parties, individuals as well as other firms, join in the collaborative development of the software. The central question is if this benefit does indeed materialize. Case studies, literature analysis, and a theoretical discussion show that an “open source community of commercial firms” is indeed possible, provided certain conditions are fulfilled. Finally, a parallel to the phenomenon of “collective invention” is drawn.