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Six Challenges in Platform Licensing and Open InnovationGeoffrey ParkerTulane University - A.B. Freeman School of Business Marshall W. Van AlstyneBoston University - Department of Management Information Systems; MIT Sloan School June 1, 2009 Communications & Strategies, No. 74, p.17, 2nd quarter 2009 Abstract: This article describes six common challenges of design, incentives, and governance that arise in establishing platform businesses. It also proposes solutions. It considers, for example, how to open a platform to decentralized innovation yet still earn a return; how to incorporate best-of-breed innovations from different sources while avoiding problems of multi-party hold-up; and how to encourage sources of good ideas to contribute those ideas despite the risk of losing them to owners of indispensible complements. We express these issues and solutions as a reduced set of tradeoffs useful for managing information and technology property.
Number of Pages in PDF File: 20 Keywords: licensing, open source, free software, dual licensing, platform, intellectual property JEL Classification: K11, L86, O31, O32, O33, O34 Accepted Paper SeriesDate posted: February 27, 2010Suggested CitationContact Information
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