Competition, Innovation and Intellectual Property Rights in Software Markets

Communications & Strategies, No. 74, p. 55, 2nd quarter 2009

20 Pages Posted: 27 Feb 2010

See all articles by Paul de Bijl

Paul de Bijl

CPB Netherlands Bureau of Economic Policy Analysis

Michiel Bijlsma

University of Amsterdam - SEO Economic Research; Tilburg Law and Economics Center (TILEC)

Viktoria Kocsis

University of Amsterdam - SEO Economic Research

Date Written: June 1, 2009

Abstract

This paper analyzes when it may be desirable for the government to stimulate open source software as a response to market failures in software markets. Our most important finding is that directly stimulating open source software, e.g. by acting as a lead customer, can improve dynamic efficiency if (i) there is a serious customer lock-in problem, while (ii) to develop the software, there is no need to purchase specific, complementary inputs at a substantial cost, and (iii) follow-on innovations are socially valuable but there are impediments to contractual agreements between developers that aim at realizing such innovations.

Keywords: software markets, intellectual property rights, open source software, public policy

JEL Classification: L86, R53, O31, O38, O4

Suggested Citation

de Bijl, Paul W.J. and Bijlsma, Michiel and Kocsis, Viktoria, Competition, Innovation and Intellectual Property Rights in Software Markets (June 1, 2009). Communications & Strategies, No. 74, p. 55, 2nd quarter 2009, Available at SSRN: https://ssrn.com/abstract=1558903

Paul W.J. De Bijl (Contact Author)

CPB Netherlands Bureau of Economic Policy Analysis ( email )

P.O. Box 80510
The Hague, 2508 GM
Netherlands
+31 70 3383380 (Phone)
+31 70 3383350 (Fax)

Michiel Bijlsma

University of Amsterdam - SEO Economic Research ( email )

Roetersstraat 29
Amsterdam, 1018 WB
Netherlands

Tilburg Law and Economics Center (TILEC) ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands

Viktoria Kocsis

University of Amsterdam - SEO Economic Research ( email )

Roetersstraat 29
Amsterdam, 1018 WB
Netherlands

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