Personal tools
You are here: Home Articles eGovernment: competition, innovation and intellectual property rights in software markets
Navigation
 
Document Actions

eGovernment: competition, innovation and intellectual property rights in software markets

by xavier last modified 2009-06-23 16:54

The Dutch parliament and government intend to stimulate efficient electronic information exchange, and to do so, see an important role for innovations, particularly aiming at interoperability and competition in software markets. It has therefore proposed various measures to stimulate the adoption of open standards and open source software in the public and semi-public sectors.

Source: The Netherlands Bureau for Economic and Policy Analysis

This is study analyses under which circumstances it may be desirable for the government to stimulate open source software as a response to market failures in software markets. To consider whether policy intervention can increase dynamic efficiency, the document discusses the differences between proprietary software and open source software with respect to the incentives to innovate and market failures that may occur. The document proposes guidelines to determine which types of policy intervention may be suitable.

The 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.

More: http://www.cpb.nl/eng/pub/cpbreeksen/document/181/

Source

http://www.zeapartners.org/articles/egovernment-competition-innovation-ip-in-software-markets001