Software Investigate

Does Open Innovation Foster Productivity? Evidence From Open Source Software (OSS) Firms

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Executive Summary

The primary findings of this paper suggest that software firms that adopt the OSS-based business model are notably less productive than companies that merely offer proprietary software solutions. This estimation results further show that the OSS business model adopters have not become notably less productive after beginning to supply OSS. Therefore, it seems that not the use of the OSS business model as such has reduced the OSS firms' labor productivity but the firms that employed the OSS business model during the sampled years were, on average, of lower labor productivity type.

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