Challenges of open innovation: the paradox of firm investment in open-source software

Open innovation is a powerful framework encompassing the generation, capture, and employment of intellectual property at the firm level. We identify three fundamental challenges for firms in applying the concept of open innovation: finding creative ways to exploit internal innovation, incorporating external innovation into internal development, and motivating outsiders to supply an ongoing stream of external innovations. This latter challenge involves a paradox, why would firms spend money on R&D efforts if the results of these efforts are available to rival firms? To explore these challenges, we examine the activity of firms in opensource software to support their innovation strategies. Firms involved in open-source software often make investments that will be shared with real and potential rivals. We identify four strategies firms employ – pooled R&D/product development, spinouts, selling complements and attracting donated complements – and discuss how they address the three key challenges of open innovation. We conclude with suggestions for how similar strategies may apply in other industries and offer some possible avenues for future research on open innovation

Libre culture: meditations on free culture

Libre Culture is the essential expression of the free culture/copyleft movement. This anthology, brought together here for the first time, represents the early groundwork of Libre Society thought. Referring to the development of creativity and ideas, capital works to hoard and privatize the knowledge and meaning of what is created. Expression becomes monopolized, secured within an artificial market-scarcity enclave and finally presented as a novelty on the culture industry in order to benefit cloistered profit motives. In the way that physical resources such as forests or public services are free, Libre Culture argues for the freeing up of human ideas and expression from copyright bulwarks in all forms

How open is open enough?: Melding proprietary and open source platform strategies

Computer platforms provide an integrated architecture of hardware and software standards as a basis for developing complementary assets. The most successful platforms were owned by proprietary sponsors that controlled platform evolution and appropriated associated rewards. Responding to the Internet and open source systems, three traditional vendors of proprietary platforms experimented with hybrid strategies which attempted to combine the advantages of open source software while retaining control and differentiation. Such hybrid standards strategies reflect the competing imperatives for adoption and appropriability, and suggest the conditions under which such strategies may be preferable to either the purely open or purely proprietary alternatives

Inefficiencies in markets for intellectual property rights: experiences of academic and public research institutions

The formal use of such intellectual property rights (IPR) as patents and registered copyright by universities has increased steadily in the last two decades. Mainstream arguments, embedded in economic theory and policy, advocating the use of IPR to protect academic research results are based on the view that IPR marketplaces work well and allow universities to reap significant benefits. However, there is a lack of evidence-based research to justify or critically evaluate these claims. Building upon an original survey of 46 universities and public research organizations in the United Kingdom, this study analyses the quality of the institutions underpinning the markets for patents and copyright, investigating potential inefficiencies that could lead to underperformance of the IPR system. These include ‘IPR market failures’ with respect to search processes and transparency; price negotiation processes; uncertainties in the perception of the economic value of IRP and the relationship with R&D cost. Further sources of underperformance may include ‘institutional failures’ with respect to enforcement and regulation. Particular attention is paid to the role of governance forms (e.g. alternative types of licensing agreements) through which IPR exchanges take place. We find that a high share of universities report market failures in IPR transactions and that the choice of IPR governance forms matter for the obstacles that are encountered. Given the importance of widely disseminating university research outcomes to foster innovation and economic development, the presence of inefficiencies in IPR markets suggests that such objectives could best be achieved by encouraging open distribution of knowledge, rather than privatization of academic knowledge

Open Source Innovation, Patent Injunctions, and the Public Interest

This Article explores the difficulties that high technology markets pose for patent law and, in particular, for patent injunctions. It then outlines the ways in which “open source innovation” is unusually vulnerable to patent injunctions. It argues that courts can recognize this vulnerability, and respond to the particular competitive and innovative benefits of open source innovation, by flexibly applying the Supreme Court’s ruling in eBay v. MercExchange. Having dealt with the lamentable failure of the International Trade Commission to exercise a similar flexibility in its own patent jurisprudence, despite statutory and constitutional provisions that counsel otherwise, the Article concludes with some recommendations for reform

A selected glossary of electronic data interchange and related terms

School of Managemen

The Commons Concept and Intellectual Property Rights Regime: Whither Plant Genetic Resources and Traditional Knowledge?

[Excerpt] The classification of plant genetic resources (PGRs) as the common heritage of humankind continues to generate controversies. The debate is between developing countries that are the primary sources of these resources and industrialized, biotechnologically advanced countries that appropriate and utilize PGRs as raw materials for various commercial products, such as medicine, seed variety, or pesticides. Scholars of diverse backgrounds express various opinions on whether PGRs obtained from plants found within a territory of a sovereign state should properly be designated “common heritage of humankind” or regarded as part of the “commons,” and therefore freely accessible. The debate also extends to and challenges the status of traditional knowledge on the uses of PGRs. The dominant but not necessarily the correct view is that such knowledge is information in the public domain, incapable of private ownership or control