How is it possible to profit from innovation in the absence of any appropriability?

Abstract

Open Source Software (OSS) represents an "open innovation" paradigm based on knowledge produced and shared by developers and users. New findings from a large survey of European software companies show that: (i) the OSS business model is currently involving almost one third of the industry, although with different intensity; (ii) compared with pure proprietary software producers, OSS firms have a broader product portfolio and are more diversified; moreover, (iii) OSS firms provide more complementary services to their customers; (iv) over time OSS firms increase the share of OS turnover out of the total turnover, becoming more and more OSS oriented; (v) both NOSS and OSS firms do not consider appropriability as a crucial requirement for innovation and do not consider the lack of appropriability as an obstacle to profitability. © 2006 International Federation for Information Processing.