Open Innovation in a Model à la Hotelling

Department of Economics and Statistics Cognetti de Martiis. Working Papers from University of Turin

Abstract: This paper shows a model à la Hotelling in which profit-maximizing firms use either an open or a closed strategy to develop their software products. Only in the first case they can freely interchange information about their R&D, and the spillovers are higher the closer they are. What comes out is a clustering force that drives open firms to stay closer one another in the product characteristic space and which lead to believe that a sense of community is essential to work for an organizational model that is decentralized, modular and that cannot be planned in advance, like the Bazaar development model, used by open firms, is.

Pages: 27 pages
Date: 2015-06
New Economics Papers: this item is included in nep-com, nep-cse, nep-ino and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:uto:dipeco:201526

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