Essays on small and medium sized enterprises as drivers of competition in the software market. an intellectual property rights perspective [Elektronische Ressource] / von Sushmitha Swaminathan

Sushmitha Swaminathan

Informations

• Publié par: humboldt-universitat_zu_berlin
• Publié le: 01 janvier 2009
• Nombre de lectures: 37
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

Essays on Small and Medium Sized Enterprises as Drivers of Competition in the Software
Market: An Intellectual Property Rights Perspective


DISSERTATION


zur Erlangung des akademischen Grades
doctor rerum politicarum
(Doktor der Wirtschaftswissenschaft)


eingereicht an der


Wirtschaftswissenschaftlichen Fakultät
der HumboldtUniversität zu Berlin


von


Sushmitha Swaminathan




Präsident der HumboldtUniversität zu Berlin:
Prof. Dr. Dr. h.c. Christoph Markschies


Dekan der Wirtschaftswissenschaftlichen Fakultät:
Prof. Oliver Günther, Ph.D.

Gutachter: Prof. Dr. Ulrich Kamecke
Prof. Dr. Christian Wey

Datum der Promotion: 20.10.2009




Dedication:

To my family

2
Contents

1. Introduction ........................................................................................................................... 5
1.1 Schumpeter .................................................................................................................. 7
1.2 Focus of study.............................................................................................................. 9
1.3 Software....................................................................................................................... 9
1.4 Public good aspect ..................................................................................................... 10
1.5 Intellectual Property Rights (IPR) ............................................................................. 11
1.6 In case of software: IPR results in OSS and proprietary software ............................ 12
1.7 IPR versus competition policy................................................................................... 13
1.8 Main question ............................................................................................................ 15
1.9 Outline & Contributions ............................................................................................ 16
2. Software as a product and IPR 20
2.1 Software..................................................................................................................... 20
2.1.1 Definitions and desirable properties of software ........................................... 20
2.1.2 Unique features of software ........................................................................... 22
2.1.3 Two features specific to software innovation ................................................ 23
2.2 IPR and software........................................................................................................ 25
2.2.1 Copyright 25
2.2.2 Patents ............................................................................................................ 26
2.2.3 OSS ................................................................................................................ 28
2.3 Open versus closed systems: IPR and competition ................................................... 30
2.3.1 Copyright as a strategy................................................................................... 31
2.3.2 Patents as a strategy ....................................................................................... 32
2.3.3 OSS as a strategy............................................................................................ 37
2.4 Conclusion ................................................................................................................. 42
3. Bundling, spillovers and quality investments ..................................................................... 44
3.1 Introduction 44
3.2 Literature review........................................................................................................ 48
3.3 Model......................................................................................................................... 51
3.4 Results........................................................................................................................ 55
3.4.1 The unbundled case........................................................................................ 55
3.4.1.1 Price game....................................................................................... 55
3.4.1.2 Quality decisions............................................................................. 55
3
3.4.2 The bundled case............................................................................................ 57
3.4.2.1 Price game....................................................................................... 57
3.4.2.2 Quality decisions............................................................................. 57
3.5 Results under no spillovers........................................................................................ 58
3.6 Results with asymmetric spillovers ........................................................................... 59
3.7 Results with symmetric spillovers 64
3.8 Economies of scope ................................................................................................... 65
3.9 Welfare analysis......................................................................................................... 66
3.10 Conclusions.............................................................................................................. 69
3.11 Appendix I ............................................................................................................... 72
3.12 Appendix II 74
4. Small and medium sized firms and IPR adoption............................................................... 76
4.1 Introduction................................................................................................................ 76
4.2 IPR Mechanisms in brief ........................................................................................... 79
4.2.1 Patents ............................................................................................................ 79
4.2.2 Copyrights ...................................................................................................... 81
4.2.3 Trademarks and registered designs ................................................................ 82
4.3 Literature review........................................................................................................ 83
4.4 Research gaps and hypotheses................................................................................... 86
4.5 Data collection, analysis and discussion.................................................................... 90
4.5.1 Geographic dispersion.................................................................................... 93
4.5.2 Legal Frameworks.......................................................................................... 95
4.5.3 Cooperative research...................................................................................... 98
4.5.4 Deployment and development of OSS......................................................... 101
4.6 Conclusions.............................................................................................................. 103
4.7 Appendix I: EBusiness Surveys............................................................................... 105
Bibliography.......................................................................................................................... 107

4
Chapter 1

1. Introduction
Traditionally, classical and neo-classical economists considered technology not as an
economic phenomenon but rather a scientific one that exogenously affected firm decisions.
The focus of these economic theories was to achieve a stable equilibrium through the efficient
1 2allocation of a given set of resources and the determination of price. The cornerstone of
3analysis here is the diminishing returns concept where such accounting enables static
efficiency.

Static efficiency aims at continuous improvements within a fixed set of initial conditions, e.g.
by cutting costs, streamlining processes, efficient resource allocation and so on where the only
adjustments occur from changes in prices and quantities. Consumers thus, greatly benefit
from reduced prices and increased variety. In other words, the economy is constantly pushed
towards smooth and continuous adjustments to reach the equilibrium state in the short run
interrupted intermittently along its path by transient technological advances.

Schumpeter (1911, 1942), however postulated that technology was endogenous to the
economic system. He suggested that the economy was not continuously striving for a stable
and static equilibrium i.e., static efficiency, but instead constantly changing through
innovation i.e., dynamic efficiency. Through dynamic efficiency, initial conditions are
constantly being changed leading to a very different set of gains, which in turn affect future
investment and innovation structures. He referred to this phenomenon as creative
4destruction.

1 Efficiency in allocation is referred to as Pareto-optimality where no situation exists in which one person can be
made better o