When firms contribute to open source projects, they in fact invest into public goods which may be used by everyone, even by their competitors. This seemingly paradoxical behavior is explained by the model of private-collective innovation where private investors participate in collective action. Previous literature explains that companies benefit through the production process providing them with unique incentives such as learning and reputation effects. By contributing to such open source projects firms are able to build a network of external individuals and organizations, who may participate...
When firms contribute to open source projects, they in fact invest into public goods which may be used by everyone, even by their competitors. This se...