Indirect economic impact
* Strong network effects in ICT... risk leading to innovation resources being excessively allocated to defensive innovation. There is a case for a rebalancing of innovation incentives... (to target) publicly available technology for new functionality.
* FLOSS potentially saves industry over 36% in software R&D investment
* ...a large and increasing share of user-generated content is not accounted for and needs to be addressed by policy makers
* Increased FLOSS use may provide a way for Europe to compensate for a low GDP share of ICT investment relative to the US
Trends, scenarios and policy strategies
* Doubling the rate of FLOSS take-up in Europe would result in a software share of investment at 1.5% of GDP, reducing but not closing this investment gap with the US
* Europe's strengths regarding FLOSS are its strong community of active developers, small firms and secondary software industry; weaknesses include Europe's generally low level of ICT investment and low rate of FLOSS adoption by large industry compared to the US
* FLOSS provides opportunities in Europe for new businesses, a greater role in the wider information society and a business model that suits European SMEs
* Europe faces three scenarios: CLOSED, where existing business models are entrenched... GENERIC, where current mixed policies lead to a gradual growth of FLOSS... VOLUNTARY, where policies and the market develop to recognise and utilise the potential of FLOSS
* (goes on to suggest policy initiatives to support FLOSS)
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