nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2008‒07‒20
two papers chosen by
Walter Frisch
University Vienna

  1. Music or Hi-Tech Lovers? An Empirical Analysis of the Digital Music Market in Italy By Francesco BALDUCCI
  2. Does Open Innovation Foster Productivity? Evidence from Open Source Software(OSS) Firms By Elad Harison; Heli Koski

  1. By: Francesco BALDUCCI (Universita' Politecnica delle Marche, Dipartimento di Economia)
    Abstract: Using survey data on cultural consumption by about 650 university students, this article proposes a market segmentation and some rule-of-thumb policy implications for the music industry. Consumption behaviors, listening habits and musical preferences are explained by a large number of variables Nevertheless it is possible to reduce this overload of information into two common factors (using factor analysis). Cluster analysis is accordingly used to group the students-consumers: the digital music lovers cluster is the most profitable for the music industry, whilst those of uninterested subjects and pure hi-tech lovers are the least. The analysis shows that the new digital technologies (for example file sharing) may be harmful for the music industry only within one specific group of consumers. New technologies can instead promote music consumption (especially of live music) by the other categories. By investing in music knowledge and enjoyment, it is possible to make consumers buy digital music legally from authorized sites.
    Keywords: market segmentation, media, music, technological change
    JEL: L82 O33 Z11
    Date: 2008–07
    URL: http://d.repec.org/n?u=RePEc:anc:wpaper:324&r=ict
  2. By: Elad Harison; Heli Koski
    Abstract: ABSTRACT : The primary findings of our study suggest that software firms that adopt the OSS-based business model are notably less productive than companies that merely offer proprietary software solutions. Our estimation results further show that the OSS business model adopters have not become notably less productive after beginning to supply OSS. Therefore, its seems that not the use of the OSS business model as such has reduced the OSS firms’ labour productivity but the firms that employed the OSS business model during the sampled years were, on average, of lower labour productivity type. Though the OSS business model use has not substantially improved the performance of software firms, we find that the OSS business model adopters strategically using the source code made available by the OSS community as part of their new software products, have performed better in terms of labour productivity than other adopters of the OSS business model.
    Date: 2008–07–07
    URL: http://d.repec.org/n?u=RePEc:rif:dpaper:1135&r=ict

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