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  • 2021
  • Working Paper
  • HBS Working Paper Series

Open Source Software and Global Entrepreneurship

By: Nataliya Langburd Wright, Frank Nagle and Shane Greenstein
  • Format:Print
  • | Language:English
  • | Pages:52
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Abstract

This is the first study to consider the relationship between open source software (OSS) and entrepreneurship around the globe. This study measures whether country-level participation on the GitHub OSS platform affects the founding of innovative ventures, and where it does so, for what types of ventures. We estimate these effects using cross-country variation in new venture founding and OSS participation. We propose an approach using instrumental variables, and cannot reject a causal interpretation. The study finds that an increase in GitHub participation in a given country generates an increase in the number of new technology ventures within that country in the subsequent year. The evidence suggests this relationship is complementary to a country’s endowments, and does not substitute for them. In addition to this positive change in the rate of entrepreneurship, we also find a change in direction – OSS contributions lead to new ventures that are more mission- and global-oriented and are of a higher quality. Together, the results suggest that OSS can boost entrepreneurial activity, albeit with a human capital prerequisite. We consider the implications for policies that encourage OSS as a lever for stimulating entrepreneurial growth.

Keywords

Open Source Software; GitHub; Applications and Software; Entrepreneurship; Global Range; Development Economics

Citation

Wright, Nataliya Langburd, Frank Nagle, and Shane Greenstein. "Open Source Software and Global Entrepreneurship." Harvard Business School Working Paper, No. 20-139, June 2020. (Revised August 2022.)
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About The Authors

Frank Nagle

Strategy
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Shane M. Greenstein

Technology and Operations Management
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More from the Authors
  • Hugging Face: Serving AI on a Platform By: Shane Greenstein, Daniel Yue, Kerry Herman and Sarah Gulick
  • Note on Cyberattacks and Regulatory Regimes By: Frank Nagle, George A. Riedel, William R. Kerr and David Lane
  • Creating a Platform for Costless Personalization in Clothing By: Shane Greenstein
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