Publications
Publications
- 2021
- HBS Working Paper Series
Open Source Software and Global Entrepreneurship
By: Nataliya Langburd Wright, Frank Nagle and Shane Greenstein
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.)