OPEN SOFTWARE AS AN INNOVATION FACTOR FOR THE ICT INDUSTRY

Abstract

This article analyzes possible benefits of using free software as an innovation factor in the Information and Communication Technology (ICT) market. By means of econometric studies it was found that the elasticity-investment for research relates to the number of free software in Brazil by a rate of 2.66, indicating that the use of free software brings a multiplying effect on the provision of solutions to the market. When this multiplicative potential is associated to the coefficient of elasticity-cost of product (-1.26), and if we take into account the fact that the cost of reusing code that is already available is close to zero, a set of factors is disclosed which proves the benefits of using free software.