Innovativeness of software solutions: evidence from an alternative methodology Comparing Free/Open Source and proprietary products

The issue of innovation processes taking place in the software sector is currently widely debated. Challenging questions arise about what products/services have to be considered innovative, and whether a specific artefact is innovative or not. In this framework, the widespread success of the Free/Open Source Software (FOSS) put forward new research issues, dealing with whether and how programs developed according to the new production paradigm turn out to be more innovative than traditional ones. In this framework, this paper aims at contributing to the literature by addressing three main research questions: (i) are software solutions produced by Small and Medium Enterprises (SMEs) innovative? (ii) What kinds of innovations are implemented? And, finally, (iii) are programs based on FOSS more innovative than proprietary ones? Basing on a sample of 134 software solutions produced by Italian SMEs and using an original methodology to asses the problem of evaluating innovation in the software field, we provides some first insights of what emerges if we set aside the traditional innovation indicators and endower to build alternative metrics, specifically developed to target the complexity of the innovation processes in the software markets.