Cathedrals Opening Bazaars: Placing Open-Source Software in the Patent Technology Space
When firms make technology public through open-source code, do they reveal the technologies they protect with patents, or a separate set? I link Compustat firms to their USPTO patents and to their GitHub accounts, and a large language model places their open-source projects in the patent classification. In the average firm-year, 35% of a firm’s open-source code lies in technologies it does not patent, against 15% under a randomization benchmark built from the firm’s own items. The excess of the distance between its open-source code and its patents over this benchmark rises with the count of open-source projects about as much as in simulated firms that keep one technology mix at every size. Outside its patented technologies, a firm’s open-source code is less co-located with its nearest technology neighbors’ patents than under the benchmark, consistent with the stated prediction that firms reveal less where rivals can use more of what is disclosed. Within a firm, however, new participants make up a larger share of projects inside its patented technologies than of its other projects, unlike the prediction that communities participate less near patented inventions.