7. 1. 1  Social production

Advances in global communications and the democratisation of technology in recent decades could have influenced what we now consider free software in different ways.

That is, the ease of access to information and willingness to cooperate are not unique features of free software; they form a basis for the development of valid and viable alternatives in many fields.

While there are now many initiatives associated to varying degrees with social production, in this model, business organisations discover a way to encourage creation and attract value for their business models.

An example of social production

Wikipedia (http://www.wikipedia.org/).

Recommended reading

L. Morgan; P. Finnegan(2008). Deciding on open innovation: an exploration of how firms create and capture value with open source software(Vol. 287, pp. 229-246). IFIP.

In The Wealth of Networks, Yochai Benkler explores this issue in detail. Below, we will discuss some of the most relevant aspects characterising social production.

Recommended website

Y. Benkler(2006). The Wealth of Networks: How social production transforms markets and freedom. (http://www.benkler.org/Benkler _Wealth_Of_Networks.pdf).

Economics of information

Information is a public good with economic implications at different levels as a result of the use of information technologies.

Innovation, as the creation of new information, may be adversely affected by situations with restriction or control, and facilitated by openness and collaboration on the production of information, knowledge and culture.

Hence, production or innovation in peer-to-peer networks or generates a spiral of opportunities characterised by motivation and efficiency with technological support.

Peer-to-peer networks

In this case, the term refers to the operation of the community, rather than the architectural or technological basis of communication.

Development and distribution of information

The development and distribution of information can follow a variety of patterns, depending on how freedom is distributed between producers and consumers. In general, the more freedom given to producers, the less obtained by consumers.

Distribution channels for information influence how the latter is shared. The direction of the transfer and its aims also influence how information is shared.

In all events, licensing and patents can restrict the flow of information, while the quantitative growth of the network need not fragment or restrict it.

Implications of social production

Benkler maintains that the way we see the operational structure of the world around us is changing, especially in terms of how we all collaborate and interact with the integration of ideas and knowledge to create new knowledge.