Open Source Software in the EU: What the European Commission Study Measures on Technological Independence

The European Commission's study on the impact of open-source software and hardware on the EU economy marks a paradigm shift by identifying open source as a public good. This classification is not merely semantic; it implies a recognition that its value transcends individual commercial transactions to affect the structural resilience of the European digital economy.

By treating code as a common good, it is acknowledged that its benefits are distributed non-exclusively among users and developers. This contrasts with proprietary models, where access is conditioned by restrictive licenses. The open nature allows for inspection, modification, and redistribution, generating a network effect that strengthens the collective digital infrastructure.

The research is framed within the EU's Open Source Strategy, which places these technologies at the center of technological sovereignty. The objective is to promote open European alternatives to patented solutions from third countries, thereby reducing dependence on critical digital infrastructures that are not under European control.

This strategy aims to ensure that decisions regarding the development of fundamental technologies are not subject to external jurisdictions. By fostering the internal development of open standards and platforms, the EU attempts to consolidate its own technological base, guaranteeing the operational continuity of its public and private services.

One of the most cited conclusions of the study is that investment in open source generates an average return four times higher than other forms of technological investment. This data, highlighted by the Commission itself, seeks to justify the allocation of public and private resources toward open ecosystems rather than closed proprietary licenses.

The superiority in return is not limited to immediate savings on licenses but encompasses long-term cost reductions in maintenance and migration. Open systems allow organizations to adapt software to their specific needs without incurring additional fees for each new feature, thus optimizing the return on initial investment.

In macroeconomic terms, it is estimated that companies located in the EU invested around one billion euros in open-source software in 2018. This investment translated into a positive impact on the European economy of between 65 and 95 billion euros, demonstrating a significant multiplication of initial capital in the productive fabric.

This economic multiplier reflects how capital invested in open development diffuses through the market, generating added value in diverse sectors. Efficiency in the use of technological resources contributes to the general productivity of the economy, allowing companies to compete in global markets with more sustainable cost structures.

The study's predictive model suggests that a 10% increase in contributions to open-source software code would generate an additional 0.4% to 0.6% of GDP annually. Furthermore, it projects the creation of more than 600 new ICT companies in the EU, indicating a dynamizing effect on technological entrepreneurship.

These projections are based on the premise that open source facilitates innovation and agility in the development of new applications by eliminating collaboration barriers. The reduction of frictions allows companies to scale digital products more rapidly and with lower market entry costs.

The creation of new ICT companies not only increases the number of market actors but also diversifies the supply of technological solutions. This ecosystem fosters competition and specialization, attracting qualified talent and stimulating applied research in areas such as artificial intelligence and cybersecurity.

The impact on employment is particularly relevant for specialized technical profiles. The demand for developers, systems engineers, and software architecture experts is driven by the need to maintain and evolve open platforms, creating a virtuous cycle of training and hiring in the European technology sector.

Unlike software, which has been generalized across all sectors, the maturity level of open-source hardware (OSH) is currently much lower. However, the business ecosystem for OSH is developing rapidly and could constitute a cornerstone for the future Internet of Things (IoT) and industrial digital transformation.

The gap between software and hardware lies in manufacturing costs and the complexity of engineering processes. Nevertheless, the openness of hardware designs allows local manufacturers to adapt components to their specific needs, reducing dependence on single suppliers and facilitating the repair and recycling of electronic devices.

The dependence on processor architectures like ARM, which is based outside the EU following its acquisition by SoftBank and Brexit, accentuates strategic vulnerability. The study and associated roadmaps advocate for the development of open-source architectures as an alternative to avoid blockages or protectionist restrictions from third countries.

The development of own and open architectures is crucial to guarantee supply chain security. By having access to the complete design of processors, European engineers can audit security, identify vulnerabilities, and optimize performance for specific applications, ensuring total control over critical infrastructure.

For the public sector, the adoption of open-source software allows for significant cost reductions and avoids vendor lock-in. This increases the digital autonomy of administrations, which can modify and maintain software without depending on external licenses or the will of a single manufacturer.

Digital autonomy is a fundamental pillar for the provision of essential public services. By eliminating dependence on a single supplier, administrations gain flexibility to negotiate more favorable conditions, integrate heterogeneous systems, and guarantee service continuity even in the face of changes in the technological market or crisis situations.

Companies and SMEs benefit from the reduction of entry barriers and access to shared innovation ecosystems. The reuse of open-source code allows organizations to focus their resources on differentiating their final products rather than developing basic infrastructure from scratch.

This reuse strategy accelerates the time to market for new products. SMEs, which usually have limited resources, can compete with large corporations by leveraging mature and proven codebases, dedicating their creative effort to the features that provide unique value to their customers.

Although technological independence metrics are useful for strategic planning, it is important to consider that the economic valuation of open source is complex. The study provides a solid basis for the development of future software and hardware policies, but implementation requires European-level coordination to avoid fragmentation.

The complexity of valuation arises from the difficulty in quantifying intangible benefits, such as security and interoperability. Therefore, public policies must be based on a combination of quantitative and qualitative indicators, ensuring that investment decisions reflect the total strategic value of open technologies.

The strategic roadmap defines short-term (2-5 years), medium-term (5-10 years), and long-term (>10 years) objectives. The success of these initiatives depends on European actors working together to create a critical mass of activities that strengthen the influence of the open-source community on the global stage.

Transnational coordination is essential to harmonize standards and share best practices. By aligning research, development, and adoption efforts, the EU can maximize the impact of its investments and position its companies as global leaders in the creation of open and secure digital infrastructures.