How much is your design worth?

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Pearce, J.M. (2015) Quantifying the Value of Open Source Hardware Development. Modern Economy, 6, 1-11. https://www.academia.edu/10143203/Quantifying_the_Value_of_Open_Source_Hardware_Development Abstract: As digital manufacturing technologies like 3-D printing continue to mature, a new paradigm is emerging for distributed manufacturing in both scientific equipment and consumer goods. Hardware released under free licenses is known as free and open source hardware (FOSH). Those with access to digital manufacturing methods and scientists with needs for highly-customized low-volume production products greatly benefit from the availability of these FOSH designs. However, traditional funding models struggle to support necessary investments in FOSH development due to the difficulty in quantifying its value. To overcome this challenge and capitalize on opportunities in both low-cost scientific equipment and consumer products, this article evaluates three methods for quantifying the value of FOSH design: 1) downloaded substitution valuation; 2) avoided reproduction valuation; and 3) market savings valuation, along with additional benefits related to market expansion, scientific innovation acceleration, educational enhancement, and medical care improvement. The strengths and weaknesses of these methods are analyzed, showing that they are relatively straightforward to implement based on reliable freely-available data and minimize assumptions. A case study of a syringe pump with numerous scientific and medical applications is presented, revealing millions of dollars in economic value from a simple scientific device released under open licenses, representing orders of magnitude more value than conventional proprietary development. The inevitable conclusion of this study is that FOSH development should be funded by organizations seeking to maximize return on public investments, particularly those associated with science, medicine, and education. Updates: http://www.appropedia.org/Quantifying_the_Value_of_Open_Source_Hardware_Development