The innovation debate is ten years old. Open source projects that copy proprietary projects may discourage the proprietary developers from going through the work of innovating. Software is the means to an end, hardware and the combination of hardware and software, the system, is the goal. Gave the example of a modern laptop as what is wrong with a proprietary design evolution. Compared the selling of music to the new world of application servers.
Music industry has a ten year leap over software companies.
The dominant cost of development is in software development. Software is also where the product's value lies. Hardware and software are the same, vendors are essentially selling content. Openness is independent of coding standards. Red Hat's Ecos is open source, was designed for testability from the beginning, and has an open source test suite.