Return on investment in the context of "Open-source hardware"


Return on investment in the context of "Open-source hardware"

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⭐ Core Definition: Return on investment

Return on investment (ROI) or return on costs (ROC) is the ratio between net income or profit to investment (costs resulting from an investment of some resources). A high ROI means the investment's gains compare favorably to its cost. As a performance measure, ROI is used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments. In economic terms, it is one way of relating profits to capital invested.

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πŸ‘‰ Return on investment in the context of Open-source hardware

Open-source hardware (OSH, OSHW) consists of physical artifacts of technology designed and offered by the open-design movement. Both free and open-source software (FOSS) and open-source hardware are created by this open-source culture movement and apply a similar concept to a variety of components. It is sometimes, thus, referred to as free and open-source hardware (FOSH), meaning that the design is easily available ("open") and that it can be used, modified and shared freely ("free"). The term usually means that information about the hardware is easily discerned so that others can make it – coupling it closely to the maker movement. Hardware design (i.e. mechanical drawings, schematics, bills of material, PCB layout data, HDL source code and integrated circuit layout data), in addition to the software that drives the hardware, are all released under free/libre terms. The original sharer gains feedback and potentially improvements on the design from the FOSH community. There is now significant evidence that such sharing can drive a high return on investment for the scientific community.

It is not enough to merely use an open-source license; an open source product or project will follow open source principles, such as modular design and community collaboration.

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