Look at the scientific process for a model for how it can work, and how
people can make money. Discoveries in science are protected for a
little while, maybe patented, but eventually make their way into the
general public. Sometimes its immediate, sometimes it's eventual due to
business.
The wheel has already been invented, open source just wants to continue
building on that, rather than (as a proprietary app company does)
continually reinvented our own wheel, so that we can built upon.
Open source software has far larger opportunity to make significant
advancements in computer science, since the only thing you're ultimately
competing against is time and yourself.
That's the utopian view. The pragmatic open source view says the open
source software works best for commodity products. Focused, vertical
market products can certainly benefit from open source, but finding R&D
funding for vertical markets is so difficult that sometimes proprietary
software is the only way to go.
If we could solve the "software R&D funding" problem, then the world
would be doing nothing but open source software! :)
Jeff
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