Slightly OT: is free software development indirectly subsidized?

[anthony baldwin]

On a list for translators, I´ve initiated a discussion of open source 
software in the industry.

One gentleman made the following comment, and I am unsure what truth 
lies therein, nor how to respond.
His comment:

One question puzzles me: as far as I can tell, 'free software 
development' is indirectly subsidized by the universities or software 
companies that employ these developers during the day (so they can code 
for 'free' at night....)  Without these supporting institutions, free 
software would likely wither away, I think.  What do others think?


/tony

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