Open-source software holds significant importance in the tech industry due to its collaborative development model, which allows developers to access, modify, and distribute the source code freely. This fosters innovation as users can contribute improvements and share solutions, leading to enhanced software quality and faster problem-solving. Additionally, open-source software reduces costs for organizations and promotes interoperability by adhering to shared standards. By building a community around the software, open-source projects often create robust support networks and encourage knowledge sharing among developers.