The Value of
Public Sector Information
      Seminario, Informatica Giuridica
     Università Carlo Cattaneo - LIUC
      ...
Chi sono

Research & Business
Development
Consorzio TOP-IX


Fellow, Centro NEXA
Politecnico di Torino

Fellow, Dipartimen...
outline
•   Background: Internet economics
•   Government as a Platform
•   The value of PSI
•   Q&A




                 ...
Internet
     economics
alcune caratteristiche economiche
    dei beni e delle reti digitali




                         ...
Digital technology could enable an extraordinary range of
ordinary people to become part of a creative process.
To move fr...
The networked information economy makes individuals better
able to do things for and by themselves, […] the emergence of
t...
When I say that innovation is being democratized, I mean that
users of products and services—both firms and individual
cons...
Digital goods are different…
                                                 A) Expensive to produce,
                   ...
9


    9
la “commedia” della
      scarsità
  e dei rendimenti
 marginali crescenti


         10

                       10
la lunga coda
Confrontando i dati di vendita dei libri e le ricerche on-line sulla
piattaforma di commercio elettronico de...
la lunga coda




                12

                     12
Social Media
   Revolution
   Facebook = 400M users
     50% log-in every day
200M users interacting every day



Real-Tim...
A paradigmatic shift:
         information economy
•   The transition from a physically-based to a knowledge-
    based ec...
la cattedrale        il bazaar




                15

                                 15
Government
 as a Platfrom
Nuovi modelli di valorizzazione del
 Patrimonio Informativo Pubblico




                16

   ...
USA e UK
                                                My Administration is committed to creating an unprecedented
     ...
USA - data.gov        UK - data.gov.uk




                 18

                                         18
Europa, Italia e Piemonte

                        EUROPA
                        Direttiva 2003/98/CE del 17 novembre 200...
PSI data mines
•   The Public Sector holds and
    manages huge amounts of data
    and information. Fostering
    access ...
GOV 2.0




•   The US experience shows that PSI disclosure has strong
    implications in terms of e-government and trans...
The value of PSI (use)
 PSI can be used and reused in
     many ways (non rivalry in             Several supply chain
    ...
The value of PSI:
         the “free data” approach
•   The peculiar cost structure of digital data collecting,
    proces...
The value of PSI:
   cost recovery approach
Although a cost recovery regime may bound potential
demand and distort competi...
The value of PSI: possible scenarios
Directive 2003/98/EC is aimed at fostering PSI reuse mainly by promoting:
1.PSI avail...
The price of PSI:
        Externalities & Policy
All pricing strategies encompass potential risks of inefficiency
 for PSI ...
“The project of the next president is figuring out how you create
bottom-up economic growth.” 
( Barack Obama, The New York...
GRAZIE
lorenzo.benussi@top-ix.org



            28

                             28
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The Value of (digital) Public Sector Information

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Lecture @ University Carlo Cattaneo - LIUC,
Castellanza, 12 maggio 2010, Italy

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The Value of (digital) Public Sector Information

  1. 1. The Value of Public Sector Information Seminario, Informatica Giuridica Università Carlo Cattaneo - LIUC Castellanza –12 Maggio 2010 Lorenzo Benussi lorenzo.benussi@top-ix.org 1 1
  2. 2. Chi sono Research & Business Development Consorzio TOP-IX Fellow, Centro NEXA Politecnico di Torino Fellow, Dipartimento di Economia Università di Torino 2 2
  3. 3. outline • Background: Internet economics • Government as a Platform • The value of PSI • Q&A 3 3
  4. 4. Internet economics alcune caratteristiche economiche dei beni e delle reti digitali 4 4
  5. 5. Digital technology could enable an extraordinary range of ordinary people to become part of a creative process. To move from the life of a consumer […] to a life where one can individually and collectively participate in making something new. (The future of ideas, Lawrence Lessig) 5 5
  6. 6. The networked information economy makes individuals better able to do things for and by themselves, […] the emergence of this new set of technical, economic, social, and institutional relations can increase the relative role that each individual is able to play in authoring his or her own life. (The Wealth of Networks, Yochai Benkler) 6 6
  7. 7. When I say that innovation is being democratized, I mean that users of products and services—both firms and individual consumers—are increas- ingly able to innovate for themselves. (DEMOCRATIZING INNOVATION, Eric Von Hippel) 7 7
  8. 8. Digital goods are different… A) Expensive to produce, cheap to reproduce Unique cost B) High fixed costs, characteristics low marginal costs Digital goods A) Experience goods Unique demand B) Non exclusive characteristics C) Overload Fonte: Shapiro&Varian, 1999 8 8
  9. 9. 9 9
  10. 10. la “commedia” della scarsità e dei rendimenti marginali crescenti 10 10
  11. 11. la lunga coda Confrontando i dati di vendita dei libri e le ricerche on-line sulla piattaforma di commercio elettronico dell’editore californiano O’Reilly , si nota che esiste una grande quantità di titoli che potrebbero essere venduti ma sono assenti dalla distribuzione fisica. 11 11
  12. 12. la lunga coda 12 12
  13. 13. Social Media Revolution Facebook = 400M users 50% log-in every day 200M users interacting every day Real-Time WEB 13 13
  14. 14. A paradigmatic shift: information economy • The transition from a physically-based to a knowledge- based economy made information a primary wealth-creating asset. • Digital access to information changes the structure of industries, promoting services-oriented business models based on disclosure and sharing of information and knowledge. 14 14
  15. 15. la cattedrale il bazaar 15 15
  16. 16. Government as a Platfrom Nuovi modelli di valorizzazione del Patrimonio Informativo Pubblico 16 16
  17. 17. USA e UK My Administration is committed to creating an unprecedented level of openness in Government.  We will work together to ensure the public trust and establish a system of transparency, public participation, and collaboration. Openness will strengthen our democracy and promote efficiency and effectiveness in Government. Transparency and Open Government Memorandum for the Heads of Executive Departments and Agencies (2009) "People are tempted to keep it [data].You hug your database, you don't want to let it go until you've made a beautiful website for it. Well I'd like to suggest that, yes, make a beautiful website, who am I to say don't make a beautiful website? Make a beautiful website, but first, give us the unadulterated data, we want the data, we want unadulterated data. We have to ask for raw data now." Tim Berners-Lee, Creator of the WWW, advisor data.gov.uk 17 17
  18. 18. USA - data.gov UK - data.gov.uk 18 18
  19. 19. Europa, Italia e Piemonte EUROPA Direttiva 2003/98/CE del 17 novembre 2003 The evolution towards an information and knowledge society influences the life of every citizen in the Com-munity, inter alia, by enabling them to gain new ways of accessing and acquiring knowledge. DIRECTIVE 2003/98/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 17 November 2003 on the re-use of public sector information ITALIA Decreto Legislativo 24 gennaio 2006 n. 36 PIEMONTE - Dimensione Locale Delibera e Linee guida relative al riutilizzo del patrimonio informativo pubblico 19 19
  20. 20. PSI data mines • The Public Sector holds and manages huge amounts of data and information. Fostering access to those repositories enables new business opportunities that can broaden market volumes in such sectors. • PSI represents the raw material from which value added products and services can be designed. COURTESY/RON WHEELER. The 8,000-foot deep Homestake Gold Mine in South Dakota is the site where scientists, including UC Berkeley researchers, plan to construct the world's deepest research center. 20 20
  21. 21. GOV 2.0 • The US experience shows that PSI disclosure has strong implications in terms of e-government and transparency. • EU countries have a “second mover” chance to massively implement such a disruptive paradigm shift. 21 21
  22. 22. The value of PSI (use) PSI can be used and reused in many ways (non rivalry in Several supply chain consumption): configurations. 1.Broad range of sectors 1.Linear models (private re- 2.Different sets of actors users add value) 3.PSI holders 2.User generated contents 4.Private re-users 3.Information sharing between 5.Regulatory bodies public bodies 6.Citizens MEPSIR (2006) estimates the EU market value of PSI as 27 billion Euros. 22 22
  23. 23. The value of PSI: the “free data” approach • The peculiar cost structure of digital data collecting, processing and delivering (high fixed costs, zero marginal cost) strongly influences the possible pricing strategies to be adopted by PSI holders. • Pollock (2008): a price that equals marginal costs (i.e. PSI free of charge) is socially optimal provided that elasticity of demand and positive externalities overcome a given threshold. ✓ Empirics: those conditions are likely to be verified in most of the PSI domains. 23 23
  24. 24. The value of PSI: cost recovery approach Although a cost recovery regime may bound potential demand and distort competition, several critical issues could trigger its adoption. ✓ Lack of long-run commitment in subsidizing PSI collection. ✓ Underestimation of downstream demand and network externalities. ✓ Short-term decision making. ✓ Moral hazard (?). 24 24
  25. 25. The value of PSI: possible scenarios Directive 2003/98/EC is aimed at fostering PSI reuse mainly by promoting: 1.PSI availability in digital format 2.Transparency of reuse conditions and pricing 3.Non discrimination MEPSIR (2006) Which market configurations are likely to emerge? Directive impact Main condition Example Information is strongly liked with the Cadastral Closed shop Minor. Public Sector bodies continue to functioning of public bodies. information control the supply chain. Non-negligible. New entrants step into Information is important while not strategic Meteorological Battlefield the downstream market. for PA. data Strong. Public Sector enlarges its influence Digitalization offers new opportunities for Legal information over the downstream stages. value extraction. Playground Traffic and Non-negligible. Public Sector has the Information reuse generates high demand transport only role of information holder. volumes from citizens and firms information 25 25
  26. 26. The price of PSI: Externalities & Policy All pricing strategies encompass potential risks of inefficiency for PSI holders (due to lack of incentives in reducing costs and/or improving quality). The importance of the regulatory framework The Central Role of Externalities 26 26
  27. 27. “The project of the next president is figuring out how you create bottom-up economic growth.”  ( Barack Obama, The New York Time, February 2 2008) 27 27
  28. 28. GRAZIE lorenzo.benussi@top-ix.org 28 28

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