Successfully reported this slideshow.

Estimating the Market Value of PSI


Published on

Published in: Technology, Economy & Finance
  • Be the first to comment

  • Be the first to like this

Estimating the Market Value of PSI

  1. 1. Estimating the market value of PSI<br />Graham Vickery<br />Information Economics<br />   <br /> PSI Alliance ConferenceMoving Forward to Economic GrowthBrussels28 June 2011<br />
  2. 2. The background <br />The public sector is and has always been a large producer, collector and repository of a very wide variety of data/information and content <br />Two main technological developments have changed and shaped the role of public sector information and content<br /> These are:<br />Technologies that enable the digitisation of public resources as they are produced, and retrospectively for public resources already existing<br />Deployment of broadband technologies that enable better access and findability, and more rapid dissemination of PSI<br />2<br />
  3. 3. What is Public Sector Information? <br />Public sector information characteristics:<br />dynamic and continually generated <br />directly generated by the public sector <br />associated with the functioning of the public sector, e.g. geo-spatial data, meteorological data, business statistics<br />often readily useable in commercial applications with relatively little transformation of raw data<br />This set of information is often the basis for information-intensive industries <br />These activities use the raw data to produce increasingly sophisticated and pervasive products, such as location data accessed from smart-phones<br />This area has received most attention and is the focus of e.g. the EC Directive on the re-use of PSI <br />3<br />
  4. 4. What is Public Content? <br />Public content characteristics: <br />static (i.e. it is an established record), <br />held by the public sector rather than directly generated, e.g. cultural archives, artistic works where third-party rights may be important<br />not directly associated with the functioning of government<br />not necessarily associated with commercial uses but having public good characteristics, e.g. culture, education<br />It usually covers cultural, educational and scientific public knowledge<br />Wide public diffusion and long-term preservation are major objectives<br />The public task is potentially clearer, but because of rapid growth of interest in all kinds of cultural goods and services, the potential for market and non-market development is very large<br />Distinctions between PSI / PC not clear-cut. There is a continuum of uses and applications along the spectrum, from geo-spatial information with very high commercial use, and cultural archives with limited popular interest but high value to some. PC included in OECD Recommendation<br />4<br />
  5. 5. 5<br />
  6. 6. Categorisation and characterisation of public information/content<br />6<br />
  7. 7. Typical information, content and payment flows<br />7<br />
  8. 8. The PSI re-use value chain <br />8<br />
  9. 9. What does all of this mean?Some aggregate economic dimensions of PSI<br />Narrow EU27 PSI-based market is large<br />Market approximately EUR 28 billion annually in 2008 (without culture, science, etc.). Approximately same as MEPSIR 2006 <br />PSI-related market growth approximately 8%, suggesting a 2010 market around EUR 32 billion if growth maintained during recession<br />Welfare gains from completely open access to PSI could be of the order of EUR 40 billion, depending on the importance of price and licensing restrictions and simple lack of easy access in different EU27 countries, e.g. no lists, information not digitised, interoperability issues<br />Aggregate economic impacts (the economic “footprint” of PSI) are larger again. Of the order of EUR 140 billion. Consumer surplus?<br />In sum. Direct market associated with PSI use less important than spillovers and new uses. Future innovations due to easier access add further economic and social benefits <br />9<br />
  10. 10. The economic dimensions of PSI. Gains from removing barriers – but what is being sacrificed? <br />Direct benefits from removing current barriers to access and improving the underlying infrastructure? <br />Some examples:<br />Geospatial sector benefits increased by some 10-40% by improving access, data standards, building skills. Better local government geospatial policies could double productivity gains over next 5 years<br />Obligatory national environmental impact assessments - costs down by EUR 2 billion per year; Open access to R&D results – gains EUR 6 billion per year; if European citizens each saved only 2 hours per year from better access - worth EUR 1.4 billion per year<br />Compared with what? EU27 government revenues are relatively low, generally a small part of agency operating budgets, less than 1% for majority. Indirect effects from reduced access and inhibitory pricing policies: fewer information activities, lower growth, less jobs, tax revenues foregone<br />10<br />