Open Government Data for Digital Services: Effects on Innovation, Competition and Societal Benefits
50 Pages Posted: 7 Dec 2020
Date Written: December 6, 2020
Prompted by recent open data policies in the European Union and the United States, administrations increasingly publish their public sector information. Opening government data for broad commercial re-use is thereby motivated by three primary policy goals: innovation, competition and societal benefits. However, so far, a comprehensive evaluation of how open government data affects re-users' incentives and ensuing market outcomes in the digital economy is missing. Therefore, we conduct a conceptual analysis of the economic effects of open government data and characterize conditions under which primary policy goals can be achieved. Our findings highlight a basic trade-off between innovation and competition goals and demonstrate that the effectiveness of open government data crucially depends on the information contained in a data set. By distinguishing different information domains, we derive insights for policy makers on which open government data sets can promote a desired policy goal and how to balance economic trade-offs.
Keywords: open data, open government data, public sector information, open access, data-driven business models, innovation, competition in digital markets, privacy, economic regulation, policy making
JEL Classification: L17,L38,L86
Suggested Citation: Suggested Citation