Open data and data sharing: An economic analysis

Alevtina Krotova, Armin Mertens and Marc Scheufen

No 21/2020, IW policy papers from Institut der deutschen Wirtschaft (IW) / German Economic Institute

Abstract: Data is an important business resource. It forms the basis for various digital technologies such as artificial intelligence or smart services. However, access to data is unequally distributed in the market. Hence, some business ideas fail due to a lack of data sources. Although many governments have recognised the importance of open data and already make administrative data available to the public on a large scale, many companies are still reluctant to share their data among other firms and competitors. As a result, the economic potential of data is far from being fully exploited. Against this background, we analyse current developments in the area of open data. We compare the characteristics of open governmental and open company data in order to define the necessary framework conditions for data sharing. Subsequently, we examine the status quo of data sharing among firms. We use a qualitative analysis of survey data of European companies to derive the sufficient conditions to strengthen data sharing. Our analysis shows that government data is a public good, while company data can be seen as a club or private good. Latter frequently build the core for companies' business models and hence are less suitable for data sharing. Finally, we find that promoting legal certainty and the economic impact present important policy steps for fostering data sharing.

JEL-codes: L21 L86 M21 O32 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-big, nep-eur and nep-ind
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:iwkpps:212020

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