Creating Value through Open Data
Thus, the European Commission, within the context of the launch of the European Data Portal, wished to obtain further evidence of the quantitative impact of re-use of Public Data Resources. A study was carried out with the aim to collect, assess and aggregate all economic evidence to forecast the benefits of the re-use of Open Data for all 28 European Member States and the ETFA countries, further referred to as EU 28+, for the period 2016-2020.
Direct benefits are monetised benefits that are realised in market transactions in the form of revenues and Gross Value Added (GVA), the number of jobs involved in producing a service or product, and cost savings. Indirect economic benefits are i.e. new goods and services, time savings for users of applications using Open Data, knowledge economy growth, increased efficiency in public services and growth of related markets.
The market volume exhibits the totality of the realised sales volume of a specific market; the value added. A distinction can be made between the direct market size and the indirect market size. Together they form the total market size for Open Data. For 2016, the direct market size of Open Data is expected to be 55.3 bn EUR for the EU 28+. Between 2016 and 2020, the market size is expected to increase by 36.9%, to a value of 75.7 bn EUR in 2020, including inflation corrections. For the period 2016-2020, the cumulative direct market size is estimated at 325 bn EUR.
The aim of efficiency is to improve resource allocation so that waste is minimized and the outcome value is maximised, given the same amount of resources. Open Data can help in achieving such efficiency, The study offers a combination of the insights around the efficiency gains of Open Data and real-life examples. Three exemplar indicators are assessed in more detail: how Open Data can save lives, how it can be used to save time and how Open Data helps achieve environmental benefits. For example, Open Data has the potential of saving 1,425 lives a year (i.e. 5,5% of the European road fatalities). Furthermore, applying Open Data in traffic can save 629 million hours of unnecessary waiting time on the road in the EU.
The report goes into further detail on how Open Data has gained importance in the last several years. Furthermore, the report provides insight into how Open Data can be used, and how this re-use differs around Europe. These insights are used to develop a methodology for measuring the value created by Open Data. The resulting values are presented in a graphical way, providing insight in the potential of Open Data for the EU28+ up to 2020.
To read the complete study: Download (LINK .PDF)