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Money for nothing
data for free
Hard facts about the economic power of
Open Government Data
Growth of data portals
World Map of Open Government Data Initiatives
Source: Semantic Web Company
Paper structure
NumbersNumbers
Theoretical
Implications
Use Cases
Theoretical economic implications of OGD
 Framework for theoretical implications of OGD
 applications (APPS)
 data integration within the economy
 reduced transaction costs
 Free data as a source in a value network
 innovations by start-up companies
 economic growth through innovation
 additional tax revenues through economic growth
 Value chains of OGD
 OGD – input to management decisions
Dimensions of indicators
addition
reality
national
potential savings
division
potential
local
new applications
Numbers € ₤ $
Source: Rob-Wie @flickr
Economic benefit of OGD
 mainly based on a study from the
European Union (EU)
 for stakeholders: actual economic benefits
and the potential for a special region.
 standard measurements are still missing
 dense collection of already existing hard
facts from various available studies
Numbers € ₤ $
source: raymaclean@flickr
source: raymaclean@flickr
value
Save
of
costs
Taxes
amount
Growth
in sale
benefit
Numbers € ₤ $
region fact amount or % period
World taxes amount for Google API + % of profit
EU27 gains from PSI apps € 140 bill p.a.
EU potential value of OGD € 30 - 40 bill p.a.
Austria growth in sale since OGD observed by a company + 5%
Austria save of development costs € 5.488 per app
Austria - Vienna save of development costs € 455.504 2 years
Austria economic gains derived from EU numbers by GDP
and inhabitants
€ 0.5 - 1.1 bill p.a.
Austria economic gains derived from EU numbers by GDP € 2.8 mio p.a.
Austria / Vienna potential value of OGD € 3.7 /€ 44.4 mio p.a.
Denmark worth of re-use of public data € 80 mio p.a.
Germany market for geo-information € 1,4 bill p.a.(2007)
Netherlands arising taxes amount from meteorological data + 750%
Spain Reuse of PSI by the infomediary business sector € 550 mio. p.a. (2009)
United Kingdom (UK) value of public sector information £16 bn p.a. (2011)
United Kingdom (UK) additional economic value £ 1.6 - 6.0 bill p.a.
UK– Greater Manchester additional economic value £ 6 mio p.a.
Canada - Vancouver revenue opening public transport data CAN$ 2.6 mio 5 years
United States Apps for Democracy – market value US$ 2.3 mio 30 days
Unites States global weather risk market US$ 11,8 bill p.a. (2011)
Summary of numeric facts
Economic Value
 Study from the EU commission:
40 Mrd. € annual potential for the EU
 Derived for Austria ≈ 0,9 bill. €
Source: Vickery, G.: Review of recent studies on PSI re-use and related market developments, 2011.
Calculation
Danube University Krems
creation effort
Effort *
developers hour
opportunity
expenses
Average
application
68,6 hours 68,6 * € 80.- € 5.488.-
38 apps
(Sep 2012)
2.606,8 hours 2.606,8 * € 80.- € 208.544.-
84 apps
(Apr 2013)
5.762,4hours 5.762,4 *€ 80.- € 460.992.-
Calculation
Business University Vienna
costs per year 115.637 €
cost multiplier 1,5
benefit multiplier 8
elasticity of demand 2
benefit: (115.637x1,5)x8x2
benefit Vienna: 2.775.288 €
benefit Austria: 12.215.872 €
Benefit: Costs x cost multiplier x benefit multiplier x elasticity of demand
0,42%
100%
21,33%
100%
Exploitation Austria:
Potential Austria:
Exlpoitation Vienna:
Potential Vienna:
Actual exploitation
This work is licenced under Creative Commons Namensnennung 3.0 Österreich Lizenz.
The attribution of the rights owner has to be done in the following manner:
„Brigitte Lutz & Gregor Eibl 2013"
Brigitte Lutz Gregor Eibl
brigitte.lutz@wien.gv.at gregor.eibl@bka.gv.at
wien.gv.at www.bka.gv.at
data.wien.gv.at data.gv.at
Clear benefits for the citizens
Added value for the business location

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Gregor Eibl, Brigitte Lutz: Money for nothing – data for free. Hard facts about the power of and the effects of Open Government Data

  • 1. Money for nothing data for free Hard facts about the economic power of Open Government Data
  • 2. Growth of data portals World Map of Open Government Data Initiatives Source: Semantic Web Company
  • 4. Theoretical economic implications of OGD  Framework for theoretical implications of OGD  applications (APPS)  data integration within the economy  reduced transaction costs  Free data as a source in a value network  innovations by start-up companies  economic growth through innovation  additional tax revenues through economic growth  Value chains of OGD  OGD – input to management decisions
  • 5. Dimensions of indicators addition reality national potential savings division potential local new applications
  • 6. Numbers € ₤ $ Source: Rob-Wie @flickr
  • 7. Economic benefit of OGD  mainly based on a study from the European Union (EU)  for stakeholders: actual economic benefits and the potential for a special region.  standard measurements are still missing  dense collection of already existing hard facts from various available studies
  • 8. Numbers € ₤ $ source: raymaclean@flickr
  • 10. region fact amount or % period World taxes amount for Google API + % of profit EU27 gains from PSI apps € 140 bill p.a. EU potential value of OGD € 30 - 40 bill p.a. Austria growth in sale since OGD observed by a company + 5% Austria save of development costs € 5.488 per app Austria - Vienna save of development costs € 455.504 2 years Austria economic gains derived from EU numbers by GDP and inhabitants € 0.5 - 1.1 bill p.a. Austria economic gains derived from EU numbers by GDP € 2.8 mio p.a. Austria / Vienna potential value of OGD € 3.7 /€ 44.4 mio p.a. Denmark worth of re-use of public data € 80 mio p.a. Germany market for geo-information € 1,4 bill p.a.(2007) Netherlands arising taxes amount from meteorological data + 750% Spain Reuse of PSI by the infomediary business sector € 550 mio. p.a. (2009) United Kingdom (UK) value of public sector information £16 bn p.a. (2011) United Kingdom (UK) additional economic value £ 1.6 - 6.0 bill p.a. UK– Greater Manchester additional economic value £ 6 mio p.a. Canada - Vancouver revenue opening public transport data CAN$ 2.6 mio 5 years United States Apps for Democracy – market value US$ 2.3 mio 30 days Unites States global weather risk market US$ 11,8 bill p.a. (2011) Summary of numeric facts
  • 11. Economic Value  Study from the EU commission: 40 Mrd. € annual potential for the EU  Derived for Austria ≈ 0,9 bill. € Source: Vickery, G.: Review of recent studies on PSI re-use and related market developments, 2011.
  • 12. Calculation Danube University Krems creation effort Effort * developers hour opportunity expenses Average application 68,6 hours 68,6 * € 80.- € 5.488.- 38 apps (Sep 2012) 2.606,8 hours 2.606,8 * € 80.- € 208.544.- 84 apps (Apr 2013) 5.762,4hours 5.762,4 *€ 80.- € 460.992.-
  • 13. Calculation Business University Vienna costs per year 115.637 € cost multiplier 1,5 benefit multiplier 8 elasticity of demand 2 benefit: (115.637x1,5)x8x2 benefit Vienna: 2.775.288 € benefit Austria: 12.215.872 € Benefit: Costs x cost multiplier x benefit multiplier x elasticity of demand 0,42% 100% 21,33% 100% Exploitation Austria: Potential Austria: Exlpoitation Vienna: Potential Vienna: Actual exploitation
  • 14. This work is licenced under Creative Commons Namensnennung 3.0 Österreich Lizenz. The attribution of the rights owner has to be done in the following manner: „Brigitte Lutz & Gregor Eibl 2013" Brigitte Lutz Gregor Eibl brigitte.lutz@wien.gv.at gregor.eibl@bka.gv.at wien.gv.at www.bka.gv.at data.wien.gv.at data.gv.at Clear benefits for the citizens Added value for the business location