The Economic Impact of Open Data: What Do We Already Know? | Jeni Tennison

"Open data fuels economic growth. Many believe in the theory and ask for the proof. A new report by Nesta and the ODI adds to the evidence of the impact of open data. The report's analysis, undertaken by PwC, examines the effects of the Open Data Challenge Series (ODCS) and predicts the programme will result in a potential 10x return (£10 for every £1 invested over three years), generating up to £10.8m for the UK economy. Economists use terms such as information asymmetry, allocative efficiency and network effects to explain why open data creates this return. Others might say that open reduces friction in transactions and markets operate better in low friction environments. To put it more simply, by publishing data openly we may be able to make better use of existing resources and create new products and services. These can be of huge benefit to an economy - they may help people choose what type of transport to use, decide where to build a new house or look up the weather on their smartphone. A growing body of evidence quantifies the utility of open data and demonstrates its impact in many countries and sectors, based on a number of studies with varying approaches ..."