The Economic Impact of Open Data Opportunities for Value Creation in Europe the ECONOMIC IMPACT of OPEN DATA
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EUROPEAN DATA PORTAL The Economic Impact of Open Data Opportunities for value creation in Europe THE ECONOMIC IMPACT OF OPEN DATA This study has been prepared by Capgemini Invent as part of the European Data Portal. The European Data Portal is an initiative of the European Commission, implemented with the support of a consortium led by Capgemini Invent, including Intrasoft International, Fraunhofer Fokus, con.terra, Sogeti, 52North, Time.Lex, the Lisbon Council, and the University of Southampton. The Publications Office of the European Union is responsible for contract management of the European Data Portal. For more information about this paper, please contact: European Commission Directorate General for Communications Networks, Content and Technology Unit G.1 Data Policy and Innovation Daniele Rizzi – Policy Officer Email: [email protected] European Data Portal Gianfranco Cecconi, European Data Portal Lead Email: [email protected] Written by: Esther Huyer Email: [email protected] Laura van Knippenberg Email: [email protected] With contributions by: Eline Lincklaen Arriëns Marit Blank Last update: 26.01.2020 www: https://europeandataportal.eu/ @: [email protected] PDF ISBN: 978-92-78-42108-3 doi: 10.2830/63132 OA-04-20-043-EN-N © European Union, 1998-2020 The Commission’s document reuse policy is based on Decision 2011/833/EU. Except where otherwise stated, the editorial content of this website is licensed under the Creative Commons Attribution 4.0 International licence. This means that you can reuse this content provided you acknowledge the source and indicate any changes you have made. To use or reproduce content not owned by the EU, you may need to seek permission directly from the rights holders. To use any logos, you first need the prior consent of the Publications Office. For conditions regarding the downloading, reproduction, translation or, in general, reuse datasets available in the national portals, users must consult the copyright notice of the portal concerned. For all other copyright issues, please contact: [email protected] 2 Executive summary “Data and AI are the ingredients for innovation that can help us to find solutions to societal challenges, from health to farming, from security to manufacturing. In order to release that potential we have to find our European way, balancing the flow and wide use of data while preserving high privacy, security, safety and ethical standards.” European Commission President Ursula von der Leyen in “A Union that strives for more - My agenda for Europe” (2019)1 The 7 key learnings The specification and implementation of high-value datasets as part of 1 the new Open Data Directive is a promising opportunity to address quality & quantity demands of open data. Addressing quality & quantity demands is important, yet not enough to 2 reach the full potential of open data. Open data re-users have to be aware and capable of understanding and 3 leveraging the potential. Open data value creation is part of the wider challenge of skill and process 4 transformation: a lengthy process whose change and impact are not always easy to observe and measure. Sector-specific initiatives and collaboration in and across private and 5 public sector foster value creation. Combining open data with personal, shared, or crowdsourced data is vital 6 for the realisation of further growth of the open data market. For different challenges, we must explore and improve multiple approaches 7 of data re-use that are ethical, sustainable, and fit-for-purpose. 1 “A Union that strives for more - My agenda for Europe” (2019) available at: https://ec.europa.eu/commission/sites/beta-political/files/political- guidelines-next-commission_en.pdf Executive summary Open data market size • €184.45 billion open data market size in 2019 • €199.51 - €334.20 billion open data market size forecast for 2025 Open data employment • 1.09 million open data employees in 2019 • 1.12 – 1.97 million open data employees forecast for 2025 Open data potential per sector • 15.7% growth expected from high impact and high potential sectors • High impact: • High potential: EUROPEAN For details on calculations and assumptions see corresponding sections. DATA PORTAL Executive summary Efficiency gains • Saving lives, e.g. 54 - 202 thousand lives saved by faster emergency response • Saving time, e.g. 27 million hours saved in public transport • Saving the environment, e.g. 5.8 Mtoe* saved by reducing household energy consumption • Improving language services with open data, e.g. by increasing machine translation Cost savings • Saving healthcare costs, e.g. €312 - €400 thousand due to faster first aid by bystanders • Saving labour costs, e.g. €13.7 - €20 billion by reducing time spent in traffic • Saving costs on energy bills, e.g. €79.6 billion due to more solar energy production • Saving public sector costs, e.g. €1.1 billion by lower translation costs Open data in organisations • 49% of data used by surveyed organisations is open data and 77% of organisations plan to use more data • 46% of organisations’ revenues are impacted by open data and 73% of organisations expect the impact to increase • 70% of surveyed organisations create data internally, of which 58% publish some of it as open data * Million tonnes of oil equivalent EUROPEAN For details on calculations and assumptions see corresponding sections. DATA PORTAL THE ECONOMIC IMPACT OF OPEN DATA LIST OF FIGURES Figure 1: Visualisation of relevant results from literature about the open data market size.................... 24 Figure 2: EU GDP growth; Trading Economics (2019) ...................................................................................... 25 Figure 3: Visualisation of the baseline and the optimistic open data market size forecast .....................28 Figure 4: Visualisation of the baseline and the optimistic open data employment forecast .................. 35 Figure 5: Most relevant sectors for the data economy; DemosEuropa & Warsaw Institute for Economic Studies (2014, page 53) .......................................................................................................38 Figure 6: Sectors with the largest potential gains from open data; DemosEuropa & Warsaw Institute for Economic Studies (2014, page 72) .................................................................................39 Figure 7: Overview of number of case studies available at the European Data Portal .............................40 Figure 8: Domains in which open data can help unlock economic value; McKinsey (2013, page 9) .......... 41 Figure 9: Most used data categories by respondents (in absolute numbers) ..............................................41 Figure 10: Use of open data across sectors (in absolute numbers) .................................................................42 Figure 11: Gross Value Added (GVA) and employment per sector; Eurostat (2015) ...................................45 LIST OF TABLES Table 1: Comparing terminologies ........................................................................................................................14 Table 2: Overview of methods in each chapter .................................................................................................15 Table 3: Overview of relevant results from literature about the open data market size ......................... 22 Table 4: Baseline open data market size growth forecast ..............................................................................26 Table 5: Optimistic open data market size growth forecast .......................................................................... 27 Table 6: Allocation of growth rates based on countries open data maturity and trend .........................28 Table 7: Share of open data employment in Spain .......................................................................................... 32 Table 8: Share of open data employment per open data maturity cluster ................................................ 32 Table 9: Baseline open data employment growth forecast ...........................................................................34 Table 10: Optimistic open data employment growth forecast ....................................................................... 35 Table 11: Group 1 - Contribution and growth scenario: very high 15.7% .....................................................43 Table 12: Group 2 - Contribution and growth scenario: high 7.5% ................................................................43 Table 13: Group 3 - Contribution and growth scenario: moderate 4.3% .....................................................43 Table 14: Overview of current vs. potential number of survivors depending on receiving CPR or bystander CPR ............................................................................................................................................54 GRAPHICAL ELEMENTS Icons made by Freepik from www.flaticon.com available at: https://www.flaticon.com/authors/freepik 6 Chapter overview 1. Introduction 2. Open data market size 3. Open data employment 4. Open data potential per sector 5. Efficiency gains due to open data 6. Saving costs due to open data 7. Open data in organisations 8. Discussion THE ECONOMIC IMPACT OF OPEN DATA TABLE OF CONTENTS Executive Summary .............................................................................................................................................................3