THE FUTURE OF The U.S. Chamber of Commerce Foundation (USCCF) is a 501(c)(3) nonprofit affiliate of the U.S. Chamber of Commerce dedicated to strengthening America’s long-term competitiveness and educating the public on how our free enterprise system improves society and the economy. Copyright 2014 U.S. Chamber of Commerce Foundation The views presented herein are those of the individual author(s) and do not necessarily state or reflect those of the U.S. Chamber of Commerce Foundation, the U.S. Chamber of Commerce, or its affiliates. THE FUTURE OF Presented By The U. S. Chamber of Commerce Foundation TABLE OF CONTENTS 2. THE GREAT DATA 4. GOOD DATA CONCLUDING THOUGHTS REVOLUTION P.21 P. 43 PUBLIC POLICIES A LETTER FROM BY LESLIE BRADSHAW BY DR. MATTHEW HARDING THE ESSENTIAL P. 1 USCCF PRESIDENT INGREDIENT — US P.78 JOHN R. McKERNAN, JR. BY RICH COOPER INTRODUCTION DEFINING THE DATA MOVEMENT LITERATURE SEARCH BY JUSTIN HIENZ COORDINATED BY JEFF LUNDY P. 2 P. 9 P. 67 P. 77 6. DATABUSE IN THE BIG DATA ERA 1. THE DATA-DRIVEN BY BENJAMIN WITTES & ECONOMY WELLS C. BENNETT BY DR. JOSEPH KENNEDY ACKNOWLEDGEMENTS P.83 3. THE 5. DRIVING INNOVATION COMPETITIVENESS P. 31 P. 55 WITH OPEN DATA AGENDA BY JOEL GURIN BY JOHN RAIDT 2. THE GREAT DATA 4. GOOD DATA CONCLUDING THOUGHTS REVOLUTION P.21 P. 43 PUBLIC POLICIES A LETTER FROM BY LESLIE BRADSHAW BY DR. MATTHEW HARDING THE ESSENTIAL P. 1 USCCF PRESIDENT INGREDIENT — US P.78 JOHN R. McKERNAN, JR. BY RICH COOPER INTRODUCTION DEFINING THE DATA MOVEMENT LITERATURE SEARCH BY JUSTIN HIENZ COORDINATED BY JEFF LUNDY P. 2 P. 9 P. 67 P. 77 6. DATABUSE IN THE BIG DATA ERA 1. THE DATA-DRIVEN BY BENJAMIN WITTES & ECONOMY WELLS C. BENNETT BY DR. JOSEPH KENNEDY ACKNOWLEDGEMENTS P.83 3. THE 5. DRIVING INNOVATION COMPETITIVENESS P. 31 P. 55 WITH OPEN DATA AGENDA BY JOEL GURIN BY JOHN RAIDT A LETTER FROM USCCF PRESIDENT JOHN R. MCKERNAN, JR. A LETTER FROM USCCF PRESIDENT JOHN R. MCKERNAN, JR. October 7, 2014 Dear Colleague: It is the U.S. Chamber of Commerce Foundation’s mission to explore America’s long-term competitiveness and educate the public on how the free enterprise system improves society and the economy. Part of that mission charges us to explore the emerging issues that are changing the ways we do business in this country and around the world. There is arguably no bigger emerging issue in today’s business environment than the rise of data- driven innovation. From collection and access to technology and privacy, the implications surrounding the issue of data impact every continent, industry, community, and citizen in some shape or fashion. No one is left untouched by this environment as data permeates everything around us. That is both revolutionary and exciting but also of concern to many, and it is a reality that deserves both our attention and an informed discussion. Regardless of what form it takes, data tells a story. It can identify cost savings and efficiencies, new connections and opportunities, and an improved understanding of the past to shape a better future. It also provides the details necessary to allow us to make more informed decisions about the next step we want to take. These are the benefits of the unfolding data revolution and the good it offers to us all. Those good things, however, spur dialogue and debate across a range of areas, and it is why we in the Foundation took a focused look at the issues and innovations that are happening in data today. We started this effort early in 2014 by talking with private sector leaders of enterprises small and large, with government officials at all levels, and with various educators, analysts, and other experts from around the country. From those numerous discussions, events, and programs, we identified several notable experts who offered to share their own insights on these issues and how they will shape the future of data-driven innovation and the economy around it. This report shares the thoughts and insights of these various practitioners. While none of them offers the absolute final word on the data-driven economy, the future of competitiveness, or the policies that would enable more innovation to happen, they do help us better inform the conversation that needs to be had on these issues. At the Chamber Foundation, we believe that information and discussion is the only way to better understand the emerging issues that data and all of its offerings provide to our future. If the United States is to continue to lead in these areas, it has to be through an active and informed conversation driven by facts, details, and real-world experiences. Going forward, the Foundation will continue to share its insights in these and other areas. By sharing ideas with one another, we know we have a data-driven future for good that will change lives around the world for the better. Sincerely, John R. McKernan, Jr. President, U.S. Chamber of Commerce Foundation INTRODUCTION DEFINING THE DATA MOVEMENT BY JUSTIN HIENZ Today, there is a rapidly growing capacity to collect, store and analyze massive amounts of data, far more than an individual mind could process on its own. This enormous volume of information has been called Big Data, a term that is widely used, sometimes to the point of cliché. Yet, while the term can be trite, the dramatic potential in exploring large datasets for new insights, trends, and correlations is anything but. The data movement is a force for good. It is fodder for research and a catalyst for innovation. It is the bedrock of informed decision-making and better business and the key to unlocking more efficient, effective government and other services. It unleashes economic growth, competition, profitability, and other breakthrough discoveries. And it is at once a product of an ever-more technologically sophisticated world and a tool to advance, enhance, and shape all of its domains going forward. This widespread emergence and use of Big Data is revolutionary, and history will record the early 21st century as the beginning of a data revolution that defined a century. There is no shortage of examples of data-driven decision making and innovation. Less common, however, is scholarship that looks at myriad examples to extrapolate the ideas, themes and potential that define the data movement and the changes it will bring. This report begins to fill thatknowledge gap, with leading scholars and practitioners looking to the horizon to describe the data-driven future. The world is but a few steps down the data road. In time, the very notion of “Big Data” will fade as data-driven decision making becomes a ubiquitous and unquestioned piece of everyday life. Yet, the way we understand and embrace the data movement now will shape how it impacts all of our futures. This report informs the ongoing discussion to reveal how data impacts our lives, economies, societies, the choices we make, and, inevitably, changes everything for the better. The Rise of Big Data Because this is only the beginning of the data-driven movement, the terms, definitions, and ideas associated with Big Data are still evolving. This is a subject area that is as dynamic as it is amorphous. One can no more wrap their arms around a tidal wave than “THE AMOUNT OF DATA GENERATED IN TWO DAYS IS AS MUCH AS ALL DATA GENERATED IN HUMAN HISTORY BEFORE 2003.” they can nail down precisely all that is grouped before 2003.3 Thousands of years of civilization, under the Big Data epithet. That said, there are millions of books, every piece of information from some clear properties of the data landscape. the ancient Library of Alexandria to the modern Library of Congress, all of that data together is but Most definitions of Big Data draw from Doug a miniscule drop in the proverbial bucket. Laney’s often-cited “three Vs,” each of which describe a component quality of Big Data: volume Given the volume, growing alongside data (the amount of data); velocity (the speed at which generation has been the capacity to hold and data is created); and variety (the types of data).1 access it. Ever-more ubiquitous Internet makes it Of late, Big Data definitions have come to include possible to easily share information without regard a fourth V: veracity. As shown throughout this to geographic distance or observed borders, a report, data accuracy is as important to realizing capability unique to our modern age that allows value as the size, type, and generation all professionals, businesses, and organizations of information. to share, collaborate, and advance knowledge like never before. These online advantages, as Big Data is so voluminous and generated at such a well as advances in computing power, facilitated rapid pace that it cannot be effectively gathered, innovative approaches to storing the exponentially searched, or even understood by the human mind growing volume of data. This has made it practical alone. As such, technology is the medium through to keep and analyze entire datasets (rather which the data movement thrives. Data’s volume than just down-sampled portions), dramatically and variety owes to the growing number of sensors expanding the power and promise of Big Data. and connected devices that permeate every aspect of industrialized society (the so-called Even as the world has made great technological “Internet of Things”). In addition, the digitization of advances in collecting and storing data, once in commercial transactions, medical records, online hand, making sense of all this information is a social communication, and other information also challenge unto itself.