Blog by Federico Bartolomucci: “…The conceptual distinctions between different data sharing models are mostly based on one fundamental element: the economic nature of data and its value.
Open data projects operate under the assumption that data is a non-rival (i.e. can be used by multiple people at the same time) and a non-excludable asset (i.e. anyone can use it, similar to a public good like roads or the air we breathe). This means that data can be shared with everyone, for any use, without losing its market and competitive value. The Humanitarian Data Exchange platform is a great example that allows organizations to share over 19,000 open data sets on all aspects of humanitarian response with others.
Data collaboratives treat data as an excludable asset that some people may be excluded from accessing (i.e. a ‘club good’, like a movie theater) and therefore share it only among a restricted pool of actors. At the same time, they overcome the rival nature of this data set up by linking its use to a specific purpose. These work best by giving the actors a voice in choosing the purpose for which the data will be used, and through specific agreements and governance bodies that ensure that those contributing data will not have their competitive position harmed, therefore incentivizing them to engage. A good example of this is the California Data Collaborative, which uses data from different actors in the water sector to develop high-level analysis on water distribution to guide policy, planning, and operations for water districts in the state of California.
Data ecosystems work by activating market mechanisms around data exchange to overcome reluctance to share data, rather than relying solely on its purpose of use. This means that actors can choose to share their data in exchange for compensation, be it monetary or in alternate forms such as other data. In this way, the compensation balances the potential loss of competitive advantage created by the sharing of a rival asset, as well as the costs and risks of sharing. The Enershare initiative aims to establish a marketplace utilizing blockchain and smart contracts to facilitate data exchange in the energy sector. The platform is based on a compensation system, which can be non-monetary, for exchanging assets and resources related to data (such as datasets, algorithms, and models) with energy assets and services (like heating system maintenance or the transfer of surplus locally self-produced energy).
These different models of data sharing have different operational implications…(More)”.