Brazil let its citizens make decisions about city budgets. Here’s what happened.


Brian Wampler and Mike Touchton in the Washington Post: “Over the past 20 years, “participatory institutions” have spread around the world. Participatory institutions delegate decision-making authority directly to citizens, often in local politics, and have attracted widespread support.  International organizations, such as the World Bank and USAID, promote citizen participation in hopes that it will generate more accountable governments, strengthen social networks, improve public services, and inform voters. Elected officials often support citizen participation because it provides them the legitimacy necessary to alter spending patterns, develop new programs, mobilize citizens, or open murky policymaking processes to greater public scrutiny. Civil society organizations and citizens support participating institution because they get unprecedented access to policymaking venues, public budgets and government officials.
But do participatory institutions actually achieve any of these beneficial outcomes?  In a new study of participatory institutions in Brazil, we find that they do.  In particular, we find that municipalities with participatory programs improve the lives of their citizens.
Brazil is a leading innovator in participatory institutions. Brazilian municipal governments can voluntarily adopt a program known as Participatory Budgeting. This program directly incorporates citizens into public meetings where citizens decide how to allocate public funds. The funding amounts can represent up to 100 percent of all new capital spending projects and generally fall between 5 and 15 percent of the total municipal budget.  This is not enough to radically change how cities spend limited resources, but it is enough to generate meaningful change. For example, the Brazilian cities of Belo Horizonte and Porto Alegre have each spent hundreds of millions of U.S. dollars over the past two decades on projects that citizens selected. Moreover, many Participatory Budgeting programs have an outsize impact because they focus resources on areas that have lower incomes and fewer public services.
Between 1990 and 2008, over 120 of Brazil’s largest 250 cities adopted Participatory Budgeting. In order to assess whether PB had an impact, we compared the number of cities that adopted Participatory Budgeting during each mayoral period to cities that did not adopt it, and accounted for a range of other factors that might distinguish these two groups of cities.
The results are promising. Municipal governments that adopted Participatory Budgeting spent more on education and sanitation and saw infant mortality decrease as well. We estimate cities without PB to have infant mortality levels similar to Brazil’s mean. However, infant mortality drops by almost 20 percent for municipalities that have used PB for more than eight years — again, after accounting for other political and economic factors that might also influence infant mortality.  The evidence strongly suggests that the investment in these programs is paying important dividends. We are not alone in this conclusion: Sónia Gonçalves has reached similar conclusions about Participatory Budgeting in Brazil….
Our results also show that Participatory Budgeting’s influence strengthens over time, which indicates that its benefits do not merely result from governments making easy policy changes. Instead, Participatory Budgeting’s increasing impact indicates that governments, citizens, and civil society organizations are building new institutions that produce better forms of governance. These cities incorporate citizens at multiple moments of the policy process, allowing community leaders and public officials to exchange better information. The cities are also retraining policy experts and civil servants to better work with poor communities. Finally, public deliberation about spending priorities makes these city governments more transparent, which decreases corruption…”

Citizen roles in civic problem-solving and innovation


Satish Nambisan: “Can citizens be fruitfully engaged in solving civic problems? Recent initiatives in cities such as Boston (Citizens Connect), Chicago (Smart Chicago Collaborative), San Francisco (ImproveSF) and New York (NYC BigApps) indicate that citizens can be involved in not just identifying and reporting civic problems but in conceptualizing, designing and developing, and implementing solutions as well.
The availability of new technologies (e.g. social media) has radically lowered the cost of collaboration and the “distance” between government agencies and the citizens they serve. Further involving citizens — who are often closest to and possess unique knowledge about the problems they face — makes a lot of sense given the increasing complexity of the problems that need to be addressed.
A recent research report that I wrote highlights four distinct roles that citizens can play in civic innovation and problem-solving.
As explorer, citizens can identify and report emerging and existing civic problems. For example, Boston’s Citizen Connect initiative enables citizens to use specially built smartphone apps to report minor and major civic problems (from potholes and graffiti to water/air pollution). Closer to home, both Wisconsin and Minnesota have engaged thousands of citizen volunteers in collecting data on the quality of water in their neighborhood streams, lakes and rivers (the data thus gathered are analyzed by the state pollution control agency). Citizens also can be engaged in data analysis. The N.Y.-based Datakind initiative involves citizen volunteers using their data analysis skills to mine public data in health, education, environment, etc., to identify important civic issues and problems.
As “ideator,”citizens can conceptualize novel solutions to well-defined problems in public services. For example, the federal government’s Challenge.gov initiative employs online contests and competitions to solicit innovative ideas from citizens to solve important civic problems. Such “crowdsourcing” initiatives also have been launched at the county, city and state levels (e.g. Prize2theFuture competition in Birmingham, Ala.; ImproveSF in San Francisco).
As designer, citizens can design and/or develop implementable solutions to well-defined civic problems. For example, as part of initiatives such as NYC Big Apps and Apps for California, citizens have designed mobile apps to address specific issues such as public parking availability, public transport delays, etc. Similarly, the City Repair project in Portland, Ore., focuses on engaging citizens in co-designing and creatively transforming public places into sustainable community-oriented urban spaces.
As diffuser,citizens can play the role of a change agent and directly support the widespread adoption of civic innovations and solutions. For example, in recent years, physicians interacting with peer physicians in dedicated online communities have assisted federal and state government agencies in diffusing health technology innovations such as electronic medical record systems (EMRs).
In the private sector, companies across industries have benefited much from engaging with their customers in innovation. Evidence so far suggests that the benefits from citizen engagement in civic problem-solving are equally tangible, valuable and varied. However, the challenges associated with organizing such citizen co-creation initiatives are also many and imply the need for government agencies to adopt an intentional, well-thought-out approach….”

How Internet surveillance predicts disease outbreak before WHO


Kurzweil News: “Have you ever Googled for an online diagnosis before visiting a doctor? If so, you may have helped provide early warning of an infectious disease epidemic.
In a new study published in Lancet Infectious Diseases, Internet-based surveillance has been found to detect infectious diseases such as Dengue Fever and Influenza up to two weeks earlier than traditional surveillance methods, according to Queensland University of Technology (QUT) research fellow and senior author of the paper Wenbiao Hu.
Hu, based at the Institute for Health and Biomedical Innovation, said there was often a lag time of two weeks before traditional surveillance methods could detect an emerging infectious disease.
“This is because traditional surveillance relies on the patient recognizing the symptoms and seeking treatment before diagnosis, along with the time taken for health professionals to alert authorities through their health networks. In contrast, digital surveillance can provide real-time detection of epidemics.”
Hu said the study used search engine algorithms such as Google Trends and Google Insights. It found that detecting the 2005–06 avian influenza outbreak “Bird Flu” would have been possible between one and two weeks earlier than official surveillance reports.
“In another example, a digital data collection network was found to be able to detect the SARS outbreak more than two months before the first publications by the World Health Organization (WHO),” Hu said.
According to this week’s CDC FluView report published Jan. 17, 2014, influenza activity in the United States remains high overall, with 3,745 laboratory-confirmed influenza-associated hospitalizations reported since October 1, 2013 (credit: CDC)
“Early detection means early warning and that can help reduce or contain an epidemic, as well alert public health authorities to ensure risk management strategies such as the provision of adequate medication are implemented.”
Hu said the study found that social media including Twitter and Facebook and microblogs could also be effective in detecting disease outbreaks. “The next step would be to combine the approaches currently available such as social media, aggregator websites, and search engines, along with other factors such as climate and temperature, and develop a real-time infectious disease predictor.”
“The international nature of emerging infectious diseases combined with the globalization of travel and trade, have increased the interconnectedness of all countries and that means detecting, monitoring and controlling these diseases is a global concern.”
The other authors of the paper were Gabriel Milinovich (first author), Gail Williams and Archie Clements from the University of Queensland School of Population, Health and State.
Supramap 
Another powerful tool is Supramap, a web application that synthesizes large, diverse datasets so that researchers can better understand the spread of infectious diseases across hosts and geography by integrating genetic, evolutionary, geospatial, and temporal data. It is now open-source — create your own maps here.
Associate Professor Daniel Janies, Ph.D., an expert in computational genomics at the Wexner Medical Center at The Ohio State University (OSU), worked with software engineers at the Ohio Supercomputer Center (OSC) to allow researchers and public safety officials to develop other front-end applications that draw on the logic and computing resources of Supramap.
It was originally developed in 2007 to track the spread and evolution of pandemic (H1N1) and avian influenza (H5N1).
“Using SUPRAMAP, we initially developed maps that illustrated the spread of drug-resistant influenza and host shifts in H1N1 and H5N1 influenza and in coronaviruses, such as SARS,” said Janies. “SUPRAMAP allows the user to track strains carrying key mutations in a geospatial browser such as Google Earth. Our software allows public health scientists to update and view maps on the evolution and spread of pathogens.”
Grant funding through the U.S. Army Research Laboratory and Office supports this Innovation Group on Global Infectious Disease Research project. Support for the computational requirements of the project comes from  the American Museum of Natural History (AMNH) and OSC. Ohio State’s Wexner Medical Center, Department of Biomedical Informatics and offices of Academic Affairs and Research provide additional support.”
See also

Algorithms and the Changing Frontier


A GMU School of Public Policy Research Paper by Agwara, Hezekiah and Auerswald, Philip E. and Higginbotham, Brian D.: “We first summarize the dominant interpretations of the “frontier” in the United States and predecessor colonies over the past 400 years: agricultural (1610s-1880s), industrial (1890s-1930s), scientific (1940s-1980s), and algorithmic (1990s-present). We describe the difference between the algorithmic frontier and the scientific frontier. We then propose that the recent phenomenon referred to as “globalization” is actually better understood as the progression of the algorithmic frontier, as enabled by standards that in turn have facilitated the interoperability of firm-level production algorithms. We conclude by describing implications of the advance of the algorithmic frontier for scientific discovery and technological innovation.”

Mapping the Data Shadows of Hurricane Sandy: Uncovering the Sociospatial Dimensions of ‘Big Data’


New Paper by Shelton, T., Poorthuis, A., Graham, M., and Zook, M. : “Digital social data are now practically ubiquitous, with increasingly large and interconnected databases leading researchers, politicians, and the private sector to focus on how such ‘big data’ can allow potentially unprecedented insights into our world. This paper investigates Twitter activity in the wake of Hurricane Sandy in order to demonstrate the complex relationship between the material world and its digital representations. Through documenting the various spatial patterns of Sandy-related tweeting both within the New York metropolitan region and across the United States, we make a series of broader conceptual and methodological interventions into the nascent geographic literature on big data. Rather than focus on how these massive databases are causing necessary and irreversible shifts in the ways that knowledge is produced, we instead find it more productive to ask how small subsets of big data, especially georeferenced social media information scraped from the internet, can reveal the geographies of a range of social processes and practices. Utilizing both qualitative and quantitative methods, we can uncover broad spatial patterns within this data, as well as understand how this data reflects the lived experiences of the people creating it. We also seek to fill a conceptual lacuna in studies of user-generated geographic information, which have often avoided any explicit theorizing of sociospatial relations, by employing Jessop et al’s TPSN framework. Through these interventions, we demonstrate that any analysis of user-generated geographic information must take into account the existence of more complex spatialities than the relatively simple spatial ontology implied by latitude and longitude coordinates.”

Innovation by Competition: How Challenges and Competition Get the Most Out of the Crowd


Innocentive: “Crowdsourcing has become the 21st century’s alternative to problem solving in place of traditional employee-based strategies. It has become the modern solution to provide for needed services, content, and ideas. Crowdsourced ideas are paving the way for today’s organizations to tackle innovation challenges that confront them in today’s competitive global marketplace. To put it all in perspective, crowds used to be thought of as angry mobs. Today, crowds are more like friendly and helpful contributors. What an interesting juxtaposition, eh?
Case studies proving the effectiveness of crowdsourcing to conquer innovation challenge, particularly in the fields of science and engineering abound. Despite this fact that success stories involving crowdsourcing are plentiful, very few firms are really putting its full potential to use. Advances in ALS and AIDS research have both made huge advances thanks to crowdsourcing, just to name a couple.
Biologists at the University of Washington were able to map the structure of an AIDS related virus thanks to the collaboration involved with crowdsourcing. How did they do this?  With the help of gamers playing a game designed to help get the information the University of Washington needed. It was a solution that remained unattainable for over a decade until enough top notch scientific minds were expertly probed from around the world with effective crowdsourcing techniques.
Dr. Seward Rutkove discovered an ALS biomarker to accurately measure the progression of the disease in patients through the crowdsourcing tactics utilized in a prize contest by an organization named Prize4Life, who utilized our Challenge Driven Innovation approach to engage the crowd.
The truth is, the concept of crowdsourcing to innovate has been around for centuries. But, with the growing connectedness of the world due to sheer Internet access, the power and ability to effectively crowdsource has increased exponentially. It’s time for corporations to realize this, and stop relying on stale sources of innovation. ..”

Prospects for Online Crowdsourcing of Social Science Research Tasks: A Case Study Using Amazon Mechanical Turk


New paper by Catherine E. Schmitt-Sands and Richard J. Smith: “While the internet has created new opportunities for research, managing the increased complexity of relationships and knowledge also creates challenges. Amazon.com has a Mechanical Turk service that allows people to crowdsource simple tasks for a nominal fee. The online workers may be anywhere in North America or India and range in ability. Social science researchers are only beginning to use this service. While researchers have used crowdsourcing to find research subjects or classify texts, we used Mechanical Turk to conduct a policy scan of local government websites. This article describes the process used to train and ensure quality of the policy scan. It also examines choices in the context of research ethics.”

Crowdsourcing forecasts on science and technology events and innovations


Kurzweil News: “George Mason University launched today, Jan. 10, the largest and most advanced science and technology prediction market in the world: SciCast.
The federally funded research project aims to improve the accuracy of science and technology forecasts. George Mason research assistant professor Charles Twardy is the principal investigator of the project.
SciCast crowdsources forecasts on science and technology events and innovations from aerospace to zoology.
For example, will Amazon use drones for commercial package delivery by the end of 2017? Today, SciCast estimates the chance at slightly more than 50 percent. If you think that is too low, you can estimate a higher chance. SciCast will use your estimate to adjust the combined forecast.
Forecasters can update their forecasts at any time; in the above example, perhaps after the Federal Aviation Administration (FAA) releases its new guidelines for drones. The continually updated and reshaped information helps both the public and private sectors better monitor developments in a variety of industries. SciCast is a real-time indicator of what participants think is going to happen in the future.
“Combinatorial” prediction market better than simple average


How SciCast works (Credit: George Mason University)
The idea is that collective wisdom from diverse, informed opinions can provide more accurate predictions than individual forecasters, a notion borne out by other crowdsourcing projects. Simply taking an average is almost always better than going with the “best” expert. But in a two-year test on geopolitical questions, the SciCast method did 40 percent better than the simple average.
SciCast uses the first general “combinatorial” prediction market. In a prediction market, forecasters spend points to adjust the group forecast. Significant changes “cost” more — but “pay” more if they turn out to be right. So better forecasters gain more points and therefore more influence, improving the accuracy of the system.
In a combinatorial market like SciCast, forecasts can influence each other. For example, forecasters might have linked cherry production to honeybee populations. Then, if forecasters increase the estimated percentage of honeybee colonies lost this winter, SciCast automatically reduces the estimated 2014 cherry production. This connectivity among questions makes SciCast more sophisticated than other prediction markets.
SciCast topics include agriculture, biology and medicine, chemistry, computational sciences, energy, engineered technologies, global change, information systems, mathematics, physics, science and technology business, social sciences, space sciences and transportation….

Crowdsourcing forecasts on science and technology events and innovations

George Mason University’s just-launched SciCast is largest and most advanced science and technology prediction market in the world
January 10, 2014


Example of SciCast crowdsourced forecast (credit: George Mason University)
George Mason University launched today, Jan. 10, the largest and most advanced science and technology prediction market in the world: SciCast.
The federally funded research project aims to improve the accuracy of science and technology forecasts. George Mason research assistant professor Charles Twardy is the principal investigator of the project.
SciCast crowdsources forecasts on science and technology events and innovations from aerospace to zoology.
For example, will Amazon use drones for commercial package delivery by the end of 2017? Today, SciCast estimates the chance at slightly more than 50 percent. If you think that is too low, you can estimate a higher chance. SciCast will use your estimate to adjust the combined forecast.
Forecasters can update their forecasts at any time; in the above example, perhaps after the Federal Aviation Administration (FAA) releases its new guidelines for drones. The continually updated and reshaped information helps both the public and private sectors better monitor developments in a variety of industries. SciCast is a real-time indicator of what participants think is going to happen in the future.
“Combinatorial” prediction market better than simple average


How SciCast works (Credit: George Mason University)
The idea is that collective wisdom from diverse, informed opinions can provide more accurate predictions than individual forecasters, a notion borne out by other crowdsourcing projects. Simply taking an average is almost always better than going with the “best” expert. But in a two-year test on geopolitical questions, the SciCast method did 40 percent better than the simple average.
SciCast uses the first general “combinatorial” prediction market. In a prediction market, forecasters spend points to adjust the group forecast. Significant changes “cost” more — but “pay” more if they turn out to be right. So better forecasters gain more points and therefore more influence, improving the accuracy of the system.
In a combinatorial market like SciCast, forecasts can influence each other. For example, forecasters might have linked cherry production to honeybee populations. Then, if forecasters increase the estimated percentage of honeybee colonies lost this winter, SciCast automatically reduces the estimated 2014 cherry production. This connectivity among questions makes SciCast more sophisticated than other prediction markets.
SciCast topics include agriculture, biology and medicine, chemistry, computational sciences, energy, engineered technologies, global change, information systems, mathematics, physics, science and technology business, social sciences, space sciences and transportation.
Seeking futurists to improve forecasts, pose questions


(Credit: George Mason University)
“With so many science and technology questions, there are many niches,” says Twardy, a researcher in the Center of Excellence in Command, Control, Communications, Computing and Intelligence (C4I), based in Mason’s Volgenau School of Engineering.
“We seek scientists, statisticians, engineers, entrepreneurs, policymakers, technical traders, and futurists of all stripes to improve our forecasts, link questions together and pose new questions.”
Forecasters discuss the questions, and that discussion can lead to new, related questions. For example, someone asked,Will Amazon deliver its first package using an unmanned aerial vehicle by Dec. 31, 2017?
An early forecaster suggested that this technology is likely to first be used in a mid-sized town with fewer obstructions or local regulatory issues. Another replied that Amazon is more likely to use robots to deliver packages within a short radius of a conventional delivery vehicle. A third offered information about an FAA report related to the subject.
Any forecaster could then write a question about upcoming FAA rulings, and link that question to the Amazon drones question. Forecasters could then adjust the strength of the link.
“George Mason University has succeeded in launching the world’s largest forecasting tournament for science and technology,” says Jason Matheny, program manager of Forecasting Science and Technology at the Intelligence Advanced Research Projects Activity, based in Washington, D.C. “SciCast can help the public and private sectors to better understand a range of scientific and technological trends.”
Collaborative but Competitive
More than 1,000 experts and enthusiasts from science and tech-related associations, universities and interest groups preregistered to participate in SciCast. The group is collaborative in spirit but also competitive. Participants are rewarded for accurate predictions by moving up on the site leaderboard, receiving more points to spend influencing subsequent prognostications. Participants can (and should) continually update their predictions as new information is presented.
SciCast has partnered with the American Association for the Advancement of Science, the Institute of Electrical and Electronics Engineers, and multiple other science and technology professional societies.
Mason members of the SciCast project team include Twardy; Kathryn Laskey, associate director for the C4I and a professor in the Department of Systems Engineering and Operations Research; associate professor of economics Robin Hanson; C4I research professor Tod Levitt; and C4I research assistant professors Anamaria Berea, Kenneth Olson and Wei Sun.
To register for SciCast, visit www.SciCast.org, or for more information, e-mail support@scicast.org. SciCast is open to anyone age 18 or older.”

Why the Nate Silvers of the World Don’t Know Everything


Felix Salmon in Wired: “This shift in US intelligence mirrors a definite pattern of the past 30 years, one that we can see across fields and institutions. It’s the rise of the quants—that is, the ascent to power of people whose native tongue is numbers and algorithms and systems rather than personal relationships or human intuition. Michael Lewis’ Moneyball vividly recounts how the quants took over baseball, as statistical analy­sis trumped traditional scouting and propelled the underfunded Oakland A’s to a division-winning 2002 season. More recently we’ve seen the rise of the quants in politics. Commentators who “trusted their gut” about Mitt Romney’s chances had their gut kicked by Nate Silver, the stats whiz who called the election days before­hand as a lock for Obama, down to the very last electoral vote in the very last state.
The reason the quants win is that they’re almost always right—at least at first. They find numerical patterns or invent ingenious algorithms that increase profits or solve problems in ways that no amount of subjective experience can match. But what happens after the quants win is not always the data-driven paradise that they and their boosters expected. The more a field is run by a system, the more that system creates incentives for everyone (employees, customers, competitors) to change their behavior in perverse ways—providing more of whatever the system is designed to measure and produce, whether that actually creates any value or not. It’s a problem that can’t be solved until the quants learn a little bit from the old-fashioned ways of thinking they’ve displaced.
No matter the discipline or industry, the rise of the quants tends to happen in four stages. Stage one is what you might call pre-disruption, and it’s generally best visible in hindsight. Think about quaint dating agencies in the days before the arrival of Match .com and all the other algorithm-powered online replacements. Or think about retail in the era before floor-space management analytics helped quantify exactly which goods ought to go where. For a live example, consider Hollywood, which, for all the money it spends on market research, is still run by a small group of lavishly compensated studio executives, all of whom are well aware that the first rule of Hollywood, as memorably summed up by screenwriter William Goldman, is “Nobody knows anything.” On its face, Hollywood is ripe for quantifi­cation—there’s a huge amount of data to be mined, considering that every movie and TV show can be classified along hundreds of different axes, from stars to genre to running time, and they can all be correlated to box office receipts and other measures of profitability.
Next comes stage two, disruption. In most industries, the rise of the quants is a recent phenomenon, but in the world of finance it began back in the 1980s. The unmistakable sign of this change was hard to miss: the point at which you started getting targeted and personalized offers for credit cards and other financial services based not on the relationship you had with your local bank manager but on what the bank’s algorithms deduced about your finances and creditworthiness. Pretty soon, when you went into a branch to inquire about a loan, all they could do was punch numbers into a computer and then give you the computer’s answer.
For a present-day example of disruption, think about politics. In the 2012 election, Obama’s old-fashioned campaign operatives didn’t disappear. But they gave money and freedom to a core group of technologists in Chicago—including Harper Reed, former CTO of the Chicago-based online retailer Threadless—and allowed them to make huge decisions about fund-raising and voter targeting. Whereas earlier campaigns had tried to target segments of the population defined by geography or demographic profile, Obama’s team made the campaign granular right down to the individual level. So if a mom in Cedar Rapids was on the fence about who to vote for, or whether to vote at all, then instead of buying yet another TV ad, the Obama campaign would message one of her Facebook friends and try the much more effective personal approach…
After disruption, though, there comes at least some version of stage three: over­shoot. The most common problem is that all these new systems—metrics, algo­rithms, automated decisionmaking processes—result in humans gaming the system in rational but often unpredictable ways. Sociologist Donald T. Campbell noted this dynamic back in the ’70s, when he articulated what’s come to be known as Campbell’s law: “The more any quantitative social indicator is used for social decision-making,” he wrote, “the more subject it will be to corruption pressures and the more apt it will be to distort and corrupt the social processes it is intended to monitor.”…
Policing is a good example, as explained by Harvard sociologist Peter Moskos in his book Cop in the Hood: My Year Policing Baltimore’s Eastern District. Most cops have a pretty good idea of what they should be doing, if their goal is public safety: reducing crime, locking up kingpins, confiscating drugs. It involves foot patrols, deep investigations, and building good relations with the community. But under statistically driven regimes, individual officers have almost no incentive to actually do that stuff. Instead, they’re all too often judged on results—specifically, arrests. (Not even convictions, just arrests: If a suspect throws away his drugs while fleeing police, the police will chase and arrest him just to get the arrest, even when they know there’s no chance of a conviction.)…
It’s increasingly clear that for smart organizations, living by numbers alone simply won’t work. That’s why they arrive at stage four: synthesis—the practice of marrying quantitative insights with old-fashioned subjective experience. Nate Silver himself has written thoughtfully about examples of this in his book, The Signal and the Noise. He cites baseball, which in the post-Moneyball era adopted a “fusion approach” that leans on both statistics and scouting. Silver credits it with delivering the Boston Red Sox’s first World Series title in 86 years. Or consider weather forecasting: The National Weather Service employs meteorologists who, understanding the dynamics of weather systems, can improve forecasts by as much as 25 percent compared with computers alone. A similar synthesis holds in eco­nomic forecasting: Adding human judgment to statistical methods makes results roughly 15 percent more accurate. And it’s even true in chess: While the best computers can now easily beat the best humans, they can in turn be beaten by humans aided by computers….
That’s what a good synthesis of big data and human intuition tends to look like. As long as the humans are in control, and understand what it is they’re controlling, we’re fine. It’s when they become slaves to the numbers that trouble breaks out. So let’s celebrate the value of disruption by data—but let’s not forget that data isn’t everything.

Entrepreneurs Shape Free Data Into Money


Angus Loten in the Wall Street Journal: “More cities are putting information on everything from street-cleaning schedules to police-response times and restaurant inspection reports in the public domain, in the hope that people will find a way to make money off the data.
Supporters of such programs often see them as a local economic stimulus plan, allowing software developers and entrepreneurs in cities ranging from San Francisco to South Bend, Ind., to New York, to build new businesses based on the information they get from government websites.
When Los Angeles Mayor Eric Garcetti issued an executive directive last month to launch the city’s open-data program, he cited entrepreneurs and businesses as important beneficiaries. Open-data promotes innovation and “gives companies, individuals, and nonprofit organizations the opportunity to leverage one of government’s greatest assets: public information,” according to the Dec. 18 directive.
A poster child for the movement might be 34-year-old Matt Ehrlichman of Seattle, who last year built an online business in part using Seattle work permits, professional licenses and other home-construction information gathered up by the city’s Department of Planning and Development.
While his website is free, his business, called Porch.com, has more than 80 employees and charges a $35 monthly fee to industry professionals who want to boost the visibility of their projects on the site.
The site gathers raw public data—such as addresses for homes under renovation, what they are doing, who is doing the work and how much they are charging—and combines it with photos and other information from industry professionals and homeowners. It then creates a searchable database for users to compare ideas and costs for projects near their own neighborhood.
…Ian Kalin, director of open-data services at Socrata, a Seattle-based software firm that makes the back-end applications for many of these government open-data sites, says he’s worked with hundreds of companies that were formed around open data.
Among them is Climate Corp., a San Francisco-based firm that collects weather and yield-forecasting data to help farmers decide when and where to plant crops. Launched in 2006, the firm was acquired in October by Monsanto Co. MON -2.90% , the seed-company giant, for $930 million.
Overall, the rate of new business formation declined nationally between 2006 and 2010. But according to the latest data from the Ewing Marion Kauffman Foundation, an entrepreneurship advocacy group in Kansas City, Mo., the rate of new business formation in Seattle in 2011 rose 9.41% in 2011, compared with the national average of 3.9%.
Other cities where new business formation was ahead of the national average include Chicago, Austin, Texas, Baltimore, and South Bend, Ind.—all cities that also have open-data programs. Still, how effective the ventures are in creating jobs is difficult to gauge.
One wrinkle: privacy concerns about the potential for information—such as property tax and foreclosure data—to be misused.
Some privacy advocates fear that government data that include names, addresses and other sensitive information could be used by fraudsters to target victims.”