Blog and policy brief by Jeni Tennison: “The most obvious approach to get companies to share value back to the public sector in return for access to data is to charge them. However, there are a number of challenges with a “pay to access” approach: it’s hard to set the right price; it creates access barriers, particularly for cash-poor start-ups; and it creates a public perception that the government is willing to sell their data, and might be tempted to loosen privacy-protecting governance controls in exchange for cash.
Are there other options? The policy brief explores a range of other approaches and assesses these against five goals that a value-sharing framework should ideally meet, to:
- Encourage use of public data, including by being easy for organisations to understand and administer.
- Provide a return on investment for the public sector, offsetting at least some of the costs of supporting the NDL infrastructure and minimising administrative costs.
- Promote equitable innovation and economic growth in the UK, which might mean particularly encouraging smaller, home-grown businesses.
- Create social value, particularly towards this Government’s other missions, such as achieving Net Zero or unlocking opportunity for all.
- Build public trust by being easily explainable, avoiding misaligned incentives that encourage the breaking of governance guardrails, and feeling like a fair exchange.
In brief, alternatives to a pay-to-access model that still provide direct financial returns include:
- Discounts: the public sector could secure discounts on products and services created using public data. However, this could be difficult to administer and enforce.
- Royalties: taking a percentage of charges for products and services created using public data might be similarly hard to administer and enforce, but applies to more companies.
- Equity: taking equity in startups can provide long-term returns and align with public investment goals.
- Levies: targeted taxes on businesses that use public data can provide predictable revenue and encourage data use.
- General taxation: general taxation can fund data infrastructure, but it may lack the targeted approach and public visibility of other methods.
It’s also useful to consider non-financial conditions that could be put on organisations accessing public data..(More)”.