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Big Value from Big Data? Recognizing Public Value from Public Data in the Innovation Economy

Modern advances in the information technology industry have radically changed the relationship between public and private institutions and data. This is particularly true in relation to data collected from and by public institutions, or ‘public data’. Contemporary debates about data have not accurately reflected these changes or the unique characteristics of public data. We argue that public data is different to other types of data. Because the state plays a central role in controlling the conditions of access to it by third parties, public data is a special type of good, a club good. As we highlight through a case study of the education sector, this state role, as a club good manager, underpins the value which public data creates. To better enable the state to play this role, and to prevent overcrowding and the unethical collection or use of public data, we propose a tiered licensing system with respect to its collection and use. This structure better recognizes the role of the state as a co-creator of public value and creates an incentive for the state to enable innovation by making more public data accessible.