Most Open Data advocates don’t phrase the issue in terms of private-sector provision of services, but instead phrase it in terms of civic engagement, non-profit groups, and “people”. Tim O’Reilly often phrases his arguments purely in terms of a civic public (and may see it that way himself), as in “This is the right way to frame the question of Government 2.0. How does government become an open platform that allows people inside and outside government to innovate?”
Carl Malamud goes further, arguing that the Open Data Movement is a replacement for a regime in which “the commercial sector is raping and pillaging the public treasury, getting exclusive deals on data that not only keeps out other companies, but researchers, public interest groups, and everybody else who make up ‘the public.’ In many cases, the government data is so tightly behind a cash register that even government workers enforcing the law can’t afford to buy copies of the data they produce or the rules they promulgated.” Others see no conflict between commerce and civic activity in this area: Tom Lee writes “I think it’s flatly wrong to consider private actors’ interest in public data to be uniformly problematic.”
David Eaves makes a strong argument for the vitality of the civic hacker tribe, and points out that Open Data has been largely ignored by Canadian corporations (although US companies such as Socrata have gained contracts for providing municipal “open data platforms”). The Canadian environment may be like that of the UK, where there is a “heavy weighting towards micro/small businesses in the … IT sector” to quote Jo Bates. Similarly, there are just are not that many Canadian companies deeply involved in government operations or in the use of public data.
(There have been positive statements from Open Text, and Desire2Learn has sponsored an “Edge Challenge” that has attracted app developers using open transit data [disclaimer: in my day job I have had some tangential involvement in that competition], but I can see what he means.)
So why would I focus on the private-sector, market-based actors of the south west quadrant when the civic hackers are perhaps more prevalent? Because of an argument made a year or two ago by Michael Gurstein, who asks “who is in a position to make ‘effective use’ of this newly available data?” and answers himself:
“‘open data’ empowers those with access to the basic infrastructure and the background knowledge and skills to make use of the data for specific ends. Given in fact, that these above mentioned resources are more likely to be found among those who already overall have access to and the resources for making effective use of digitally available information one could suggest that a primary impact of “open data” may be to further empower and enrich the already empowered and the well provided for rather than those most in need of the benefits of such new developments.”
Data’s value is combinatorial. It is most powerfully used by those who can combine it with other sources of data and who have the scale and resources to use it effectively. I think it’s fine that “civic hackers” are developing transit apps, but in the end that market is likely to be won by a single company under the current licensing and standards approaches.14
While Open Data advocates appear “open” to many new ideas, everything I’ve read suggests that they are near-united on the principle of “non-discriminatory” licensing, meaning making data available to commercial enterprises (of any size) on the same terms as to the Civic Hackers. The economy of data-driven products is similar to the economics of cultural industries: it tends to end in winner-take-all outcomes and favours large-scale enterprises. In cultural markets, this tendency has led many countries to adopt a toolbox of techniques to maintain domestic cultural industries in the face of the scale of the American cultural industry, from quotas to subsidies to non-market providers.15 Such measures have much in their favour, yet the Open Data Movement is apparently united in opposing them.
Economically, Silicon Valley is likely to be the major winner in the Open Government Data game. It is difficult to see how to justify a subsidy to Silicon Valley companies as a priority for cash-strapped governments of smaller countries.
An example: Jo Bates (again) describes the interest in weather data. “In the context of the UK there has been significant lobbying by the financial industry to get better access to UK weather data so that it is able to compete in this [weather risk management] market. Groups such as the Lighthill Risk Network, of which Lloyds of London are a member, have lobbied government for better weather data so that they can develop risk based weather products. Similarly, the insurance industry has requested real time information on the pretext that they might respond more quickly to extreme weather events such as flooding. My own research and the recent announcement suggest that these demands have been met enthusiastically by well placed policy makers in national government who are keen to develop a UK weather derivatives market.” Weather risk management might seem like an odd duck, but Bates reports that “This weather risk management market far outweighs the USA’s commercial weather products market which in 2000 was estimated at approximately $500 million a year”, touching over $45 billion in 2005-06.
The rhetoric of civic engagement is appealing, but blurring the boundary between small-scale civic “hackathons” and the major financial institutions is a position that simply ignores major economic and political issues.
The benefits of standards-driven formats are, for municipal activities, not obvious unless you want to attract global interest. I continue to believe that licensing and formats are an area where there is still room for innovation, and where a premature focus on standardization may shorten the lifespan of civic-hacker use of municipal data before the big players get to pull it into their own systems. I’d argue, as I have before, for some form of charging to be enabled, at least on large-scale commercial use of data. I’d also argue that standardization should not be high on the agenda for municipal governments looking to build and collaborate with a local community of hackers.