[GSDI Legal Econ] Value of spatial information (2008)

[Walter de Vries]

Hi Vlado /Roger / Yola,

I would certainly be interested in contributing. My estimate is that the
two reports are very alike and are based on similar methodologies
(largely survey / questionnaire based). It might however not be bad to
be a bit critical towards these methodologies and these numerical
"value" figures (just read James Scott : seeing like a state). 

I would think that in a chain economy - with use and re-use - many
figures are counted more than once, and as a result are not so reliable.
More importantly, we may also ask whether these are at all useful to
public managers and politicians. The interesting dilemma from a public
economic perspective is the question how much public funds should
encourage investments by the private sector in GI and SDI. Economically,
the public sector has two types of instruments to encourage private
sectors: either coercive measures, such as regulation and through the
use of public (public information providing) institutions; or
non-coercive measures, including sponsoring, easing
participation/access, reduction of investment barriers and partial
investments. The economic difficulty in choosing any type of measures is
twofold: the first type of measures creates by definition transactions
costs for the private sector (in making sure how to apply the
regulations and their interactions with the institutions) and
enforcements costs for the public sector (in making sure the regulations
are implemented correctly), and as a result this is by definition
inefficient. The second type of measures is more efficient (economic
theory assumes the occurrence of investments in the public information
good provision of private sector if it is sufficiently attractive based
on all information necessary for making investment decisions), but the
public outcome of the measure is less predictable (meaning: the degree
to which the public information remains a public good is less known). 

Resuming, the value is not in the money, but in the extent to which it
is of value / importance to people, or to the quality of life. Maybe
this would be a good start for a qualitative (!) research exercise.
Please count me in.

Walter T. de Vries 
Urban-Regional Planning and Geoinformation Management (PGM) 
International Institute for Geoinformation Science and Earth Observation
(ITC) 
P.O. Box 6, 7500 AA, Enschede, Netherlands 
tel.: (31)(53) 4874 475; fax: (31)(53) 4874 575 
http://www.itc.nl/personal/devries  

  

-----Original Message-----
From: legal-econ-bounces at lists.gsdi.org
[mailto:legal-econ-bounces at lists.gsdi.org] On Behalf Of Roger Longhorn
Sent: Wednesday, March 26, 2008 2:28 PM
To: Vlado Cetl
Cc: SDI-legal-econ
Subject: Re: [GSDI Legal Econ] Value of spatial information (2008)

Great, Vlado!

Anyone else wish to join Vlado on this interesting work?

I attach the 1999 OXERA report just in case some of you don't have it.

Remember, we are not looking at another 'value of GIS' investigation
here - of which there are more than a few already existing - but rather
the trickier question of 'value of GI/spatial information' to an economy
and then the value of the SDI that is alleged to be needed in order to
make that spatial information most useful to the most users. The issue
is a serious one because, until you agree on 'value' it is quite
difficult - if not impossible - to conduct a meaningful Cost-Benefit
Analysis, in my opinion - and direct experience - using virtually any of
the many 'CBA' methodologies that exist.

Kind regards

Roger

Vlado Cetl wrote:
> Dear Roger,
>
> It is a very good idea to make it and I think it could be a very 
> interesting research. I will give it a try (but time is always a limit

> factor ...)
>
> Regards
>
> PhD Vlado Cetl
> Faculty of Geodesy
> Institute of Applied Geodesy
> Chair of Spatial Information Management Kaciceva 26, HR-10000 Zagreb, 
> Croatia Tel. ++385 1 4639 191 Fax. ++385 1 4828 081
> Web: www.geof.hr
>
>
> ----- Original Message ----- From: "Roger Longhorn" <ral at alum.mit.edu>
> To: "SDI-legal-econ" <legal-econ at lists.gsdi.org>
> Cc: "Kate Lance" <lancekt at aya.yale.edu>
> Sent: Wednesday, March 26, 2008 9:38 AM
> Subject: Re: [GSDI Legal Econ] Value of spatial information (2008)
>
>
>> It might be an interesting exercise for some enterprising academic - 
>> or academics - from within the Working Group to do a comparative 
>> analysis of the methodologies, assumptions and findings between what 
>> are now two in-depth studies into the 'value of spatial 
>> information/GI' to a national economy - i.e. the OXERA study of 1999 
>> which Ordnance Survey GB quotes repeatedly - which stated that 
>> national mapping underpinned 100 billion GBP of the British economy -

>> and this new study. Perhaps with a side analysis of the PIRA 
>> International study of 2000 into the economic and investment value of

>> public sector GI to the European economy and information market.
>>
>> Any takers?
>>
>> Roger Longhorn
>> co-Chair GSDI Legal & Socioeconomic W.G.
>>
>> Kate Lance wrote:
>>> http://www.crcsi.com.au/pages/news.aspx?NewsArticleID=433&Display=1
>>> <http://www.crcsi.com.au/pages/news.aspx?NewsArticleID=433&Display=1
>>> >
>>> Value of spatial information (2008)
>>> According to a new study on the economic impact of spatial 
>>> information released by Australia's Spatial Information Council 
>>> (ANZLIC), the spatial information industry is a major contributor to

>>> the national economy generating revenue of A$1.37 billion in the 
>>> 2006/07 financial year. This is a contribution of between $6.4 and 
>>> $12.6 billion to Gross Domestic Product (GDP).  The study also 
>>> estimated that inefficient access to data reduces the direct 
>>> productivity of some sectors by between five and 15 per cent.
>>> The complete study is available for download at 
>>> http://www.crcsi.com.au/UPLOADS/PUBLICATIONS/PUBLICATION_324.pdf
>>>
>>> Legal-Econ mailing list
>>> Legal-Econ at lists.gsdi.org
>>> http://lists.gsdi.org/mailman/listinfo/legal-econ
>>>
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>
>