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Vermelding onderdeel organisatie 1 Economic models for the development of Spatial Data Infrastructures Forum 2004 29 June 2004 Bastiaan van Loenen [email protected] OTB Research Institute for Housing, Urban and Mobility Studies, section Geo-information and Land Development

Economic models for the development of Spatial Data Infrastructures

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Economic models for the development of Spatial Data Infrastructures. Bastiaan van Loenen [email protected]. Forum 2004 29 June 2004. OTB Research Institute for Housing, Urban and Mobility Studies, section Geo-information and Land Development. Overview. Introduction - PowerPoint PPT Presentation

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Page 1: Economic models for the development of Spatial Data Infrastructures

Vermelding onderdeel organisatie

1

Economic models for the development of Spatial Data Infrastructures

Forum 200429 June 2004

Bastiaan van [email protected]

OTB Research Institute for Housing, Urban and Mobility Studies, section Geo-information and Land Development

Page 2: Economic models for the development of Spatial Data Infrastructures

2

Overview

• Introduction• Economic models• Best practices• Conclusion

Page 3: Economic models for the development of Spatial Data Infrastructures

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Why SDI?

• providing easy, public access to integrated land-related information in support of informed decision making (New Brunswick)

• creating a national network linking databases and users and enhancing the accessibility, communications and use of geographic information (FGDC)

• to ensure that spatial data users will be able to acquire consistent datasets to meet their requirements (Australia)

Page 4: Economic models for the development of Spatial Data Infrastructures

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Spatial data are special

• Expensive to create: • high expertise and • advanced equipment needed• data does not ‘come’ to the gatherer

• Many use spatial data but few are aware of their value

• Spatial data commercially the most interesting

Page 5: Economic models for the development of Spatial Data Infrastructures

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Source: Rajabifard, et al, 1999

Different levels of Detail required forDifferent SDI levels

Less detailed data

Global level

Regional level

National level

State level

Local level

GSDI

RSDI

NSDI

SSDI

LSDI

More detailed data

Page 6: Economic models for the development of Spatial Data Infrastructures

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Economic models

• Open access model• Cost recovery model• Public private partnerships

Page 7: Economic models for the development of Spatial Data Infrastructures

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Open Access Model

• Minimum of use restrictions• Maximum price of marginal costs of distribution

Page 8: Economic models for the development of Spatial Data Infrastructures

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Open Access Model

DataProductPublic fundsVATIncome/Company taxPrice

Governmentusers

End-users

ProfessionalUsers

End-users

Treasury

Governmentagency

Page 9: Economic models for the development of Spatial Data Infrastructures

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Open Access

Successful if sufficient awareness for the value of geographic information exists at the decision making levels and is sustainable

Difficult to cooperate with private sector

Page 10: Economic models for the development of Spatial Data Infrastructures

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Cost Recovery Model

• Use restrictions imposed• No limit on price

Page 11: Economic models for the development of Spatial Data Infrastructures

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Cost Recovery Model

DataProductPublic fundsVATIncome/Company taxPrice

Governmentusers

End-users

ProfessionalUsers

End-users

Treasury

Governmentagency

Page 12: Economic models for the development of Spatial Data Infrastructures

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Cost Recovery

Probably useful if awareness for the value of geographic information is lacking at the decision making levels

Allows for cooperation with private sector

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Public Private Cooperation: MetroGIS

• Many public organisations needed road centreline data (school districts, counties, cities, water districts, etc.) but did not have it

• One private company had (parts of the) dataset and was willing to share the dataset with the MetroGIS community

Page 14: Economic models for the development of Spatial Data Infrastructures

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Public Private Cooperation

The Deal:• One time $300,000 investment• Dataset for a total price of $50,000 per year for

a 5 year period available for all MetroGIS participants (>300)

• MetroGIS participants provide updates of their road datasets, and/ or road plans to private company

• No redistribution is allowed

Page 15: Economic models for the development of Spatial Data Infrastructures

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Public Private Cooperation

The Benefits:• Public organisations now use the data that

meets their needs against low cost• Private company has the most up to date road

data against low cost• Private company has guaranteed income

stream for 5 year period

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Public Private Partnership: Dutch Large Scale Base Map

Common data needs for large scale topographic data• Local government• Utilities• Water boards• Kadaster

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Public Private Partnership

• The Large scale base map of the Netherlands:• uniform dataset 1:500, 1,000 or 2,000 • core topography:

• buildings• roads• bridges• waterways• utility facilities• street names

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Public Private Partnership

• Total cost: > € 200,000,000• Yearly maintenance: € 27,000,000• Investment: € 27,000,000

• Price for non-participants: % of costs• Restrictive use conditions

• Without PPP (and cost recovery model) no GBKN!

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The case of three counties

County A: excellent GIS data, open access model County B: excellent GIS data, cost recovery model County C: paper data, not yet decided on the policy

Real estate agent covering County A,B, and C but only with GIS data for County A

Manufacturing company seeks a new location in County A, B, or C

Page 20: Economic models for the development of Spatial Data Infrastructures

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The case of three counties

Result: Manufacturing company moves to County A

Benefits: - County generates more tax (value added, income, property, and/or company) - Manufacturing company finds quickly new location - Real estate agent is more efficient in location searches

Page 21: Economic models for the development of Spatial Data Infrastructures

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Conclusions

• Public private partnerships may be beneficial in meeting both public and private needs

• If awareness for SDI is sufficient and sustainable the open access model probably outweighs the cost recovery model

• No blue print for best access policy

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Further information

Spatial data infrastructure and policy development in Europe and the United Stateshttp://www.library.tudelft.nl/dup/leaflets/2467.html

Database with SDI literaturehttp://www.otb.tudelft.nl/NGII/

Page 23: Economic models for the development of Spatial Data Infrastructures

Vermelding onderdeel organisatie

23

Economic models for the development of Spatial Data Infrastructures

Thank you for your attention

Forum 200429 June 2004

Bastiaan van [email protected]

OTB Research Institute for Housing, Urban and Mobility Studies, section Geo-information and Land Development