Measuring the Impact of Data Economy

Utilizing data offers opportunities for value creation and productivity growth across all sectors of society. While new data-driven businesses, products, operational models, value chains, and public services emerge, their effects at the sector and overall economic levels are not well understood.

Determining the value of data and the data economy is challenging, and currently, there is no comprehensive picture available of the size of the data economy, the value it generates, and its connection to economic growth.

As a result of the development work on measuring the data economy, some relatively crude measures suitable for international comparison have been produced, such as the EU’s DESI index. A more precise assessment of value creation and impact of the data economy in different sectors and at the national economic level requires the development of euro-denominated measurements and indicators, which this project “Measuring the Impact of Data Economy” addresses.

In this project, we are developing a euro-denominated measurement framework for the data economy tailored to the context of Finland, which may potentially be applicable in other countries as well. Additionally, we are evaluating the data economy capabilities in Finland and constructing a Data Barometer comparing data utilization in Finland and benchmark countries.

The information produced in the project enhances understanding of public procurement and R&D investments that drive Finland’s data economy, as well as the best international practices and their suitability for Finland.

Information is particularly needed to support decision-making in assessing the effectiveness and impact of targeted public investments in digitalization and the development of the data economy.

Overall, a better understanding of the mechanisms of value creation in the data economy, recent developments, and the effectiveness of development and support measures is conducive to accelerating welfare and value-added development in the data economy.

A policy brief summarizing the Data Barometer and the project’s key findings will be published in 2024, with a results seminar scheduled for December 2024.