National Data Strategy

Recently, I completed viewing the remarkable docu-drama mini series "The Playlist " on Netflix ?. The series delves into the inception of Spotify from multiple perspectives. It got me thinking about the innovative idea of offering free music and the significant disruption it caused at the time. Additionally, the series highlighted the difficulties involved in establishing a viable business model for such a service. So ten years later, music is free, but we have the option to pay for a premium service. A noteworthy observation is that the music industry's current worth is $26 billion, surpassing its peak in the 1990s when compact discs were the primary mode of music consumption.

Which got me thinking about the state of the innovation system in Australia

What is the purpose of an innovation system?

"An innovation system is a set of institutions and policies that support and promote the creation, diffusion, and commercialization of new ideas, technologies, and products. The purpose of an innovation system is to facilitate economic growth and competitiveness by fostering a supportive environment for innovation and by ensuring that the benefits of innovation are widely distributed. This can be achieved by enabling the flow of information, knowledge, and resources among different actors in the innovation system, such as universities, businesses, government agencies, and other stakeholders." ChatGPT

To me, this response holds great significance as it validates my longstanding conviction that facilitating the exchange of information, knowledge, and resources is the key to promoting innovation in Australia. This factor holds more weight than collaboration, STEM teaching, or venture capital. The most efficient and straightforward approach to enable this exchange is by granting individuals access to free and unrestricted information.

How we go about this will require a national information/data strategy.

Open Access Strategy for Australia

Over a year ago?Cathy Foley ?- Australia's Chief Scientist - highlighted the challenge of paywalls and access to academic publications and announced the?Open Access Strategy for Australia . Whilst this is an excellent initiative, it only solves half the problem. The other half of the innovation problem requires access to?tacit knowledge ?- implict knowledge about the howto, about business, markets, and access to capability and talent. Typically this knowledge is shared across industry networks. But unfortunately in Australia, most of these networks are behind paywalls (membership fees), or in some cases, the industry is so immature that the networks do not exist yet. Hence, we need a strategy to open up these networks - or create the networks that don't exist.

So I went and asked chatCPT how the government could help.

Construct an argument of the merits of free access to industry networks, and the role of government to create and support these networks.

"The argument for free access to industry networks is that they can drive innovation, improve collaboration and competitiveness, and create new opportunities for economic growth. When individuals and organizations have access to a wide range of networks, they can share ideas, resources, and knowledge, leading to faster and more effective problem solving and promoting innovation.

Furthermore, free access to industry networks can help level the playing field for smaller and newer organizations, allowing them to compete more effectively with larger and established companies. This can foster entrepreneurship, diversity and dynamism in the business environment.

In order to maximize the benefits of free access to industry networks, governments can play an important role in creating and supporting these networks. By providing the necessary resources, expertise and infrastructure, governments can help establish networks that are accessible and beneficial to a wide range of individuals and organizations.

In addition, government support can also ensure the sustainability of these networks. This can help to maintain the flow of information and knowledge within the industry, and ensure that the benefits of these networks continue to be felt for years to come.

Moreover, by creating and supporting industry networks, governments can demonstrate their commitment to promoting innovation and competitiveness in key sectors. This can help to attract investment and talent to the country, further stimulating economic growth and development.

In conclusion, free access to industry networks can bring many benefits to individuals, organizations, and entire industries. By creating and supporting these networks, governments can play a crucial role in promoting innovation, competitiveness and economic growth." ChatGPT

Well this convinced me! So how does this work.

Support and Subsidize Industry Networks

The Australian government currently endorses and provides financial aid to numerous industry networks. However, these networks typically necessitate some form of membership, either via fees or coinvestment, and often require the network to be self-sufficient within a few years. This echoes the challenge faced by Spotify - how to generate enough revenue to sustain the network and enable unrestricted access to information. The key question then becomes, what is the most viable business model to achieve this goal?

Platform Business Model

Spotify used a platform business model [1]. A platform is a business model that creates value by facilitating exchange between two or more interdependent groups, usually consumers and producers.

Two primary categories of platform businesses exist: marketplace and aggregator platforms. Modern marketplaces typically implement a commission-based business model, wherein the platform receives a percentage or a fixed fee from each transaction facilitated. On the other hand, an aggregator platform compiles and displays data from various competing websites or application software related to goods and/or services on its own website or application software..

Back in 2015, I attempted to create an innovation marketplace called i3Hub .

The I3Hub was an initiative to create an independent, not-for-profit network for Industrial?Internet Innovation (I3) supported by a?Connected Innovation Marketplace (CIM) modelled upon?three activities for innovation [3]:

• Think?–?Capability Discovery,?Social / Business Networking, Engagement
• Play?–?Access to Facilities / Training,?Demonstration / Experience,?Immersion
• Do?–?Collaboration / Co-location,?Open Innovation / Incubation,?VC

And in 2020, I was involved in the development of the Robotics Venture Factory proposal, where in addition to a number of shared robotics testing facilities, the robo-factory would provide an aggregator to connect researchers to industry, and suppliers to consumers.

In either scenario, the platform business model requires a substantial number of suppliers and/or consumers to generate value. However, when starting out, such networks do not have any of these - which leads to the "Chicken and Egg" problem. The question arises, how can you persuade sellers to join a platform in the absence of buyers, and vice versa? [2].

Recommendation - the platform needs to be subsidized for a number of years.

It is interesting to reflect that Spotify still makes a loss.

Data Repositories

Current

• TROVE - National Library
• Analysis and Policy Observatory
• Government Transparency Portal
• Encyclopaedia of Australian Science and Innovation
• Australian Research Council (ARC) Data Portal
• Australian Research Data Commons (ARDC)
• ACARP - behind paywall
• Data Gov - central source of Australian open government data
• Startup Status -

Historical Repositories

• 1999-2006 Australian Science and Technology Heritage Centre
• 1985-1990 Australian Science Archives Project (ASAP)

International

• CORDIS - EU with over 135,000 projects over 30 years
• National Science Foundation - US

Postscript

In 2019, the ARDC invited eResearch sector to submit proposals for new research-orientated?platforms ?and services that connect and provide access to a range of resources to researchers and industry. Here are the successful platforms

Resources

1. 2019 Good Data - Ed Angela Daly, Kate Devitt and Monique Mann
2. 2021 Australian Data Strategy - Department of Finance
3. 2021 Data Strategy 2021-2024 - Department of Industry
4. 2022 Data Strategy 2023–2025 - National Archives of Australia

References

[1] Spotify Business Model - Strategyzer

[2] The-marketplace-business-model-a-complete-guide - ProductMint

[3] Think, Play, Do: Innovation, Technology, and Organization - Mark Dodgson AO

Related Information

To understand why knowledge workers are unwilling to share information I asked ChatGPT the following questions.

Why are knowledge workers unwilling to share information?

Knowledge workers may be unwilling to share information for a variety of reasons, including:

1. Fear of losing job security or status: Knowledge workers may believe that sharing their expertise or knowledge will make them less indispensable to their organization or that they may lose their status as a subject matter expert.
2. Lack of incentives: If knowledge workers do not see any direct benefits to sharing their information, they may prioritize their own interests over the larger organization or innovation system.
3. Lack of trust: Knowledge workers may not trust their colleagues or organization with their confidential information, particularly if they are not confident in the security protocols or culture of the organization.
4. Legal or regulatory barriers: Legal or regulatory requirements may restrict the sharing of certain types of information, particularly in industries such as finance, healthcare, and technology.
5. Cultural factors: Cultural norms or practices may discourage knowledge workers from sharing information, particularly if they perceive that sharing information is not in their best interests or may go against their cultural values.

It's important to note that while some knowledge workers may be reluctant to share information, others may be eager to collaborate and share their expertise to drive innovation and achieve common goals. Effective knowledge management practices, including fostering a culture of collaboration and providing incentives for knowledge sharing, can help to overcome some of these challenges and promote a more open exchange of ideas and information.

How important is understanding ones role?

Understanding one's role in promoting knowledge sharing and innovation is critical to the success of any organization or innovation system. Without a clear understanding of their role and responsibilities, individuals may not prioritize knowledge sharing or may not know how to effectively contribute to the larger innovation ecosystem.

In particular, leaders within an organization or innovation system play a critical role in creating a culture that supports and encourages knowledge sharing. They can set the tone for the organization by modeling the behavior they wish to see in others, providing incentives for knowledge sharing, and creating systems and processes that facilitate the exchange of information and ideas.

Individuals also have an important role to play in driving innovation and promoting knowledge sharing. By recognizing the value of their own expertise and knowledge, and by being willing to share that knowledge with others, they can help to drive innovation and contribute to the success of the larger system.

Overall, understanding one's role in promoting knowledge sharing and innovation is critical to creating a culture of collaboration and achieving success within an organization or innovation system.

How do we achieve clarity over such roles?

Achieving clarity over roles in promoting knowledge sharing and innovation requires a deliberate and strategic approach. Here are some steps that can help:

1. Develop a clear mission and vision: Start by articulating a clear mission and vision for the organization or innovation system. This will help to provide a sense of direction and purpose, and will guide decisions around roles and responsibilities.
2. Define key objectives: Identify key objectives for the organization or innovation system, and determine how knowledge sharing and innovation can support these objectives. This will help to provide a clear understanding of the importance of knowledge sharing and innovation, and will help individuals to see how their role contributes to the larger goals.
3. Clarify roles and responsibilities: Clearly define the roles and responsibilities of individuals within the organization or innovation system, and communicate these clearly to all stakeholders. This can be done through job descriptions, performance objectives, and other tools.
4. Provide training and support: Provide training and support to help individuals understand their roles and responsibilities, and to develop the skills and knowledge needed to effectively contribute to the larger system. This could include training in communication, collaboration, and knowledge management.
5. Monitor and evaluate: Regularly monitor and evaluate the effectiveness of the roles and responsibilities in promoting knowledge sharing and innovation, and make adjustments as needed. This will help to ensure that the organization or innovation system remains aligned with its mission and objectives, and that individuals are effectively contributing to the larger goals.

Overall, achieving clarity over roles in promoting knowledge sharing and innovation requires a comprehensive and strategic approach that involves all stakeholders in the organization or innovation system. By clearly defining roles and responsibilities, providing training and support, and monitoring and evaluating progress, organizations can create a culture of collaboration and achieve success in driving innovation.

What is the difference between and mission, purpose and strategy

Mission, purpose, and strategy are related concepts, but they refer to different aspects of an organization.

Mission refers to the overall reason for an organization's existence and what it aims to achieve. It defines the organization's goals and aspirations and sets the broad direction for its activities.

Purpose refers to the specific impact that an organization aims to have on its stakeholders, such as customers, employees, shareholders, or society as a whole. It explains why the organization exists and what difference it wants to make.

Strategy refers to the plan an organization develops to achieve its goals and fulfill its mission and purpose. It outlines the specific actions and steps that the organization will take to reach its objectives and succeed in its markets.

In summary, mission and purpose provide the context and motivation for an organization's activities, while strategy outlines the specific steps it will take to achieve its goals.

What is rent-seeking?

Rent-seeking is the economic behavior of trying to increase one's share of existing wealth without creating new wealth. It refers to actions taken by individuals or firms to manipulate the rules of the market or the distribution of resources in their favor, without making any productive contributions to the economy. Rent-seeking activities are often associated with lobbying for government policies or regulations that benefit one's own interests, such as tariffs, subsidies, or exclusive licenses.

Rent-seeking can have negative effects on the economy, as it can lead to a misallocation of resources and reduce overall economic efficiency. It can also create barriers to entry for new firms, increase costs for consumers, and contribute to income inequality.

What is the relationship between gate keepers and rent seeking?

Gatekeepers are individuals or organizations that control access to resources or opportunities that are necessary for success in a particular field. In the context of rent-seeking, gatekeepers can play an important role in shaping the distribution of resources and opportunities and can facilitate or hinder rent-seeking behavior.

For example, a gatekeeper who controls access to a valuable resource, such as a government contract or a valuable license, can use this control to extract rents from individuals or firms that want access to that resource. In such cases, the gatekeeper becomes a rent-seeker themselves, as they are using their control over access to generate rents without making any productive contributions to the economy.

On the other hand, gatekeepers can also play a role in limiting rent-seeking behavior by ensuring that resources and opportunities are distributed in a competitive and transparent manner. For example, a regulatory agency with the authority to grant licenses or contracts could implement policies that limit the ability of individuals or firms to engage in rent-seeking behavior by promoting competition and fairness.

In summary, the relationship between gatekeepers and rent-seeking can be either positive or negative, depending on the role that gatekeepers play in shaping the distribution of resources and opportunities.

Could you expand on the role of information sharing?

Information sharing refers to the exchange of information among individuals or organizations in a network. In the context of innovation and economic growth, information sharing plays a crucial role in facilitating the flow of knowledge and ideas that drive innovation.

When individuals and organizations share information, they can build on each other's knowledge and ideas to create new and better products, technologies, and processes. This can lead to the development of new industries, the creation of new jobs, and the improvement of existing products and services.

Effective information sharing can also help to overcome the problems of asymmetrical information, where one party has more information than the other. By sharing information, individuals and organizations can level the playing field and ensure that all participants have access to the information they need to make informed decisions.

However, information sharing can also have its challenges, such as protecting sensitive or confidential information, ensuring that information is accurate and trustworthy, and dealing with issues of privacy and security. To maximize the benefits of information sharing, organizations must develop effective information management policies and practices that ensure the secure and responsible exchange of information.

In summary, the role of information sharing in innovation and economic growth is to facilitate the flow of knowledge and ideas that drive innovation and support economic growth. By sharing information, individuals and organizations can build on each other's knowledge and ideas, overcome problems of asymmetrical information, and maximize the benefits of innovation.

How do you incentivise gate keepers to prevent rent seeking?

Incentivizing gatekeepers to prevent rent-seeking requires designing systems and policies that align the interests of gatekeepers with the goal of promoting competition and limiting rent-seeking behavior. Some strategies that can be used to incentivize gatekeepers include:

1. Designing transparent and fair processes for the allocation of resources and opportunities, such as contracts, licenses, or subsidies. This can reduce the opportunities for gatekeepers to engage in rent-seeking behavior.
2. Creating incentives for gatekeepers to act in a responsible and ethical manner. For example, a regulatory agency could reward gatekeepers who promote competition and limit rent-seeking behavior through a system of incentives and penalties.
3. Encouraging competition and market forces, as these can help to limit the power of gatekeepers and reduce the opportunities for rent-seeking.
4. Promoting accountability and transparency, by ensuring that gatekeepers are subject to oversight and that their decisions and activities are subject to public scrutiny.
5. Offering training and support to gatekeepers to help them understand their responsibilities and the importance of promoting competition and limiting rent-seeking behavior.
6. Encouraging the development of self-regulatory organizations that can help to set standards for responsible and ethical behavior and promote competition.

By aligning the interests of gatekeepers with the goal of promoting competition and limiting rent-seeking behavior, it is possible to create a more level playing field and reduce the opportunities for rent-seeking.