Does the European data regulation support business innovation activities related to digital platforms and ecosystems?
The EU has established several initiatives to support and control the emerging European data economy, mainly through data regulations and related implementation actions. A question remains, how the regulative actions taken by the EU support the innovation activities related to data platforms and ecosystems.
We explored this issue together with the DataMust-project (Data Markets for Sustainable Cities - VTT's Research Information Portal). DataMust-project focuses on a new concept of decentralized and local data marketplace and related incentive mechanisms. We addressed the question by looking into the opportunities – instead of restrictions – through action research in an iterative manner and close co-operation with the participating companies.
Learnings in a nutshell
Based on the learnings from our research, the interlinkages between different platform options and recent European data regulations that aim to impact the formation of future European data markets can be summarized as follows:
There are several novel roles and mechanisms in the regulations for the actors in the future European data ecosystems. One major mechanism is the neutrality and separation requirements for the Data Intermediation Service Providers set out in the Data Governance Act. Another mechanism can be monitored in the Data Act, which decouples the services aiming to achieve a flourishing market for data-based services. These new mechanisms can support especially SMEs.
What does this mean for businesses?
For business model innovators, for instance the following new roles are worth exploring:
· orchestrators of data sharing actors, and
· diverse service provider roles (upstream or downstream of the data transactions).
These new value creation opportunities appear especially in the service and ecosystemic value co-creation layers.
It should be noted that in the future European data economy, value is often co-created with other participants since data is shared between actors. This means that businesses need to open their business models to accept the co-creation of value.
Role of trust
One challenge in making the opportunities presented above a reality is: How to increase trust among the participants taking part in the data sharing? The increase of trust related to data sharing can increase innovation related to digital platforms. This is one of the aspects that we will delve into more detail in the following phases of the DS2-project.
Further information and events
You can find our study in all detail here.
And do not miss the on-site final event of the DataMust-project taking place in Helsinki on 6th February, 2025, from 13:00 to 16:30. Please, register here: About the event | Smart sustainable cities boosted by data sharing
Contact the experts:
Jutta Suksi, Senior Specialist, Data Intensive Economy
Firstname.Lastname (at) VTT.fi
Research Focus:
Legal and regulatory issues in data economy
Design methods
Data ecosystems
Pasi Pussinen, Senior Scientist, Data Intensive Economy
Firstname.Lastname (at) VTT.fi
Research Focus:
Business model theory
Data-based business
Data ecosystems
Comments