Data Driven Innovation
Producing innovative outputs from data is known as “data driven innovation” (DDI). Myriad studies have shown that DDI has become a significant growth driver in the digital information age.
The accelerated development of information technologies in recent years has fostered the understanding that data is the most important resource in our world today. Nonetheless, while data is a highly accessible resource, it is not sufficiently exploited. Those who will know how to exploit it wisely will enjoy huge economic and social advantages. The enormous volume of digital information in the world more than doubles every two years, and data is currently related to everything and everyone. At the same time, currently available technologies can now produce a vast array of data outputs that may be able to drive progress worldwide.
DDI refers to innovative applications derived from data analytics. Data is collected in countless datasets, internal company datasets as well as external datasets such as government, fee-based or other open datasets. In fact, the recognition that data is the lifeline of innovation in the 21st century paves the way to optimal exploitation of existing data. The economic and social potential of data-driven innovation continues to grow alongside development and improvement of data analysis technologies.
The purpose of the study is to assess the value of data-driven innovation to the Israeli economy, and to propose the best government policy for making Israel a DDI superpower that will know how to realize its DDI potential for economic growth, enhance competitiveness and reduce cost of living in Israel. The study examines three central questions: the potential economic value of DDI for the State of Israel, recommended government policy for realizing this potential, and how to identify government datasets that should be made public.