[epsi-coord] Recently published study: DOES MARGINAL COST PRICING OF PUBLIC SECTOR INFORMATION SPUR FIRM GROWTH?

[Antti Poikola]

In case if you haven't noticed -> a recently published study from 
Finland (study compares 15 countries).//I haven't read it yet. As far as 
I know the study was ordered by one of the governmental working groups, 
whichs is trying to reach consensus regarding the pricing issues.


http://www.etla.fi/julkaisuhaku.php?type=details&id=1853 
<http://www.etla.fi/julkaisuhaku.php?type=details&id=1853>

*DOES MARGINAL COST PRICING OF PUBLIC SECTOR INFORMATION SPUR FIRM 
GROWTH? * 	*28.09.2011*
Keywords: public sector information, pricing, firm growth, technology 
policy

Asiasanat: julkinen tieto, hinnoittelu, yritysten kasvu, 
teknologiapolitiikka
JEL: L25, L84, O38
*Koski, Heli*

Abstract: The firm-level data concerning re-users of geographical 
information (GI) active in architectural and engineering activities and 
related technical consultancy sector from 15 countries during the year 
2000-2007 suggests that the pricing of public sector GI strongly relates 
to the firms' sales growth. Firms functioning in the countries in which 
public sector agencies provide fundamental geographical information 
either freely or at maximum marginal costs have grown, on average, 
aboutr 15 percent more per annum than the firms in the countries in 
which public sector GI is priced according to the cost-recovery 
principle. The difference-in-difference estimations further show that 
positive growth impact materializes already one year after switching to 
the marginal cost pricing scheme but a stronger boost to the firm growth 
takes place with a two year lag. Interestingly, marginal cost pricing 
has not generated notable growth among the large firms; it has been SMEs 
benefiting most from cheaper geographical information. It seems credible 
that switching to marginal cost pricing of public sector information 
(PSI) substantially lowers SMEs' barriers to enter new market areas in 
the provision of GI-based products and services.


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