Understanding Corporate Data Sharing Decisions: Practices, Challenges, and Opportunities for Sharing Corporate Data with Researchers
Data has become the currency of the modern economy. A recent study projects the global volume of data to grow from about 0.8 zettabytes (ZB) in 2009 to more than 35 ZB in 2020, most of it generated within the last two years and held by the corporate sector.
As the cost of data collection and storage becomes cheaper and computing power increases, so does the value of data to the corporate bottom line. Powerful data science techniques, including machine learning and deep learning, make it possible to search, extract and analyze enormous sets of data from many sources in order to uncover novel insights and engage in predictive analysis. Breakthrough computational techniques allow complex analysis of encrypted data, making it possible for researchers to protect individual privacy, while extracting valuable insights.
At the same time, these newfound data sources hold significant promise for advancing scholarship and shaping more impactful social policies, supporting evidence-based policymaking and more robust government statistics, and shaping more impactful social interventions. But because most of this data is held by the private sector, it is rarely available for these purposes, posing what many have argued is a serious impediment to scientific progress.
A variety of reasons have been posited for the reluctance of the corporate sector to share data for academic research. Some have suggested that the private sector doesn’t realize the value of their data for broader social and scientific advancement. Others suggest that companies have no “chief mission” or public obligation to share. But most observers describe the challenge as complex and multifaceted. Companies face a variety of commercial, legal, ethical, and reputational risks that serve as disincentives to sharing data for academic research, with privacy – particularly the risk of reidentification – an intractable concern. For companies, striking the right balance between the commercial and societal value of their data, the privacy interests of their customers, and the interests of academics presents a formidable dilemma.
To be sure, there is evidence that some companies are beginning to share for academic research. For example, a number of pharmaceutical companies are now sharing clinical trial data with researchers, and a number of individual companies have taken steps to make data available as well. What is more, companies are also increasingly providing open or shared data for other important “public good” activities, including international development, humanitarian assistance and better public decision-making. Some are contributing to data collaboratives that pool data from different sources to address societal concerns. Yet, it is still not clear whether and to what extent this “new era of data openness” will accelerate data sharing for academic research.
Today, the Future of Privacy Forum released a new study, Understanding Corporate Data Sharing Decisions: Practices, Challenges, and Opportunities for Sharing Corporate Data with Researchers. In this report, we aim to contribute to the literature by seeking the “ground truth” from the corporate sector about the challenges they encounter when they consider making data available for academic research. We hope that the impressions and insights gained from this first look at the issue will help formulate further research questions, inform the dialogue between key stakeholders, and identify constructive next steps and areas for further action and investment.
FPF gratefully acknowledges the support of the Alfred P. Sloan Foundation for this project.