Advances in information and communication technologies, the increasing use of
electronic devices and networks, and the digitalisation of production processes mean
that vast quantities of data are generated daily by economic and social activities. This
'big data' can be transmitted, collected, aggregated and analysed to provide insights
into processes and human behaviours. Big data analytics have the potential to identify
efficiencies that can be made in a wide range of sectors, and to lead to innovative new
products and services, greater competitiveness and economic growth. Studies
suggest that companies that adopt big data analytics can increase productivity by 5%- 10% more than companies that do not, and that big data practices in Europe could
add 1.9% to GDP between 2014 and 2020.
However big data analytics also pose a number of challengesfor policy makers. Whilst
protecting privacy and personal data has arguably received the most attention, other
big-data-related issues are expected to appear on the European Union policy agenda. These include 'data ownership' principles that determine who shares in the rights
associated with big data; data localisation requirements that may unjustifiably
interfere with the 'free flow of data'; labour shortages of skilled data workers and
data-aware managers; and the creation of a new digital divide that risks marginalising
those who do not make extensive use of information and communication
technologies.