Spatial data infrastructure management: a two-sided market approach for strategic reflections

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14 November 2018

The recognition of a spatial data infrastructure (SDI), as a two-sided market, leads the way to an innovative approach for analysing the strategies used to bring two groups of users into interdependent markets. The literature derived from the recent industrial organisation is rich in theoretical models, aiming at the study of price structure and product design, which maximise the participation of the groups, the profits of the firms, and the value created for the entire ecosystem. The current paper interprets and adapts the theoretical model of the two-sided market in order to fit the case of a SDI. The purpose is to highlight the relevance of a two-sided market approach for analysing a SDI dynamics. The focal research question is how spatial data infrastructure, through a platform management process, can transition from a government-funded entity to a self-sustaining operation. The analysis relies on the specific case of the GEOSUD SDI, focusing on strategies ensuring the interest of image-based application developers and satellite image users. The results show that the theory of two-sided markets brings complementary elements for SDI development strategies, by proposing a framework of reasoning, which not only allows for a better understanding of the outflows already established, but also provides tools to accompany the strategic reflection of public institutions and entrepreneurs, who tend to support the uses of data and services derived from remote sensing