Governance of the Big Data Value Cycle

Starting from an overview of the evolving role of government in society, we investigate the relationship between government and Big Data. Taking stock of various approaches, we construe a Big Data Value Cycle (BDVC) as consisting of the stages of origination, recombination, inference, and action. We then ask if and how states could govern this value cycle by zooming in on the three focal roles of government - i.e. enabling competition, wealth redistribution through taxation, and protecting its citizens, namely their privacy. We make two important contributions to the emerging research on the implications of Big Data for societies. First, we suggest that data taxation before recombination stage of the BDVC is most feasible way to support state’s innovation objectives. Second, educating in data science skills remains a vital role for the state. Our discussion of how public governance could affect Big Data, ties into ethical and moral issues that underpin much of the Big Data in society debate.