T he P rivate I mpact of P ublic D ata: L andsat S atellite M aps I ncreased G old D iscoveries and E ncouraged E ntry
Public data releases reduce investment uncertainty and disproportionately help new entrants gain market share relative to incumbents, as shown by satellite mapping data nearly doubling gold discovery rates and shifting share toward newcomers.
Summary
Nagaraj examines how public data affects competition between incumbents and new entrants using NASA's Landsat satellite mapping program and the gold exploration industry as a setting. He finds that public data nearly doubled the rate of significant gold discoveries after a region was mapped and increased new entrants' market share from about 10% to 25%, as reduced investment uncertainty helped less-established players find new opportunities. The
Editor's opinion
Elegant causal design, but too narrow (mining-sector entry dynamics) to be a firm-strategy insight.
Key concepts
Public data · Entrant advantage · Investment uncertainty