<scp>T</scp>he <scp>P</scp>rivate <scp>I</scp>mpact of <scp>P</scp>ublic <scp>D</scp>ata: <scp>L</scp>andsat <scp>S</scp>atellite <scp>M</scp>aps <scp>I</scp>ncreased <scp>G</scp>old <scp>D</scp>iscoveries and <scp>E</scp>ncouraged <scp>E</scp>ntry

How does public data shape the relative performance of incumbents and entrants in the private sector? Using a simple theoretical framework, I argue that public data reduces investment uncertainty, facilitates the discovery of new market opportunities, and increases the relative market share of new entrants relative to incumbents. I shed light on these predictions by estimating the impact of public data from Landsat, a U.S. National Aeronautics and Space Administration satellite mapping program, on the discovery rates of new deposits by incumbents (seniors) and entrants (juniors) in the gold exploration industry. I exploit idiosyncratic timing variation and cloud cover in Landsat coverage across regions to identify the causal effect of public data on the patterns of gold discovery. I find that Landsat data nearly doubled the rate of significant gold discoveries after a region was mapped and increased the market share of new entrants from about 10% to 25%. Public data seem to play an important, yet relatively underexplored, role in driving performance differences across firms. This paper was accepted by Ashish Arora, entrepreneurship and innovation.

• 저널Management Science · 68(1) · 564–582
• 토픽Energy, Environment, Economic Growth · Economics and Econometrics
• DOI10.1287/mnsc.2020.3878
• 저자Abhishek Nagaraj