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A Meta‐Analysis on the Return on Investment of Geospatial Data and Systems: A Multi‐Country Perspective
Author(s) -
Trapp Natalie,
Schneider Uwe A.,
McCallum Ian,
Fritz Steffen,
Schill Christian,
Borzacchiello Maria Teresa,
Heumesser Christine,
Craglia Max
Publication year - 2015
Publication title -
transactions in gis
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.721
H-Index - 63
eISSN - 1467-9671
pISSN - 1361-1682
DOI - 10.1111/tgis.12091
Subject(s) - geospatial analysis , profitability index , investment (military) , return on investment , scale (ratio) , perspective (graphical) , rate of return , cost–benefit analysis , multivariate statistics , business , geography , econometrics , economics , finance , statistics , computer science , cartography , mathematics , political science , microeconomics , artificial intelligence , production (economics) , politics , law
Abstract The availability, quality and accessibility of G eographic I nformation ( GI ) have significant socio‐economic and environmental benefits, but the collection and maintenance of GI require substantial investments. Cost‐benefit assessments ( CBA s) attempt to justify the costs of geospatial data investments, applying different methodologies and focusing on diverse areas. Therefore, the R eturns on I nvestment ( ROI ) vary considerably across studies, regions and sectors. The objective of this study is to explain some of the variation in the average ROI of GI by conducting a meta‐analysis of 82 cost‐benefit assessments between 1994 and 2013. In a first step, CBA s are systematically reviewed and relevant information is extracted. Particular emphasis is given to investment conditions and study characteristics. In a second step, multivariate regression methods are used to assess the size, significance and direction of individual effects. The results suggest that regional factors have the largest impact on the profitability of GI . Returns in A ustralia and N ew Z ealand, for example, are four times larger than in E urope. In addition, small‐scale regional investments have a 2.5 times lower return than large‐scale international investments. Overall, the expected benefits of GI investments are approximately 3.2 times larger than the costs.