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    <journal-meta />
    <article-meta>
      <title-group>
        <article-title>Data Sharing and Data Spaces: opening new business opportunities</article-title>
      </title-group>
      <contrib-group>
        <contrib contrib-type="author">
          <string-name>Elisa Rossi</string-name>
          <email>elisa.rossi@eng.it</email>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Antonio Caruso</string-name>
          <email>antonio.caruso@eng.it</email>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Mariarosaria Russo</string-name>
          <email>mariarosaria.russo@eng.it</email>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Gert Breitfuss</string-name>
          <email>gbreitfuss@know-center.at</email>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Roberto Rocca</string-name>
          <email>roberto.rocca@polimi.it</email>
          <xref ref-type="aff" rid="aff1">1</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Engineering Ingegneria Informatica SpA</string-name>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Via Guglielmo Marconi</string-name>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Bologna</string-name>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Italy</string-name>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Engineering Ingegneria Informatica SpA</string-name>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Centro Direzionale Torre Saverio</string-name>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Napoli</string-name>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Italy</string-name>
        </contrib>
        <aff id="aff0">
          <label>0</label>
          <institution>Know-Center GmbH</institution>
          ,
          <addr-line>Sandgasse 36, Graz</addr-line>
          ,
          <country country="AT">Austria</country>
        </aff>
        <aff id="aff1">
          <label>1</label>
          <institution>Politecnico di Milano</institution>
          ,
          <addr-line>Via Lambruschini 4/b, Milano</addr-line>
          ,
          <country country="IT">Italy</country>
        </aff>
      </contrib-group>
      <pub-date>
        <year>2024</year>
      </pub-date>
      <fpage>2019</fpage>
      <lpage>2024</lpage>
      <abstract>
        <p>A journey through the importance of data, data sharing and Data Spaces is presented both from a technical and a business perspective, with an emphasis on how the European Commission is supporting and encouraging such technologies. The application of the Data Space concept in two EU-funded Projects (CLARUS and Circular TwAIn) is deep-dived to showcase the adaptability of the technology and its reference implementation (IDS, FIWARE) to different domains, opening new business scenarios that can be leveraged to enhance the competitiveness of the companies.</p>
      </abstract>
      <kwd-group>
        <kwd>eol&gt;Data Space</kwd>
        <kwd>Data sharing</kwd>
        <kwd>Sustainability</kwd>
        <kwd>Circular Economy (CE)</kwd>
        <kwd>open-source</kwd>
      </kwd-group>
    </article-meta>
  </front>
  <body>
    <sec id="sec-1">
      <title>1. Introduction</title>
      <p>The importance of data has been clear from the beginnings of digital technologies and has covered
all sectors at the latest with the Big Data concept. Since that time data-driven technologies became
crucial for any business as they enable better forecasting and planning by analysing Big Data. [1].
Until the first decade of 2000s, business considered mostly internal data, such as IoT and historical
business data. Very few companies started to share data between a limited number of closely
connected stakeholders, but always with the fear of data leakages, primary scope of not disclosing
the know-how, or losing the control over proprietary data [2]. From 2010s these fears have been
countered with the new concept of data sharing (i.e., data exchanged among many stakeholders even
if they have no direct contact or connection) in the form of a technical approach named Data Space.
The Data Space is by definition “a distributed system defined by a governance framework that enables
secure and trustworthy data transactions between participants while supporting trust and data
sovereignty. A Data Space is implemented by one or more infrastructures and enables one or more
use cases” [3].</p>
      <p>The European Commission was one of the first authorities to understand the breakthrough led by
the Data Space concept and encouraged and supported many initiatives cross-country and
crossdomain, in particular, adopted the European strategy for data [4] in 2020 which aims at creating a
single market for data that will ensure Europe’s global competitiveness and data sovereignty. The
idea is to build Common European Data Spaces to ensure that data producers (both companies and
individuals) retain control (ownership) of the data. According to the Commission Staff Working
Document on Common European Data Spaces, “a common European Data Space brings together
relevant data infrastructures and governance frameworks in order to facilitate data pooling and
sharing” [5]. In other terms, Data Spaces will play a pivotal role in accelerating digital transformation
within and across domains and supporting economic recovery plans, the future vision includes a</p>
      <p>European Data Space which interconnects different Data Spaces (possibly each of them
domainspecific) and ensures that data are extensively shared and used while complying with EU values and
regulations. In this context, it is important to mention that the Data Act [6], i.e., the regulation on
harmonised rules on fair access to and use of data just entered into force in January 2024.</p>
      <p>Many initiatives started in the past decade, the most relevant have been considered as reference
for the design and implementation of the Data Space in the CLARUS project are: (i) International Data
Space Association (IDSA) [7] aims to build a world in which data is easily and securely exchanged
and used, to support innovation, economic growth, and people's lives improvement. The focus of
IDSA is to create a secure, trusted, and interoperable platform for exchanging and utilizing data. (ii)
GAIA-X [8] is a European initiative aimed at creating a sustainable and trustworthy data
infrastructure. It is a cooperative effort between businesses, government agencies, and academic
institutions focused on creating a data infrastructure that is secure, privacy-compliant, and
trustworthy. (iii) Eclipse dataspace connector [9] implements the International Data Spaces standard
(IDS) as well as relevant protocols associated with the GAIA-X project. It is free and open-source. (iv)
FIWARE [10], an open-source initiative aimed at the creation of a unique cross-domain infrastructure
to develop and deploy services for data exchange, sharing and analysis, lowering barriers, through
the usage of common standards and languages, therefore easing the development of smart solutions
and supporting organizations in their transition into smart organizations.</p>
      <p>The following section focuses on the characterization of the Data Space technology from a
business perspective as outcome of a workshop conducted within the CLARUS Project2 Consortium.
Furthermore, how the Data Space concept has been leveraged and developed in two EU-funded
Projects, CLARUS and Circular TwAIn3 as references for two core applications of the Data Space
technology in the European landscape will be detailed. The two approaches proposed are made up on
the same Engineering asset, the TRUE (TRUsted Engineering) Connector, an open-source component
for the IDS ecosystem enabling data exchanges through different communication protocols (i.e., a
multi-protocol connector).The paper concludes with reflections on possible future applications of the
Data Space technology (including currently ongoing experimentations in Circular TwAIn), with a
view also on the European initiatives (e.g., regulation and legislation) to support industries,
governments, citizen and IT solutions providers in the adoption of the Data Space technology.</p>
    </sec>
    <sec id="sec-2">
      <title>2. The Data Space as an enabler for new Circular Economy Business</title>
    </sec>
    <sec id="sec-3">
      <title>Scenarios</title>
      <p>A collaborative workshop has been conducted among the CLARUS Partners, with representatives
of the industries (Pilots), technology providers and business development experts. The idea was to
characterize the Data Space from a wider perspective, discussing the actual problems the technology
aims to solve, the alternatives and the barriers to its adoption in order to define its Unique Selling
Point (USP). The relevance of data acquisition, processing and analysis is commonly considered
crucial, as well as the potential of data sharing among many stakeholders, thus some concerns both
societal (i.e., human factors and organizational culture to be incentivized and supported to get trust
in the technologies and the ecosystem), technical (e.g., interoperability, trusted data exchange, usage
and access control) and regulatory (lack of common legislation) arose: the willingness of making
available proprietary data (coming from sensors, cameras but also from product and process
management) hits with the multiplicity of data sources and formats (i.e., digital data are complex and
fragmented) deeming to the need to be homogenized through standard ontologies, with the need of
keeping the sovereignty over those data and privacy issues on sensitive data, leading to the need to
prevent data being unproperly used. Further, the data sharing mechanisms should be improved from
both a technical and a cybersecurity point of view, considering also the starting point of the
industries, often lacking an already based IT-culture and IT-experts, thus an initial huge investment
for digitalization has to be supported by a full-awareness of the importance of this step and a full
alignment with other involved stakeholders in the definition of the pathway. The USP of Data Space
technology has been defined as follows: “Data Space allows the implementation of secure and reliable
2 https://clarus-project.eu/
3 https://www.circular-twain-project.eu/
data sharing mechanisms suitable for the creation of interconnected decentralized ecosystems. Eases
the collaboration between different participants, domains, and ecosystems through the
implementation of standard protocols”.</p>
      <p>Finally, workshop participants were requested to define the ‘Target Market’ and the ‘Early
Adopters’, of interest is the discussion held with respect to the latter. In fact, industry representatives
revealed during interviews that they have difficulties understanding the actual effort required for an
industry (regardless the company size) to adopt a Data Space and to achieve optimization objectives
(energy consumption, water consumption, waste etc.) through it, along with the necessity to impact
also on others businesses digitalization process (i.e., all the stakeholders of a certain business should
agree in the adoption of a Data Space, and make the respective infrastructure compliant with it). The
identified early adopters are Pilots and Technology providers, as a generalization, to move the first
steps on an unknown field as the Data Space is from an ‘Industry perspective’, the 1:1 relationship
customer-supplier (Industry – IT provider): such relationship is suggested to run from a VPN/cloud
solution to a Data Space, and only when the trust among the parties is established and the benefit
(read as higher efficiency and lower costs with respect to previously adopted solutions) of the Data
Space are recognized, the ecosystem may be enriched with the other suppliers/customers of the
Industry. As well, the Open-Source nature of the most promising frameworks to build a Data Space
is considered crucial. The outcomes of the workshop seem fully aligned with the Data Space scenario
that is under development in CLARUS project.</p>
    </sec>
    <sec id="sec-4">
      <title>3. Toward the implementation of a Data Space for Circularity</title>
      <p>A data-driven industrial platform will be the final goal of the technical effort in CLARUS project
building a Data Space for manufacturing, able to improve business opportunities for value-added
services relating to the industrial data of the subjects involved in the Project (not only the Pilots but
also technical partners that will play the role of Data Consumer), in order to expand their offer in
terms of products and services by supporting the transition towards a circular economy.</p>
      <p>However, the transition to a data-driven platform requires strict compliance with data processing
rules and regulations, on their use as well as the ability to have full control over digital data
management, i.e., the hardware and software on which a data-driven digital eco-system is built. The
EU is helping European companies in this area by launching several initiatives, which aim to support
them in gaining full control of the critical infrastructures for data management. The Digital Markets
Act (DMA) [11] and the Digital Services Act (DSA) [12] are initiatives that provide guidance on how
to create a FAIRer [13] and safer digital space for businesses, outlining the guidelines and regulations
for the protection of user rights and create a level playing field to allow companies to innovate, grow
and compete.</p>
      <p>IDSA [7] is a not-for-profit association of more than 140 organisations and is the main promoter
of the creation of standards for sharing data in Data Spaces, including reference models and
architecture (IDS RAM), constituting standard de-facto in European data sharing landscape. Among
the components that constitute a Data Space, what is pivotal to share data and to establish secured
and trusted communication is a Data Space Connector. Data Space Connectors serve as instrumental
tools in connecting various data endpoints, and by connecting multiple connectors, participants are
allowed to freely exchange data while upholding principles of data sovereignty, transparency, and
fairness through adherence to specified rules [14]. In essence, Connectors address two critical aspects:
(i) offer Data Exchange Services, serving as an Application Programming Interface (API) to facilitate
interoperability among participants in a Data Space. (ii) act as a trustworthy component, managing
data through the implementation of policy enforcement mechanisms and a standardized baseline for
cybersecurity.</p>
      <p>In the dynamic landscape of the data-driven economy, Data Space Connectors foster
interoperability, breaking down silos and creating a collaborative, trust and secure ecosystem where
data flows seamlessly among stakeholders from different domains and of varied nature (as per IDS
Glossary, “roles” [7]). Data Space Connectors exponentially increase the pool of available data
opening avenues for businesses to access a wealth of information, fostering innovation and informed
decision-making, creating new revenue streams, partnerships, and collaborations fueled by the
efficient flow of information. As the inherent design of Data Space Connectors ensures data
sovereignty not only meets regulatory requirements but also builds a foundation for businesses to
confidently navigate the complex landscape of data governance.</p>
      <p>In recent years Engineering4 has developed its IDS compliant Connector: the TRUE (TRUsted
Engineering) Connector. The TRUE Connector is an open-source implementation, part of the IDS
open-source catalogue (i.e., compliant with IDS reference architecture RAMI3.0) and of the FIWARE
Catalogue (i.e., the integration of existing FIWARE ecosystems is guaranteed by the dedicated Data
APP, enabling the IDS-based interaction in a plug-and-play way). Engineering is promoting the
adoption of Data Space technology supporting the scenarios of various projects through its TRUE
Connector.</p>
      <p>In the context of the CLARUS Project, the Data Space will therefore be a key element in the
creation of a data economy that, involving various partners, will enable the identification of new
business opportunities and new areas of application for the obtained results. In Figure 2 the graphical
representation of CLARUS Data Space. The CLARUS Data Space represents a virtual bridge among
all the Project stakeholders, allowing the identification of roles each plays in the generation, sharing,
and utilization of data. The two pilots act as Data Providers making their datasets available to Data
Consumers (Universities and Research Centers) to fuel and enhance AI algorithms, logistics support
systems and, in general, decision support solutions based on AI techniques. To overcome the entirely
legitimate adversity to sharing their data, which represents both value for the company and a
tempting opportunity for competitors to access sensitive data, the component selected to guarantee
the trust and secure data exchange within the Data Space is the IDS TRUE Connector: it ensures that
data sovereignty principles are respected, and data access is governed by internal policies established
among the various participants.
4 Engineering Ingegneria Informatica SpA is a digital transformation company in Italy www.eng.it</p>
    </sec>
    <sec id="sec-5">
      <title>4. Conclusions</title>
      <p>The Data Space technology has been pushed a lot by the European Commission in the last few
years, and the Work Programme 2023-2024 confirms such interest through funding in diverse
domains (e.g., Data Space for Agricultural, Cultural Heritage, Tourism, Energy, Green Deal,
Manufacturing, Health…) [15][15], and through regulatory framework [7] aimed at covering multiple
aspects in some cases interplaying with existing legislation. In fact, the European Commission
proposed different regulations covering data protection laws, competition laws, and regulations on
intellectual property. Thus, industries and mostly technology providers are researching on the topic
trying to leverage data sharing to optimize current processes and open to new business opportunities.
Despite the general uncertainty and concerns coming from the industries as depicted also during the
workshop conducted in CLARUS, some other projects are actively developing solutions using Data
Space associated with other core technologies such as Digital Twins, AI and Digital Product Passport
(DPP). An example in this sense is given by Circular TwAIn.</p>
      <p>The Circular TwAIn’s BATTERY Pilot aims to enhance the efficiency of the current circular value
chain for automotive battery systems, which currently lacks optimization in recovering
functionalities and materials. The existing process involves batteries being transported to authorized
dismantlers for disassembly, where battery modules or cells are subjected to recycling treatments.
The Pilot introduces innovative circular economy nodes to this framework. End-of-life batteries are
first assessed for reusability, and compliant batteries are directly reused in automotive or stationary
applications. Batteries not suitable for direct reuse undergo disassembly and testing at the module
and cell levels. Reusable units are then reassembled into second-life batteries, while those with no
residual electric properties undergo recycling for raw material recovery. The Pilot is made by various
stakeholders of the Circular Value Chain (dismantler, remanufacturer and recycler) cooperating to
improve the circular economy capabilities of electric vehicles batteries anticipate the European
Regulation on batteries, the Digital Product Passport (DPP), that will be available in 2027 [7]. The
respective information gathered by each participant are shared through the Data Space (leveraging
the TRUE Connector) to create and update the Digital Product Passport, the ID Card of the battery,
from which the stakeholders may understand among the others the residual life (state of health), the
performance over time, insights on charge cycles and on the raw material used.</p>
    </sec>
    <sec id="sec-6">
      <title>Acknowledgements</title>
      <p>This work has been supported by the projects “CLARUS” and “Circular TwAIn”, which have received
funding from the European Union’s Horizon Europe research and innovation programme,
respectively under grant agreement No. 101070076 and No. 101058585.</p>
    </sec>
    <sec id="sec-7">
      <title>Declaration on Generative AI</title>
      <p>The author(s) have not employed any Generative AI tools.</p>
    </sec>
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