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Edcci Report
LnLrepreneurs are Lhose persons (buslness owners) who seek Lo generaLe value Lhrough
Lhe creauon or expanslon of economlc acuvlLy, by ldenufylng and explolung new
producLs, processes or markeLs.
Crganlslng resources, whlch lncludes access Lo: (l) physlcal caplLal such as properLy or
planL and equlpmenL, (ll) nanclal caplLal such as debL nance or equlLy, and (lll)
lnLanglble resources such as lnLellecLual properLy or Lechnology. 1hese resources can
Lyplcally be boughL and sold by rms or lndlvlduals. Changes ln Lhese resources can
have dramauc lmpllcauons for rm performance, Lyplcally resulung from (l) creauve
lnvenuons or dlscovery, or (ll) unusual and unlque comblnauons of Lhese resources.
LnLrepreneurlal capablllues, whlch lncludes Lhe human and soclal experuse requlred Lo
leverage a rm's resources and brlng Lhem Lo markeL. ln an enLrepreneurlal conLexL,
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 36
41
SLernberg, 8. and Wennekers, S., (2003), ueLermlnanLs and eecLs of new buslness creauon uslng global enLrepreneurshlp
monlLor daLa, Small 8uslness Lconomlcs, volume 24, number 3, pp. 193-220.
42
knlghL, l. P., (1921), 8lsk, uncerLalnLy, and roL, 8osLon: ParL, Schaner & Marx
43
klrzner, l. M., (1973), Compeuuon and LnLrepreneurshlp, Chlcago, lL: unlverslLy of Chlcago ress
44
urucker, . l., (1983), lnnovauon & LnLrepreneurshlp, new ork: Parper and 8ow
43
CarLner, W.8., (1988), 'Who ls an enLrepreneur' ls Lhe wrong quesuon, Amerlcan !ournal of Small 8uslness, volume 12, number
4, pp. 11-32.
46
Ahmad, n., and Seymour, 8., (2008), uenlng LnLrepreneurlal AcuvlLy: uenlng Supporung lrameworks for uaLa Collecuon, arls:
CLCu SLausucs Worklng aper
Lhese lnnovauve capablllues lnclude Lhe percepuon and recognluon of a maLch
beLween creauve resources and markeL opporLunlues. 1hls may lnclude novel and
skllled capablllues as well as unlque or unusual soclal neLworks and connecuons.
MarkeLs and markeL condluons, whlch lnclude Lhe percepuon and dlscovery of markeL
opporLunlues as one of Lhe mosL lmporLanL ablllues of successful enLrepreneurs,
markeL enLry and markeL dlsLoruons.
47
1here are a number of 'deLermlnanLs of enLrepreneurshlp' LhaL can help or hlnder enLrepreneurs ln
Lhelr operauons,
48
and deLermlne Lhe landscape of enLrepreneurshlp.
49
Powever, Lhe dlerences
beLween varlous sLudles on Lhese are oen largely semanuc, mosL agree for example LhaL
enLrepreneurs and enLrepreneurshlp are creaLed by a comblnauon of Lhree facLors: opporLunlues,
skllled people and resources (caplLal belng Lhe mosL crlucal).
30
1hese Lhree facLors are all aecLed
by Lwo lmporLanL conLexLs: Lhe surroundlng regulaLory framework and culLure.
1he CLCu/Lu8CS1A1 LnLrepreneurshlp lndlcaLor ro[ecL ldenued slx Lhemes (llg. 1.) LhaL descrlbe
Lhe deLermlnanLs aecung enLrepreneurlal performance ln order Lo encourage counLrles Lo use Lhe
same denluons, meLhodologles and classlcauons when dlscusslng enLrepreneurlal acuvlues.
31
I|gure 1: 1he CLCD]LUkCS1A1 Iramework for Determ|nants of Lntrepreneursh|p
(5ootce. Ocu/ukO51A1, 2008)
1he maln characLerlsucs of Lhese Lhemes can be descrlbed as follows:
CaplLal and Access Lo nance: Covers all phases of buslness llfe, from access Lo early
seed funds Lo access Lo Lhe sLock markeLs.
1echnology and 8esearch & uevelopmenL: 8&u and Lechnology creaLes new lnvenuons
LhaL Lhe enLrepreneur and enLrepreneurlal buslnesses can Lurn lnLo new producLs or
processes. 1he 8&u ln Lhls conLexL should be undersLood as a resource LhaL can be
creaLed or purchased, wheLher dlrecLly or ln an embodled or dlused form.
MarkeL condluons: CpporLunlues are creaLed by Lhe markeL condluons ln Lhe counLry.
1hese markeL condluons lnclude publlc lnvolvemenL ln markeLs, compeuuon ln Lhe
markeLs, access Lo forelgn markeLs, procuremenL regulauon, and sLandardlsauon.
CulLure: aecLs all parLs of Lhe model and ls lncluded as Lhe nal facLor ln Lhe
framework. CulLure lnuences an enLrepreneur's behavlour, amLudes, and overall
eecuveness and, moreover, ls oen unnouced by Lhe enLrepreneur slnce lL ls Lhe
conduclve envlronmenL. ln Lhls framework, culLure comprlses each lndlvldual's
assumpuons, adapLauons, percepuons and learnlng.
32
Lach of Lhese Lhemes ls consldered ln ChapLer 3 and adapLed Lo Lhe speclc conLexL of Lhe CCls.
8eLurnlng Lo SchumpeLer's denluon, whereas Lhe 'general' enLrepreneur comblnes lnnovauon and
creauvlLy, Lhe creauve alm of Lhe culLural and creauve enLrepreneur may have a dlerenL focus.
Powklns (2001)
33
comblned Say's denluon wlLh Lhe Creauve Lconomy:
ottepteoeots lo tbe cteouve ecooomy.opetote llke 5oys otlqlool moJel
eottepteoeot bot wltb oo lmpottoot Jl[eteoce.tbey ose cteouvlty to oolock tbe
weoltb tbot lles wltblo tbemselves. llke ttoe copltollsts, tbey belleve tbot tbls
cteouve weoltb, lf moooqeJ tlqbt, wlll eoqeoJet mote weoltb".
1hls Lype of creauvlLy ls whaL kLA named 'culLure-based creauvlLy' ln lLs recenL reporL on Lhe
lmpacL of CulLure on CreauvlLy,
34
whlch enLalls a nuance from general enLrepreneurlal creauvlLy.
WlLh Lhls baslc undersLandlng of enLrepreneurshlp, Lhe Lerm culLural and creauve enLrepreneur
may dlverge from Lhe general Lerm due Lo Lhe Lype of creauvlLy belng used and how lL relaLes Lo
enLrepreneurlal drlve. 1he use of 'culLure-based creauvlLy' can be llnked Lo Lhe culLural and creauve
enLrepreneur, allowlng for Lhe comblnauon of culLural and creauve drlves alongslde Lhe
enLrepreneurlal ones.
2.1.3. Cu|tura| and creanve entrepreneursh|p
CulLural and creauve enLrepreneurs have speclc characLerlsucs: Lhey operaLe ln dlmculL markeL
condluons, produce goods LhaL are 'culLural' by naLure, work wlLh people LhaL are oen more
conLenL-drlven Lhan commerclally orlenLed, and usually creaLe very small enLerprlses LhaL exlsL on
Lhe basls of more permanenL neLworks.
Arlslng from Lhe arLs managemenL arena, Lhe examlnauon of culLural enLrepreneurshlp as a dlsuncL
approach for derlvlng economlc and socleLal value has some conslderable merlL. CulLural
enLrepreneurshlp can be dened as:
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 38
32
lvancevlch, !. M., konopaske, 8., and Maueson, M. 1., (1996), Crganlzauonal behavlour and managemenL. Chlcago: unlverslLy of
PousLon
33
Powklns, !., (2001), 1he Creauve Lconomy: Pow eople Make Money lrom ldeas, new ork: enguln, p. 129.
34
kLA, (!une 2009), op. clL., p. 31.
...tbe ptocess of loteqtouoq two fteeJoms. otusuc fteeJom os lmmotetlol cooteot
otleoteJ voloe, ooJ eottepteoeotlol fteeJom os motetlol voloe, soppotuve to
lmmotetlol (coltotol) voloes.
33
WlLh Lhls foundauon ln mlnd, and accordlng Lo Lhe general socleLal responslblllLy of enLrepreneurs,
culLural enLrepreneurshlp can be descrlbed as Lhe concepL of runnlng a culLural or creauve
organlsauon, drlven by an expllclL sLraLeglc culLural mlsslon, Laklng rlsks ln balanclng creauve and
managemenL values, and conLrlbuung Lo a vlLal lnfrasLrucLure ln lLs dlrecL envlronmenL.
lor mosL of Lhe experLs lnLervlewed for Lhls sLudy, Lhe characLerlsucs of culLural and creauve
enLerprlses such as producL dlerenuauon, Lhe labour markeL, markeL condluons, Lhe need for co-
operauon and neLworklng, and Lhe dlerences ln producuon and dlsLrlbuuon, [usued Lhe need for
Lhls dlsuncuve Lerm. 1here ls cerLalnly a need Lo acknowledge Lhe dlerenL envlronmenL ln whlch
Lhe CCls operaLe:
Motkets ote totolly Jl[eteot. 1bls ls tbe wbole potpose of some speclfc pollcles,
tbot ote oJopteJ to tbe cteouve loJosttles, to tbe cbotoctetlsucs of tbe
eotetptlses, of tbe motket, of bosloess moJels, ooJ lobs...lt coo be osefol to bove
oJopteJ pollcles llokeJ to tbe tetm.
(lnnovauon ClusLer, SLrucLurally SLrong 1radluonal Lconomy)
MosL respondenLs felL LhaL such a dlsuncuon was needed Lo provlde speclc supporuve schemes
adapLed for Lhe CCl secLor, Lhough noL everyone agreed:
cteouve eottepteoeotsblp ls o teJooJoot Jlmeoslooloq. lo tbe tetm of
5cbompetet, eottepteoeotsblp ls olwoys cteouve. lo tbe ccls, wbeo we tolk oboot
cteouvlty, we speok oboot tbe cooteot.
(8eglonal CC SML SupporL cenLre, SLrucLurally SLrong 1radluonal Lconomy)
ln Lhe lnLervlews conducLed across Lurope for Lhls sLudy, Lwo maln oplnlons emerged when
auempung Lo dene Lhe Lerm. 1he ma[orlLy sLrongly supporLed Lhe usefulness of Lhe dlsuncL
concepL of culLural and creauve enLrepreneurshlp whlle on Lhe oLher slde, some preferred Lo blend
Lhe Lerm wlLhln oLher exlsung denluons of enLrepreneurshlp. 1here was, however, general
agreemenL LhaL Lhe Lerm usefully hlghllghLs Lhe poLency of Lhe comblnauon beLween creauve and
economlc lmpulses:
cteouve eottepteoeot ls o osefol jtetm], l woolJ oJJ tbe tetm coltotol. coltotol
ooJ cteouve, becoose tbe eottepteoeots lo tbe coltotol sectot ote people tbot ote
focosloq oo tbe coltotol voloe of tbelt ptoJocts ooJ tbe coltotol sectots bove o lot
of speclfclues tbot ote Jl[eteot wltb tbe otbet sectots... becoose tbete ote coltotol
ptoJocts, becoose of wbot tbey coo spteoJ .l tblok tbe tetm ls lmpottoot to bove.
cteouve, o lot of people coolJ bove tbls, bot coltotol ooJ cteouve, ...tbot ls
lmpottoot.
(Luropean SecLoral Crganlsauon)
ulsagreemenLs abouL Lhe Lerm were mosLly due Lo Lhe facL LhaL lL was a generallsauon and dld noL
dlerenuaLe Lhe varlous secLors wlLhln CCls, lmplylng a lack of dlerenuauon beLween Lhe
dlverglng mouves of culLural and creauve enLerprlses. 1he Lerm ls oen noL well accepLed ln Lhe
culLural secLors as lL ls sull overly assoclaLed wlLh a nanclal dlmenslon whlle noL sumclenLly
recognlslng, or prlorluslng, Lhe culLural and soclal values behlnd Lhls. Cn Lhe oLher hand, Lhe cllche
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 39
33
PagoorL, C., (2007), op. clL.
of Lhe arusL who cannoL manage a buslness and lacks nanclal skllls ls sull commonly held among
economlc pollcy-makers and lnuences Lhe ongolng dlsuncuon beLween enLrepreneurshlp pollcles
and culLural pollcles.
8egardless of Lhese dlerenL perspecuves, Lhere ls a need for a speclc dlsuncuon, a speclc Lerm
Lo recognlse Lhe culLural basls of creauvlLy and of Lhls Lype of enLrepreneurshlp. AlLhough lL
encompassed a dlverse range of secLors, mosL respondenLs recognlsed Lhe need, aL Lhls ume, Lo
make a case ln general for culLural and creauve enLrepreneurshlp as Lhe value of culLural and
creauve lndusLrles has noL yeL been sumclenLly recognlsed and LranslaLed ln Lhe pollcy arena,
desplLe new lnluauves, such as Lhe recenL Lurope 2020 SLraLegy:
36
1bot's o blq Jlscossloo. wbetbet ot oot tbete sboolJ be o commoo Jefoluoo fot
tbe ccls. Moybe oow lt ls osefol to Jlsuoqolsb jtbe ccls ftom tbe otbet loJosttles].
lo tbe fotote, wbeo we bove ptobobly evolveJ towotJ o mote cteouve ecooomy
ooJ cteouve soclety, tbls Jlsuocuoo woot be osefol ooymote. Now lt ls osefol to
be oble to ooJetstooJ tbe tblokloq, tbe ptocess ooJ bow to socceeJ. lt ls olso
osefol lo otJet to bove lt oo tbe pollucol oqeoJo.
(8eglonal CulLure MlnlsLry, SLrucLurally SLrong 1radluonal Lconomy)
ln essence, a culLural and creauve enLrepreneur can be undersLood as someone who creaLes or
lnnovaLes a culLural or creauve producL or servlce and who uses enLrepreneurlal prlnclples Lo
organlse and manage hls/her creauve acuvlLy ln a commerclal manner. Powever, achlevlng a
balance beLween 'culLure-based creauvlLy' and enLrepreneurshlp ls noL sLralghuorward and as
noLed enLrepreneurs dler accordlng Lo Lhelr mouvauons and Lhe secLors ln whlch Lhey operaLe.
1he Lerm Lhus refers Lo Lhe facL LhaL Lhese enLerprlses have cerLaln characLerlsucs (see secuon 2.2
below) whlch wlll aecL Lhe managemenL of Lhelr enLrepreneurlal acuvlLy.
1he Lerm culLural and creauve enLrepreneurshlp Lhus auempLs Lo draw Lhese worlds LogeLher:
recognlslng Lhe laLenL enLrepreneurlal splrlL of an arusL, Lhe laLenL creauve splrlL of Lhe
enLrepreneur and Lhe parucular envlronmenLs ln whlch culLural and creauve enLerprlses operaLe.
Pavlng framed Lhe dlsuncL Lerm ln comparlson Lo Lhe general Lerm, Lhe enLrepreneurlal dlmenslon
of CCls can be beuer undersLood uslng Lhe deLermlnanLs of enLrepreneurshlp adapLed Lo Lhe
characLerlsucs of CCls (see ChapLer 3 below).
2.1.4. Comb|n|ng creanv|ty and entrepreneursh|p for |nnovanon
1he concepL of 'culLure-based creauvlLy' recognlses LhaL Lhe comblnauon of personal ablllues,
culLure, creauvlLy, Lechnlcal skllls and soclal envlronmenLs can have a subsLanual lmpacL on
sumulaung research, opumlslng human resources and lnsplrlng people.
37
1he economlc value of
Lhls 'culLure-based creauvlLy' has been lncreaslngly recognlsed,
38
as seen below ln 1able 1. whlch
lllusLraLes Lhe LoLal Lurnover of CCls ln several larger counLrles. Accordlng Lo Lhe kLA reporL of 2006,
Lhe creauve economy generaLed around 2.6 of Lhe Luropean Cu ln 2003 and employed over 3
mllllon people.
39
1he laLesL research by 1erraconsulL esumaLed LhaL ln 2008 lL generaLed 4.3 of
Lhe LoLal Luropean Cu. ln Lhe same sLudy, Lhey esumaLed LhaL ln lrance, Lhe core acuvlues of Lhe
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 60
36
Luropean Commlsslon Communlcauon, (March 2010b), op. clL.
37
kLA, (!une 2009), op. clL., p. 80.
38
lbld., p. 42.
39
kLA, (2006), op.clL., p. 6, and Luropean Commlsslon Creen aper (2010), op.clL., p. 2.
CCls (noL lncludlng Lhe supporL enLerprlses such as lawyers) generaLed 4.9 of Lhe Cu, ln Cermany
4.2 , 3.8 ln lLaly , and 3.6 ln Spaln.
60
1ab|e 1: ercentage of econom|c turnover of the CCI per country
|n severa| Luropean countr|es
61
(5ootce. 1ettocoosolt 2010)
1he lnLervlews for Lhls sLudy showed LhaL culLural and creauve enLrepreneurs are an essenual parL
of a posL-lndusLrlal economy whlch ls lncreaslngly demand-drlven, user-cenLred and whlch ls more
focused on Lhe experlence Laken ouL of producLs and servlces.
62
Cne of Lhe key argumenLs ls Lhe
need Lo focus on lncenuves for culLure and 'culLure-based creauvlLy' as resource for creauvlLy,
enLrepreneurshlp and lnnovauon, raLher Lhan solely focuslng on Lechnologlcal lnnovauon.
1applng lnLo Lhe poLenual of culLural and creauve enLrepreneurs, and recognlslng Lhelr 'culLure-
based creauvlLy' alongslde Lhelr enLrepreneurlal drlve, can allow enLerprlses Lo unleash lnnovauve
soluuons LhaL are noL necessarlly Lechnology-based. LnLrepreneurshlp ln Lhe CCls can Lhus be
llnked Lo advances ln non-Lechnologlcal lnnovauon. 8ecognlslng Lhe llnk beLween 'culLure-based
creauvlLy', Lhe deLermlnanLs of enLrepreneurshlp and new forms of lnnovauon ls Lhus cruclal for
unlocklng CCls' poLenual.
Powever, slnce mosL of Lhe Lu based nanclal supporL for lnnovauon remalns largely focused on
funcuonal and Lechnologlcal lnnovauon, Lhe kLA reporL underllned LhaL Lu eorLs have noL been
sumclenLly LargeLed Lo culLure and Lo non-Lechnologlcal and non-sclenuc lnnovauon.
63
ArLs and
culLure are Lhus seen as essenual ln developlng and fosLerlng a creauve envlronmenL oerlng a rlch
culLural dlverslLy, as well as provldlng lnnovauve processes essenual for a changlng economlc and
soclal envlronmenL by developlng experlence.
64
1he recenL pollcy changes aL Lu level are
acknowledglng Lhls need wlLh Lhe plans Lo revlew lnnovauon pollcy ln a changlng economy LhaL ls
lncreaslngly dened by experlence, non-Lechnologlcal lnnovauon and quallLy of llfe concerns.
Chapter 1 / The Contribution of the Creative Industries to the European Economy 17
Table 5 Weight of the creative industries in UK, France, Germany, Italy and Spain (2008)
UK FRANCE GERMANY ITALY SPAIN
Creative Industries VA Jobs VA Jobs VA Jobs VA Jobs VA Jobs
Core 6.2% 5.4% 4.9% 3.7% 4.2% 4.1% 3.8% 3.6% 3.6% 3.5%
Interdependant & support 3.4% 3.8% 2.6% 2.6% 2.3% 2.8% 2.1% 2.5% 2.0% 2.4%
TOTAL creative industries 9.6% 9.2% 7.5% 6.2% 6.5% 6.9% 5.9% 6.1% 5.6% 5.9%
Creative GDP (billion ) 175 142 162 93 62
Creative employment
(million)
2.7 1.7 2.7 1.4 1.2
Source TERA Consultants analysis
We have estimated the economic contributions
of the creative industries at a national level for
the ve main European countries (the UK, France,
Germany, Italy and Spain), representing three-
fourths of European GDP contributions. The core
creative industries can be assessed with the same
methodology as at the European level.
Regarding the non-core creative industries, there is
a technical difculty in determining the weight of
the non-core industries on a country level because
of gaps in the Eurostat data, which form the basis
of the calculation. To overcome this limitation we
1.3. !CONCLUSION
Our analysis of the weight of the creative industries based on the KEA ndings and the WIPO Guidelines provides
a more complete assessment of the true scope of these industries in Europe, exceeding previously reported
results. We estimate that the creative industries represent a major European economic force, corresponding to
6.9% of European GDP, and 6.5% of the European workforce. This translates into 860 billion revenues and
14 million jobs, reinforcing the importance of these sectors to Europes economy. The creative industries economic
contribution is comparable to other key traditional industries, like automotive, and with greater weight than
utilities or chemical industries. This major European economic area is being challenged by the threat of piracy.
calculated the core/non-core ratio observed at the
European level, resulting in the non-core industries
representing 54% of the value added of the core
creative industries and 70% of the employment of
the core creative industries. We then applied this
ratio at a national level.
Given this procedure, these results shall be
considered with caution. However, our assumptions
remain valid since the objective is to provide orders
of magnitude of the weight of creative industries
in order to portray the economic ecosystem at risk
from widespread piracy.
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 61
60
1eraconsulLanL, (March 2010), 8ulldlng a ulglLal Lconomy: 1he lmporLance of Savlng !obs ln Lhe Lu's Creauve lndusLrles, p. 17, see
hup://www.lccwbo.org/uploadedllles/8ASCA/ages/8ulldlngaulglLalLconomy-1L8A(1).pdf
61
lndependenL & SupporL lnclude acuvlues relaLed Lo faclllLaung broadcasL, communlcauon, sales of work. 1hey lnclude a fracuon of
general wholesale and reLalllng, general LransporLauon, Lelephony and Lhe lnLerneL.
62
lbld., p. 40.
63
lbld., p. 123.
64
Luropean Councll Concluslons, (May 2009), Concluslons for CulLure as a CaLalysL for CreauvlLy, 2941sL Lducauon, ouLh and
CulLure Councll meeung
ln Lhls respecL, CCls have a speclc role Lo play ln lnnovauon by fosLerlng creauvlLy and produclng
ouLpuLs LhaL can serve as lnpuL Lo Lhe lnnovauon process.
63
1here ls a need for greaLer focus on Lhe
process of lnnovauon as an experlence Lo whlch Lhe CCls can meanlngfully conLrlbuLe.
Powever, ln pracucal Lerms, Lhe Lenslon beLween Lhe process of creauon and Lhe necesslLy of
deallng wlLh Lhe admlnlsLrauon and managemenL of an enLrepreneurlal acuvlLy ls parucularly
dlmculL for Lhe CCl enLrepreneur. 1he arusL or creaLor may noL have all Lhe skllls and knowledge Lo
deal wlLh Lhe complexlLy of a buslness. CerLaln organlsauons, such as llanders ulsLrlcL of CreauvlLy
(see 8esL Case 1), have caLalysed Lhe need Lo maLch Lhe culLural and creauve enLrepreneur wlLh a
professlonal manager Lo mlugaLe Lhelr llmlLed enLrepreneurlal skllls.
Creauve l ndl vl dual s wl l l
lncreaslngly requlre enhanced
ablllues and skllls Lo blend
dlsclpllnes, meLhods and
l nsLrumenLs l n order Lo
generaLe and explolL Lhese
hlghly dynamlc markeLs. 1he
c u l L u r a l a n d c r e a u v e
enLrepreneur has Lo be able
L o d r a w u p o n e x p e r L
knowledge from several areas
and dlsclpllnes and Lo move
emclenLly beLween Lhem ln
order Lo deal wlLh boLh Lhe
arusuc creauon and Lhe
requlremenLs llnked wlLh an
enLrepreneurlal acuvlLy. lor
example, ArLeconomy brlngs
LogeLher Lhe arusuc and
b u s l n e s s w o r l d s b y
sumulaung collaborauon (see
8esL Case 2). Supporung
c u l L u r a l a n d c r e a u v e
enLrepreneurshlp means noL
only developlng a conduclve envlronmenL for a general enLrepreneur buL also supporung an
envlronmenL LhaL recognlses 'culLure-based creauvlLy', encompasslng boLh aspecLs of Lhe culLural
and creauve enLrepreneur.
A more favourable creauve cllmaLe wlll, ln Lurn, resulL ln more ldeas, and greaLer creauvlLy ls
assumed Lo lncrease 8&u and lnnovauve acuvlues, and conLrlbuLe Lo fosLerlng lnnovauve soluuons.
ulumaLely, creauvlLy can be found ln our culLures, ln our surroundlng LerrlLory, ln Lhe quallLy of our
everyday llfe and our producLs. lL ls noL an end ln lLself, buL a process, an exLraordlnary means Lo
produclng new ldeas.
66
ln Lhls sense, creauvlLy and culLure are Lhe plllars of soclal quallLy, seen ln Lhe conLexL of a free,
economlcally developed, falr and culLurally llvely communlues en[oylng a hlgh quallLy of llfe.
I|anders DC
I|anders DC |s a I|em|sh governmenta| organ|sanon that
promotes entrepreneur|a| creanv|ty |n the reg|on |n order
to boost I|anders creanv|ty and |nnovanon. 1hey oer
patronage serv|ces for the fash|on sector and match|ng
w|th bus|ness managers.
(See 8esL Case 1)
Arteconomy
Arteconomy connects art and the economy through
var|ous forms of co||aboranon such as |ong term pro[ects
w|th arnsts |n compan|es, workshops for arnsts and
entrepreneurs and ate||ers where arnsts and
entrepreneurs can meet. Arteconomy wants to snmu|ate a
broad range of peop|e to th|nk about the convergence
between art and the economy.
(See 8esL Case 2)
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 62
63
ous, !., (2009a), Creauve lndusLrles and lnnovauon ollcy ln lnnovauon: ManagemenL, ollcy and racuce, volume 11, no 2,
pp. 138-147.
66
SanLagaLa,W. , (2009), op. clL., p. 17.
CreauvlLy and culLure are lnexLrlcably bound. 1hey are a successful comblnauon, whlch can
sLrengLhen Luropean lnnovauon aL a ume of sLraLeglc Lransluon ln Lhe lnLernauonal process of
globallsauon.
2.2. Character|sncs of the cu|tura| and creanve |ndustr|es
1he CCls have a parucular characLer LhaL ls markedly dlerenL from oLher lndusLrles. When
conslderlng Lhese characLerlsucs several lssues were consldered
67
lncludlng:
r
e
s
s
u
e
s
l
g
n
l
a
s
h
l
o
n
l
l
l
m
&
v
l
d
e
o
M
u
s
l
c
e
r
f
o
r
m
l
n
g
A
r
L
s
8
a
d
l
o
&
1
e
l
e
v
l
s
l
o
n
S
o
w
a
r
e
u
b
.
v
l
s
u
a
l
A
r
L
s
230 +
30 - 249
10 - 49
4 - 9
1 - 3
I|gure 2: S|ze of enterpr|ses by sector across CCIs
(5ootce. otoklels 2009)
7J
1hls characLerlsuc of CCls ls oen called Lhe 'mlsslng mlddle': medlum slzed enLerprlses seem Lo be
almosL absenL. ln vlew of Lhe sLausucal observauons and Lhe lnLervlewees conducLed, Lhere ls a
subsLanual dlmculLy for small enLerprlses Lo grow lnLo medlum-slzed rms. 1he gap beLween Lhe
'blgger players' and Lhe mlcro-SMLs renders Lhe growLh of mlcro-SMLs dlmculL and lncreases Lhe
dlmculLy ln accesslng markeLs for Lhe 'smaller players'. As can be seen ln llg. 3. and llg. 4. below,
Lhere are exLreme dlerences ln Lurnover and asseL dlsLrlbuuon.
0
0.1
0.2
0.3
0.4
0.3
0.6
0.7
0.8
0.9
1
A
d
v
e
r
u
s
l
n
g
A
r
c
h
l
L
e
c
L
u
r
e
8
o
o
k
&
r
e
s
s
u
e
s
l
g
n
l
a
s
h
l
o
n
l
l
l
m
&
v
l
d
e
o
M
u
s
l
c
e
r
f
o
r
m
l
n
g
A
r
L
s
8
a
d
l
o
&
1
e
l
e
v
l
s
l
o
n
S
o
w
a
r
e
u
b
.
v
l
s
u
a
l
A
r
L
s
230 +
30 - 249
10 - 49
4 - 9
1 - 3
I|gure 3: D|str|bunon of 1ota| 1urnover among Industr|es per s|ze c|ass of enterpr|se
(5ootce. otoklels 2009)
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 63
73
AL Lhe ume of Lhe sLausucal analysls, Lhe denluon of new medla was noL speclc and Lhe caLegory 'soware publlshers' ln Lhls
case comblnes boLh new medla and vldeo games.
0
0.1
0.2
0.3
0.4
0.3
0.6
0.7
0.8
0.9
1
A
d
v
e
r
u
s
l
n
g
A
r
c
h
l
L
e
c
L
u
r
e
8
o
o
k
&
r
e
s
s
u
e
s
l
g
n
l
a
s
h
l
o
n
l
l
l
m
&
v
l
d
e
o
M
u
s
l
c
e
r
f
o
r
m
l
n
g
A
r
L
s
8
a
d
l
o
&
1
e
l
e
v
l
s
l
o
n
S
o
w
a
r
e
u
b
.
v
l
s
u
a
l
A
r
L
s
230 +
30 - 249
10 - 49
4 - 9
1 - 3
I|gure 4: D|str|bunon of tota| Assets among Industr|es per s|ze of enterpr|se
(5ootce. otoklels 2009)
A very small number of large
scale enLerprlses domlnaLe
Lhe secLoral markeLs and have
l o n g - e s L a b l l s h e d
lnfrasLrucLures for research
and developmenL acuvlues
whlle, on Lhe oLher hand,
mlcro-SMLs do noL have
access Lo slmllar paLhs Lo
growLh as Lhey do noL have
Lhe same lnfrasLrucLures and
are Lherefore forced Lo adopL
a hlghly exlble amLude and nd oJ boc soluuons Lo speclc problems ln order Lo susLaln Lhelr
exlsLence. noneLheless, Lhere are some examples of good lnluauves, such as LhaL of AlL ln lLaly (see
8esL Case 3) who acuvely seek Lo enhance and supporL lndependenL SMLs.
1he sLraLegles used by Lhese mlcro-SMLs are necessarlly small-scale, hlghly dynamlc and requlre
rlsk-Laklng Lo compeLe wlLh more esLabllshed enLerprlses LhaL do noL requlre such exlblllLy. 1he
sLrucLural characLerlsucs of Lhese mlcro-SMLs lmpose a requlremenL Lo malnLaln a hlgh level of
dynamlc enLrepreneurlal skllls Lo remaln compeuuve. Powever, Lhese skllls are usually learnL 'on
Lhe spoL' and do noL seem Lo be sumclenL Lo provlde clear paLhs Lo enLerprlse growLh for CCl SMLs.
2.2.2. Character|sncs of the CCI |abour market
As menuoned above, many CCl enLerprlses have Lo lnLegraLe boLh arusuc freedom as an lmmaLerlal
value and enLrepreneurlal freedom as a maLerlal value, supporuve Lo lmmaLerlal (culLural) values.
ln many ways Lhey are a comblnauon of Pomo Lconomlcus and Pomo Ludens.
74
AIL: Ita||an ub||shers Assoc|anon
AIL |s a sectora| organ|sanon suppornng the pub||sh|ng
|ndustry. AIL has acnve|y estab||shed a number of core
acnv|nes wh|ch are espec|a||y focused on suppornng SMLs
|n the Ita||an pub||sh|ng |ndustry. 1he book fa|r 0)S%7)9#-) |s
an |ndependent pub||shers book fa|r a|m|ng at |ncreas|ng
the v|s|b|||ty of |ndependent SMLs.
(See 8esL Case 3)
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 66
74
Mokre M., (2006), My CreauvlLy: Convenuon on lnLernauonal Creauve lndusLrles 8esearch, AmsLerdam. 8eLrleved 23 AugusL 2009
hup://Lransform.elpcp.neL/correspondence/1166104888
Some enLrepreneurs wlll be more 'growLh orlenLed' whlle oLhers wlll be more drlven by Lhe culLural
and arusuc value of Lhelr producLs or servlces, LhaL ls, more 'creauon-orlenLed'. Speclc pauerns of
employmenL wlll be malnLalned by cerLaln CCls ln order Lo comblne Lhe exlble approach of CCl
SMLs. 1hls lnherenL Lenslon beLween Lhe Lwo 'Lypes' of enLrepreneur ls oen reecLed ln
organlsauonal sLrucLures.
2.2.2.1. SMLs and free|ancers
CulLural and creauve enLrepreneurs are far more llkely Lo hold non-convenuonal forms of
employmenL, such as parL-ume work, Lemporary conLracLs and freelanclng, Lhan Lhe workforce ln
general.
73
ln mosL CCl secLors, full-ume workers recelvlng regular pay are ln Lhe mlnorlLy.
76
Muluple
[ob-holdlng ls a common formula as Lhe culLural workers need a mlnlmum lncome for survlval and
some degree of nanclal securlLy. MosL CCl secLors show Lhe speclc dynamlcs of frequenL [ob
changes and worklng on shorL Lerm conLracLs ls normal.
77
uue Lo Lhe low recognluon of Lhelr
lnLanglble creauons, some culLural and creauve enLrepreneurs wlll comblne boLh Lhelr freelanclng
acuvlues wlLh oLher professlons LhaL oer sumclenL nanclal sLablllLy Lo susLaln Lhese creauve
acuvlues. 1hls leads Lo a slLuauon ln whlch Lhe dlsuncuon beLween 'employed' or 'unemployed' ls
obscured, blurred and problemauc:
1be coltotol sectot ls cbotoctetlseJ by o blqb sbote of fteeloocets ooJ vety smoll
compooles. A oew type of employet ls emetqloq lo tbe fotm of tbe eottepteoeotlol
loJlvlJool ot eottepteoeotlol coltotol wotket, wbo oo looqet fts loto ptevloosly
typlcol pouetos of foll-ume ptofessloos.
78
Many of Lhe performlng arusLs, wrlLers, dlrecLors, vlsual arusLs, craspeople, composers, deslgners
and oLhers can be consldered self-employed freelancers. Cn average, creaLors accepL below
average pecunlary earnlngs. 1hls can be parually explalned elLher by rlsk-seeklng behavlour,
79
or a
preference for creauve work over oLher Lypes of employmenL.
80
lL emerged from Lhe onllne survey LhaL 34 of Lhe CCl enLerprlses had less Lhan Len full ume
employees ln Lhelr company (see llg. 3. below). As noLed above, Lhls fragmenLauon of CCls lnLo
small enLerprlses has consequences for Lhelr sLrucLures. 1o compeLe wlLh larger companles wlLh
sLrucLural advanLages ln Lerms of admlnlsLrauon and research, Lhe smaller enLerprlses Lend Lo
adopL a more exlble and dynamlc amLude when respondlng Lo markeL opporLunlues. 1hls may
lnvolve ouLsourclng, Laklng up muluple pro[ecLs or clusLerlng wlLh dlerenL organlsauons Lo beneL
from a larger collecuve sLrucLure. 1o mlugaLe agalnsL Lhls lack of guaranLee of success, CCls oen
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 67
73
8enhamou, l. (2003), L'Lconomle de la culLure, arls: La uecouverLe, 4Lh ed.
76
1hrosby, u., (2001), op. clL., pp. 126-28.
77
1owse, 8., (2004), op. clL., p. 8.
78
MkW WlrLschasforschung CmbP, (2001), LxplolLauon and developmenL of Lhe [ob poLenual ln Lhe culLural secLor ln Lhe age of
dlglLallzauon, aper commlssloned for Luropean Commlsslon, uC LmploymenL and Soclal Aalrs, Munlch
79
1owse, 8., (2004), 1owards an economy of creauvlLy ln lCkuS, (2004), Creauve lndusLrles: A measure for urban developmenL
vlenna: lCkuS p. 8.
80
1hrosby, u., (2001), op. clL., and Caves, 8., (2000), Creauve lndusLrles: ConLracLs 8eLween ArL and Commerce, Cambrldge: Parvard
unlv. ress
work on muluple pro[ecLs Lo spread Lhe rlsk
81
and oen focus on pro[ecL-based lnvesLmenL raLher
Lhan company nance.
82
Ooesuoo. now mooy foll-ume employees JlJ yoot eotetptlse bove oo J1st uecembet 2008?
!"# $"# %!"# %$"# &!"# &$"# '!"# '$"#
(#&$!#
$!#)(#&*+#
%#)#&#
%!#)(#*+#
'#)(#+#
I|gure S: ercentage of fu|| nme emp|oyees per s|ze c|ass enterpr|se |n Dec. 2008
(5ootce. otoklels 2009- Oolloe 5otvey)
Moreover, CCls requlre skllled employees and are consequenLly manual labour lnLenslve. 1he
creauve producLs and servlces relaLed Lo Lhese lndusLrles usually requlre noL only sLrlcLly creauve
employees buL many general or commerclal employees LhaL conLrlbuLe Lo Lhe overall producuon
and supply chaln. 1radluonally, culLural and creauve enLrepreneurs are lnLeresLed malnly ln Lhe
developmenL of Lhelr producLs and servlces raLher Lhan focused on Lhelr dlsLrlbuuon: ln oLher
words, 'k&u ls tbe molo ocuvlty, wblle ptoJocuoo ls secooJoty'.
83
1he company wlll generally reLaln
a small core of full ume employees whlle calllng on addluonal employees as requlred, accordlng Lo
Lhe company's needs.
84
2.2.2.2 D|vers|ty |n sk|||s acqu|s|non
uue Lo Lhe abundance of pracuuoners wlLh very dlverse backgrounds (cerucauon by degree,
acqulrlng experlence Lhrough lnLernshlp, vocauonal degree, eLc.), Lhere are oen dlmculues when
recognlslng or cerufylng Lhe quallLy and repuLauon of culLural and creauve enLrepreneurs. 1hls
makes Lhe posluon of Lhe poLenual employer ln Lhe ArLs (as compared Lo oLher labour markeLs)
especlally dlmculL because of a lack of lnformauon and quallLy crlLerla.
83
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 68
81
uk 1echnology SLraLegy 8oard, (2009), op. clL., p. 17.
82
kLA, (May 2010), romoung lnvesLmenL ln Lhe CulLural and Creauve SecLor: llnanclng needs, 1rends and CpporLunlues, 8eporL
prepared for LCCL lnnovauon- nanLes MeLropole, p. 24.
83
Lash, S. and urry, !., (1994), Lconomles of Slgns and Space, London: Sage ubllcauons, as clLed ln: Pandke C., (2006), Surveylng
lnnovauon ln Lhe Creauve lndusLrles, 8erlln/8ouerdam 2006
84
uk 1echnology SLraLegy 8oard, (2009), op. clL., p. 18.
83
1owse, 8., (ed) (2003) A Pandbook of CulLural Lconomlcs, ChelLenham, Ldward Llgar.
Awards can acL as lnLermedlaLe sLandards on Lhe quallLy of Lhe culLural and creauve
enLrepreneur.
86
Commlssloners ln Lhe ArLs place llule rellance on cerucauon based on formal
schoollng and oen use Lhelr own screenlng devlces (arL compeuuons, referees, peer-revlews,
eLc.). Learnlng 'on Lhe y' ls common for culLural and creauve enLrepreneurs. ln our onllne
quesuonnalre, 78 of Lhe respondenLs valued Lhelr on Lhe [ob Lralnlng as much as Lhelr
professlonal Lralnlng.
Cn one hand, Lhe ma[orlLy of enLerprlses achleve very low rewards, slgnlcanLly below workforces
ln oLher lndusLrles wlLh slmllar human caplLal aurlbuLes. Cn Lhe oLher hand, Lhere are a relauvely
small number of 'sLars' wlLh very hlgh Lurnover.
87
2.2.2.3. CCI emp|oyment by sectors
lrom Lhe aggregaLed daLa ln Lhe sLausucal analysls, Lhe largesL lndusLrles per number of workers
employed are: lashlon (31.41, of LoLal employees), ueslgn (20.12), ArchlLecLure (10.74) and
8ook & ress (9.89). 1he lncluslon of Lhe reLall secLor wlLhln Lhe fashlon secLor may explaln Lhe
unexpecLedly hlgh number of workers ln Lhls secLor (See llg. 6.).
1hese numbers cover Lhe LoLal number of employees ln dlerenL secLors of Lhe CCls. As noLed
above, culLural and creauve enLrepreneurs are also employed ln many oLher secLors of Lhe
economy, conLrlbuung Lo Lhe developmenL of Lhe 'creauve capaclLy' of non CCl companles. lor
example, Lhe uk 1echnology SLraLegy 8oard esumaLes LhaL from Lhe 1.1 mllllon people dlrecLly
employed ln Lhe creauve lndusLrles ln Lhe uk, Lhere are anoLher 800,000 lndlvlduals worklng
ouLslde Lhe culLural and creauve secLor.
88
I|gure 6: ercentage of Lmp|oyees per Sector
(5ootce. otoklels 2009)
89
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 69
86
See Wl[nberg (2003) for a dlscusslon of Lhe role of awards ln Lhe arLs. Wl[nberg, n. (2003) 'Awards' ln: 1owse, 8. (ed) A Pandbook
of CulLural Lconomlcs, ChelLenham, Ldward Llgar: pp. 81-84.
87
unC1Au eL al (2008), 1he Creauve Lconomy, unC1Au/ul1C/2008/2, Ceneva
88
uk 1echnology SLraLegy 8oard, (2009), op. clL., p. 12.
89
1he sLausucal analysls on rm characLerlsucs was Laken from Lhe Chambers of Commerce as explalned ln secuon 1.2
ln anoLher example, Lhe recenL LC Worklng aper on 'ueslgn as a drlver of user-led lnnovauon'
conrmed Lhls Lrend ln Lhe deslgn secLor, demonsLraung LhaL many deslgners worked ln non-deslgn
lndusLrles as ln-house deslgners.
90
1hls suggesLs LhaL Lhe culLural and creauve enLrepreneur and Lhe
CCls have a greaLer lmpacL on Lhe economy as a whole Lhan accounLed for ln Lhe sLausucs.
2.2.3. Character|sncs of CCI enterpr|se processes and outputs
ln addluon Lo Lhe speclc characLerlsucs of CCls boLh ln Lerms of sLrucLure and labour, Lhe
processes of producL and servlce creauon ln whlch Lhe CCls engage are hlghly dlsuncuve, especlally
due Lo Lhelr small slze. CCl SMLs oen engage ln neLwork based processes. Some of Lhese value
and knowledge creauon processes are oen noL recognlsed as Lradluonal research approaches and
CCl SMLs may Lherefore be unable Lo access research fundlng resources.
CCls oen supply conLenL LhaL requlres 'culLure-based creauvlLy' as knowledge-based and labour-
lnLenslve lnpuL LhaL ls hard Lo measure ln Lerms of economlc value. 1hls compllcaLes Lhe provlslon
of nanclal supporL Lo CCls, as Lhey cannoL always demonsLraLe Lhe economlc vlablllLy of Lhelr
producLs and servlces. CulLural and creauve producLs and servlces oen have speclc economlc
characLerlsucs: for example, Lhey can be produced 'on Lhe spoL' and cannoL be consumed ln any
oLher conLexL (LheaLre performances, dance, llve concerLs). 1hese producLs/servlces are an exLreme
example of producL dlerenuauon.
91
1he facL LhaL many producLs and servlces are lnLanglble asseLs, sub[ecuve ln value and oen
pro[ecL-based,
92
dlsungulshes Lhem from oLher manufacLured producLs. uue Lo Lhe hlgh degree of
uncerLalnLy surroundlng Lhe success of Lhese lnLanglble asseLs, Lhe conLenL-based lndusLrles ln
parucular wlll Lend Lo work on several pro[ecLs aL Lhe same ume ln order Lo balance Lhe rlsk
assoclaLed wlLh less successful producLs or servlces. Powever, Lhls also lmplles LhaL Lhe culLural and
creauve enLrepreneurs may recelve only parual nanclal advances for cerLaln producLs or servlces
LhaL wlll noL be successful and Lhls may lead Lo slgnlcanL nanclal llmlLauons for Lhe
enLrepreneurs.
naLurally, lnLanglble lnnovauon ls hard Lo quanufy and ls noL easlly recognlsed by Lhose ouLslde Lhe
CCls. CurrenLly, Lhe so lnnovaLors are noL labelled as conLrlbuung Lo 8&u and cannoL recelve
fundlng or equal recognluon from elLher sclenuc or applled research lnluauves. Sclenuc research
lnsuLuLes sull recelve mosL of Lhe 8&u fundlng as opposed Lo applled research lnsuLuLes or oLher
emerglng communlues. ln a recenL sLudy on lnnovauon ln Swedlsh servlce companles, lL was shown
LhaL 30 of Lhe lnnovauon came dlrecLly from cusLomers, 33 from employees and only 3 from
exLernal 8&u.
93
2.2.3.1 roducnon processes
roducuon Lakes place elLher ln small-scale dlrecL conLacL beLween producer and consumer, or wlLh
reproduclble, mass medla producLs, ln neLworks of lnLermedlarles. 1hese lnLermedlarles such as
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 70
90
LC SLa Worklng uocumenL, (2009a), op. clL., p. 27.
91
1he unLSCC conslders local culLural lndusLrles relevanL Lo counLerbalance Lhe sLandardlsauon of culLure as a resulL of Lhe ongolng
process of globallsauon ln Lhe lnformauon socleLy (unLSCC, 2001: 13, unLSCC, 19/11/2001: 1-3, unLSCC, 21-22/09/2000, unLSCC,
14-13/06/1999).
92
Lspeclally secLors such as lm, 1v, muslc, games. uk 1echnology SLraLegy 8oard (2009), op. clL., p. 18.
93
ALMLCA (2008), Survey on lnnovauon ln Swedlsh servlce companles, Laken from koefoed ulnn, M, 1he Lu perspecuve on lC1
and Creauve lndusLry, C8eA1L lnLernauonal Conference, 1urln november 2009, hup://www.leLs-creaLe.eu/leadmln/_creaLe/
downloads/presenLauon_conference/02_20091104_C8eA1L_-_Meue_k_ulnn.pdf
publlshers, lm producuon companles or record companles, brlng culLural producLs and servlces
and an audlence LogeLher. 1hey explolL economles of scale and scope LhaL apply ln parucular Lo
caplLal-lnLenslve aspecLs of producuon and promouon raLher Lhan ln Lhe labour and knowledge-
lnLenslve process of creauon. Powever, Lhe lncreaslng dlglusauon of conLenL and servlces has
opened new producuon and dlsLrlbuuon posslblllues.
94
1he lmporLance of dlglLal
conLenL for Lhe CCls has led Lo
Lhe developmenL of new
a p p l l c a u o n s a n d L h e
l n L e g r a u o n a n d r e -
aggregauon of exlsung medla.
Crossover Labs ls an example
of an organl sauon LhaL
supporLs lnLegrauon ln Lhe
producuon process (see 8esL
Case 4). Much llke Crossover
Labs, L he CA1L pro[ ecL
lnLegraLes dlerenL acLors Lo
apply new Lechnology for Lhe
game secLor (see 8esL Case 3).
1he creauve conLenL lndusLry
ls growlng ln lmporLance and
ls well developed LhroughouL
Lhe value chaln. 1he lnLerneL
and changl ng consumer
preferences are addlng Lo Lhe
complexlLy of Lhe ow of
funds beLween Lhe dlerenL players ln Lhese value chalns. Consumer spendlng ls Lhe slngle mosL
lmporLanL source of funds. hyslcal medla sull represenL a subsLanual parL of Lhe markeL, buL Lhls ls
mosL exposed Lo onllne subsuLuuon.
93
1he Lradluonal ldea of Lhe producuon chaln ls now evolvlng, and ln many cases lnLermedlarles can
be bypassed.
96
1aklng lLs dlsLance from Lhe llnear producuon process lmplled ln Lhe concepL of a
value chaln, Lhe Lerm 'value creaung ecologles' encompasses Lhe ldea of a 'consLellauon of rms
LhaL are dynamlc, wlLh value ow belng mulu-dlrecuonal and worklng Lhrough clusLers of
neLworks'.
97
1hls ldea can beuer represenL Lhe shl experlenced by many CCls, from consumers Lo co-creaLors
of value, from producL Lo neLwork value
98
and from slmple compeuuon Lo complex co-
Crossover Labs
Crossover Labs |n the Uk organ|ses workshops w|th mu|n-
d|sc|p||nary parnc|pants a|med at exchang|ng |nformanon
|n order to create |nnovanve pro[ects w|th the use of new
med|a too|s.
(See 8esL Case 4)
GA1L
Game kesearch for 1ra|n|ng and Lnterta|nment (GA1L) |n
the Nether|ands |s a sectora| pro[ect for games a|m|ng at
|mprov|ng |earn|ng systems and advanc|ng new techno|ogy
to SMLs |n order to advance the sector and deve|op|ng
know|edge from app||ed research w|th SMLs.
(See 8esL Case 3)
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 71
94
uk 1echnology SLraLegy 8oard, (2009), op. clL., p. 18.
93
Analysls Mason, (May 2009), losLerlng creauve ambluon ln Lhe uk ulglLal Lconomy, London: Analysls Mason, London
96
Pearn, C. n. and 8oodhouse, S. C. and 8lackey, !. M. (2007), lrom value chaln Lo value creaung ecology: lmpllcauons for creauve
lndusLrles developmenL pollcy, lnLernauonal !ournal of CulLural ollcy, volume 13, number 4, pp. 419-436.
97
lbld., p. 6.
98
lbld, p. 10. neLwork value ls Lhus creaLed and exLracLed ln a neLwork of relauonshlps and value can besL be undersLood hollsucally
as a funcuon of Lhe enure neLwork.
ompeuuon.
99
1he culLural and creauve enLrepreneur oen has Lo creaLe dlrecL user-producer
lnLeracuon. 1hey have Lo lnLeracL closely wlLh Lhelr LargeL audlence so LhaL Lhey can monlLor Lrends
or lnlual reacuons by early consumers of Lhelr own producLs.
1echnologlcal advances, such as mulu-plauorm capablllues, make lL posslble Lo have greaLer
connecuvlLy wlLh Lhe user and can provlde a feedback ln Lhe loop Lo producuon, allowlng a user Lo
lnLeracL dlrecLly and allowlng Lhe producer Lo adapL Lo changlng demand. 1he lncreaslng lncluslon
of Lhe user/consumer as co-producer coupled wlLh emclenL communlcauon channels, has led Lo a
convergence beLween Lhe consumpuon and Lhe producuon sLages.
1he lncrease ln Lhe number of
knowl edge sources and
knowl edge l nf or mauon
sharlng also has Lhe lndlrecL
consequence of blurrlng Lhe
boundarl es beLween Lhe
secLors
100
and leads Lo a rlse
ln muludlsclpllnary Leams. lor
exampl e, b.1WLLn l s a
plauorm LhaL alms Lo lncrease
Lhe exchange of ldeas uslng
dlglLal medla meLhods ln order Lo lncrease Lhe creauon of orlglnal ldeas (see 8esL Case 6).
1he acuvlues LhaL dlrecLly conLrlbuLe Lo Lhe creauon of an orlglnal culLural producL/servlce are
embedded ln a landscape of admlnlsLrauve, organlsauonal or manufacLurlng acuvlues. 1hese
neLworks of lawyers, buslness-managers or accounLanLs conLrlbuLe Lo Lhe speclcauon of
conLracLual arrangemenLs ln Lhe CCls and are an lnLegral parL of Lhe lndusLrles' sLrucLure.
2.2.3.2 Cutsourc|ng
Many CCls are 'creauon-orlenLed' and many of Lhem choose Lo remaln small ln order Lo keep Lhls
exlblllLy and adapLablllLy LhaL larger CCl enLerprlses do noL necessarlly possess. As noLed above,
larger companles have a sLrucLural advanLage ln Lerms of research, developmenL, admlnlsLrauve
managemenL and deslgn acuvlues Lo whlch Lhe mlcro-SMLs have llule access. Lqually, Lhe
reproducuon, dlsLrlbuuon and promouon of creauve producLs and Lhe admlnlsLrauon of rlghLs are
complex procedures where larger companles have an advanLage compared Lo Lhe smaller ones.
Powever, Lhe larger enLerprlses do noL Lake Lhe same rlsks as mlcro-SMLs.
101
Mlcro-SMLs oen
adopL a exlble amLude wlLh new dynamlc and small-scale Lools and processes Lo provlde soluuons
Lo speclc problems ln order for Lhem Lo compeLe wlLh larger organlsauons LhaL are noL capable of
belng as versaule. 1hls allows Lhe CCl SML enLrepreneur Lo malnLaln a rlsk-Laklng amLude. 1hls
amLude ls noL necessarlly easy Lo susLaln ln a larger company, as expressed by one lnLervlewee:
1be cteouve loJosttles coo be o moJel fot bow tbe koowleJqe ecooomy lo
qeoetol ls Jeveloploq. 5o smollet compooles ote fexlble, tbey bove mote
collobotouoo, mote ftee-loocets, ooJ tbetefote tbey coo be o test beJ fot ttyloq
b.1WLLN
b.1WLLN |s a cross p|auorm deve|opment |ab |n the Uk
that fosters the exchange of |deas between d|erent
d|sc|p||nes as we|| as oer|ng adv|ce and methods for
b|end|ng d|g|ta| med|a methods w|th|n the CCI enterpr|se.
(See 8esL Case 6)
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 72
99
lbld., p. 7. : 1he comblnauon of compeuuve and cooperauve processes ls Lermed co-ompeuuon. ln a value creaung ecology, Lhe
CCls models follow Lhe ldeas of slmulLaneous co-operauon and compeuuon beLween members of an eco-sysLem, lbld, p. 14
100
uk 1echnology SLraLegy 8oard, (2009) , op. clL., p. 11.
101
LC Creen aper, (2010), op. clL., p. 7.
oot oew soppott mecboolsms tbot coo eveotoolly be tolleJ oot to tbe wlJet
ecooomy.
(Luropean 1hlnk 1ank)
1he sLrucLure of Lhe CCl SML enLerprlse ls more adapuve, preferrlng ouLsourclng soluuons for oJ
boc servlces whlle malnLalnlng a small core Leam of employees. 1he soluuon favoured by many
organlsauons ln Lhe CCls ls Lo vary Lhe degree of lnLegrauon and conLrol over varlous aspecLs of
producuon and Lo ouLsource Lhls Lo smaller, rlsk-Laklng, dynamlc enLerprlses.
Lven Lhe largesL lnLermedlary enLerprlses regularly organlse Lhe producuon of new medla conLenL
ln relauvely small, seml-auLonomous Leams. CuLsourclng also resulLs ln Lhe need for mlcro-SMLs Lo
be able Lo comblne boLh Lhe creauon as well as Lhe admlnlsLrauon llnked Lo Lhelr freelance
acuvlues. As noLed by a reglonal lnsuLuLe:
1be blq compooles lo tbe ccls bove teJoceJ tbelt employees lo tbe post 50
yeots...tbey ootsootce. 1be Jeqtee of ootsootcloq ls vety blqb. 1bls olso meoos
tbot people Joo't Jo wbot tbey ote qooJ ot (tbey oeeJ to ocpolte tbe job, bove to
moke tbelt owo toxes, bove to Jo evetytbloq, motkeuoq). AoJ lo tbe post tbls
wos Jeolt wltb tbtooqb tbe Jlvlsloo of loboot. 5o cteouve people lose o lot of ume
Joloq tbloqs tbey ote oot qooJ ot ooJ tbot sboolJo't be tbelt job!.
(8eglonal lnsuLuLe for CCl, SLrucLurally SLrong 1radluonal Lconomy)
1he facL LhaL CCls have consequenL dlsparlues ln slze and growLh sLrengLhens Lhe Lendency Lo
ouLsource, especlally ln secLors ln whlch auLomauon of producuon enables ouLsourclng, such as
Lhe reLall work ln Lhe fashlon secLor or ln cerLaln compuLer games. lurLher, Lo deal wlLh Lhe
monopollsuc Lendencles of some CCls, a hlgh percenLage of freelancers and mlcro-SMLs rely on
neLworks and personal conLacLs ln order Lo acL as a group.
2.2.3.3. CharacLerlsucs of CCl ouLpuL
lnLernauonal bodles, such as unLSCC wlLh lLs Convenuon on Lhe roLecuon of CulLural ulverslLy,
102
noLe LhaL culLural goods have Lo be seL aparL from sLandardlsed mass consumpuon or even
excluded from lnLernauonal Lrade agreemenLs and compeuuon regulauons.
103
CulLural producLs
are noL 'slmply merchandlse', buL express culLural unlqueness and fosLer culLural dlverslLy.
104
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 73
102
ln CcLober 2003, 148 counLrles supporLed Lhe unLSCC Convenuon on Lhe roLecuon and romouon of Lhe ulverslLy of CulLural
ConLenLs and Arusuc Lxpresslons, expresslng Lhe posluon, LhaL mechanlsms Lo malnLaln and develop domesuc producuon are
necessary because Lhe dlverse goods produced around Lhe world are noL slmply merchandlse, buL expresslons of rlch lndlvldual
unlqueness and culLural ldenuues.
103
un/unLSCC Caus AgreemenL, unesco's Clobal Alllance on CulLural ulverslLy, Lu excepuons on compeuuon law, exempuons on
sLaLe ald and Lhe sLaLe ald procedure. SLaLe ald ls usually consldered as lncompauble wlLh Lhe common markeL when lL dlsLorLs
compeuuon by favourlng cerLaln underLaklngs or Lhe producuon of cerLaln goods. llnanclal supporL Lo SML's ln Lhe secLor of Lhe
culLural and creauve lndusLrles can be [usued when lL ls (1) promoung economlc developmenL of areas wlLh an abnormally
sLandard of llvlng of serlous underemploymenL, (2) lL ls faclllLaung Lhe developmenL of cerLaln economlc acuvlues of cerLaln
economlc areas, (3) lL ls promoung culLure and herlLage conservauon. 8eLrleved aL 14 uec. 2009 from: hup://
www.europa.eu.lnL.scadplus/leg
104
lor a dlscusslon on Lhe Lenslons beLween commerclallsauon on Lhe one hand and culLural merlL on Lhe oLher, see: SLedman C.,
(2006), lrom CenLlemanly ubllshlng Lo ConglomeraLes: 1he ConLemporary LlLerary lleld ln Lhe uk ln Llsenberg, C., Cerlach, 8.
and Pandke, C., (eds.), (2006), CulLural lndusLrles: 1he 8rlush Lxperlence ln lnLernauonal erspecuve, 8erlln: PumboldL unlverslLy
1helr uullLy and quallLy for any lndlvldual cannoL oen be deLermlned wlLh any cerLalnLy prlor Lo
consumpuon and someumes LasLe changes as a resulL of repeaLed consumpuon. ln general,
demand wlll lncrease wlLh exposure, ln a process of 'rauonale addlcuon'.
103
CulLural and creauve producLs and servlces are also experlence goods.
106
CulLural producLs and
servlces sLage an experlence LhaL ls dlrecLly relaLed Lo Lhe user. ln order Lo sLage Lhls experlence,
Lhe user's demands wlll be Laken lnLo conslderauon ln Lhe deslgn of Lhe producLs and servlces
conunuously, Lhrough 'feedback loops'. 1hese processes of lnLeracuon form lndlrecL ouLpuLs of Lhe
producLs/servlces.
1hese feedback loops lmprove Lhe deslgn of Lhe producL or Lhe servlce oered by Lhe CCl
enLerprlse and users are acuvely Laklng parL ln Lhe remouldlng of Lhe producL. 1he end resulL of
Lhese feedback loops may provlde lnslghL lnLo deslgn processes LhaL can be re-used ln Lhe fuLure.
As such, Lhe CCl enLerprlse ouLpuL ls noL merely a producL or a servlce buL also lncludes a deslgn
process. 1he beneLs of belng able Lo repllcaLe Lhese deslgn processes are obvlous ln a commerclal
sense. An addluonal beneL ls also avallable for Lhe deslgner, who can examlne and reecL upon hls
own workows and Lhls may lead Lo new ouLpuLs ln Lerms of lmproved producLs or paLhs LhaL
appear Lo lead ln a promlslng dlrecuon.
Powever, Lhe deslgn process of formlng a producL or a servlce ls noL always expllclL. 1hose worklng
ln Lhe cross-medla secLor are famlllar wlLh Lhe arLefacLs from parucular creauve domalns buL are
rarely able Lo access Lhe deslgn processes LhaL creaLed Lhese arLefacLs. 8y provldlng an lnLuluve
level of access Lo Lhese deslgn processes, SMLs worklng ln Lhe creauve lndusLrles (such as
adveruslng, mash-up, curaLors eLc.) are far beuer able Lo lmaglne, explore, analyse and predlcL Lhe
mosL favourable dlrecuons ln whlch Lhelr asseLs can Lhen be deployed.
Creaung an experlence ls, however, hlghly sub[ecuve and Lhe economlc value cannoL be preclsely
deLermlned ln advance and Lhls sub[ecuve componenL means LhaL Lhe culLural and creauve
enLrepreneur ls consLanLly Laklng rlsks. ln vlew of Lhe slze characLerlsucs of Lhe ma[orlLy of CCls and
Lhe hlgh compeuuon, Lhe CCl enLrepreneur ls consLanLly looklng for lnnovauve soluuons, new
Lrends, producLs and servlces LhaL are more ln llne wlLh user and consumer demand.
107
As one
lnLervlewee noLed:
5ometbloq tbot people oeeJ ls to look ot wbot tbey coo Jlstopt, tbey oeeJ to qo
bock to Jlstopuoo. coo tbey Jlstopt teollsouoo? coo tbey Jlstopt Jlsttlbouoo? coo
tbey Jlstopt tbe woy tbey cteote lJeos?.
(8esearch lnsuLuLe for CCl, knowledge Lconomy)
CulLure has noL excluslvely been seen from Lhe Lradluonal polnL of vlew of conservlng culLural
herlLage buL more as a means Lo pursulng a quallLauvely hlgher level of developmenL. 1hls exlble
concepL has had Lhe merlL of llnklng Lhe ldea of culLure Lo a serles of acuvlues - from fashlon, Lo
deslgn and Lhe englneerlng of compuLer games - prevlously consldered ouLslde Lhe sphere of
culLural pollcles.
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 74
103
1hrosby, u., (2001), op. clL., p. 113.
106
kLA (2009), op. clL., p. 39.
107
LC Creen aper, (2010), op. clL., p. 7.
2.2.4. Uncerta|n va|ue and chang|ng bus|ness mode|s
As noLed above, Lhe markeL for culLural goods ls boLh volaule and unpredlcLable, promoung
buslness sLraLegles LhaL are 'emergenL', provlslonal, hlghly responslve Lo user-demand and based
on 'lnLuluve' and 'emouonal' knowledge as much as sLandard markeL research.
Consumers are oen noL aware of Lhelr LasLes ln culLural markeLs. 8aLher Lhey dlscover Lhem
Lhrough repeaLed experlences ln a sequenual process of largely unsysLemauc 'learnlng by
consumlng'. As Lhere ls an lnnlLe varleLy of creauve oerlngs, Lhls dlscovery process may be never-
endlng. 1o Lhe exLenL LhaL lndlvlduals are unsure of Lhelr preferences, lL ls noL surprlslng LhaL
producers of goods of expresslve value sLruggle Lo anuclpaLe markeL value.
108
Moreover, ln addluon Lo faclng uncerLalnLy, hlgh compeuuon and exLreme lmbalances beLween Lhe
mlcro and larger enLerprlses, dlglLal convergence has also modled Lhe dlsLrlbuuon process of CCl
producLs and servlces. 1he broadenlng usage of Lhe lnLerneL and conLenL lnLerface plauorms has
slgnlcanLly changed Lhe value chaln and dlsLrlbuuon process, enabllng a 'democrausauon' of
access Lo dlsLrlbuuon and a hlgher paruclpauon of producers and conLenL orlglnaLors.
109
ConsequenLly, Lhls shapes new markeL sLraLegles and new buslness models Lo whlch CCls musL
adapL. As noLed above, Lhe lnLeracuon wlLh Lhe user and consumer ls more dlrecL Lhan ln Lhe
physlcal world and much more dynamlc and self-feedlng:
1be potely lloeot bosloess moJel ls qlvloq woy to o mocb mote lotet-woveo
eovltoomeot, wbete ctoss-fetullsouoo of sumolos ooJ tespoose, Joto-Jtlveo sopply
ooJ JemooJ, ooJ speeJ of commoolcouoo eooble o mocb mote toplJ evolouoo of
ptoJoct Jevelopmeot ooJ coosompuoo.
110
1hls shl has also Lrlggered an exchange of conLenL and servlces and faclllLaLed peer Lo peer
sharlng, endangerlng legal proLecuon surroundlng Lhe conLenL/servlces. Creauve processes are
Lherefore much less llnear and wlLh Lhe lncrease ln le-sharlng wlLhln neLworks, Lhe ablllLy of
producers or dlsLrlbuLors Lo conLrol and charge for conLenL has become a ma[or concern. 1haL Lhe
rlghLs holders and Lhe creaLors are noL belng rewarded wlLh Lhls broadened access Lo conLenL ls a
real challenge Lo commerclal success. 1here are presenLly lmporLanL Lenslons beLween dlerenL
phllosophles as a resulL of Lhe 'democrausauon' of conLenL and Lhls ls addressed ln secuon 3.3
below. WhaL ls lmporLanL ls Lhe manner ln whlch Lhls has aecLed Lhe buslness models of Lhe
companles LhaL have Lo adapL Lo Lhls changlng envlronmenL and aL Lhe same ume be sumclenLly
exlble Lo remaln updaLed abouL Lhe newesL changes and opporLunlues.
Conslderlng Lhe speclc characLerlsucs of Lhe CCls wlLh regard Lo Lhelr slze and composluon, Lhelr
producL creauon processes, Lhelr lnLanglble asseLs and hldden lnnovauon, Lhe shllng ouLpuL
consumpuon, Lhe changlng value chaln ecologles, Lhe shllng dlglLal envlronmenL and Lhe lmpacL lL
has on buslness models and lnLeracuon wlLh user, lL ls clear LhaL Lhe CCls have many complex
challenges Lo face. 1hey are also worklng ln an envlronmenL LhaL ls noL always prone Lo rewardlng
rlsk Laklng behavlour and Lhls puLs furLher compllcauons on Lhelr paLhs Lo susLalnablllLy and
growLh.
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 73
108
Carboua L L., MonLmarqueue, C., (1996), 'A mlcro economeLrlc sLudy of LheaLre demand', !ournal of CulLural Lconomlcs, vol. 20,
number 1
109
uk 1echnology SLraLegy 8oard, (2009), op. clL., p. 18.
110
lbld., p. 19.
2.3. Ieatures of the CCI sectors
uesplLe all Lhe slmllarlues beLween Lhe dlerenL secLors of Lhe CCls, lL ls helpful Lo look aL each
speclc secLor of Lhe CCls ln order Lo hlghllghL Lhe dlerenL processes LhaL mlghL lnuence Lhe
supporL of enLrepreneurshlp. Cne of Lhe mosL common lssues observed durlng Lhls sLudy was Lhe
dlvlslon beLween Lhe subsldlsed secLors and Lhe non-subsldlsed ones. 1hls dlvlslon ls also a
reecuon of Lhe phllosophles of each Member SLaLe when addresslng Lhe culLural secLors and
openlng up Lhe creauve economy:
lo my oploloo tbete ls o Jl[eteoce betweeo tbe cteouve ooJ tbe closslcol pott. 1be
cteouve loJosttles ote mote eottepteoeotlol tboo tbe mote closslcol pott. 1bls olso
bos to Jo wltb tbe wbole sobslJy system, wbete tbe mote closslcol pott of tbe
loJostty ls beuet oble to tecelve fooJloq ftom tbe qovetomeot.
(nauonal MlnlsLry of CulLure, knowledge Lconomy)
ulscusslon abouL Lhe emclency of dlerenL subsldy sysLems ls beyond Lhe scope of Lhls sLudy.
Powever, when Lalklng abouL supporung Lhe enLrepreneurlal dlmenslon of CCls, Lhere was a
growlng reallsauon LhaL subsldy sysLems have shaped Lhe exlsung enLrepreneurlal dlmenslon of
cerLaln secLors. Accordlng Lo Lhe lnLervlewees, heavlly subsldlsed secLors Lend Lo be less drlven by
Lhe commerclal slde of underLaklng an enLrepreneurlal acuvlLy. 1hese secLors are prlmarlly seen as
wllllng Lo creaLe and experlence, raLher Lhan commerclallse, Lhelr producLs and servlces:
1be otusts moJel totely wotks wltb tbe omtoJe ot oploloo tbot
commetclollsouoo stteoqtbeos tbe cteouve ootpot. Most foe otusts ooJ
cboteoqtopbets ote eoqoqeJ lo tbe ptocess totbet tboo tbe ootcome. Ooce tbe
opeoloq olqbt bos stotteJ tbeyve olmost lost lotetest lo lt. l tblok yoo oeeJ to foJ
people wbo ote lotetesteJ lo tbe ptocess ooJ look beyooJ tbe opeoloq olqbt.
(Plgher Lducauon lnsuLuLe for CCl, knowledge Lconomy)
Moreover, recelvlng publlc fundlng can also lmply a cerLaln degree of pollucal lnuence on Lhe
producL or servlces. Cverall, mosL respondenLs agreed LhaL subsldles were necessary Lo enable Lhe
experlmenLauon and Lhe developmenL of cerLaln secLors. Powever, Lhe sysLem was consldered
lnemclenL for enabllng susLalnable growLh. arallel Lo Lhe blurrlng of fronuers beLween Lhe
dlerenL secLors, Lhls secLoral dlerenuauon may gradually dlsappear.
Movlng beyond Lhls duallLy, Lhe uk 1echnology SLraLegy 8oard elaboraLed a model of Lhe CCls
based on how commerclal value was creaLed.
111
1he model ls noL lnLended Lo dlerenuaLe ln a way
LhaL dlscrlmlnaLes ln favour of a parucular segmenL or group of secLors. lnsLead lL ls almed aL
shaplng pollcy Lo dlrecL changes and enhance Lhe developmenL of CCls by Largeung advlce, supporL
and lnvesLmenL Lallored Lo Lhe pauerns of acuvlLy and Lhelr poLenual for growLh and developmenL.
1he boundarles beLween Lhe clusLers are noL xed and some of Lhe secLors may be ln more Lhan
one clusLer or cross over beLween several secLors (for example muslc and games).
1he uk 1echnology SLraLegy 8oard model sLrucLures Lhe CCls along Lhree groups, based on Lhe
physlcal versus dlglLal lnpuL, as well as manual versus Lechnology-alded ouLpuL:
!
Creauve servlce provlders - Lradluonally non subsldlsed
!
Creauve conLenL provlders - mosLly non subsldlsed
!
Creauve experlences/orlglnal provlders - mosLly subsldlsed
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 76
111
uk 1echnology SLraLegy 8oard, (2009), op. clL., p. 21.
lor Lhls sLudy, Lhe creauve experlence and orlglnal provlders have been merged lnLo one clusLer as
Lhey represenL mosLly Lhe core arLs (performlng arLs and vlsual arLs).
1ype of C|uster Sectors Ma|n Character|sncs
Creanve serv|ce
prov|ders
Des|gn, arch|tecture, new
med|a, adverns|ng
- ulrecL lnLeracuon wlLh user's
demand
- Lxchange of ume for l producLs
- Plghly lnuenced by Lechnology
and dlglusauon
- MosLly pro[ecL-based
- MosLly prlvaLe or self-nanclng
Creanve content
prov|ders
1v and kad|o, Iash|on,
Games, Mus|c, I||m, 8ooks
- roducers of l producL
- Plghly lnuenced by dlglusauon,
mosLly for creauon and user-
lnLeracuon
- MosLly pro[ecL-based
- Mlx of self-nanced and
subsldlsed secLors (audlovlsual
and games, books)
- Lxperlence LhreaLs of plracy from
dlglLal markeL and peer Lo peer
exchange
Creanve
exper|ence
prov|ders
Creanve or|g|na|
prov|ders
erform|ng arts, v|sua| arts,
(mus|c, games)
- no lnlual ownershlp of work and
usually pay for oLher's copyrlghL
- MosLly subsldlsed and concerned
by Lhe culLural value of Lhelr work
- ArLs are mosLly on conLracL basls
- ulglusauon ls mosLly for
dlssemlnauon and as
communlcauon Lools
- usually one o producLs and
servlces
1ab|e 3: C|usters |n the CCIs
(5ootce. 8oseJ oo tbe closslfcouoo of tbe uk 1ecbooloqy 5ttoteqy 8ootJ)
1he use of such clusLerlng was largely agreed upon by Lhe paruclpanLs of Lhe workshops held
durlng Lhe sLudy Lo valldaLe Lhe meLhodology and Lhe resulLs. 1hls clusLerlng enables us Lo see
general Lrends ln Lerms of value chalns, nanclal schemes and subsldlsauon.
8efore deLalllng Lhe feaLures of each secLor, lL ls lnLeresung Lo look aL Lhe overall Lurnover of each
secLor as lllusLraLed ln llg. 7. below whlch shows LhaL Lhe secLors LhaL generaLed mosL Lurnover
were malnly Lhe servlce provlders and conLenL provlders.
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 77
I|gure 7: 1ota| 1urnover per Industry
(5ootce. otoklels 2009, stousucol ooolysls)
1he largesL LoLal Lurnovers per lndusLry are: lashlon (247.189.494 1P t), ueslgn (137.113.932 1P t)
and 8adlo & 1elevlslon (133.192.331 1P t). 1hese lndusLrles, mosLly Lhe conLenL provlders and
creauve servlce provlders, have beneLed from Lhe rlse of Lhe dlglusauon of socleLy and Lhe
ensulng dlglLal markeL.
lndusLrles LhaL requlre greaLer compeuuon and lnvesLmenL ln Lechnology and/or economles of
scale (l.e. 8adlo & 1elevlslon, Soware ub. & Cames, ueslgn, 8ook & ress and vlsual ArLs) show
more employees ln 'large companles' (l.e. more Lhan 230 workers) as seen ln 1able 2. above.
As can be seen ln llg. 6., Lhe lndusLrles LhaL employ more workers are: lashlon (2.230.334), ueslgn
(1.428.643), ArchlLecLure (762.714) and 8ook & ress (702.363). Clarlfylng Lhe dlvlslon beLween Lhe
enLrepreneur and Lhe enLerprlse, Lhe lndusLrles LhaL had Lhe largesL number of enLerprlses ln
Lurope were lashlon (142.212), ueslgn (101.233), ArchlLecLure (76.236) and Adveruslng (37.244).
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 78
I|gure 8: ercentage of Lnterpr|ses per Sector
(5ootce. otoklels 2009, stousucol ooolysls)
Cverall, Lhere ls a predomlnance of Lhe secLors LhaL requlre greaLer lnvesLmenL ln Lechnology, wlLh
Lhe excepuon of fashlon (whlch ls due Lo Lhe lncluslon of Lhe reLall lndusLry ln Lhe fashlon sLausucs).
lrom Lhe sLudy's sLausucs, for Lhe lndusLrles uslng mosL Lechnology (largely conLenL and servlce
provlders), Lhe LoLal Lurnover ls generaLed predomlnanLly by Lhe large companles whlle ln Lhe oLher
lndusLrles Lhe SMLs play a larger role.
2.3.1. Creanve serv|ce prov|ders
1hls clusLer conslsLs of ueslgn, ArchlLecLure, Adveruslng and new Medla. Creauve servlce
enLerprlses are based around earnlng revenues ln exchange for devoung Lhelr ume and lnLellecLual
properLy (l) Lo oLher buslnesses and organlsauons. 1he creauve acuvlues are embedded ln a
landscape of admlnlsLrauve, organlsauonal or manufacLurlng acuvlues LhaL form an lnLegral parL of
Lhe lndusLrles' sLrucLure.
1he creauve servlce provlders are usually self-nanced and conslsL mosLly of mlcro-SMLs. 1he
creauve process ls heavlly supporLed by Lechnology as Lhe creauve process ls hlghly lnvolved ln
user-lnLeracuon, lncreaslngly so wlLh Lhe use of web-based plauorms.
2.3.1.1. Arch|tecture
ArchlLecLure ls more Lhan an arL or a represenLauon of a culLural herlLage buL forms an essenual
parL of our llves by shaplng our envlronmenL and by provldlng servlces lnvolvlng dlrecL lnLeracuon
wlLh our dally llves. ln Lurope, archlLecLure conLrlbuLes Lo Lhe Lhlrd hlghesL number of employees
per secLor ln Lhe CCls, employlng 762.714 workers ln 2007, or 10,7 of Lhe LoLal employmenL of
CCls ln Lurope.
112
1he LoLal Lurnover of Lhe secLor amounLs Lo 8.19 of Lhe LoLal Lurnover of Lhe
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 79
112
All sLausucal daLa, unless oLherwlse lndlcaLed, come from Lhe sLausucal sLudy underLaken by Luroklels.
CCls. 1he secLor's overall composluon ln Lurope conslsLed ln 2007 of 62 mlcro-SMLs (1-3
employees) and 23 of small SMLs (4-9 employees). 1hls means LhaL 83 of Lhe archlLecLure
enLerprlses conslsL of companles wlLh fewer Lhan 10 people.
ln Lerms of nance, Lhe secLor Lyplcally operaLes wlLh prlvaLe nanclng wlLhouL speclc
governmenLal schemes. ubllc procuremenL and prlzes are oen seen as more approprlaLe for Lhe
secLor Lhan subsldles. 1he general professlon ls governed by Lhe general regulauons of Lhe lnLernal
markeL of Lhe Lu (freedom of esLabllshmenL, freedom of movemenL, publlc conLracLs). ln Lhe Lu
Councll 8esoluuon of !anuary 2007, Lhe Lu amended lLs dlrecuve Lo supporL Lhe archlLecLural
secLor Lo encourage moblllLy Lhrough Lhe muLual recognluon of quallcauons ln archlLecLure across
Lurope.
113
ln Lhe pasL, Lhe Lu has also supporLed Lhe secLor by promoung Lhe co-operauon and Lhe
neLworklng beLween lnsuLuuons dedlcaLed Lo culLural herlLage and archlLecLure.
114
ln addluon Lo supporung
collaborauon and a greaLer
freedom of movemenL, Lhe
access Lo Lhe markeL ls
lndlrecLly supporLed Lhrough
leglslauve means. lndeed, ln
counLrles where lL ls noL
mandaLory Lo hlre archlLecLs,
archlLecLure ls promoLed by
pol nung Lo Lhe cul Lural
slgnlcance of archlLecLural
deslgn and programmes for
subsldlsed consulLauon by
archl LecLs. l n Lhe oLher
counLrles, supporL ls lnherenL where archlLecLural deslgns are mandaLory for Lhe consLrucuon of
bulldlngs. Some organlsauons, such as ArchlLecLuur Lokaal, seek Lo lnvolve users Lo ensure quallLy
of servlces (see 8esL Case 7).
lC1 Lools are wldely used ln Lhe secLor for deslgn, vlsuallsauon, lnformauon exchange abouL
processes, and lC1 ls wldely used Lo lncrease emclency ln assembllng and reassembllng, as well as
brlnglng Lhe varlous branches of Lhe dlsclpllnes LogeLher.
113
WlLh such lC1 Lools, Lhe producuon
phase has shorLened, buL Lhe secLor ls sull very labour lnLenslve.
2.3.1.2. Adverns|ng
1he Luropean Assoclauon of Communlcauon Agencles names 6 secLors where adveruslng ls wldely
used, namely: 1elevlslon, newspapers, Magazlnes, CuLdoor, 8adlo and Clnema.
116
ln Lhe mosL
recenL gures provlded (2007), Lhe healLhcare lndusLry spenL t1.3 bllllon on adverusemenL, Lhe
non-alcohollc drlnks lndusLrles t 1.3 bllllon, Lhe alcohollc drlnks lndusLrles t1.3 bllllon, Lhe food
Arch|tectuur Lokaa|
Arch|tectuur Lokaa| |n 1he Nether|ands |s d|rect|y app|y|ng
user]consumer's parnc|panon w|th arch|tectura| po||cy
ensur|ng a qua||ty of serv|ces. 1he ma|n p|n the
Nether|ands |s a sectora| pro[ect for games that advances
new techno|ogy to SMLs a|m|ng at |mprov|ng |earn|ng
systems and advanced new techno|ogy to SMLs |n order to
advance the sector and deve|op know|edge from app||ed
research w|th SMLs.
(See 8esL Case 7)
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 80
113
Luropean arllamenL ulrecuve 2006/100/LC, 8egulauons by Lhe LC no 1137/2008
114
See for example ArchlLecLure normande, une AvenLure Luropeenne ln 2000
113
Sarlylldlz, S., Czsarlylldlz, S., (1998) 1he luLure of ArchlLecLural ueslgn racuce wlLhln lC1 uevelopmenLs, unpubllshed, hup://
reposlLory.Ludel.nl
116
lor Lhe use of adveruslng ln Lhe Clnema and 8adlo secLor, adverusemenL sales gures are belng glven only ln a parL of Lhe Lu
(8elglum, lrance, Cermany, lLaly, neLherlands, Spaln, Sweden, and Lhe uk).
lndusLrles t6 bllllon and Lhe auLomouve lndusLrles t6 bllllon.
117
ln Lhe sLudy's sLausucs, adveruslng ls responslble for 4.31 of Lhe LoLal revenue of Lhe CCls ln 2007,
and employs 6.33 of Lhe LoLal CCl employees. ln Lerms of lLs composluon, 61 of Lhe secLor
conslsLs of 1-3 people enLerprlses, whlle 24 of Lhe CCls have beLween 4-9 employees. Comblned,
Lhe companles under 10 employees are responslble for 28 of Lhe LoLal Lurnover for Lhe secLor.
1he rlse of lC1 has led LASA (Luropean Adveruslng SLandard Agency - see 8esL Case 8) members Lo
reach a consensus on lncludlng dlglLal markeung communlcauons ln Lhe remlL of adveruslng self-
regulaLory organlsauons. Cnllne adveruslng spendlng per user has rlsen dramaucally ln Lhe lasL four
years, wlLh uk leadlng Lhe way. 1he onllne adveruslng markeL ln Lhe uk wenL from C8 122 per
user ln 2006 Lo C8 217 ln 2010. lrance's onllne adveruslng ls now reachlng 133 per user, from
89 per user four years ago. As Lhe sLudy by Lhe uk 1echnology SLraLegy 8oard conrms, 70 of Lhe
value and growLh poLenual comes from conLenL and adveruslng space.
118
1he eMarkeLer esumaLes
LhaL adverusers wlll spend 7.3 bllllon Lo reach all WesLern Luropeans, an lncrease of 23 from lasL
year.
119
2.3.1.3. Des|gn
ueslqo ls sull oboot looovouoq wltblo tbe some potometets ooJ Jtlveo by tbe
some ombluoo, bot opplleJ to o mocb btooJet spectte of cbolleoqes, wbete tbe
Jeslqoet ls pott of o voloe cbolo wbete looovouoo - tbot teocbes fot beyooJ
motetlol ootcomes - ls oJJtesseJ by molu-Jlsclpllooty teoms - lo tbe wotJs most
locloslve seose. ueslqo coo be opplleJ to oo ottefoct ot o speclfc solouoo to o
speclfc cbolleoqe, bot lt coo olso be opplleJ to o cootext - be lt o pbyslcol spoce ot
eovltoomeot ot o coofqotouoo.
120
Cradually dlsLanclng lLself from Lhe earller assoclauon wlLh aesLheucs, deslgn lncludes, noL
excluslvely, servlce deslgn, envlronmenLal deslgn, deslgn for all, deslgn for proL, user-deslgn, and
experlence deslgn. 1he secLor ls now undersLood as an lmporLanL drlver of |nnovanon.
121
WlLhln
Lhe worklng documenL ueslqo os o Jtlvet of oset-ceotteJ looovouoo, Lhe Lu hlghllghLs deslgn as a
poLenual sLraLegy for lnnovauve soluuon and producL LhaL seeks Lo undersLand user needs,
asplrauons and ablllues aL a lower cosL Lhan Lradluonal 8&u research acuvlues.
122
ueslgn ls
lncreaslngly recognlsed as a secLor LhaL can have many crossovers and uses wlLh sLrong spln o
eecLs on oLher secLors and companles of Lhe economy.
123
1hls was also seen ln Lhe number of
deslgners worklng ouLslde Lhe deslgn secLor,
124
suggesung Lhe exLernal added value of deslgn for
oLher lndusLrles.
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 81
117
Luropean Assoclauon of Communlcauon Agencles, www.eaca.be, vlewed March 2010
118
uk 1echnology SLraLegy 8oard, (2009), op. clL., p. 8.
119
See hup://www.emarkeLer.com/8eporLs/All/Lm_euro_ad_[an07.aspx
120
uanlsh ueslgner, (2010), 1he role of deslgn ln Lhe 21
sL
CenLury: uanlsh ueslgners' ManlfesLo, Copenhagen: uanlsh ueslgner,
hup://www.danlshdeslgners.com/medla/678.pdf, p. 3.
121
Luropean Commlsslon SLa Worklng uocumenL, (2009a), op. clL., p. 14 .
122
lbld., pp. 13-16.
123
ro lnno Crlps Clobal 8evlew of lnnovauon lnLelllgence and ollcy Audlences, (2003), ueslgn as a Lool for lnnovauon, Mlnl-sLudy
prepared for Lhe Luropean Commlsslon (uC LnLerprlse and lndusLry)
124
Luropean Commlsslon SLa Worklng uocumenL, (2009a), op. clL., p. 27, and also ln uk ueparLmenL of lndusLry and 1rade (u1l)
(2003), CreauvlLy, ueslgn and 8uslness erformance, Lconomlcs aper no 13, London: u1l
Powever, deslgn processes
are noL yeL fully undersLood
as 8&u and are usually
consl dered f rom a so
l nnovauon per s pecuve.
Crganlsauons such as ulsseny
Pub seek Lo sumulaLe Lhls
undersLandlng wlLhln non-CCl
secLors (see 8esL Case 9).
lL emerged from Lhe sLausucal
analysls LhaL deslgn represenLs 13.49 of Lhe LoLal revenue of Lhe CCls. lL ls Lhe second mosL
lmporLanL amongsL Lhe secLors.
ln Lerms of Lhe secLor's composluon, as ln Lhe oLher secLors, Lhe bulk of Lhe companles conslsL of
mlcro-SMLs: approxlmaLely 73 of Lhe deslgn companles have fewer Lhan 10 workers (43 havlng
under 4 employees, 30 beLween 4-9 employees). Companles under 10 employees (73) are
generaung 20 of Lhe LoLal revenue whlle 10 - 49 employees companles (20 of Lhe secLor) are
generaung 31 of Lhe LoLal revenue of Lhe secLor. Clearly, dlscrepancles ln slze and Lurnover can be
observed.
ueslgn ls hlghly sLrucLured ln cross-dlsclpllnary Leams and cross- secLoral collaborauons.
123
lL works
heavlly ln neLworks wlLh muludlsclpllnary Leams for greaLer lnLegrauon of muluple lnLeresLs,
faclllLaung ecologles for open lnnovauon.
126
1he deslgn secLor ls usually self nanced, however cerLaln counLrles, noLably Lhe Scandlnavlan
counLrles buL also Spaln, lrance, Lhe uk and Lhe neLherlands have esLabllshed governmenLal
supporL Lo lncrease Lhe use of deslgn by companles.
127
ueslgn ls hlghly lnuenced by recenL
developmenLs ln lC1 for Lhe creauon processes buL lC1 also faclllLaLes Lhe neLworklng and
lnLeracuon wlLh users.
2.3.1.4. new (Cross) Medla
new Medla ls Lhe newesL subgroup among Lhe creauve lndusLrles. lL has emerged as a resulL of
rapld advances ln lC1 almed aL developlng Lhe global lnformauon lnfrasLrucLure, glvlng rlse Lo Lhe
so-called lnformauon SocleLy.
128
new medla ls boLh a producL (soware, carLoon, game eLc.) as well as a servlce, a communlcauon
Lool for markeung and dlsLrlbuung oLher producLs. 1he secLor covers a broad range of acuvlues
deallng wlLh dlglLal deslgn, buL more speclcally servlce deslgn: lL deals wlLh processes llnked Lo
servlces beLween people and Lhelr envlronmenL. 1hls denluon makes Lhe acuvlues ln Lhls secLor
lnherenLly cross-secLoral. 1he supporung organlsauons glve supporL ln Lhls eld ln Lhe form of
lnnovauon and 8&u pro[ecLs. ln Lerms of lC1 use, accordlng Lo Lhe sLudy's secLoral experL
D|sseny nub
D|sseny nub 8arce|ona prov|des a network of des|gners as
we|| as targets an aud|ence from d|verse sector,
snmu|anng co||aboranon between bus|nesses and CCIs. It
a|so serves as a research and reference po|nt and
educanona| centre.
(See 8esL Case 9)
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 82
123
uanlsh ueslgner, (2010), op. clL., p. 4, hup://www.danlshdeslgners.com/medla/678.pdf, p.4, LC SLa Worklng uocumenL (2009a),
op. clL., p. 18.
126
Cpen lnnovauon was dened as Lhe use of purposlve lnows and ouulows of knowledge Lo acceleraLe lnLernal lnnovauon, and
expand Lhe markeLs for exLernal use of lnnovauon, respecuvely. Chesbrough, P.W., (2003), Cpen lnnovauon: 1he new lmperauve for
creaung and proung from Lechnology, 8osLon: Parvard 8uslness School ress
127
LC SLa Worklng uocumenL, (2009a), op. clL., p. 31.
128
unC1Au,(2008), op. clL., p. 132.
quesuonnalres, Lhe mosL lmporLanL use of lC1 Lechnologles for CCl SMLs are communlcauon Lools
(91) and knowledge/goods producuon Lools (76).
1he secLor has 61 of companles wlLh fewer Lhan 4 employees, buL lL ls responslble for 20.12 of
Lhe employmenL ln Lhe CCls. 1he Lurnover ls, however, mosLly generaLed by Lhe blgger enLerprlses
(80 of Lhe LoLal revenue ls generaLed by companles wlLh 30 employees ouL of whlch 48 ls
generaLed from enLerprlses wlLh 30-249 employees conslsung of 3.14 of Lhe secLor). lC1 accounLs
for half of Lhe rlse ln Lu producuvlLy
129
and ls essenual Lo buslnesses, publlc servlces and Lo maklng
a modern economy work and a cruclal componenL of Lhe Lu recovery plan. Such economlc eecLs
can be seen ln several Member SLaLes.
130
ln Lerms of nanclal supporL, Lhe secLor ls noL subsldlsed buL exLernal supporL exlsLs, alLhough Lhe
paLhs Lo obLaln lL are oen far Loo complex for lndlvldual SMLs. ln Lerms of growLh poLenual, Lhe
companles have faclllues Lo sLarL up due Lo Lhe shorL ume-spans of 8&u and producL llfecycles buL
Lhe companles have dlmculLy ln growlng. 1he lssue of markeL fragmenLauon ls noLable for Lhls
secLor. Lurope ls very fragmenLed ln Lerms of language and regulauons abouL l8, lnformauon
access, eLc. 1hls sysLem dlscourages Lhe companles from growlng across nauonal borders as lL
usually creaLes only locally operaung SMLs, alLhough Lhe markeL ls global.
131
1he new Medla and
lC1 Lechnologles have also Lhe poLenual Lo aecL Lhe overall envlronmenL for CCls due Lo Lhe
lncreaslng lmporLance of dlglusauon.
l n L er ms of l nnovauon
p o L e n u a l , n e w me d l a
lnLroduces new forms of
expresslon and plauorms,
such as user- generaLed
conLenL. l L changes Lhe
bac kgr ound as s mal l er
companl es can compeLe
aordably ln blgger markeLs
and adveruse Lhelr producLs
o n l l n e a l L h o u g h L h e
compeuuon ls erce. 1he LulMA WhlLe aper on lC1 sLandardlsauon demonsLraLes Lhe wllllngness
Lo pay lncreaslng auenuon Lo new Lechnologles as a drlver of lnnovauon (see 8esL Case 10).
2.3.2. Creanve content producers
1hls clusLer lncludes lm, 1v, fashlon, games, muslc, books and publlshlng. Creauve conLenL
enLerprlses produce l, usually maklng use of Lechnlcal proLecuon measures. 1hese enLerprlses
earn revenues Lhrough a varleLy of relaLed buslness models such as onllne and o llne sales,
adveruslng or subscrlpuon. 1hese enLerprlses lnvesL caplLal upfronL ln order Lo develop creauve
pro[ecLs prlor Lo any revenues. uependlng on Lhe secLor, Lhls upfronL lnvesLmenL can be subsLanual,
and as a resulL Lhe lnvesLmenL oen Lakes place on a pro[ecL-by-pro[ecL basls raLher Lhan ln Lhe
conLexL of an ongolng and susLalnable buslness. WlLhln Lhls group, a loose buL lmporLanL dlsuncuon
can be made beLween Lhose enLerprlses LhaL focus on Lhe nexL lndlvldual creauve pro[ecL and
LDIMA
LDIMA |s the LU network that a|ms at creanng an open
and |ega| framework for new d|g|ta| products throughout
the LU so as to avo|d the |ega| barr|ers b|ock|ng a s|ng|e
Luropean d|g|ta| market.
(See 8esL Case 10)
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 83
129
Luropean ulglLal Medla Assoclauon (LulMA), (2009), WhlLe aper on ollcy SLraLegy for Lhe uevelopmenL of new Medla Servlces
2009-2014, see hup://ec.europa.eu/lnformauon_socleLy/eeurope/l2010/docs/posL_l2010/addluonal_conLrlbuuons/edlma.pdf
130
ln uk, Lhe dlglLal markeL and dlglLal conLenL ls responslble for approx. 70 of Lhe Lurnover of Lhe creauve lndusLrles ln Lhe uk: see
uk 1echnology SLraLegy 8oard, (2009), op. clL., p. 12.
131
Luropean ulglLal Medla Assoclauon (LulMA), (2009), op. clL., p. 2.
Lhose LhaL are sLrucLured Lo develop a susLalnable 'producuon llne' of creauve producLs and an
lncreaslng body of l for renewed explolLauon.
ln Lerms of Lhe creauve process, Lhe clusLer ls hlghly lnuenced by dlglLal convergence: Lhe
processes are usually hlghly Lechnologlcally alded, havlng an lmporLanL user-lnLeracuon componenL
wlLhln Lhe creauve process, and Lhe producLs and servlces are also lncreaslngly dlglLal, wlLh Lhe e-
book belng an lllusLrauon of Lhls. lracy and peer-Lo-peer exchange are LhreaLenlng Lhe loss of
value of some of Lhe conLenL producL and servlces. 1he creauve conLenL producers have slgnlcanL
crossovers wlLh oLher secLors of Lhe economy ouLslde Lhe CCls, such as moblle phone neLwork
oper aL or s , hands eL
manufacLurers for muslc
dlsLrlbuuon, whlch have
conslderable lnuence
on Lhe buslness models
deployed.
132
2.3.2.1. I||m
lllm ls Lhe secLor LhaL recelves, generally speaklng, sLrong supporL from Lhe sLaLe across Luropean
counLrles Lhrough varlous measures (Lax shelLer, subsldles eLc). 1ax shelLers of varylng Lypes ln
Pungary, neLherlands, lreland, Lhe uk, Luxembourg, lrance, Spaln and 8elglum are meanL Lo
encourage lnvesLmenLs and conslderably enhance Lhe fundlng opporLunlues for lm producuon.
1he secLor ls also hlghly subsldlsed ln oLher Luropean counLrles, Lhough Lhe recenL nanclal crlsls
means LhaL Lhls subsldy ls llkely Lo decrease.
1he speclal programme for
Lhe audlovlsual secLor aL Lhe
Luropean level, MLulA,
133
also Lackles Lhe needs of Lhe
secLor. MLulA co-nances
L r a l nl ng l nl ua uv es f or
a u d l o v l s u a l l n d u s L r y
p r o f e s s l o n a l s , L h e
developmenL of producuon
p r o [ e c L s , L r a l n l n g o f
professlonals, and generally
dlsLrlbuLes and promoLes lms and audlovlsual ouLpuL (see 8esL Case 11). Cn Lop of Lhls, Lhe Lu
Medla programme wlll launch aL Lhe end of 2010 a Medla roducuon CuaranLee lund LhaL wlll be
almed aL supporung and faclllLaung Lhe access of publlc audlovlsual companles Lo bank credlLs.
134
ln Lerms of Lhe secLor's composluon, Lhe secLor ls hlghly fragmenLed. 60 of Lhe companles have
MLDIA
MLDIA |s the LU support programme for the aud|ov|sua|
sector. It co-hnances pro[ects , promotes, tra|ns h|m
profess|ona| and support the sector to face the d|g|ta|
sh|h.
(See 8esL Case 11)
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 84
132
uk 1echnology SLraLegy 8oard, (2009), op. clL., p. 22.
133
See hup://ec.europa.eu/lnformauon_socleLy/medla/lndex_en.hLm
134
See hup://ec.europa.eu/culLure/medla/programme/overvlew/fundlng/lndex_en.hLm
Luropean Adverns|ng Standard A|||ance
Luropean Adverns|ng Standard A|||ance |s the s|ng|e vo|ce
on adverns|ng se|f regu|anon |ssues and adv|ses the sector
on such |ssues and others such as d|g|ta| markenng
commun|canons.
(See 8esL Case 8)
under 4 employees (see llg. 2) buL Lhese companles produce only 12 of Lhe secLoral Lurnover. 1he
companles LhaL have 4-9 employees represenL 26 of Lhe secLor's enLerprlses and Lhey generaLe
16 of Lhe LoLal revenue of Lhe secLor (see llg. 3.). Companles LhaL have more Lhan 30 employees
represenL a blL less Lhan 2 of Lhe LoLal of enLerprlses ln Lhe secLor buL generaLe 49 of Lhe LoLal
revenue. 1he LoLal Lurnover of Lhe secLor ls 6.10 of Lhe CCls Lurnover and lL holds 4.84 of Lhe
employees of Lhe LoLal CCls. 1he markeL reached a LoLal spendlng value of uSu39 bllllon ln 2009.
1he dlglLal markeL has also been changlng Lhe perspecuve for Lhls secLor. 1here ls a growlng
emergence of onllne renLal subscrlpuon servlces and a consequenL rapld upLake of vCu and pay-
per-vlew (v). 1he vCu markeL [usL sLarLed ln 2004 buL was expecLed Lo grow more Lhan Lenfold
from uSu 163 mllllon ln 2004 Lo uSu 1.7 bllllon ln 2009.
133
2003 2004 200S 2006 2007 2008
D|g|ta| Screens 30 33 204 327 897 1329
D|g|ta| s|tes 27 43 148 338 330 813
1ab|e 4: D|g|ta| C|nema s|tes and screen |n Lurope (2003-2008)
(5ootce. MeJlo 5oles)
1J6
An lnablllLy Lo susLaln growLh ls one of Lhe maln lssues for Lhe lm secLor. Llnked Lo Lhe dlmculLy Lo
enLer Lhe markeL, Lhe lm secLor suers from Lhe lnaccesslblllLy of growLh nance aer Lhe lnlual
company seL-up. lndeed, Lhe reporL on Lhe evaluauon of Lhe MLulA programme lndlcaLed LhaL Lu
audlovlsual secLor suered from sLrucLural weaknesses such as markeL fragmenLauon and Lhe low
clrculauon of Luropean works ouLslde Lhelr counLry of orlgln.
137
ln Lerms of value chaln processes,
Lhe producuon ume ls generally long, alLhough Lhe producL can be muluplled and dlsLrlbuLed.
2.3.2.2. 8ooks and ub||sh|ng
ubllshlng and prlnL medla
consuLuLe an l mporLanL
subgroup of Lhe creauve
lndusLrles from boLh Lhe
culLural and Lhe economlc
polnL of vlew. 1echnologlcally,
however, Lhe publlshlng and
medla lndusLrles are faclng
new challenges due Lo Lhe
gr owl ng L r end L owar ds
e l e c L r o n l c p u b l l s h l n g .
Accordlng Lo Lhe lederauon of Luropean ubllshers (see 8esL Case 12), Lhe LoLal annual sales
Iederanon of Luropean ub||shers
IL |s Luropean sectora| support organ|sanon for book
pub||shers assoc|anon |n the LU. It ma|n|y dea|s w|th
|eg|s|anve support at the LU |eve| and adv|ses on copyr|ght
|ssues.
(See 8esL Case 12)
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 83
133
kLA, (2006), op. clL., p. 114.
136
Luropean Audlovlsual CbservaLory, (2009a), ress 8elease, Lmbargo ulglLal Screen 8ase grows 70 ln 2008, SLrasbourg/Mllan:
see hup://www.obs.coe.lnL/abouL/oea/pr/dlglLal_clnema2008.hLml
137
Lu8LvAL Medla Consulung group, (november 2007), llnal reporL of MLulA programme lus and Medla lormauon, hup://
ec.europa.eu/culLure/medla/programme/docs/overvlew/evaluauon/reporLs/medla20plus/execuuve_sum_en.pdf
revenue of book publlshers of Lhe Lu and Lhe LLA ln 2008 was approxlmaLely t 23.73 bllllon.
138
1he
secLor comprlses mosLly of enLerprlses wlLh 1-3 employees (39) generaung 12 of Lhe LoLal
Lurnover of Lhe secLor, whlle mosL revenue (72) ls generaLed by companles wlLh 30 employees
(2.38 of Lhe secLor).
Compeuuon ln boLh Lhe physlcal and Lhe dlglLal markeL lnuences Lhe sLrucLure of Lhe secLor buL
lnluauves such as vA1 reducuon greaLly supporL Lhe growLh of Lhe secLor. ln 23 of Lhe 27 Member
SLaLes of Lhe Luropean unlon, prlnLed books beneL from reduced raLes of vA1. lreland, oland and
Lhe unlLed klngdom provlde for a zero vA1 raLe for books, whlle ve more counLrles have exLended
reduced raLes Lo books on all physlcal supporL: lrance, Spaln, Slovenla, norway and Lhe
neLherlands. Sweden and lceland allow reduced vA1 for audlo books.
139
A reduced raLe of vA1 for
all klnds of elecLronlc books could asslsL Lhe secLor Lo supporL Lhe developmenL of a dlglLal markeL.
1he prlnclple of cross-subsldlsauon ls a fundamenLal and dlsuncuve characLerlsuc of Lhe publlshlng
secLor,
140
and as such conLrlbuLes greaLly Lo culLural dlverslLy ln Lhe secLor. lunds from one markeL
can supporL enLranLs ln new markeLs and as such can supporL SMLs ln Lhelr secLor. 1hls can acL as a
supporL for Lhe access Lo Lhe markeL.
CrowLh raLes pro[ecLed for Lhe publlshlng secLor are slgnlcanLly lower Lhan for oLher culLural
lndusLrles and Lhls ls malnly due Lo Lhe facL LhaL publlshlng ls consldered as a maLure markeL
(especlally book publlshlng) and a markeL where Lhe lmpacL of lC1 developmenLs may be less
slgnlcanL Lhan for oLher lndusLry secLors. Powever, Lhe lnuence of lC1 and dlglusauon ls greaLly
aecung Lhe secLor: spendlng on elecLronlc books was expecLed Lo grow exponenually from uSu 42
mllllon ln 2004 Lo uSu 1.7 bllllon ln 2009 (110 CAC8), when e-books wlll represenL 3.2 of LoLal
book spendlng ln Lurope.
As a consequence, companles have Lo comblne boLh Lhe prlnLed publlshlng formaL as well as Lhe
dlglLal one: one publlshlng SML can be ln an advanced sLaLe ln Lerms of prlnLed publlshlng buL aL an
early sLage ln Lerms of e-publlshlng. 1he enLry of Lhe lad, Lhe e8ook and Lhe lncreaslng dlglLal
markeL wlLh players such as Coogle or Amazon are only slgns of Lhe poLenual of Lhe dlglLal markeL
as well as Lhe LhreaLs Lo Lhe mlcro-SMLs LhaL do noL possess slmllar access Lo Lhls dlglLal markeL.
llg. 9. below demonsLraLes Lhe lncrease ln Lhe wholesale of elecLronlc book sales ln Lhe lasL elghL
years ln Lhe unlLed SLaLes. 1he uS gures were used ln Lhls reporL as an lndlcauon as whaL Lhe
fuLure Lrends for daLa for Lhe Luropean markeL could be as lL ls Loo early Lo draw gures.
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 86
138
See hup://www.fep-fee.eu
139
See hup://www.fep-fee.eu/2.3.hLml
140
CommenLs from Luropean SecLoral Crganlsauon
I|gure 9: US 1rade Who|esa|e L|ectron|c 8ook Sa|es, 2002-2010 (1st quadr|mestre)
(5ootce. www.lJpf.otq)
141
AnoLher consequence of Lhe rlse of Lhe dlglLal markeL and Lhe subsequenL rlse of plracy ls LhaL of
copyrlghL regulauons. As Lhey are one of Lhe maln rewards Lo Lhe secLor, l8 regulauons are
lmporLanL and Lhey conLrlbuLe Lo Lhe susLalnablllLy of Lhe culLural dlverslLy. CopyrlghL ls cruclal ln
allowlng Lhe publlshlng secLor Lo ourlsh, lL ls Lhe legal framework LhaL enables buslness models ln
Lhls secLor.
Many SMLs noL only lack Lechnologlcal Lralnlng, buL also secLor speclc Lralnlng (managemenL
skllls, publlshlng skllls, eLc.). CurrenLly, secLoral assoclauons provlde baslc Lralnlng LhaL
predomlnanLly focuses on producuon. 1he secLor works heavlly ln cross-secLoral neLworks, for
example wlLh audlovlsual and muslc.
142
2.3.2.3. Games
ln addluon Lo open deslgn games, lnLeracuve envlronmenLs, smarL movle games and serlous games
are lncreaslngly acknowledged as sulLable for a broader use wlLhln socleLy and economlcs.
edagoglcal games LhaL slmulaLe surgery, open space lnLeracuve envlronmenLs used for clLy
plannlng, or games developed for people wlLh dlsablllues are all examples of Lhe rlse of mulu-
funcuonallLy ln Lhls secLor.
Powever, on a hlgher level, Lhe secLor ls noL sumclenLly recognlsed and ls noL separaLed from
soware ln mosL sLausucs. 1he secLor ls also only parually recognlsed as an lnnovauve new medla
ln Lhe creauve conLenL secLor
143
. ln Lerms of LoLal revenue, Lhe game secLor ls responslble for 6.47
of Lhe LoLal revenue generaLed by Lhe CCls.
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 87
141
See hup://www.ldpf.org
142
lnLervlew wlLh nauonal SecLoral Crganlsauon
143
Luropean Cames ueveloper lederauon, (2009), CommenLs fromLhe Luropean Cames ueveloper lederauon on Creauve ConLenL
ln a Luropean ulglLal Slngle MarkeL: Challenges for Lhe luLure A 8eecuon uocumenL from Lhe uC lnlSC and uC MA8k1, Avallable
onllne aL: hup://ec.europa.eu/lnLernal_markeL/consulLauons/docs/2009/conLenL_onllne/reecuon_paper20web_en.pdf
Large dlsparlues exlsL beLween Lhe few numbers of large companles (0.31 of companles have over
230 employees) LhaL are responslble for 31 of Lhe LoLal revenue, and Lhe mlcro-SMLs (1-3
employees) conslsung ln 62 of Lhe enLerprlses and LhaL generaLe 3 of Lhe LoLal Lurnover. Arlslng
from Lhls lmbalance ln Lhe markeL posluon, accesslng Lhe markeL ls dlmculL for small buslnesses
due Lo Lhe monopollsauon of large game plauorms owners.
144
1he secLor's access Lo markeL ls also
lnuenced by Lhe exLernal leglslauve facLors such as Lhe raung sysLem.
1here are lmporLanL dlerences ln Lhe esumauons for Lhe dlerenL segmenLs of Lhe vldeo games
markeL:
!
Console games: Lhey are heavlly dependenL on Lhe nexL generauon of consoles and Lhe
prlces wlll follow Lhe launch of new hardware. Cverall, Lhe compound annual growLh
should lncrease aL a moderaLe raLe of 6.4.
!
Cnllne games: Lhey wlll boom as a consequence of Lhe lncreaslng speed of broadband
connecuons. 1he average spendlng on onllne games lncreased from uSu 303 mllllon ln
2004 Lo uSu 4.2 bllllon ln 2009 (33 CAC8). Cnllne games wlll represenL 30 of LoLal
vldeo games spendlng ln 2009 (up from 7.6 ln 2004).
!
Wlreless games: Lhey wlll also expand followlng Lhe growLh of 3C moblle peneLrauon.
Wlreless games subscrlbers were expecLed Lo lncrease from 8.3 mllllon ln 2004 Lo 96
mllllon ln 2009 (63.2 CAC8). 1he spendlng on wlreless games ralsed up Lo uSu 3.7
bllllon ln 2009 (32 CAC8).
!
C games: Lhey wlll conunue decllnlng, as mlgrauon Lo oLher plauorms wlll consolldaLe.
uecrease ls esumaLed aL a compound annual raLe of 3.2 ln Lhe years leadlng up Lo
2009.
AnoLher consequence of Lhe rlse ln lC1 ls LhaL value chalns are shorLened, and Lhls enables
enLerprlses Lo sklp mlddle-men and lncreases Lhe lnvolvemenL of users ln Lhe producuon of a game.
Powever, Lhe secLor suers from plracy and gameplay ls noL yeL proLecLed from plaglarlsm ln
copyrlghL leglslauon.
143
ln Lerms of fundlng, as mosL of Lhe companles are mlcro-SMLs, Lhelr ume ls mosLly geared Lowards
creaung value and malnLalnlng Lhelr neLworks, leavlng very llule ume Lo concenLraLe on looklng for
fundlng opporLunlues. 1hey are usually self nanced buL Lhey mlghL recelve governmenLal supporL,
as seen ln lrance Lhrough Lhe Lax shelLer or Lhrough a Lax rellef for game developers ln Lhe uk.
146
neLworks are an lmporLanL
source of supporL ln order Lo
share Lhe knowledge, ln
parucular abouL Lhe rapld
changes ln Lhe envlronmenL
ln Lerms of Lechnologles (see
for example lmaglnov ln
lrance, 8esL Case 13). 1he
l ncreasl ng l nLegrauon of
muluple acLors such as moblle
Imag|nov
Imag|nov |s the game c|uster |n Irance wh|ch |s spec|hca||y
supported by the reg|on of khone A|pes. It has auracted
severa| bus|nesses and has snmu|ated mu|n-d|sc|p||nary
pro[ects as we|| to boost commerce |n the reg|on.
(See 8esL Case 13)
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 88
144
Luropean Cames ueveloper lederauon, (2009), op. clL., p. 2.
143
Luropean Cames ueveloper lederauon, (2009), op. clL., p. 11.
146
See hup://blznewz.co.uk/buslness_news/2010/391/uk-budgeL-2010-measures-for-supporung-buslness-and-growLh
operaLors, lnLerneL provlders, soclal neLworks, onllne shops, onllne rlghLs aggregaLors and
broadband Lechnology companles, ralses Lhe rlsk of ollgopolles developlng.
uesplLe Lhe hlghly collaborauve process, Lhe secLor has dlmculLy organlslng lLself malnly due Lo lLs
slze, novelLy, and dlverslLy. As a resulL, Lhe capaclLy for self-reecuon on enLrepreneurlal hablLs ls
llmlLed, oen leadlng Lo dlmculues ln organlslng Lhe secLor ln represenLauve organlsauons.
2.3.2.4. 8roadcasnng (1V and kad|o)
Accordlng Lo Lhe Luropean Audlovlsual CbservaLory, Lhe Luropean audlovlsual markeL was
evaluaLed aL approxlmaLely t 120 bllllon ln 2009. uue Lo Lhe rlse of Lhe lnLerneL, Lhe change ln Lhe
secLor wlll furLher lncrease Lhe markeL and oer many posslblllues as well as challenges for Lhe
secLor. 1he blggesL companles have a markeL posluon LhaL allows Lhem Lo conLrol some parLs of Lhe
markeL, buL Lhe smaller ones also need Lo have access Lo plauorms or Lo develop vCu plauorms
and access Lhem. ln some
counLrles, such as wlLh Lhe
uuLch Medla Pub, Lhls need
for lnLeroperablllLy ls belng
addressed (see 8esL Case 14).
Ac c or dl ng L o S L r a L e g y
Analyucs, Lhe global rlse of
vCu ls expecLed Lo go from
11,3 bllllon ln 2010 Lo 17
bllllon ln 2012.
147
under such
clrcumsLances, Lurope wlll
experlence growLh ln mulu-channel Lelevlslon, spurred by dlglLal LerresLrlal 1v (u11) rollouL. u11
has already been launched ln several Lu counLrles and mlgrauon Lo dlglLal ls expecLed Lo be
compleLe across all of Lurope by 2010- 2012.
148
SaLelllLe subscrlpuons have been growlng fasL ln
recenL years buL ln Lhe fuLure Lhelr growLh raLe wlll slow down, challenged by Lhe emergence of
u11 and new dlglLal plauorms such as 1v over uSL (l-1v). Looklng aL Lhe poLenual evoluuon of Lhe
secLor ln Lhe elecLronlc markeL, one of Lhe pre-condluons ls access Lo hlgh speed lnLerneL as Lhe
growLh of vCu ls Lyplcally dependenL on lnLerneL provlders.
149
As ln oLher secLors, Lhe broadcasung secLor ls shaped by erce compeuuon. ln Lerms of Lhe
secLor's conLrlbuuon, 49 of Lhe companles conslsL of less Lhan 4 employees, whlle 33 of Lhe
companles are beLween 4 - 9 employees. 1he mlcro and small SMLs LogeLher form Lhe bulk of Lhe
secLor. Powever, slmllar Lo oLher secLors, Lhls laLer branch ls responslble for a small share (9) of
Lhe LoLal revenue. 1he sLudy sLausucs show LhaL Lhe secLor as a whole ls responslble for 13.30 of
Lhe LoLal Lurnover of Lhe CCl ln Lurope, comlng ln Lhlrd aer fashlon and deslgn.
2.3.2.S. Mus|c
Moslc ls o toleot-boseJ cteouoo ooJ ooe of tbe ceottol cteouve loJosttles, wltb
Dutch Med|a nub
Dutch Med|a nub gathers mu|np|e partners such as |oca|
and reg|ona| author|nes as we|| as CCIs |n the sector and
prov|des support for content producnon, d|str|bunon or
serv|ce deve|opment. It a|so parnc|pates |n |eg|s|anve
|obby|ng for standard|sanon or |nteroperab|||ty.
(See 8esL Case 14)
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 89
147
SLraLegy Analyucs, (2008) quoLed ln Luropean Audlovlsual CbservaLory, (2009c), vldeo on demand and CaLch up 1v ln Lurope,
SLockholm: LAC, hup://www.obs.coe.lnL/onllne_publlcauon/reporLs/vod_2009.pdf
148
Luropean Audlovlsual CbservaLory ress release, (2010), CrowLh of Lhe number of Lelevlslon channels and mulu-channel
plauorms ln Lurope conunues desplLe Lhe crlsls, hup://www.obs.coe.lnL/abouL/oea/pr/mavlse_end2009.hLml
149
Luropean Audlovlsual CbservaLory, (2009b), 1he ubllc Servlce remlL and Lhe new Medla, SLockholm: LAC, see hup://
www.obs.coe.lnL/oea_publ/lrls/lrls_plus/lplus6_2009.pdf.en
qteot coltotol ooJ ecooomlc voloe lo oll socleues.
150
1he muslc secLor ls a vlslble Luropean culLural producL and llke oLher secLors lL carrles greaL
lmporLance ln Lerms of susLalnlng Luropean culLural dlverslLy. Many bands or arusLs are sLarL-ups
buL cannoL easlly reach an lnLernauonal markeL.
1he secLor has a very large base of mlcro lnluauves wlLh 88 of Lhe CCls belng under 10 people
(70 belng mlcro-SMLs wlLh less Lhan 4 employees) confronLed Lo a few ma[or companles
conLrolllng mosL parL of Lhe markeL
131
. 88 of Lhe companles generaLe 30 of Lhe muslc LoLal
revenue, whlle companles of 30 employees, formlng 2.27 of Lhe secLor, generaLe approxlmaLely
40.
ln Lerms of lnnovauon poLenual, Lhe lndependenLs and small companles are Lhe lnnovaLors and
early adopLers, dlscoverlng new LalenL and produclng nearly 80 of all new releases.
132
Crganlsauons such as 8andpool supporL Lhese acuvlues (see 8esL Case 13).
Llke broadcasung, lm, deslgn, new medla or archlLecLure, dlglusauon ls greaLly aecung Lhe
markeL of Lhe muslc secLor. Lurope generaLes over half Lhe world's muslc publlshlng revenues and
one Lhlrd of global recordlng sales, buL only 17 of Lhe world's dlglLal markeL. uue Lo an expandlng
dlglLal markeL, opporLunlues arlse for SMLs Lo reach a wlder publlc buL Lhe problem of accesslng
Lhe markeL ls even more problemauc ln Lhe dlglLal markeLplace. Large companles such as Coogle
and Apple conLrol mosL of Lhe dlglLal muslc llbrarles and are consequenLly hlnderlng Lhe enLrance
Lo Lhe markeL of smaller lndependenL labels.
133
Moreover, barrlers Lo markeL enLry are also
complemenLed by Lhe fragmenLauon of Lhe copyrlghL and l8 rules ln Lurope.
134
1he sLudy on 8ulldlng a ulglLal Lconomy: 1he lmporLance of Savlng !obs ln Lhe Lu's Creauve
lndusLrles deLermlned LhaL ln 2008 some of Lhe Luropean unlon's creauve lndusLrles (lm, 1v
serles, recorded muslc and soware) experlenced reLall revenue losses of t10 bllllon and losses of
more Lhan 183,000 [obs due Lo plracy, largely dlglLal plracy.
133
8ased on currenL pro[ecuons and
assumlng no slgnlcanL pollcy changes, Lhe Lu's creauve lndusLrles could expecL Lo see cumulauve
reLall revenue losses of as much as t240 bllllon by 2013, resulung ln 1.2 mllllon [obs losL by 2013.
ln Lerms of growLh poLenual,
Lhe muslc secLor has some
dlmculLy semng up nanclal
ow models and mechanlsms
LhaL ald ln Lhe susLalnablllLy
and growLh of acuvlues.
SupporL for growLh nance ls
essenual for allowlng Lhe
developmenL of Lhe mlddle-
slzed muslc companles.
8andpoo|
8andpoo| |s operated by the op Academy |n Germany acts
as a coach|ng too| for bands, g|v|ng workshops as we|| as
network|ng opportun|nes to arnsts. It a|so snmu|ates cross
overs w|th bus|nesses as we|| as w|th the po||nca| scene to
|ncrease the awareness of the sector.
(See 8esL Case 13)
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 90
130
unC1Au,(2008), op. clL., p. 119.
131
lnLervlew wlLh Luropean SecLoral Crganlsauon
132
See hup://www.lmpalamuslc.org/lnfo_03_lndfacL.php, reLrleved Aprll 2010
133
lnLervlew wlLh Luropean SecLoral Crganlsauon
134
8edlng, v., (CcLober 2009), Speech on Lhe ulglLal Slngle MarkeL: a key Lo unlock Lhe poLenual of Lhe knowledge base economy,
Avallable aL hup://www.lccwbo.org/bascap/ld33360/lndex.hLml
133
Avallable aL hup://www.lccwbo.org/bascap/ld33360/lndex.hLml
ln Lerms of nance, LhroughouL Lhe Lu, classlcal muslc ls heavlly supporLed by subsldles from
cenLral, reglonal and local governmenLs and by prlvaLe sponsorshlp. ln mosL counLrles, Lhere ls also
furLher nanclal supporL glven by muslc lndusLry organlsauons (such as auLhors socleues). under
Lhelr rules, auLhors socleues are permlued Lo spend up Lo 10 of Lhelr revenues for soclal and
culLural purposes.
136
2.3.2.6. Iash|on
8ecognlsed LhroughouL Lhe world, Luropean fashlon goes furLher Lhan lLs glluerlng lmage.
Accordlng Lo Lhe sLudy sLausucs, fashlon, lncludlng fashlon reLall, ls responslble for Lhe blggesL
share on Lhe LoLal revenue of CCls: 247.189.494 1P t or 24 of Lhe LoLal revenue. 1he secLor has
Lhe hlghesL LoLal percenLage of employees ln Lhe CCl (Lhe fashlon secLor employs 31 as opposed
Lo Lhe publlshlng employlng 9.84 of Lhe LoLal employmenL force ln Lhe CCls.)
As seen ln 1able 2, llgs. 2. and 3., Lhe composluon of Lhe secLor ls slmllar Lo oLher CC secLor. 31 of
Lhe companles conslsL of less Lhan 4 employees, and Lhey are responslble for 9 of Lhe LoLal
revenue. 27 of Lhe companles are beLween 4- 10 employees. Companles over 30 -249 employees
(3) are responslble for 30 of Lhe LoLal revenue of Lhe secLor.
Large companles oen conLrol access Lo markeL. Powever Lhls number has Lo be LreaLed carefully
from Lhe way Lhe sLausucs and nACL codes were used and wlLh Lhe lncluslon of gures for fashlon
reLall.
Cenerally speaklng, Lhe fashlon secLor ls noL pet se a subsldlsed secLor. Powever, some counLrles
may have cerLaln faclllues from Lhe governmenL and some encouragemenL.
ln Lerms of lnnovauon, Lhere
are auempLs Lo modernlse
L he secL or l n order L o
Lransform lL lnLo a demand-
drlven, knowledge-based and
hlgh-Lech lndusLry.
137
Cne
example ls Lhe u1L clusLer
whlch promoLes lnnovauon
(see 8esL Case 16). 1he rlse of
user- orl enLed sLraLegl es
common Lo all CCl secLors has
had an eecL on Lhe lnnovauve drlve of Lhe secLor. Advanced Lexules, percepuon of maLerlals
Lhrough Lhe senses and Lhelr wlder appllcauon for dlerenL secLors ls becomlng more lmporLanL
and allowlng for dlverse cross-overs wlLh oLher secLors such as LransporL (aerospace), healLh, sporL,
consLrucuon eLc. 1he value chaln ls composed of Lhe followlng sLeps: maLerlals producuon and
processlng, producL deslgn, manufacLure of made-up arucles, Lradlng ln apparel, fooLwear and
Lexule lLems, servlclng of apparel, fooLwear and Lexule lLems.
138
U1Lk
U1Lk |s an |nnovanon c|uster that a|ms at |nnovanng
texn|e and fash|on sector by |nvo|v|ng research |nsntutes,
h|gher educanon |abs, fash|on CCIs and Chamber of
Commerce. It prov|des fund|ng and |ega| serv|ces and
|nformanon exchange.
(See 8esL Case 16)
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 91
136
Lalng, u., (1999), 1he Lconomlc lmporLance of muslc ln Lhe Luropean unlon, Soundscapes, vol.2, Chap.7, hup://
www.lcce.rug.nl/soundscapes/uA1A8ASLS/MlL/arL1_chapLer07.shLmlnoLeref31
137
See hup://www.aedL.org/pro[ecLs.hLml
138
See hup://www.sklllseL.org
2.3.3. Creanve exper|ence ]or|g|na| prov|ders
1hls clusLer lncludes erformlng ArLs and Lhe vlsual ArLs as well as llve muslc organlsers and
promoLers. Clearly Lhere may be a relauonshlp here beLween experlence provlders and conLenL
producers. lor example, a muslclan may be lnvolved ln produclng a recordlng, and Lhen perform
parLs of Lhls recordlng ln fronL of an audlence. Maln lssues for Lhls secLor relaLe Lo paruclpauon and
consumer access, Lhe adapLauon Lo Lechnologlcal advances, Lhe moblllLy or LerrlLorlallLy
regulauons
139
found boLh ln Lhe physlcal as well as Lhe dlglLal world and Lhe proLecuon of rlghLs-
holders, as well as Lhe change ln consumers and Lhe shl ln fundlng mechanlsms.
1hese creauve experlence provlders are Lyplcally subsldlsed and Lhey have lmporLanL noL-for proL
ob[ecuves, lncludlng broadenlng access Lo culLure for soclal purpose and oLher muluple
ob[ecuves.
160
1he value of Lhe creauon Lakes lLs meanlng from Lhe audlence and Lhelr value ls
reallsed as a soclal process.
161
llg. 10. ls nLS1A's lllusLrauon of Lhe presenL value chaln for culLural
organlsauons.
I|gure 10: 1he Va|ue cha|n for cu|tura| |nsntunons
(5ootce. N51A Iooe 2010)
162
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 92
139
8egulauons based on Lhe LerrlLory, such as labour regulauons or scal regulauons, have a dlrecL eecL for arusLs' moblllLy as Lhey
have Lo face Lhe complexlues of muluple regulaLory frames.
160
8akhshl, P. 1hrosby, u. (!une 2010), CulLure of lnnovauon: An economlc analysls of lnnovauon ln arLs and culLural organlsauons,
London: nLS1A, p. 12.
161
lbld., p. 13.
162
lbld., p. 12.
1he creauve experlence provlders and Lhe orlglnal producers have a number of aspecLs ln common.
Many of Lhe performlng arusLs (wrlLers, dlrecLors, composers eLc) as well as vlsual arusLs
(craspeople, deslgners and oLhers) can be consldered self-employed freelancers. ln Lhe
performlng and vlsual arLs Lhere are exLreme dlerences ln lncome dlsLrlbuuons and creaLors oen
accepL below average pecunlary earnlngs. 1hls ls explalned elLher by rlsk-seeklng or a preference
for creauve work over oLher Lypes of work.
2.3.3.1. erform|ng Arts
Accordlng Lo a Luropean secLoral organlsauon, Lhls secLor deals far more wlLh creauve persons Lhan
wlLh enLerprlses, and Lhe concepL of enLrepreneurshlp ls falrly new ln Lhls eld.
1he composluon of Lhe secLor ls as follows: 63 of Lhe performlng arLs secLors companles conslsL
of companles under 4 people, and 22 have beLween 4 and 10 people. ln LoLal, companles under
10 employees form 83 of Lhe secLor and are responslble for 39 of Lhe revenue generauon of Lhe
secLor. Companles wlLh 10-49 employees represenL 12.3 of Lhe companles ln Lhe secLor and ls
responslble for ls 31. 1he LoLal revenue of Lhe secLor amounLs Lo 1.31 of Lhe LoLal revenue
generaLed by Lhe CCls.
1yplcally, Lhe secLor ls hlghly subsldlsed and Lhere ls usually mlnlmal prlvaLe fundlng due Lo Lhe
dlmculLy ln valulng Lhe lnLanglble asseLs by Lhe nanclal lnLermedlarles as well as due Lo problem
of access Lo mlxed nance. 1he subsldles sysLem has been crluclsed by some as hlnderlng Lhe
access Lo cerLaln prlvaLe fundlng such as sponsorshlp, funds or oLher sumull.
163
Powever Lhls
sysLem may ensure Lhe dlverslLy of culLural producLs/servlces LhaL would noL oLherwlse be
supporLed by banks or oLher prlvaLe lnLermedlarles. WlLh Lhe nanclal crlsls, governmenLal funds
are under ughLened budgeung whlch forces Lhe creauve experlence provlders Lo look for prlvaLe
funds and oLher revenue sources.
164
1he secLor works Lhrough cross-secLoral neLworklng havlng close collaborauon wlLh lm and Lhe
muslc secLor. ln Lerms of markeL access, mlcro-SMLs ln performlng arLs have dlmculues ln reachlng
a greaLer markeL and Lo Lurn ldeas and creauve lnluauves lnLo producuon. 1he producL llfecycle ls
pecullar Lo Lhe secLor wlLh long developmenL sLages (2-3 years) and a shorL dellvery of Lhe producL
(such as one-o sLage performances).
163
CrowLh ls llnked Lo susLalnablllLy and ls llnked Lo long-Lerm developmenL. CrowLh ls percelved as a
slow process where markeLs adapL and recognlse creauve persons (more or less over 10 years).
1ralnlng ln enLrepreneurlal skllls ls mosLly absenL ln Lhe performlng arLs (buslness skllls
managemenL, markeL slLuauon) alLhough lL ls seen as essenual for a secLor LhaL works hlsLorlcally
Lhrough publlc supporL.
1he Lechnology of creauve conLenL onllne ls of growlng lmporLance ln Lhe llve performance secLor.
lL helps develop new forms of performance and lL faclllLaLes Lhelr dlssemlnauon, Lhereby reachlng
larger groups of audlences and consumers Lhan ever before.
166
1he ma[or use of Lechnology for Lhls
secLor lles ln Lhe advanLage lL glves Lo Lhe dlssemlnauon of producuons, as new communlcauon
Lools wlLh Lhe audlence and as posslblllues for Lhe developmenL of new buslness models.
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 93
163
Luropean SecLoral Crganlsauon
164
8akhshl, P. 1hrosby, u. (!une 2010), op. clL., p. 13.
163
Luropean SecLoral Crganlsauon lnLervlew
166
earle, (!anuary 2010), Creauve ConLenL ln a Luropean ulglLal Slngle MarkeL: reecuons documenL of uC lnlSC and uC MA8k1,
p. 2.
ln Lerms of l8, Lhe llve performance secLor prlmarlly pays for oLhers' copyrlghL buL has no lnlual
ownershlp Lo a rlghL on lLs producuons, whereas oLher culLural lndusLrles such as publlshlng,
recordlng companles, even broadcasLers, have an lnlual ownershlp on copyrlghL or nelghborlng
rlghLs.
167
1he recognluon of Lhe exlsLence of creauvlLy and LalenL ln oLher ways Lhan copyrlghL and
ln uslng approprlaLe culLural and arusuc crlLerla ls essenual for Lhe secLor's recognluon of lLs
culLural and creauve added value.
168
1hls relaLes Lo Lhe need for recognluon of LalenL as so
lnnovauon as ln oLher secLors such as muslc. l8 ls also challenged wlLh Lhe lncreased use of onllne
conLenL and experlence LhaL Lhe secLor provldes.
AnoLher lmpedlng regulaLory facLor, boLh ln Lhe onllne and o-llne world, ls LhaL Lhe secLor of
performlng arLs ls hlghly dependenL on leglslauon on moblllLy and on LerrlLorlal agreemenLs
concernlng Lhe moblllLy of arusLs (wlLh lssues such as double Laxauon). 1hls hampers Lhe moblllLy
of arusLs and producuons, and makes web-sLreamlng of performances across borders dlmculL,
hlghly llmlung Lhe secLor's ablllLy Lo enLer new markeL opporLunlues.
2.3.3.2. V|sua| Arts
As wlLh oLher secLors, Lhe vlsual arLs are hlghly fragmenLed. 60 of Lhe secLor conslsLs of 1-3
people enLerprlses and 21 of Lhe companles have beLween 4-9 employees. 81 of Lhe companles
are Lhus under 10 employees and Lhey are responslble for 3 of Lhe LoLal Lurnover, whlle
companles of 30 employees are responslble for 89 of Lhe LoLal secLor's revenue and represenL
approxlmaLely 1 of Lhe secLor. Cverall, Lhe secLor conLrlbuLes Lo 9.71 of Lhe LoLal Lurnover of Lhe
CCls.
1he maln characLerlsuc of Lhe markeL for vlsual arLs ls Lhe focus on Lhe excluslvlLy and orlglnallLy of
an arLwork.
169
ln Lhls sense, Lhe rlghLs Lo Lhe arLwork are essenual for Lhe arusLs Lo be rewarded.
More speclcally, Lhe resale rlghL or Jtolt Je solte ls Lhe mosL lmporLanL copyrlghL for auLhors of
ne arL. vlsual and ne arLs arusLs depend prlmarlly on Lhe sale of Lhelr orlglnal work and Lhus, on
Lhe resale rlghL. WlLhouL Lhe lauer, Lhe arusL wlll noL beneL from ensulng lncrease of value of Lhelr
works. unllke wrlLers and composers who have a regular lncome from royalues LhaL are due
whenever Lhelr works are performed or publlshed, arusLs depend on Lhe orlglnal work and Lhe
ensulng value galned over ume.
Lven Lhough vlsual arLs are
usually represenLed as Lhe
leasL Lechnologlcally alded
and requlrlng less dlglLal
l n p u L , L h e s e c L o r l s
lncreaslngly lnuenced by
Lechnologlcal advances and
dlglusauon. 1he lmporLance
of phoLography, and more
s p e c l c a l l y d l g l L a l
phoLography, l s a good
exampl e. rl vaLe dl gl Lal
copylng ls also LhreaLenlng Lhe rlghLs holders. lor secondary uses of Lhe arLwork, Lhere ls no
Cn||ne Art
Cn||ne Art |s the Cne-stop-shop for wor|dw|de ||censes on
works of hne art for use on the Wor|d W|de Web - be |t
commerc|a| or non-commerc|a|. Cn||ne Art ensures that
authors are rewarded when the|r works are exp|o|ted by
others. It |s a co||ecnng soc|ety created by v|sua| arnsts or
non-for-proht organ|sanons.
(See 8esL Case 17)
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 94
167
earle, (!anuary 2010), op. clL., p. 3.
168
1owse, 8., (2004), op. clL., p. 13.
169
unC1Au, (2008), op. clL., p. 122.
monlLorlng and Lracklng sysLem aL Lhe momenL Lo conLrol and reward Lhe use of Lhe arLwork.
8emunerauon schemes are noL applled Lo Lhe same exLenL as ulglLal 8lghLs ManagemenL.
170
lnluauves such as Cnllne ArL seek Lo close Lhls gap (see 8esL Case 17).
Pavlng looked aL each secLor ln Lurn, one can clearly see Lhe sLrlklng slmllarlues ln Lhe hlgh
fragmenLauon beLween Lhe mlcro-SMLs and Lhe larger enLerprlses, as well as Lhe lncreaslng lmpacL
of dlglusauon.
2.4. Cross country ana|ys|s of regu|atory frameworks
Luropean Member SLaLes have very dlerenL soclo-economlc and culLural backgrounds and culLural
expresslons. Some wlll have speclc programmes and measures for cerLaln secLors of Lhe CCls,
whlle oLher Member SLaLes wlll conslder CCls [usL as any oLher economlc secLor. ln Lhe experL
quesuonnalre, lL emerged LhaL l8 and Lax regulauons were Lhe mosL lmporLanL regulaLory
measures (see 1able 3. below) for CCls.
Ooesuoo. 5elect tbe tbtee most lmpottoot teqolototy meosotes tbot ccl 5Ms foce.
kegu|atory Measure ercent
Inte||ectua| roperty kegu|anon 73.91
1ax kegu|anon 60.87
8us|ness Start up kegu|anon 36.32
Labour regu|anons 47.83
Soc|a| We|fare kegu|anon 30.43
Anntrust Laws 8.70
8ankruptcy Laws 4.33
Cther 17.4
1ab|e S: Most |mportant regu|atory measures faced by CCIs
(5ootce. otoklels 2009, loo otopeoo xpett Ooesuoooolte)
1o examlne Lhe regulaLory cllmaLe surroundlng CCls ln Lurope, an lnvenLory of Lhe envlronmenLal
facLors was prepared, ln parucular on Lhe regulaLory lssues whlch lnuence Lhe developmenL of
SMLs. 1hese lncluded scal measures, labour sLaLus, soclal securlLy, dlrecL measures such as
governmenLal CCl programmes, Lhe way creauvlLy and CCl are valued as well as lnnovauon and
culLural pollcles. 1he analysls of Lhe envlronmenLal facLors for CCls was noL exhausuve buL provldes
a framework Lo undersLand Lhe dlerenL approaches Lowards CCls. lollowlng Lhls, a counLry by
counLry analysls on Lhe dlerenL culLural pollcles, SML and lnnovauon pollcles, a clusLerlng of
counLrles was proposed. Cn Lhe basls of Lhe research on envlronmenLal facLors, some
conslderauons can be made. 1he rsL seL of conslderauons relaLes Lo Lhe way culLure and creauvlLy
ls valued as a drlver of lnnovauon, and how Member SLaLes are respondlng Lo Lu Counclls
recommendauons Lowards recognlslng Lhe sLaLus of creauvlLy and culLure as secLors of Lhe
economy, ln parucular by lmplemenung measures ln supporL of CC enLrepreneurshlp and SMLs.
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 93
170
Luropean vlsual ArusLs, see hup://www.evarusLs.org
Pavlng consldered Lhe Member SLaLes' culLural and lnnovauon pollcles, lL emerged LhaL Lhe speclc
counLry's approaches Lo CCls followed LhaL counLry's lnnovauon readlness and economlc
performance. ln oLher words, Lhose counLrles LhaL are already performlng well ln lnnovauon and
have solld economlc capablllues show a readlness Lo organlse and lnvesL ln speclc pollcles for CCls
and CCl SMLs ln parucular. lL ls lmporLanL Lo underllne LhaL Lhose counLrles LhaL have sysLemauc
measures for CCls are only a subseL of Lhe besL lnnovauon performers. osluve slgns Lowards
speclc recognluon of CCls as drlvers of lnnovauon are also comlng from counLrles LhaL are sull
lagglng behlnd ln Lerms of lnnovauon performance, mosLly Lhe new member SLaLes. 1hls ls posslbly
due Lo facL LhaL Lhey are sull engaged ln a process of promoung growLh LhaL ls subsLanually based
on favourable scal pollcles for enLerprlses. CulLure, economlc sLrucLure, lnnovauon readlness and
demographlc facLors dene Lhe level and prole of enLrepreneurlal acuvlLy for each counLry and
Lherefore Lhe prole of CC lndusLry.
Cn Lhe basls of Lhe research and based on Lhe Lurope lnnovauon scoreboard of 2008, Lhere ls noL a
homogeneous, buL raLher a hybrld Luropean model of lnnovauon. 1hls ls a model LhaL comblnes
sLewardshlp and enLrepreneurshlp, experlence and lnnovauon, soclal coheslon and rewards for
rlsk-Laklng. 1hough all Lhese LralLs are presenL, Lhey are noL equally dlsLrlbuLed across Lhe
conunenL. Lach counLry, or macro reglon, presenLs lLself wlLh speclc characLerlsucs LhaL respond
Lo Lhe Lradluonal geo-economlc prole.
1he second seL of conslderauons relaLes Lo Lhe facL LhaL dlerenL lnnovauon performances and
CCls' recognluon are noL only due Lo dlerenL lnnovauon pollcles framework, buL also due Lo
dlerenL approaches Lo enforclng lnnovauon. CerLaln approaches respond Lo Lhe necesslLy elLher Lo
malnLaln (and posslbly Lo lmprove) compeuuveness, whlle oLhers alm aL provldlng Lhe nauonal
economy wlLh compeuuve Lechnologlcal and organlsauonal lnfrasLrucLures. 1herefore, lnnovauon
pollcles ln cerLaln counLrles are more orlenLed Lowards addresslng human facLors and engage ln
recognlslng creauvlLy as drlver of lnnovauon (usually ln Lhe rlcher and more lnnovauve counLrles).
ln oLher counLrles lnnovauon pollcles and measures are focused on Lechnology and producuon, an
approach more common ln Lhe 'caLchlng up' nauons.
1he Lhlrd aspecL of Lhe conslderauons, whlch derlves dlrecLly from Lhe above observauons, reecLs
how counLrles have organlsed Lhemselves Lo respond Lo boLh Lhe challenges and opporLunlues
shaped by Lhe CCls. Pere, Lhe seL of counLrles LhaL are proposlng a comblned approach, LhaL ls a
programme shaped Lhrough a collaborauon beLween several MlnlsLrles acknowledglng Lhe soclal,
economlc and culLural aspecL of CCls, represenL a small subseL of Lhe counLrles.
1o esLabllsh a nauonal clusLerlng LhaL ls slgnlcanL wlLh cross nauonal common pauerns of pracuce,
each lndlvldual nauonal prole was consldered and classled accordlng Lo Lhe level of evoluuon
wlLh regards Lo global economlc paradlgms. Such a classlcauon allows us Lo frame CCls wlLhln Lhe
broad plcLure of nauonal economlc and soclal performance and maLch lL agalnsL lLs acLual capaclLy
Lo dlsclose lLs poLenual wlLhln Lhe dynamlcs of global compeuuon. Cverall, lL seems LhaL Lhere are
only a few counLrles LhaL have fully engaged ln recognlslng CCls as drlvers of growLh and lnnovauon
ln Lurope. AlLhough Lhe recommendauons made by Lhe Lu Councll concluslon
171
hlghllghL Lhe need
Lo channel nauonal and Luropean nanclal resources Lowards new alms LhaL are more auuned Lo
fosLerlng arusuc LalenLs, and recognlse Lhe parucular role of culLural and creauve SMLs as drlvers of
growLh and lnnovauon ln Lurope, Lhe number of counLrles followlng Lhese recommendauons ls noL
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 96
171
Luropean Councll, (May 2009), Concluslons for CulLure as a CaLalysL for CreauvlLy, 2941sL Lducauon, ouLh and CulLure, Councll
meeung
excesslve
172
. Cverall, Lhe mosL general approach Lo supporung Creauve and CulLural
enLrepreneurshlp ls Lax deducuon and favourable scal pollcles. ln Lurope, CCl SMLs are largely
LreaLed llke all oLher SMLs and Lherefore sub[ecL Lo Lhe prlorlues and sLraLegles seL by lnnovauon
pollcles as ouLllned above.
2.4.1. Country c|uster|ng
ln 1able 6 below, Lhree broad clusLers of counLrles are ldenued, whlch presenL some LralLs
suggesuve of speclc economlc pauerns.
C|uster Character|sncs
know|edge
Lconomy
-
8ellanL on knowledge based producLs
and servlces
-
Sound enforcemenL of l8
-
SupporL enLrepreneurshlp and
lnnovauon
-
CCls speclc programmes
-
lnnovauve
1rad|nona|
Lconomy
T&-2"&2-+77I%$&-'*D -
Sound and sLrong use of knowledge
based producLs and servlces buL no
slgnlcanL reward for culLural and
creauve enLrepreneurshlp and rlsk Laklng
-
SLaLe ald sull slgnlcanLly presenL
-
CovernmenL supporL on sLraLeglc secLor
CCls are appreclaLed
1rad|nona|
Lconomy
T&-2"&2-+77I%N#+. -
SLrengLhs ln Lradluonal secLors and SML
clusLers
-
8elow average lnnovauon measures and
sLraLegles
-
CCls acknowledged buL no coordlnaLed
sLraLegles
Lmerg|ng
Lconom|es
U)-&2'2$ -
Cood lnnovauon performance and
someumes lncepuve phase for
coordlnaLed acuon for CCls
-
Lack of robusL lnvesLmenL ln 8&u and
lnfrasLrucLure
Lmerg|ng
Lconom|es
:+DD)*D%V#>)*8 -
SLarLed caLchlng up process Lo be
compeuuve
-
8ecognluon of CCls buL no sLraLegles
lmplemenLed
1ab|e 6: C|uster|ng by country character|sncs
(5ootce. k2M 2010)
Lhe entrepreneur|a| dlmenslon of Lhe culLural and creauve lndusLrles 97
172
AusLrla, llnland, uenmark, 8elglum, LsLonla, LaLvla, lrance, Lhe neLherlands, Spaln and Lhe uk are counLrles LhaL lmplemenL
speclc measures ln supporL Lo Creauve and CulLural lndusLrles
2.4.1.1. know|edge econom|es
1hese are economles, whlch can already be consldered sLrucLurally rellanL on knowledge-based
producLs and servlces. All aspecLs of Lhe sysLem (educauon, producuon and regulauons) have
already made Lhe Lransluon from Lradluonal economy Lo knowledge-based economy. All Lhese
counLrles rely on sound enforcemenL of l8, a good balance beLween exlblllLy and soclal
proLecuon, good lnfrasLrucLures and supporL for enLrepreneurshlp and lnnovauon. CovernmenLs
have already puL ln place co-ordlnaLed and synerglsuc measures Lo supporL Lhe economy ln general
and CCls ln parucular. 1hese economles are also predlsposed Lo accepL a cerLaln level of uncerLalnLy
and new models of producuon and consumpuon.
1hose counLrles LhaL already have a consolldaLed lnnovauon poLenual Lend Lo lnvesL ln Lhose
secLors and processes LhaL wlll enable Lhem Lo malnLaln compeuuve edge and furLher shl Lowards
a full reallsauon of a knowledge economy. ln parucular Lhey Lend Lo lnvesL ln educauon and human
resources, buL also Lo promoLe knowledge Lransfer beLween academlc lnsuLuuons and commerclal
organlsauons, especlally SMLs. A relevanL role ls played by lncubaLors and unlverslLy spln-os,
whlch are supporLed by pollcles almed aL neLworklng and synerglsuc collaborauons as well as
admlnlsLrauve slmpllcauon.
8y way of lllusLrauon, llnland adopLed a comblned governmenLal sLraLegy beLween Lhe MlnlsLry of
Lducauon and Lhe MlnlsLry of Lconomlcs. 1he measures developed ln Lhe SLraLegy for
enLrepreneurshlp ln Lhe Creauve lndusLrles secLor for 2013
173
are summarlsed ln 13 measures ln 4
areas
174
and ls co-ordlnaLed by Lhe Academy for Creauve lndusLrles. 1he MlnlsLry of Lducauon
produced Lhe SLraLegy for CulLural ollcy 2020 wlLh Lhe acuon plan of 2007-2013 (publlcauon of
MlnlsLry of Lducauon 2009:12).
173
1hls documenL hlghllghLs Lhe lmporLance of culLure and
creauvlLy ln Lhe llnnlsh socleLy as well as underllnes Lhe conLrlbuuon ln Lhe economy. 1he followlng
lLems wlll be on Lhe agenda for 2010:
8eframe Lhe framework acL on Lhe developmenL of culLure Lo clarlfy Lhe leglslauon
ConsolldaLe Lhe fundlng and nanclng sysLem by also lnLegraung ways ln whlch Lhe
prlvaLe fundlng and sponsorshlp could be encouraged
1he launch of a new llne of credlL for Lhe culLural lndusLrles, ln collaborauon wlLh Lhe
Cmclal CredlL lnsuLuLe (lCC - See 8esL Case 20), wlLh subsldlsed raLes Lo supporL Lhe
creauon of new buslnesses
Alds Lo subsldlse Lhe cosL of guaranLees LhaL CCls need ln order Lo access exLernal
fundlng