Description
Entrepreneurship is the process of starting a business, a startup company or other organization. The entrepreneur develops a business plan, acquires the human and other required resources, and is fully responsible for its success or failure.[1] Entrepreneurship operates within an entrepreneurship ecosystem.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 1
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This iepoit was piepaieu by 0tiecht School of the Aits (Bogeschool vooi ue Kunsten
0tiecht, BK0) in the Netheilanus. The Ioculty of Art & Fconomics anu the Ioculty of Art,
HeJio & Tecbnoloqy co-opeiateu on this stuuy. The ieseaich auvisei was Piof. uiep
Bagooit anu his managing euitoi was Rene Kooyman. The stuuy was co-oiuinateu by
Baviu Ciombie anu the ieseaich team manageu by Emma Tilquin with the suppoit of K2N
Ltu anu Euiokleis S.i.l.
Noie infoimation about BK0 is pioviueu in the About 0s section. Foi moie infoimation
iegaiuing this iepoit, please contact Pieiie Neisch at BK0 in the fiist instance:
pieiie.meischÇkmt.hku.nl.
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We woulu like to thank eveiyone who helpeu with this stuuy. Fiistly, we woulu like to
thank the expeits in the cultuial anu cieative inuustiies who agieeu to paiticipate in the
stuuy anu gave up theii time foi questionnaiies, inteiviews anu woikshops. Seconuly, we
woulu like to thank Piof. }eioen van Nastiigt, Bi ueoige Ioanniuis, Bi Fiancesco Bellini,
anu Bis Rogei Lenoii foi theii co-opeiation anu expeitise. Thiiuly, we woulu like to thank
oui ieseaicheis, namely Nauio Navaiia, Naiia Felice Aiezzo, Pieiie Neisch, uiovanni
uiovinazzo, Naiilla valente, Sanuia ten Zijthoff, Chiaia ueilich, Zameei Razack, Kwaku
Afiiyie anu Luz uutieiiez.
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This stuuy is subject to a uisclaimei anu copyiight. The stuuy was caiiieu out foi the
Euiopean Commission anu expiesses the opinions of the oiganisations having unueitaken
the stuuy. The views have not been auopteu oi in any way appioveu by the Euiopean
Commission anu shoulu not be ielieu upon as a statement of the Euiopean Commission's
views. The Euiopean Commission uoes not guaiantee the accuiacy of the infoimation
given in the stuuy, noi uoes it accept iesponsibility foi any use maue theieof.
31)@(+?"'
Copyiight is helu by the Euiopean 0nion. Peisons wishing to use the contents of these
stuuies (in whole oi in pait) foi puiposes othei than theii peisonal use aie inviteu to
submit a wiitten iequest to the following auuiess: Euiopean Commission, Euucation
Auuiovisual & Cultuie Executive Agency, Avenue uu Bouiget 1, B00R ¡ B002*, BE-114u
Biussels
A#2#(#&7#
BK0, (2u1u), The Entiepieneuiial Bimension of the Cultuial anu Cieative Inuustiies,
Bogeschool voi ue Kunsten 0tiecht, 0tiecht.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 2
31&'#&'0
................................................................................................................... Chaptei 0ne: Intiouuction S
....................................................................... 1.1. 0veiview, objectives anu stiuctuie of the stuuy S
.............................................................................................................. 1.2. Appioach anu methouology 7
.......................................................................................................................... 1.S. The Cieative Economy 8
.................................................................................. Chaptei Two: Cieative Entiepieneuiship 1u
............................... 2.1. Befining entiepieneuiship in the cultuial anu cieative inuustiies 1u
........................................................ 2.2. Chaiacteiistics of the cultuial anu cieative inuustiies 17
............................................................................................................... 2.S. Featuies of the CCI sectois 28
................................................................. 2.4. Cioss countiy analysis of iegulatoiy fiamewoiks 44
............................................................. 2.S. Suppoiting cultuial anu cieative entiepieneuiship S1
............................................................................................................................ 2.6. Concluuing iemaiks S4
........................................................................................... Chaptei S: Nain Thematic 0utcomes S6
.................................................................................................................................... S.1 Access to finance S6
.................................................................................................................................. S.2. Access to maiket 66
...................................................................................................... S.S. IPR instiuments anu CCI SNEs 7S
.................................................................... S.4. Entiepieneuiship euucation, skills anu tiaining 78
........................................................................................................................... S.S. Access to innovation 89
................................................................................................................ S.6. Clusteis anu collaboiation 99
......................................................................................................................... S.7. Concluuing iemaiks 1u8
................................................................................................ Chaptei Foui: Recommenuations 1u9
.................................................................................................... 4.1. Tiansveisal iecommenuations 1u9
............................................................................................................................... 4.2. Accessing finance 11u
....................................................................................................................... 4.S. Accessing the maiket 111
................................................................................... 4.4. Biiuging the entiepieneuiial skills gap 112
............... 4.S. Beveloping entiepieneuiship as non-technological uiivei of innovation 11S
.................................................................................................. 4.6. Suppoiting use of uigitalisation 11S
................................................................................................................................................ Appenuix 11S
.................................................................................................................................................. About us 116
......................................................................................................................................... Bibliogiaphy 117
B+0' 12 C+?*(#0
Figuie 1: The 0ECB¡E0R0STAT Fiamewoik foi Beteiminants of Entiepieneuiship 1S
Figuie 2: Size of enteipiises by sectoi acioss CCIs 19
Figuie S: Bistiibution of Total Tuinovei among Inuustiies pei size class of enteipiise 19
Figuie 4: Bistiibution of total Assets among Inuustiies pei size of enteipiise 2u
Figuie S: Peicentage of full time employees pei size class enteipiise in Bec. 2uu8 21
Figuie 6: Peicentage of Employees pei Sectoi 2S
Figuie 7: Total Tuinovei pei Inuustiy Su
Figuie 8: Peicentage of Enteipiises pei Sectoi S1
Figuie 9: 0S Tiaue Wholesale Electionic Book Sales, 2uu2-2u1u (1st quauiimestie) S7
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S
Figuie 1u: The value chain foi cultuial institutions 42
Figuie 11: Simple lifecycle fiamewoik foi suppoiting the CC entiepieneui anu enteipiise S1
Figuie 12: Effect of the iecent financial ciisis on 2uu9 tuinovei S7
Figuie 1S: Nost impoitant financial souice 2uu7-2uu8 S7
Figuie 14: Financial anu Economic planning (Buuget anu business plan) foi CCIs S8
Figuie 1S: Nain obstacles foi CCIs to access finance S9
Figuie 16: Nost auequate tool to inciease financial oppoitunities foi CCIs 61
Figuie 17: Nost ielevant initiative to access finance foi CCI SNEs 6S
Figuie 18: Nost impoitant kinu of financial initiatives best assisting CCI SNEs 6S
Figuie 19: Nost impoitant phase foi financial suppoit 64
Figuie 2u: Nost Suitable Authoiity to suppoit access to finance 6S
Figuie 21: Nost impoitant knowleuge factoi impeuing CCIs 67
Figuie 22: Piefeiieu phase in the life cycle foi suppoit to access the maiket 71
Figuie 2S: Nost appiopiiate phase foi cioss boiuei maiket suppoit 72
Figuie 24: Nost appiopiiate level foi suppoiting access to maiket 7S
Figuie 2S: Nost impoitant iegulatoiy issues faceu by CCI SNEs 7S
Figuie 26: Nost commonly useu instiuments foi the piotection of cieative outputs in CCIs 7S
Figuie 27: Best phase foi the piovision of IPR auvice 77
Figuie 28: Nost impoitant business ielateu challenge when staiting a company 78
Figuie 29: Agieement on sufficient integiation of entiepieneuiship in euucational system 79
Figuie Su: Nost useful suppoit foi acquiiing entiepieneuiial piactices in the stait up phase 8S
Figuie S1: Nost appiopiiate phase foi specific tiaining in technology anu financial skills 8S
Figuie S2: Piefeiieu phase foi LLL in life cycle 86
Figuie SS: Neeu foi uevelopment of auvice anu suppoit centies foi CCIs 87
Figuie S4: Piefeiieu level foi ueveloping auvice anu suppoit centies foi CCIs 87
Figuie SS: Piefeiieu level foi LLL stiategies 88
Figuie S6: Aim of CCIs when innovating 92
Figuie S7: Nost impoitant challenges in teims of innovation (Souice: 9S
Figuie S8: Nost ielevant souices of knowleuge foi CCI SNES 94
Figuie S9: Ways to acquiie knowleuge about ieseaich anu innovation initiatives 9S
Figuie 4u: Nost impoitant measuies foi the piomotion of innovation 97
Figuie 41: Nost impoitant phase foi innovation suppoit foi CCI SNEs 98
Figuie 42: Piefeiieu Levels foi innovation investments foi CCI SNEs 98
Figuie 4S: Piefeiieu level foi paitneiship between piivate business, public institutions anu CCI SNEs 99
Figuie 44: Co-opeiation with othei enteipiises in the same sectoi 1uu
Figuie 4S: Co-opeiation with enteipiises in a uiffeient sectoi 1uu
Figuie 46: Type of netwoik 1u1
Figuie 47: Neeu foi uevelopment of auvice anu suppoit centie specific foi CCI 1uS
Figuie 48: 0se of collaboiative business enviionment (clustei oi incubatoi) within CCIs 1uS
Figuie 49: Piefeiieu phase foi collaboiative business enviionment 1u6
Figuie Su: Neeu foi cioss-sectoial SNE co-opeiation 1u6
Figuie S1: Piefeiieu level foi ueveloping collaboiative business enviionment initiatives 1u7
Figuie S2: Neeu foi an inciease in cioss-iegional co-opeiation to impiove giowth of CCI SNEs 1u7
B+0' 12 !,8-#0
Table 1: Peicentage of economic tuinovei of the CCI pei countiy in seveial Euiopean countiies 16
Table 2: Bistiibution of Enteipiise among Inuustiies pei size class 18
Table S: Clusteis in the CCIs 29
Table 4: Bigital Cinema sites anu scieen in Euiope (2uuS-2uu8) S6
Table S: Nost impoitant iegulatoiy measuies faceu by CCIs 44
Table 6: Clusteiing by countiy chaiacteiistics 46
Table 7: Euiope's top iegions foi CCI employment clusteis Su
Table 8: Peisonal motivation in entiepieneuiship SS
Table 9: CCI SNEs suppoit foi the uigital maiket 7u
Table 1u: Ways of acquiiing entiepieneuiial skills 81
Table 11: Ways to get auvice anu suppoit when staiting a CCI company 1u4
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 4
3",)'#( D&#E 6&'(14*7'+1&
;F;F D5#(5+#>G 18H#7'+5#0 ,&4 0'(*7'*(# 12 '"# 0'*4@
Euiope is wiuely iecogniseu as having a iich uiveisity in its cultuial heiitage anu cultuial
expiessions. Bowevei, in iecent yeais Euiope has been confionteu with seveial macio-
economic challenges, such as the financial ciisis anu a stiongei global competition, as well
as inteinal socio-economic challenges. The Euiope 2u2u Stiategy highlighteu the neeu foi
oui continent to take an innovative path to iesponu to these challenges by builuing upon
one of Euiope's key stiengths; its talenteu anu uiveise cieative population:
1
!"#$%& (%)*&+ #,$-. .&%,-(&+,-/-( 0-)*1,2(, $-2 /--)3$&/)- $. 2%/3,%.
)4 )5% 45&5%, (%)*&+6 Tbis requires improvinq tbe quolity of our eJucotion,
strenqtbeninq our reseorcb performonce, promotinq innovotion onJ knowleJqe
tronsfer tbrouqbout tbe 0nion, mokinq full use of informotion onJ
communicotion tecbnoloqies onJ ensurinq tbot innovotive iJeos con be turneJ
into new proJucts onJ services tbot creote qrowtb, quolity jobs onJ belp oJJress
Furopeon onJ qlobol societol cbollenqes. But, to succeeJ, tbis must be combineJ
witb entrepreneursbip, jinonce, onJ o focus on user neeJs onJ morket
opportunities".
2
The impact of cultuie anu cieativity oi I7*-'*(#J8,0#4 7(#,'+5+'@K
S
has attiacteu much
attention in fosteiing anu unlocking the potential of a Euiopean I7(#,'+5# #71&1/@K. The
incieasing focus on the cultuial anu the cieative sectoi has iesulteu in many stuuies, such
as the 0N Repoit on Cieative Economy in 2uu8, which was collectively publisheu by five
inteinational oiganisations (0NCTAB, 0NBP, 0NESC0, WIP0 anu ITC):
"Tbe interfoce omonq creotivity, culture, economics onJ tecbnoloqy, os expresseJ in
tbe obility to creote onJ circulote intellectuol copitol, bos tbe potentiol to qenerote
income, jobs onJ export eorninqs wbile ot tbe some time promotinq sociol inclusion,
culturol Jiversity onJ bumon Jevelopment. Tbis is wbot tbe emerqinq creotive
economy bos olreoJy bequn to Jo os $ 1,$2/-( 7)#8)-,-& )4 ,7)-)#/7 (%)*&+9
,#81):#,-&9 &%$2,9 /--)3$&/)- $-2 .)7/$1 7)+,./)- in most oJvonceJ economies".
4
In iecent yeais, the E0 Council also followeu the move to iecognise the potential of the
cultuial anu cieative inuustiies in contiibuting to the Lisbon objectives,
S
acting as
catalyseis of Euiope's innovative potential. Similaily, in the Naastiicht Tieaty (the E0
Lisbon piocess foi stiengthening the economic giowth in Euiope), as well as in the
0NESC0 Convention on the Piotection anu Piomotion of the Biveisity of Cultuial
Expiessions (heieaftei nameu 0NESC0 Convention),
6
the iole of the cultuial anu cieative
inuustiies has gaineu gieatei attention.
7
In paiallel, seveial Euiopean initiatives have been
unueitaken to piomote the iuea of the cieative economy; foi example, 2uu9 was
uesignateu the Euiopean Yeai of Cieativity anu Innovation anu the iecent uieen Papei on
'L&-17=+&? '"# )1'#&'+,- 12 '"# 7*-'*(,- ,&4 7(#,'+5# +&4*0'(+#0K (heieaftei iefeiieu to
as the CCIs) soliuifieu this iecognition.
8
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S
1
EC Communication, (Naich 2u1ub), Euiope 2u2u: A Stiategy foi Smait, Sustainable anu Inclusive uiowth, C0N (2u1u)
2u2u, p. 7.
2
Ibiu., p. 1u.
S
KEA, (2uu9), The impact of cultuie on cieativity, KEA Euiopean Affaiis: Biussels
4
0NCTAB, (2uu8), The Cieative Economy, 0NCTAB¡BITC¡2uu8¡2 , p. iii
S E0 Council Conclusions, (2uu7), Contiibution of the Cultuial anu Cieative Sectois to the Achievement of the Lisbon
0bjectives - Auoption of the Council conclusions, 9u21¡u7, BuI-2A, Boc 86SS¡2¡u7 C0LT 2S REv 2
6
The Euiopean Community is paity to this Convention.
7
Fesel B., Sonueimann, N., (2uu7), Cultuie anu Cieative Inuustiies in ueimany, 0NESC0 Bonn
8
EC uieen Papei, (Apiil 2u1u), 0nlocking the Potential of Cultuial anu Cieative Inuustiies, C0N (2u1u) 18S
The abunuance of stuuies on the CCIs, such as those unueitaken by KEA,
9
NESTA,
1u
the
Euiopean Clustei 0bseivatoiy, the woik on 'Besign as a uiivei of usei-centieu innovation',
11
the iepoits piouuceu iecently by the Euiopean Platfoim, anu the Expeit Woiking uioup
on CCIs
12
(set up as pait of the Euiopean Agenua foi Cultuie), have highlighteu the ciitical
impact of CCIs on giowth anu employment,
1S
anu acknowleugeu theii ?(#,' #71&1/+7G
017+,-G 7*-'*(,- ,&4 +&&15,'+5# )1'#&'+,-F CCI activities act as impoitant uiiveis of
'economic anu social innovation' within the sectoi but also outsiue the CCI sectoi,
14
contiibuting to Euiope's stiengths in times of challenges anu, as such, aie in line with the
E0 2u2u Stiategy. M+'" +/,?+&,'+5# 01-*'+1&0 0*7" ,0 '"# +&'#?(,'+1& 12 *0#(J7#&'(#4
,))(1,7"#0G '"# 4#5#-1)/#&' ,&4 *0# 12 63!G '"# 4#0+?& 12 &#> 0#(5+7#0 21(
+&7(#,0#4 017+,- +&7-*0+1&G CCIs contiibute to uiive uynamic change in the economy as
well as contiibuting to bioauei cultuial uiveisity.
With new piocesses, piouucts anu seivices, CCIs may pioviue innovative input foi othei
sectois of the economy.
1S
As innovation is now acknowleugeu as encompassing moie than
just technological anu scientific changes,
16
the CCIs offei the oppoitunity to biing essential
change in non-technological innovation foi piouucts, seivices anu piocesses, contiibuting
to a moie inventive Euiope. Exteinal factois such as globalisation anu the I4+?+',- 0"+2'K
have openeu oppoitunities anu enableu gieatei cultuial uiveisity anu aie uiiveis of
fuithei uevelopment foi the CCIs.
17
Auuitional factois have to be taken into consiueiation
to #N,/+&# 71&4*7+5# #&5+(1&/#&'0 21( *&-17=+&? '"# #&'(#)(#&#*(+,- 4+/#&0+1& 12
3360F Fosteiing entiepieneuiship in the CCIs means stiengthening Euiope's cultuial anu
cieative uiveisity by ieinfoicing the ability of cultuial anu cieative entiepieneuis to
efficiently caiiy out theii activities anu piopose new piouucts anu seivices, anu this can
act as a &1&J'#7"&1-1?+7,- 4(+5#( 12 +&&15,'+1&.
This stuuy iesponus to the giowing impoitance of the cieative economy anu moie
specifically to the iole of the CCIs as a means to tackle futuie challenges in the context of a
globaliseu economy.
18
The focus on knowleuge-intensive piouucts anu seivices anu the
neeu to cieate a level playing fielu foi entiepieneuis in CCIs was put foiwaiu in the iecent
uieen Papei thiough a focus on cieativity anu innovation.
19
The stuuy aims to pioviue a bettei unueistanuing of the opeiations anu specific neeus of
the CCIs, especially small anu meuium-sizeu enteipiises (heieaftei iefeiieu to as SNEs). It
will highlight the '(,&05#(0,- )(18-#/0 71//1& '1 ,-- '"#0# 7*-'*(,- ,&4 7(#,'+5#
+&4*0'(+#0G anu inuicate 0)#7+O+7 7",--#&?#0 that coulu hampei innovation anu pievent
CCIs fiom benefiting fiom the inteinal maiket anu new technologies. This iepoit pioviues
an 15#(5+#> 12 '"# /,+& 7",(,7'#(+0'+70 12 '"# 3360 anu consiueis national
#&5+(1&/#&',- 2,7'1(0 '",' +&O-*#&7# '"# 4#5#-1)/#&' 12 '"#0# #&'#()(+0#0. Aftei this
oveiview, the stuuy suiveys the key 4#'#(/+&,&'0 '1 0'(#&?'"#&+&? #&'(#)(#&#*(0"+)
21( 3360 such as access to finance; access to maiket; intellectual piopeity iights; euucation
anu tiaining; access to innovation; anu collaboiative piocesses.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 6
9
KEA (2uu6), The Economy of Cultuie in Euiope, Biussels: KEA Euiopean Affaiis; KEA, (2uu9), The Impact of Cultuie on
Cieativity, Biussels: KEA Euiopean Affaiis
1u
See http:¡¡www.nesta.oig.uk¡publications
11
EC Staff Woiking Bocument, (2uu9a), Besign as a uiivei of usei-centieu innovation, SEC (2uu9) Su1
12
Furopeon Plotform on tbe Potentiol of tbe Culturol onJ Creotive lnJustries anu the 0pen HetboJ of CoorJinotion Fxpert
Workinq 6roup on Hoximisinq tbe Potentiol of Culturol onJ Creotive lnJustries, in paiticulai that of SNEs. Repoits available at
http:¡¡ec.euiopa.eu¡cultuie¡oui-policy-uevelopment¡uoc224u_en.htm.
1S
Euiopean Clustei 0bseivatoiy, (Naich 2u1u), Piioiity Sectoi Repoit: Cultuial anu Cieative Inuustiies, Stockholm:
Euiopean Clustei 0bseivatoiy, p. 1S.
14
EC uieen Papei, (Apiil 2u1u), op. cit., p. S.
1S
ECCE Innovation, (}uly 2uu9), Napping Innovation 0ppoitunities Stemming Fiom Collaboiation between Cieative
Inuustiies anu 0thei Inuustiies, Stuttgait: ECCE Innovation, p.11.
16
EC Communication "Euiope 2u2u Flagship Initiative Innovation 0nion", (0ctobei 2u1u), C0N (2u1u) S46 final
17
EC uieen Papei, (Apiil 2u1u), op. cit., p. S.
18
EC Communication, (Naich 2u1ub), op. cit., p. 2.
19
EC uieen Papei, (Apiil 2u1u), op. cit., p. S.
Beiiving fiom these key challenges, the stuuy suggests ?#&#(,- ,))(1,7"#0 foi
ueveloping a conuucive enviionment foi CCIs as well as 0)#7+O+7 (#71//#&4,'+1&0 to
pioviue suppoit foi each ueteiminant, highlighting best piactices anu taking into
consiueiation sectoi uiffeiences; the uiffeient levels of authoiity; anu the uiffeient lifecycle
uevelopment phases in which the CCIs finu themselves.
3",)'#( 9 pioviues some unueistanuing of the common featuies of all sectois of the CCIs
anu the uiffeiences in specific sectois, as well as uesciibing the geneial enviionment in
which they opeiate. It fiistly uefines the concept of cultuial anu cieative entiepieneuiship
as a uistinct featuie fiom the geneial iuea of entiepieneuiship. This builus upon the
uiscussion of the common chaiacteiistics anu pioblems of CCIs compaieu to othei
inuustiial sectois. In oiuei to auuiess the common issues, the ueteiminants of
entiepieneuiship aie consiueieu. Noieovei, as CCIs uo not opeiate in a vacuum, the stuuy
pioviues an oveiview of the clusteis of countiies accoiuing to the geneial iegulatoiy
fiamewoik that shapes the context in which the CCIs opeiate. In oiuei to uiscuss suppoit
foi ueveloping entiepieneuiship in the CCIs, a fiamewoik of analysis baseu on the
entiepieneuiial lifecycle was uevelopeu to examine the uiffeient layeis of suppoit offeieu
by local, iegional, national anu Euiopean authoiities.
3",)'#( P looks at the six coie factois foi ueteimining entiepieneuiship in the CCIs,
namely; access to finance; access to maiket; intellectual piopeity iights (IPR); euucation
anu tiaining; access to innovation; anu collaboiation, netwoiks anu clusteis. Specific
attention is given to the effect of uigital conveigence anu its influence on innovation anu
the CCIs.
The stuuy aims to pioviue a package of iecommenuations to take into consiueiation when
looking at the complex iequiiements of CCIs, with a focus on micio-SNEs. This is &1'
+&'#&4#4 '1 8# , 71/)(#"#&0+5# 15#(5+#> 8*' (,'"#( '1 122#( , 0&,)0"1' 12 '"#
7*((#&' 0+'*,'+1&Q to sheu some light on the aiea of cieative entiepieneuiship that
iemains ielatively unexploieu; anu in 3",)'#( R to pioviue some policy suggestions.
Thioughout this iepoit, aiounu 4u Best Cases illustiate key appioaches anu initiatives
(Appenuix 1). Similaily, anonymiseu comments fiom the many expeits inteivieweu uuiing
the stuuy aie piesenteu wheie appiopiiate. A bibliogiaphy of souices can be founu at the
enu of the iepoit.
;F9F 1(=0"1)0 took place uuiing the ieseaich piocess. The fiist was helu at
the enu of the fiist phase of the ieseaich (}anuaiy 2u1u), aftei gatheiing the CCI statistical
chaiacteiistics anu examining the enviionmental factois. The seconu was helu aftei the
oveiall fielu ieseaich was completeu (Naich 2u1u) in oiuei to ieceive feeuback fiom the
stakeholueis on the initial iecommenuations. Paiallel to the expeit inteiviews, thioughout
the stuuy contextual policy scans of national anu Euiopean iepoits anu liteiatuie weie
unueitaken.
In teims of scope, the peifoiming anu visual aits weie incluueu as pait of the CCIs in this
stuuy. Although inclusion of these two sectois within the CCIs vaiies fiom countiy to
countiy anu they aie often iegaiueu as pait of the coie aits sectoi but not the cieative
inuustiies,
22
this stuuy incoipoiates the peifoiming anu visual aits, as they weie incluueu
within the scope of the iecent uieen Papei.
2S
;FPF !"# 3(#,'+5# %71&1/@
ulobalisation piocesses, fastei communication channels, iapiuly changing technologies
anu global connectivity have iauically changeu oui enviionment anu the way we piouuce
anu consume cultuial piouucts anu seivices.
24
This conveigence between technological,
social, economic anu cultuial aspects has foigeu changes that affect oui uaily enviionment.
3(#,'+5+'@ +0 &1> ,7=&1>-#4?#4 ,0 210'#(+&? 7*-'*(,-G 017+,- ,0 >#-- ,0 #71&1/+7
?,+&0F
2S
In this context, the concept of the 'cieative economy' is now bioauly accepteu anu
unueistoou. The initial embiyonic stage of tianslating the unueilying concepts into high-
level policy is now almost complete.
Biffeient mouels exist to explain the cieative economy,
26
but most aie baseu upon the
iecognition of the impoitance of seivices anu the uynamic effects of the CCIs. Each mouel
has a paiticulai iationale, uepenuing on unueilying assumptions about the puipose anu
moue of opeiation of the CCIs. Peihaps the fiist usage of the teim 'cieative inuustiies' can
be founu In the 0K's Bepaitment of Cultuie, Neuia anu Spoit (BCNS), which began
ueveloping its cultuial anu cieative inuustiies stiategy as fai back as 1997. In the 0K
appioach, the cieative inuustiies aie those iequiiing TFFF7(#,'+5+'@ ,&4 ',-#&'G >+'"
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 8
21
In this iepoit, we have incluueu both figuies fiom the online expeit questionnaiie (sectoial anu uiveise expeits) anu the
online suivey (CCIs). The figuies iefeiiing to the foimei aie souiceu as "Euiokleis 2uu9", while the figuies fiom the online
suivey iesults aie souiceu as "Euiokleis 2u1u".
22
Some of the uefinitions, such as the one fiom the Bepaitment of Cultuie, Neuia anu Spoit in the 0K, incluueu peifoiming
aits within the coie aits oi cultuial oiganisation, but not as pait of the cieative inuustiies.
2S
EC uieen Papei, (Apiil 2u1u), op. cit., p. S.
24
0NCTAB, (2uu8), The Cieative Economy, 0NCTAB¡BITC¡2uu8¡2 , p. iii
2S
KEA, (2uu9), op. cit., p. SS. p. 44.
26
See the WIP0 mouel, the 0K Classification, the "concentric circles moJel" anu the uiffeient national appioaches to tackle
the Cieative Economy, such as; Santagata,W. , (2uu9), White papei on Cieativity : Towaius an Italian mouel of uevelopment,
Nilan: Bocconi 0niveisity Eu; BCNS (2uu8), Cieative Biitain- New Talents foi the New Economy, Lonuon: BCNS;
Netheilanus Ninistiy of Cultuie anu Ninistiy of Economics (2uu9), Cieative value- Cultuie anu Economy Policy Papei, The
Bague: Netheilanus Ninistiy of Cultuie anu Ninistiy of Economics
)1'#&'+,- 21( >#,-'" ,&4 H18 7(#,'+1& '"(1*?" #N)-1+','+1& 12 '"#+( +&'#--#7'*,-
)(1)#('@FU
9V
The iepoit 'Cieative Economy', publisheu in 2uu8 by 0NCTAB, 0NESC0, the Woilu
Intellectual Piopeity 0iganisation (WIP0), the 0niteu Nations Bevelopment Piogiamme
(0NBP) anu the Inteinational Tiaue Centie (ITC), was also a coineistone in entienching
the concept.
28
In this iepoit, foui uiffeient mouels foi the cieative economy weie
consiueieu, highlighting uiffeient classification systems.
0NCTAB makes a uistinction between 'upstieam activities' (tiauitional cultuial activities
such as peifoiming aits oi visual aits) anu 'uownstieam activities' (those closei to the
maiket, such as auveitising, publishing oi meuia ielateu activities) anu aigues that the
seconu gioup ueiives its commeicial value fiom low iepiouuction costs anu easy tiansfei
to othei economic uomains. 0thei appioaches have uefineu the CCIs in many ways,
incluuing the 'coie' aits oi even culinaiy aits, as pait of the cieative oi expeiience
economy.
29
The stuuy 'The Economy of Cultuie in Euiope', commissioneu by the Euiopean
Commission in 2uu6, was the staiting point foi a political ievaluation of the CCIs in Euiope
anu its membei states.
Su
It makes a uistinction between 'cultuie' anu 'economy'' anu
aigues that although the E0 was foimeu on the basis of economic anu maiket foices,
cultuie anu Euiopean cultuial uiveisity is an impoitant factoi foi the E0's political,
economic anu social stiength. It makes a uistinction between the cultuial sectoi,
subuiviueu into an inuustiial anu non-inuustiial sectoi; anu the cieative sectoi.
Notwithstanuing the uiveisity of these mouels of the cieative economy, it is iemaikable
that the vaiious uefinitions leau to bioauly the same collection of inuustiies making up the
cieative sectoi.
In this stuuy, 'Cultuial inuustiies' aie uefineu as those inuustiies piouucing anu
uistiibuting goous oi seivices which at the time they aie uevelopeu aie consiueieu as a
specific attiibute, use oi puipose, which embouy oi convey cultuial expiessions,
iiiespective of the commeicial value they may have.
S1
These incluue the coie aits such as
peifoiming aits, visual aits, as well as film, BvB anu viueo, Tv anu iauio, games, new
meuia, music, books anu piess. 'Cieative inuustiies' aie those inuustiies which use cultuie
as an input but whose outputs aie mainly functional. This classification incluues uesign,
fashion, auveitising anu aichitectuie. 0thei inuustiies that aie 'peiipheial' to those
inuustiies, such as touiism oi culinaiy ait, aie not taken into account.
The CCIs have uevelopeu consiueiably ovei the past yeais, contiibuting to aiounu 2.6% of
the E0 uBP in 2uu8 anu cieating substantial employment. Noieovei, CCIs maintain anu
uevelop Euiope's cultuial uiveisity, which is also impoitant in teims of social inclusion.
Looking at the place of CCIs in Nembei States' national policies, they play an evei-
incieasing iole in teims of pioviuing content as well as seivices anu innovative
spilloveis.
S2
The use of this cieativity to fostei TFFF7(#,'+5#G #&'(#)(#&#*(+,- ,&4 +&'#(7*-'*(,- 0=+--0
'",' >+-- "#-) 8#''#( (#0)1&4 '1 &#> #71&1/+7 ,&4 017+,- 7",--#&?#0U
SS
iequiies us to
ieach a ueepei unueistanuing of the complexity of CCIs anu the way they aie influenceu
anu alteieu by theii enviionment. Foi these ieasons, this stuuy seeks to pioviue a cleai
pictuie of the main chaiacteiistics of CCIs anu the piincipal iequiiements foi suppoiting
entiepieneuiship.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 9
27
BCNS, (2uu1), Cieative Inuustiies Napping Bocument 2uu1 (2 eu.), Lonuon: Bepaitment of Cultuie, Neuia anu Spoit
28
0NCTAB, (2uu8), op. cit., pp. 12-1S.
29
Santagata, W. , (2uu9), op. cit., p. Su.
Su KEA, (2uu6), op. cit., p. SS.
S1
EC uieen Papei, (Apiil 2u1u), op. cit., p. S.
S2
By way of illustiation, the iole of CCIs is cleaily iecogniseu in national policies in the 0K, Netheilanus, Benmaik, Sweuen,
Finlanu, Fiance anu ueimany but also in Italy, Poitugal, Lithuania, Czech Republic, Bulgaiia, Estonia anu Iielanu.
SS
EC uieen Papei, (Apiil 2u1u), op. cit., p. 18.
3",)'#( !>1E 3(#,'+5# %&'(#)(#&#*(0"+)
In this chaptei the uimensions of entiepieneuiship in the CCIs aie consiueieu. To this enu,
it is necessaiy to biiefly uiscuss the concept of entiepieneuiship, its ueteiminants anu the
necessity foi a specific teim such as 'cultuial anu cieative entiepieneuiship'. This involves
examining the chaiacteiistics of the CCIs in geneial anu theieaftei the specific featuies of
CCI sectois. In auuition, the way in which enviionmental factois influence cieative
entiepieneuiship anu ueteiminants of entiepieneuiship is consiueieu. Beaiing in minu
the challenging context of the CCIs, the geneial entiepieneuiial lifecycle fiamewoik useu
foi this stuuy is uesciibeu foi analytical puiposes.
9F;F .#O+&+&? #&'(#)(#&#*(0"+) +& '"# 7*-'*(,- ,&4 7(#,'+5# +&4*0'(+#0
"Fntrepreneursbip in tbese sectors meons to bove creotive iJeos onJ to pursue
tbem in o commerciol woy, witb tbe purpose to moke o projit. Eowever, tbe
projit olone is not tbe Jriver; it is tbe creotivity onJ tbe possibility to builJ
sometbinq, tbe self-fuljilment or beinq oble to pursue your own creotive
interests. Tbere is o mix between tbe entrepreneuriol siJe onJ tbe creotive siJe".
(Sectoial 0iganisation, Stiuctuially Stiong Tiauitional Economy)
Although theie is a no geneial agieement on how to uefine entiepieneuiship, whethei as
iisk-beaiing, enteipiise cieation oi stimulation of innovation, theie is even less agieement
on how this can be uefineu within the cultuial anu cieative sectoi.
S4SS
Bowevei, given the
stiong economic contiibution maue by the CCI sectoi to uBP in Nembei States,
S6
uefining
the entiepieneuiial uimension of this sectoi is cleaily impoitant. This is neeueu in oiuei
to 71&0+4#( "1> 8#0' '"#0# ,0)#7'0 7,& 8# 0*))1('#4 ,&4 '1 #N,/+&# '"# 5,(+1*0
2,7'1(0 8#,(+&? *)1& '"# 7*-'*(,- ,&4 7(#,'+5# #&'(#)(#&#*(F
With the complex changes that the E0 is expeiiencing as a iesult of the ongoing economic
ciisis anu the uigital shift anu its consequences foi emeiging innovation policies, theie is a
neeu to examine how cultuial anu cieative entiepieneuiship can bettei be uesigneu in
oiuei to suppoit moie cieative Euiopean innovation anu contiibute to Euiope's futuie
giowth.
S7
9F;F;F 3(#,'+5+'@ ,&4 #&'(#)(#&#*(0"+)
The concept of 'cultuial entiepieneuiship' has gaineu iecognition uuiing the last uecaue.
S8
Biffeient mouels have been put foiwaiu as a means of pioviuing a systematic
unueistanuing of the stiuctuial chaiacteiistics of the CCIs anu in so uoing tiying to foim a
common uefinition of cultuial anu cieative entiepieneuiship. This is a uifficult task as it
combines teims that aie seemingly uiveigent anu poses the challenge of 7(100+&? 7*-'*(,-
,&4 #71&1/+7 4+071*(0# to uefine a uistinct teim by taking components fiom both
woilus anu unueistanuing the specific suppoit that this entails.
Even though the image of aitists cieating solely foi 'ait's sake' is changing, theie is still a
stiong uiviue between cultuial anu cieative aspects on one siue anu the entiepieneuiial
aspects on the othei. The /1'+5,'+1&0 of the cultuial anu cieative entiepieneui will likely
uiffei accoiuing to the inuiviuual anu to the CCI sectoi in which they aie opeiating. !"#
'#&0+1& 8#'>##& '"# 7(#,'1( 12 , 7*-'*(,- >1(= ,&4 '"# #&'(#)(#&#*(G typical of many
CCI enteipiises, is often ieflecteu in the uesiie to piioiitise the cultuial value of the
cieation with little motivation foi geneiating economic value (7(#,'+1&J1(+#&'#4), while
the entiepieneui will piioiitise the economic exploitation ovei its cultuial value (?(1>'"J
1(+#&'#4). These tensions suggest that 4+22#(#&' =+&40 12 0*))1(' &##4 '1 8#
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 1u
S4
Bagooit, u., (2uu7), Cultuial Entiepieneuiship. 0n the Fieeuom to Cieate Ait anu the Fieeuom of Enteipiise, Inauguial
Lectuie }une 6, 0tiecht 2uu7
SS
Kooyman, R., (eu), (2uu9), Pieliminaiy Liteiatuie Review, BK0
S6
0K Technology Stiategy Boaiu, (2uu9), op. cit., p. 12.
S7
EC Communication, (Naich 2u1ub), op. cit., p. 9-1u.
S8
Klamei, A., (2uu6), Cultuial Entiepieneuiship, Rotteiuam: Eiasmus 0niveisity, Acauemia vitae
#-,81(,'#4 uepenuing on the natuie of the oiganisation anu the sub-sectoi in which they
opeiate.
9F;F9F %&'(#)(#&#*(0"+)
In common pailance, being an entiepieneui is associateu with staiting a business, but this
is a veiy loose application of a teim that has a iich histoiy anu a much moie significant
meaning. The teim 'entrepreneur´ oiiginateu in Fiench economics as eaily as the 17th
centuiy to mean someone who 'unueitakes' a significant pioject oi activity. Noie
specifically, it came to be useu to iuentify the ventuies of some inuiviuuals who stimulateu
economic piogiess by finuing new anu bettei ways of uoing things. The Fiench economist
most commonly cieuiteu with giving the teim this paiticulai meaning is }ean-Baptiste Say.
Wiiting aiounu the tuin of the 19th centuiy, Say put it this way, "Tbe entrepreneur sbifts
economic resources out of on oreo of lower onJ into on oreo of biqber proJuctivity onJ
qreoter yielJ".
S9
In othei woius, #&'(#)(#&#*(0 7(#,'# 5,-*#F
In the 2uth centuiy, the economist most closely associateu with the teim was }oseph
Schumpetei.
4u
Be uesciibeu entiepieneuis as the innovatois who uiive the I7(#,'+5#J
4#0'(*7'+5#K piocess of economic societies. In his woius, "Tbe function of entrepreneurs is
to reform or revolutionise tbe pottern of proJuction". They can uo this in many ways:
"...by exploitinq on invention or, more qenerolly, on 5-&%/,2 &,7+-)1)(/7$1 8)../;/1/&:
for proJucinq o new commoJity or proJucinq on olJ one in o new woy, by openinq up o
new source of supply of moteriols or o new outlet for proJucts, by reorqonisinq on
inJustry onJ so on".
Schumpetei's entiepieneuis aie the change agents in the economy. By seiving new
maikets oi cieating new ways of uoing things by cieatively innovating, they cieate value
anu move the economy foiwaiu. Entiepieneuiship is incieasingly iecogniseu as an
impoitant uiivei of economic giowth, piouuctivity, innovation anu employment, anu it is
wiuely accepteu as a key aspect of economic uynamism: the biith anu ueath of fiims anu
theii giowth oi uownsizing.
Accoiuing to Schumpetei, a numbei of factois embouy entiepieneuiial behavioui:
! Beveloping new anu innovative piouucts
! Pioposing new foims of oiganisation
! Exploiing new maikets
! Intiouucing new piouuction methous
! Seaiching foi new souices of supplies anu mateiials
Seen fiom an occupational peispective, cultuial anu cieative entiepieneuis own anu
manage theii business enteipiise like a 'geneial' entiepieneui. They can be categoiiseu as
'business owneis'; they cieate value. In essence, the cieative entiepieneui is a cieatoi of
economical value.
41
They shaie with the geneial entiepieneui the >+--+&?� '1 ,00*/# (+0=0 in the face of
unceitainty. Foi example, iisks such as a possible loss of business capital oi peisonal
financial secuiity, oi iisks associateu with the unceitain outcome of an entiepieneuiial
unueitaking.
42
They also shaie the ,-#('� 12 1))1('*&+'@; the focus on the uetection of
entiepieneuiial oppoitunities eithei foi financial piofit, oi foi sake of new content. This
aleitness allows the entiepieneui to exploit maiket oppoitunities that have been
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 11
S9
Say, }- B., (18uS), Tiaité u'économie politique, ou simple exposition ue la manieie uont se foiment, se uistiibuent, et se
composent les iichesses, Paiis
4u
Schumpetei, }.A. (197S). Capitalism, Socialism, anu Bemociacy, New Yoik: Baipei
41
Steinbeig, R. anu Wennekeis, S., (2uuS), "Beteiminants anu effects of new business cieation using global
entiepieneuiship monitoi uata", Small Business Economics, volume 24, Numbei S, pp. 19S-22u.
42
Knight, F. B., (1921), Risk, 0nceitainty, anu Piofit, Boston: Bait, Schaffnei & Naix
oveilookeu oi gone unuiscoveieu by otheis.
4S
Like othei entiepieneuis they shaie the
change peispective. I"1 7,&&1' /,&,?# , 8*0+�
,&4 -,7=0 O+&,&7+,- 0=+--0 +0 0'+-- 71//1&-@ "#-4 ,/1&? #71&1/+7 )1-+7@J/,=#(0 anu
influences the ongoing uistinction between entiepieneuiship policies anu cultuial policies.
Regaiuless of these uiffeient peispectives, theie is a neeu foi a specific uistinction, a
specific teim to iecognise the cultuial basis of cieativity anu of this type of
entiepieneuiship. Bespite the fact that it encompasseu a uiveise iange of sectois, most
iesponuents iecogniseu the neeu, at this time, to make a case in geneial foi cultuial anu
cieative entiepieneuiship ,0 '"# 5,-*# 12 7*-'*(,- ,&4 7(#,'+5# +&4*0'(+#0 ",0 &1' @#'
8##& 0*2O+7+#&'-@ (#71?&+0#4 ,&4 '(,&0-,'#4 +& '"# )1-+7@ ,(#&,G uespite new
initiatives, such as the iecent Euiope 2u2u Stiategy:
S6
"Tbot's o biq Jiscussion: wbetber or not tbere sboulJ be o common Jejinition for
tbe CCls. Hoybe now it is useful to Jistinquisb [tbe CCls from tbe otber
inJustries]. ln tbe future, wben we bove probobly evolveJ toworJ o more
creotive economy onJ creotive society, tbis Jistinction won´t be useful onymore.
Now it is useful to be oble to unJerstonJ tbe tbinkinq, tbe process onJ bow to
succeeJ. lt is olso useful in orJer to bove it on tbe politicol oqenJo".
(Regional Cultuie Ninistiy, Stiuctuially Stiong Tiauitional Economy)
In essence, a cultuial anu cieative entiepieneui can be unueistoou ,0 01/#1&# >"1
7(#,'#0 1( +&&15,'#0 , 7*-'*(,- 1( 7(#,'+5# )(14*7' 1( 0#(5+7# ,&4 >"1 *0#0
#&'(#)(#&#*(+,- )(+&7+)-#0 '1 1(?,&+0# ,&4 /,&,?# "+0X"#( 7(#,'+5# ,7'+5+'@ +& ,
71//#(7+,- /,&&#(F Bowevei, achieving a balance between 'cultuie-baseu cieativity'
anu entiepieneuiship is not stiaightfoiwaiu anu as noteu entiepieneuis uiffei accoiuing
to theii motivations anu the sectois in which they opeiate. The teim thus iefeis to the fact
that these enteipiises have ceitain chaiacteiistics (see section 2.2 below) which will affect
the management of theii entiepieneuiial activity.
The teim cultuial anu cieative entiepieneuiship thus attempts to uiaw these woilus
togethei: (#71?&+0+&? '"# -,'#&' #&'(#)(#&#*(+,- 0)+(+' 12 ,& ,('+0'G '"# -,'#&' 7(#,'+5#
0)+(+' 12 '"# #&'(#)(#&#*( anu the paiticulai enviionments in which cultuial anu
cieative enteipiises opeiate. Baving fiameu the uistinct teim in compaiison to the geneial
teim, the entiepieneuiial uimension of CCIs can be bettei unueistoou using the
ueteiminants of entiepieneuiship auapteu to the chaiacteiistics of CCIs (see Chaptei S
below).
9F;FRF 31/8+&+&? 7(#,'+5+'@ ,&4 #&'(#)(#&#*(0"+) 21( +&&15,'+1&
The concept of 'cultuie-baseu cieativity' iecognises that the combination of peisonal
abilities, cultuie, cieativity, technical skills anu social enviionments can have a substantial
impact on stimulating ieseaich, optimising human iesouices anu inspiiing people.
S7
The
economic value of this 'cultuie-baseu cieativity' has been incieasingly iecogniseu,
S8
as
seen below in Table 1. which illustiates the total tuinovei of CCIs in seveial laigei
countiies. Accoiuing to the KEA iepoit of 2uu6, the cieative economy geneiateu aiounu
2.6% of the Euiopean uBP in 2uuS anu employeu ovei S million people.
S9
The latest
ieseaich by Teiiaconsult estimateu that in 2uu8 it geneiateu 4.S% of the total Euiopean
uBP. In the same stuuy, they estimateu that in Fiance, the coie activities of the CCIs (not
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 1S
S6
Euiopean Commission Communication, (Naich 2u1ub), op. cit.
S7
KEA, (}une 2uu9), op. cit., p. 8u.
S8
Ibiu., p. 42.
S9
KEA, (2uu6), op.cit., p. 6, anu Euiopean Commission uieen Papei (2u1u), op.cit., p. 2.
incluuing the suppoit enteipiises such as lawyeis) geneiateu 4.9% of the uBP, in ueimany
4.2% , S.8% in Italy , anu S.6% in Spain.
6u
!,8-# ;E \#(7#&',?# 12 #71&1/+7 '*(&15#( 12 '"# 336 )#( 71*&'(@
+& 0#5#(,- %*(1)#,& 71*&'(+#0
61
{Source: Terroconsult 2010)
The inteiviews foi this stuuy showeu that cultuial anu cieative entiepieneuis aie an
essential pait of a post-inuustiial economy which is incieasingly uemanu-uiiven, usei-
centieu anu which is moie focuseu on the expeiience taken out of piouucts anu seivices.
62
0ne of the key aiguments is the neeu to focus on incentives foi cultuie anu 'cultuie-baseu
cieativity' as iesouice foi cieativity, entiepieneuiship anu innovation, (,'"#( '",& 01-#-@
217*0+&? 1& '#7"&1-1?+7,- +&&15,'+1&F
Tapping into the potential of cultuial anu cieative entiepieneuis, anu iecognising theii
'cultuie-baseu cieativity' alongsiue theii entiepieneuiial uiive, can allow enteipiises to
unleash innovative solutions that aie not necessaiily technology-baseu. Entiepieneuiship
in the CCIs can thus be linkeu to auvances in non-technological innovation. A#71?&+0+&?
'"# -+&= 8#'>##& I7*-'*(#J8,0#4 7(#,'+5+'@KG '"# 4#'#(/+&,&'0 12 #&'(#)(#&#*(0"+)
,&4 &#> 21(/0 12 +&&15,'+1& +0 '"*0 7(*7+,- 21( *&-17=+&? 3360K )1'#&'+,-F
Bowevei, 0+&7# /10' 12 '"# %L 8,0#4 O+&,&7+,- 0*))1(' 21( +&&15,'+1& (#/,+&0 -,(?#-@
217*0#4 1& 2*&7'+1&,- ,&4 '#7"&1-1?+7,- +&&15,'+1&G the KEA iepoit unueilineu that E0
effoits have not been sufficiently taigeteu to cultuie anu to non-technological anu non-
scientific innovation.
6S
Aits anu cultuie aie thus seen as essential in ueveloping anu
fosteiing a cieative enviionment offeiing a iich cultuial uiveisity, as well as pioviuing
innovative piocesses essential foi a changing economic anu social enviionment by
ueveloping expeiience.
64
The iecent policy changes at E0 level aie acknowleuging this
neeu with the plans to ieview innovation policy in a changing economy that is incieasingly
uefineu by expeiience, non-technological innovation anu quality of life conceins.
In this iespect, CCIs have a specific iole to play in innovation by fosteiing cieativity anu
piouucing outputs that can seive as input to the innovation piocess.
6S
Theie is a neeu foi
?(#,'#( 217*0 1& '"# )(17#00 12 +&&15,'+1& ,0 ,& #N)#(+#&7# to which the CCIs can
meaningfully contiibute.
Bowevei, in piactical teims, the '#&0+1& 8#'>##& '"# )(17#00 12 7(#,'+1& ,&4 '"#
#00+'@ 12 4#,-+&? >+'" '"# ,4/+&+0'(,'+1& ,&4 /,&,?#/#&' 12 ,& #&'(#)(#&#*(+,-
,7'+5+'@ is paiticulaily uifficult foi the CCI entiepieneui. The aitist oi cieatoi may not have
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 dif?culty 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 Europe’s 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.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 16
6u
Teiaconsultant, (Naich 2u1u), Builuing a Bigital Economy: The Impoitance of Saving }obs in the E0's Cieative Inuustiies,
p. 17, see http:¡¡www.iccwbo.oig¡uploaueuFiles¡BASCAP¡Pages¡BuiluingaBigitalEconomy-TERA(1).puf
61
Inuepenuent & Suppoit incluue activities ielateu to facilitating bioaucast, communication, sales of woik. They incluue a
fiaction of geneial wholesale anu ietailing, geneial tianspoitation, telephony anu the Inteinet.
62
Ibiu., p. 4u.
6S
Ibiu., p. 12S.
64
Euiopean Council Conclusions, (Nay 2uu9), Conclusions foi "Cultuie as a Catalyst foi Cieativity", 2941st Euucation, Youth
anu Cultuie Council meeting
6S
Potts, }., (2uu9a), "Cieative Inuustiies anu Innovation Policy" in Innovation: Nanagement, Policy anu Piactice, volume 11,
No 2, pp. 1S8-147.
all the skills anu knowleuge to ueal with the complexity of a business. Ceitain
oiganisations, such as Flanueis Bistiict of Cieativity (see Appenuix 1, Best Case 1), have
catalyseu the &##4 '1 /,'7" '"# 7*-'*(,- ,&4 7(#,'+5# #&'(#)(#&#*( >+'" ,
)(12#00+1&,- /,&,?#( '1 /+'+?,'# '"#+( -+/+'#4 #&'(#)(#&#*(+,- 0=+--0F
3(#,'+5# +&4+5+4*,-0 >+-- +&7(#,0+&?-@
(#S*+(# #&",&7#4 ,8+-+'+#0 ,&4 0=+--0 '1
8-#&4 4+07+)-+�G /#'"140 ,&4
+&0'(*/#&'0 in oiuei to geneiate anu
exploit these highly uynamic maikets. The
cultuial anu cieative entiepieneui has to
be able to uiaw upon expeit knowleuge
fiom seveial aieas anu uisciplines anu to
move efficiently between them in oiuei to
ueal with both the aitistic cieation anu the
iequiiements linkeu with an
entiepieneuiial activity. Foi example,
Aiteconomy biings togethei the aitistic
anu business woilus by stimulating
collaboiation (see Appenuix 1, Best Case
2). Suppoiting cultuial anu cieative
entiepieneuiship means &1' 1&-@
4#5#-1)+&? , 71&4*7+5# #&5+(1&/#&'
21( , ?#&#(,- #&'(#)(#&#*( 8*' ,-01
0*))1('+&? ,& #&5+(1&/#&' '",'
(#71?&+0#0 I7*-'*(#J8,0#4 7(#,'+5+'@KG
encompassing both aspects of the cultuial
anu cieative entiepieneui.
A moie favouiable cieative climate will, in tuin, iesult in moie iueas, anu gieatei cieativity
is assumeu to inciease R&B anu innovative activities, anu contiibute to fosteiing
innovative solutions. 0ltimately, cieativity can be founu in oui cultuies, in oui suiiounuing
teiiitoiy, in the quality of oui eveiyuay life anu oui piouucts. 6' +0 &1' ,& #&4 +& +'0#-2G 8*'
, )(17#00G ,& #N'(,1(4+&,(@ /#,&0 '1 )(14*7+&? &#> +4#,0F
]]
In this sense, 7(#,'+5+'@ ,&4 7*-'*(# ,(# '"# )+--,(0 12 017+,- S*,-+'@G seen in the context
of a fiee, economically uevelopeu, faii anu cultuially lively communities enjoying a high
quality of life. Cieativity anu cultuie aie inextiicably bounu. They aie a successful
combination, which can stiengthen Euiopean innovation at a time of stiategic tiansition in
the inteinational piocess of globalisation.
9F9F 3",(,7'#(+0'+70 12 '"# 7*-'*(,- ,&4 7(#,'+5# +&4*0'(+#0
The CCIs have a paiticulai chaiactei that is maikeuly uiffeient fiom othei inuustiies.
When consiueiing these chaiacteiistics seveial issues weie consiueieu
67
incluuing:
! Size of CCI enteipiises
! Chaiacteiistics of the CCI laboui maiket
! Chaiacteiistics of CCI enteipiise piocesses
! Naiket conuitions anu shifting business mouels
Regaiuing the selection of the NACE coues,
68
seveial limitations have to be claiifieu. uiven
the impossibility of accuiately estimating the companies ielateu to CCIs within the 17
NACE coues (in teims of the total numbei of fiims, employees anu tuinovei), ceitain
sectoial biases aie incluueu in the statistical analyses. These aie explaineu in Appenuix
2.1u.
C-,&4#(0 .3
Flanueis BC is a Flemish goveinmental oiganisation
that piomotes entiepieneuiial cieativity in the
iegion in oiuei to boost Flanueis cieativity anu
innovation. They offei pationage seivices foi the
fashion sectoi anu matching with business
manageis.
(See Appenuix 1, Best Case 1)
+'" /,&@ 01-# '(,4#(0 1( /+7(1JYW%0 employing only a
hanuful of people. 6& 2,7'G 336 >1(=#(0 ,(# /1(# '",& '>+7# ,0 -+=#-@ '1 8# 0#-2J
#/)-1@#4 ,0 '"# >"1-# #71&1/@ ,5#(,?#F
71
Bowevei, although the vast majoiity of CCI
businesses aie micio-enteipiises (employing fewei than 1u people), they aie iesponsible
foi only a mouest peicentage of the total tuinovei of the CCIs (18 %).
As seen in Table 2. belowG >+'"+& '"+0 /,H1(+'@ 12 a/+7(1J#&'#()(+0#0aG ,-/10' ]:` ,(#
5#(@ 0/,-- 8*0+�#0 >+'" 1&-@ ; '1 P #/)-1@##0F
72
The statistical analysis unueitaken
uuiing this stuuy confiims that the oveiwhelming majoiity of CCI enteipiises aie veiy
small micio-SNEs. !"# &*/8#( 12 -,(?#J07,-# #&'#()(+0#0 +0 /,(?+&,-G ,' -#00 '",& 1&#
)#(7#&'G 8*' '"#@ ,(# (#0)1&0+8-# 21( /1(# '",& R: ` 12 '"# ,&&*,- '*(&15#(F
%&'#()(+0# 0+^# 3-,00 12 #&'#()(+0# bc 12 #/)-1@##0d 3-,00 12 #&'#()(+0# bc 12 #/)-1@##0d 3-,00 12 #&'#()(+0# bc 12 #/)-1@##0d 3-,00 12 #&'#()(+0# bc 12 #/)-1@##0d 3-,00 12 #&'#()(+0# bc 12 #/)-1@##0d
YW%0 YW%0 YW%0 YW%0
Y#7'1( ; J P R J e ;: J Re f: J 9Re 9f: g
##& '"# '>1
I'@)#0K 12 #&'(#)(#&#*( +0 12'#& (#O-#7'#4 +& 1(?,&+0,'+1&,- 0'(*7'*(#0F
9F9F9F;F YW%0 ,&4 2(##-,&7#(0
3*-'*(,- ,&4 7(#,'+5# #&'(#)(#&#*(0 ,(# 2,( /1(# -+=#-@ '1 "1-4 &1&J71&5#&'+1&,-
21(/0 12 #/)-1@/#&'G such as pait-time woik, tempoiaiy contiacts anu fieelancing, than
,5#(,?# )#7*&+,(@ #,(&+&?0F This can be paitially explaineu eithei by iisk-
seeking behavioui,
79
oi a piefeience foi cieative woik ovei othei types of employment.
8u
It emeigeu fiom the online suivey that S4% of the CCI enteipiises hau less than ten full
time employees in theii company (see Fig. S. below). As noteu above, this fiagmentation of
CCIs into small enteipiises has consequences foi theii stiuctuies. To compete with laigei
companies with stiuctuial auvantages in teims of auministiation anu ieseaich, the smallei
enteipiises tenu to auopt a moie flexible anu uynamic attituue when iesponuing to maiket
oppoitunities. This may involve 1*'01*(7+&?G taking up /*-'+)-# )(1H#7'0 oi 7-*0'#(+&?
>+'" 4+22#(#&' 1(?,&+0,'+1&0 in oiuei to benefit fiom a laigei collective stiuctuie. To
mitigate against this lack of guaiantee of success, CCIs often woik on multiple piojects to
spieau the iisk
81
anu often focus on pioject-baseu investment iathei than company
finance.
82
µuestion: Eow mony full-time employees JiJ your enterprise bove on S1st Becember 2008?
!" $" %!" %$" &!" &$" '!" '$"
( &$!
$! )( &*+
% ) &
%! )( *+
' )( +
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 21
7S
Benhamou, F. (2uuS), L'Economie ue la cultuie, Paiis: La Bécouveite, 4th eu.
76
Thiosby, B., (2uu1), op. cit., pp. 126-28.
77
Towse, R., (2uu4), op. cit., p. 8.
78
NKW Wiitschaftsfoischung umbB, (2uu1), Exploitation anu uevelopment of the job potential in the cultuial sectoi in the
age of uigitalization, Papei commissioneu foi Euiopean Commission, Bu Employment anu Social Affaiis, Nunich
79
Towse, R., (2uu4), "Towaius an economy of cieativity." in F0K0S, (2uu4), Cieative Inuustiies: A measuie foi uiban
uevelopment. vienna: F0K0S p. 8.
8u
Thiosby, B., (2uu1), op. cit., anu Caves, R., (2uuu), Cieative Inuustiies: Contiacts Between Ait anu Commeice, Cambiiuge:
Baivaiu 0niv. Piess
81
0K Technology Stiategy Boaiu, (2uu9), op. cit., p. 17.
82
KEA, (Nay 2u1u), Piomoting Investment in the Cultuial anu Cieative Sectoi: Financing Neeus, Tienus anu 0ppoitunities,
Repoit piepaieu foi ECCE Innovation- Nantes Netiopole, p. 24.
C+?*(# fE \#(7#&',?# 12 2*-- '+/# #/)-1@##0 )#( 0+^# 7-,00 #&'#()(+0# +& .#7F 9::_
{Source: Furokleis 2009- 0nline Survey)
Noieovei, CCIs iequiie skilleu employees anu aie consequently manual laboui intensive.
The cieative piouucts anu seivices ielateu to these inuustiies usually iequiie not only
stiictly cieative employees but many geneial oi commeicial employees that contiibute to
the oveiall piouuction anu supply chain. Tiauitionally, cultuial anu cieative entiepieneuis
aie inteiesteu mainly in the uevelopment of theii piouucts anu seivices iathei than
focuseu on theii uistiibution: in othei woius, 'R&B is tbe moin octivity, wbile proJuction is
seconJory'.
8S
The company will geneially (#',+& , 0/,-- 71(# 12 2*-- '+/# #/)-1@##0
>"+-# 7,--+&? 1& ,44+'+1&,- #/)-1@##0 ,0 (#S*+(#4G accoiuing to the company's
neeus.
84
9F9F9F9 .+5#(0+'@ +& 0=+--0 ,7S*+0+'+1&
Bue to the abunuance of piactitioneis with veiy uiveise backgiounus (ceitification by
uegiee, acquiiing expeiience thiough inteinship, vocational uegiee, etc.), theie aie often
4+2O+7*-'+#0 >"#& (#71?&+0+&? 1( 7#('+2@+&? '"# S*,-+'@ ,&4 (#)*','+1& 12 7*-'*(,- ,&4
7(#,'+5# #&'(#)(#&#*(0F This makes the position of the potential employei in the Aits (as
compaieu to othei laboui maikets) especially uifficult because of a lack of infoimation anu
quality ciiteiia.
8S
Awaius can act as inteimeuiate stanuaius on the quality of the cultuial anu cieative
entiepieneui.
86
Commissioneis in the Aits place little ieliance on ceitification baseu on
foimal schooling anu often use theii own scieening uevices (ait competitions, iefeiees,
peei-ieviews, etc.). Leaining 'on the fly' is common foi cultuial anu cieative
entiepieneuis. In oui online questionnaiie, V_` 12 '"# (#0)1&4#&'0 5,-*#4 '"#+( 1& '"#
H18 '(,+&+&? ,0 /*7" ,0 '"#+( )(12#00+1&,- '(,+&+&?F
0n one hanu, the majoiity of enteipiises achieve veiy low iewaius, 0+?&+O+7,&'-@ 8#-1>
>1(=21(7#0 +& 1'"#( +&4*0'(+#0 >+'" 0+/+-,( "*/,& 7,)+',- ,''(+8*'#0F 0n the othei
hanu, theie aie a ielatively small numbei of 'stais' with veiy high tuinovei.
87
9F9F9FPF 336 #/)-1@/#&' 8@ 0#7'1(0
Fiom the aggiegateu uata in the statistical analysis, the laigest inuustiies pei numbei of
woikeis employeu aie: Fashion (S1.41%, of total employees), Besign (2u.12%),
Aichitectuie (1u.74%) anu Book & Piess (9.89%). The inclusion of the ietail sectoi within
the fashion sectoi may explain the unexpecteuly high numbei of woikeis in this sectoi
(See Fig. 6.).
These numbeis covei the total numbei of employees in uiffeient sectois of the CCIs. As
noteu above, cultuial anu cieative entiepieneuis aie also employeu in many othei sectois
of the economy, contiibuting to the uevelopment of the 'cieative capacity' of non CCI
companies. Foi example, the 0K Technology Stiategy Boaiu estimates that fiom the 1.1
million people uiiectly employeu in the cieative inuustiies in the 0K, '"#(# ,(# ,&1'"#(
_::G::: +&4+5+4*,-0 >1(=+&? 1*'0+4# '"# 7*-'*(,- ,&4 7(#,'+5# 0#7'1(F
88
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 22
8S
Lash, S. anu 0iiy, }., (1994), Economies of Signs anu Space, Lonuon: Sage Publications, as citeu in: Banuke C., (2uu6),
Suiveying innovation in the Cieative inuustiies, Beilin¡Rotteiuam 2uu6
84
0K Technology Stiategy Boaiu, (2uu9), op. cit., p. 18.
8S
Towse, R., (eu) (2uuS) A Banubook of Cultuial Economics, Cheltenham, Euwaiu Elgai.
86
See Wijnbeig (2uuS) foi a uiscussion of the iole of awaius in the aits. Wijnbeig, N. (2uuS) 'Awaius' in: Towse, R. (eu) A
Banubook of Cultuial Economics, Cheltenham, Euwaiu Elgai: pp. 81-84.
87
0NCTAB et al (2uu8), The Cieative Economy, 0NCTAB¡BITC¡2uu8¡2, ueneva
88
0K Technology Stiategy Boaiu, (2uu9), op. cit., p. 12.
C+?*(# ]E \#(7#&',?# 12 %/)-1@##0 )#( Y#7'1(
{Source: Furokleis 2009-
89
)
In anothei example, the iecent EC Woiking Papei on 'Besign as a uiivei of usei-leu
innovation' confiimeu this tienu in the uesign sectoi, uemonstiating that many uesigneis
woikeu in non-uesign inuustiies as in-house uesigneis.
9u
This suggests that the 7*-'*(,-
,&4 7(#,'+5# #&'(#)(#&#*( ,&4 '"# 3360 ",5# , ?(#,'#( +/),7' 1& '"# #71&1/@ ,0 ,
>"1-# '",& ,771*&'#4 21( +& '"# 0','+0'+70F
9F9FPF 3",(,7'#(+0'+70 12 336 #&'#()(+0# )(17#00#0 ,&4 1*')*'0
In auuition to the specific chaiacteiistics of CCIs both in teims of stiuctuie anu laboui, the
piocesses of piouuct anu seivice cieation in which the CCIs engage aie highly uistinctive,
especially uue to theii small size. CCI SNEs often engage in netwoik baseu piocesses. Some
of '"#0# 5,-*# ,&4 =&1>-#4?# 7(#,'+1& )(17#00#0 ,(# 12'#& &1' (#71?&+0#4 ,0
'(,4+'+1&,- (#0#,(7" ,))(1,7"#0 anu CCI SNEs may theiefoie be unable to access
ieseaich funuing iesouices.
CCIs often supply content that iequiies 'cultuie-baseu cieativity' as =&1>-#4?#J8,0#4
,&4 -,81*(J+&'#&0+5# input that is haiu to measuie in teims of economic value. This
complicates the piovision of financial suppoit to CCIs, as they cannot always uemonstiate
the economic viability of theii piouucts anu seivices. Cultuial anu cieative piouucts anu
seivices often have specific economic chaiacteiistics: foi example, they can be piouuceu
'on the spot' anu cannot be consumeu in any othei context (theatie peifoimances, uance,
live conceits). These piouucts¡seivices aie an extieme example of piouuct
uiffeientiation.
91
The fact that many piouucts anu seivices aie intangible assets, subjective in value anu
often pioject-baseu,
92
uistinguishes them fiom othei manufactuieu piouucts. Bue to the
high uegiee of unceitainty suiiounuing the success of these intangible assets, '"#
71&'#&'J8,0#4 +&4*0'(+#0 +& ),('+7*-,( >+-- '#&4 '1 >1(= 1& 0#5#(,- )(1H#7'0 ,' '"#
0,/# '+/# +& 1(4#( '1 8,-,&7# '"# (+0= associateu with less successful piouucts oi
seivices. Bowevei, this also implies that the cultuial anu cieative entiepieneuis may
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 2S
89
The statistical analysis on fiim chaiacteiistics was taken fiom the Chambeis of Commeice as explaineu in section 1.2
9u
EC Staff Woiking Bocument, (2uu9a), op. cit., p. 27.
91
The 0NESC0 consiueis local cultuial inuustiies ielevant to counteibalance the stanuaiuisation of cultuie as a iesult of the
ongoing piocess of globalisation in the infoimation society (0NESC0, 2uu1: 1S; 0NESC0, 19¡11¡2uu1: 1-S; 0NESC0,
21-22¡u9¡2uuu; 0NESC0, 14-1S¡u6¡1999).
92
Especially sectois such as film, Tv, music, games. 0K Technology Stiategy Boaiu (2uu9), op. cit., p. 18.
ieceive only paitial financial auvances foi ceitain piouucts oi seivices that will not be
successful anu this may leau to significant financial limitations foi the entiepieneuis.
Natuially, intangible innovation is haiu to quantify anu is not easily iecogniseu by those
outsiue the CCIs. Cuiiently, '"# 012' +&&15,'1(0 ,(# &1' -,8#--#4 ,0 71&'(+8*'+&? '1 AZ.
anu cannot ieceive funuing oi equal iecognition fiom eithei scientific oi applieu ieseaich
initiatives. Y7+#&'+O+7 (#0#,(7" +&0'+'*'#0 0'+-- (#7#+5# /10' 12 '"# AZ. 2*&4+&? as
opposeu to applieu ieseaich institutes oi othei emeiging communities. In a iecent stuuy
on innovation in Sweuish seivice companies, it was shown that Su% of the innovation
came uiiectly fiom customeis, SS% fiom employees anu 1&-@ P` 2(1/ #N'#(&,- AZ.F
eP
9F9FPF; \(14*7'+1& )(17#00#0
Piouuction takes place eithei in small-scale uiiect contact between piouucei anu
consumei, oi with iepiouucible, mass meuia piouucts, in &#'>1(=0 12 +&'#(/#4+,(+#0F
These inteimeuiaiies such as publisheis, film piouuction companies oi iecoiu companies,
biing cultuial piouucts anu seivices anu an auuience togethei. They exploit economies of
scale anu scope that apply in paiticulai to capital-intensive aspects of piouuction anu
piomotion iathei than in the laboui anu knowleuge-intensive piocess of cieation.
Bowevei, the incieasing uigitisation of content anu seivices has openeu new piouuction
anu uistiibution possibilities.
94
The impoitance of uigital content foi the
CCIs has leu to the uevelopment of new
applications anu the integiation anu ie-
aggiegation of existing meuia. Ciossovei
Labs is an example of an oiganisation that
suppoits integiation in the piouuction
piocess (see Appenuix 1, Best Case 4).
Nuch like Ciossovei Labs, the uATE
pioject integiates uiffeient actois to apply
new technology foi the game sectoi (see
Appenuix 1, Best Case S). The cieative
content inuustiy is giowing in impoitance
anu is well uevelopeu thioughout the value
chain. The Inteinet anu changing
consumei piefeiences aie auuing to the
complexity of the flow of funus between
the uiffeient playeis in these value chains.
Consumei spenuing is the single most
impoitant souice of funus. Physical meuia
still iepiesent a substantial pait of the maiket, but this is most exposeu to online
substitution.
9S
The tiauitional iuea of the piouuction chain is now evolving, anu in many cases
inteimeuiaiies can be bypasseu.
96
Taking its uistance fiom the lineai piouuction piocess
implieu in the concept of a value chain, the teim I5,-*# 7(#,'+&? #71-1?+#0K encompasses
the iuea of a 'constellation of fiims that aie uynamic, with value flow being multi-
uiiectional anu woiking thiough clusteis of netwoiks'.
97
3(10015#( B,80
Ciossovei Labs in the 0K oiganises woikshops with
multi-uisciplinaiy paiticipants aimeu at exchanging
infoimation in oiuei to cieate innovative piojects
with the use of new meuia tools.
(See Appenuix 1, Best Case 4)
j1(=0 12 -,>@#(0G 8*0+�J/,&,?#(0 1(
,771*&',&'0 71&'(+8*'# '1 '"# 0)#7+O+7,'+1& 12 71&'(,7'*,- ,((,&?#/#&'0 +& '"# 3360
,&4 ,(# ,& +&'#?(,- ),(' 12 '"# +&4*0'(+#0K 0'(*7'*(#F
9F9FPF9 D*'01*(7+&?
Nany CCIs aie 'cieation-oiienteu' anu many of them 7"110# '1 (#/,+& 0/,-- +& 1(4#( '1
=##) '"+0 O-#N+8+-+'@ ,&4 ,4,)',8+-+'@ that laigei CCI enteipiises uo not necessaiily
possess. As noteu above, laigei companies have a stiuctuial auvantage in teims of
ieseaich, uevelopment, auministiative management anu uesign activities to which the
micio-SNEs have little access. Equally, the iepiouuction, uistiibution anu piomotion of
cieative piouucts anu the auministiation of iights aie complex pioceuuies wheie laigei
companies have an auvantage compaieu to the smallei ones.
BoweveiG '"# -,(?#( #&'#()(+0#0 41 &1' ',=# '"# 0,/# (+0=0 ,0 /+7(1JYW%0F
1u1
Nicio-
SNEs often auopt a flexible attituue with new uynamic anu small-scale tools anu piocesses
to pioviue solutions to specific pioblems in oiuei foi them to compete with laigei
oiganisations that aie not capable of being as veisatile. !"+0 ,--1>0 '"# 336 YW%
#&'(#)(#&#*( '1 /,+&',+& , (+0=J',=+&? ,''+'*4#F This attituue is not necessaiily easy to
sustain in a laigei company, as expiesseu by one inteiviewee:
"Tbe creotive inJustries con be o moJel for bow tbe knowleJqe economy in
qenerol is Jevelopinq. So smoller componies ore jlexible, tbey bove more
colloborotion, more free-loncers, onJ tberefore tbey con be o test beJ for tryinq
out new support mecbonisms tbot con eventuolly be rolleJ out to tbe wiJer
economy".
(Euiopean Think Tank)
8F!M%%k
b.TWEEN is a cioss platfoim uevelopment lab in the
0K that fosteis the exchange of iueas between
uiffeient uisciplines as well as offeiing auvice anu
methous foi blenuing uigital meuia methous within
the CCI enteipiise.
(See Appenuix 1, Best Case 6)
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 2S
98
Ibiu, p. 1u. Netwoik value is thus cieateu anu extiacteu in a netwoik of ielationships anu value can best be unueistoou
holistically as a function of the entiie netwoik.
99
Ibiu., p. 7. : The combination of competitive anu coopeiative piocesses is teimeu co-ompetition. In a value cieating
ecology, the CCIs mouels follow the iueas of simultaneous co-opeiation anu competition between membeis of an eco-system,
Ibiu, p. 14
1uu
0K Technology Stiategy Boaiu, (2uu9) , op. cit., p. 11.
1u1
EC uieen Papei, (2u1u), op. cit., p. 7.
The stiuctuie of the CCI SNE enteipiise is moie auaptive, )(#2#((+&? 1*'01*(7+&?
01-*'+1&0 21( $2 +)7 0#(5+7#0 >"+-# /,+&',+&+&? , 0/,-- 71(# '#,/ 12 #/)-1@##0F The
solution favouieu by many oiganisations in the CCIs is '1 5,(@ '"# 4#?(## 12 +&'#?(,'+1&
,&4 71&'(1- 15#( 5,(+1*0 ,0)#7'0 12 )(14*7'+1& ,&4 '1 1*'01*(7# '"+0 '1 0/,--#(G
(+0=J',=+&?G 4@&,/+7 #&'#()(+0#0F
Even the laigest inteimeuiaiy enteipiises iegulaily oiganise the piouuction of new meuia
content in ielatively small, semi-autonomous teams. 0utsouicing also iesults in the neeu
foi micio-SNEs to be able to 71/8+&# 81'" '"# 7(#,'+1& ,0 >#-- ,0 '"# ,4/+&+0'(,'+1&
linkeu to theii fieelance activities. As noteu by a iegional institute:
"Tbe biq componies in tbe CCls bove reJuceJ tbeir employees in tbe post S0
yeors...tbey outsource. Tbe Jeqree of outsourcinq is very biqb. Tbis olso meons
tbot people Jon't Jo wbot tbey ore qooJ ot {tbey neeJ to ocquire tbe job, bove to
moke tbeir own toxes, bove to Jo everytbinq, morketinq). AnJ in tbe post tbis
wos Jeolt witb tbrouqb tbe Jivision of lobour. So creotive people lose o lot of
time Joinq tbinqs tbey ore not qooJ ot onJ tbot sboulJn't be tbeir job!".
(Regional Institute foi CCI, Stiuctuially Stiong Tiauitional Economy)
The fact that CCIs have consequent uispaiities in size anu giowth stiengthens the
tenuency to outsouice, especially in sectois in which automation of piouuction
enables outsouicing, such as the ietail woik in the fashion sectoi oi in ceitain
computei games. Fuithei, to ueal with the monopolistic tenuencies of some CCIs, ,
"+?" )#(7#&',?# 12 2(##-,&7#(0 ,&4 /+7(1JYW%0 (#-@ 1& &#'>1(=0 ,&4 )#(01&,-
71&',7'0 in oiuei to act as a gioup.
9F9FPFPF 3",(,7'#(+0'+70 12 336 1*')*'
Inteinational bouies, such as 0NESC0 with its Convention on the Piotection of Cultuial
Biveisity,
1u2
note that 7*-'*(,- ?1140 ",5# '1 8# 0#' ,),(' 2(1/ 0',&4,(4+0#4 /,00
71&0*/)'+1& oi even excluueu fiom inteinational tiaue agieements anu competition
iegulations.
1uS
Cultuial piouucts aie not 'simply meichanuise', 8*' #N)(#00 7*-'*(,-
*&+S*#� ,&4 210'#( 7*-'*(,- 4+5#(0+'@F
1u4
Theii utility anu quality foi any inuiviuual cannot often be ueteimineu with any ceitainty
piioi to consumption anu sometimes taste changes as a iesult of iepeateu consumption. In
geneial, uemanu will inciease with exposuie, in a piocess of 'iationale auuiction'.
1uS
Cultuial anu cieative piouucts anu seivices aie also expeiience goous.
1u6
Cultuial piouucts
anu seivices stage an expeiience that is uiiectly ielateu to the usei. In oiuei to stage this
expeiience, the usei's uemanus will be taken into consiueiation in the uesign of the
piouucts anu seivices continuously, thiough 'feeuback loops'. These piocesses of
inteiaction foim inuiiect outputs of the piouucts¡seivices.
These feeuback loops impiove the uesign of the piouuct oi the seivice offeieu by the CCI
enteipiise anu useis aie actively taking pait in the iemouluing of the piouuct. The enu
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 26
1u2
In 0ctobei 2uuS, 148 countiies suppoiteu the 0NESC0 Convention on the Piotection anu Piomotion of the Biveisity of
Cultuial Contents anu Aitistic Expiessions; expiessing the position, that mechanisms to maintain anu uevelop uomestic
piouuction aie necessaiy because the uiveise goous piouuceu aiounu the woilu aie not simply meichanuise, but
expiessions of iich inuiviuual uniqueness anu cultuial iuentities.
1uS
0N¡0NESC0 uatts Agieement, 0nesco's ulobal Alliance on Cultuial Biveisity, E0 exceptions on competition law,
exemptions on state aiu anu the state aiu pioceuuie. State aiu is usually consiueieu as incompatible with the common
maiket when it uistoits competition by favouiing ceitain unueitakings oi the piouuction of ceitain goous. Financial suppoit
to SNE's in the sectoi of the cultuial anu cieative inuustiies can be justifieu when it is (1) piomoting economic uevelopment
of aieas with an abnoimally stanuaiu of living of seiious unueiemployment, (2) it is facilitating the uevelopment of ceitain
economic activities of ceitain economic aieas, (S) it is piomoting cultuie anu heiitage conseivation. Retiieveu at 14 Bec.
2uu9 fiom: http:¡¡www.euiopa.eu.int.scauplus¡leg
1u4
Foi a uiscussion on the tensions between commeicialisation on the one hanu anu cultuial meiit on the othei, see:
Steuman u., (2uu6), "Fiom uentlemanly Publishing to Conglomeiates: The Contempoiaiy Liteiaiy Fielu in the 0K" In
Eisenbeig, C., ueilach, R. anu Banuke, C., (eus.), (2uu6), Cultuial Inuustiies: The Biitish Expeiience in Inteinational
Peispective, Beilin: Bumbolut 0niveisity
1uS
Thiosby, B., (2uu1), op. cit., p. 11S.
1u6
KEA (2uu9), op. cit., p. S9.
iesult of these feeuback loops may pioviue insight into uesign piocesses that can be ie-
useu in the futuie. As such, the CCI enteipiise output is not meiely a piouuct oi a seivice
but also incluues a uesign piocess. The benefits of being able to ieplicate these uesign
piocesses aie obvious in a commeicial sense. An auuitional benefit is also available foi the
uesignei, who can examine anu ieflect upon his own woikflows anu this may leau to new
outputs in teims of impioveu piouucts oi paths that appeai to leau in a piomising
uiiection.
Bowevei, the uesign piocess of foiming a piouuct oi a seivice is not always explicit. Those
woiking in the cioss-meuia sectoi aie familiai with the aitefacts fiom paiticulai cieative
uomains but aie iaiely able to access the uesign piocesses that cieateu these aitefacts. h@
)(15+4+&? ,& +&'*+'+5# -#5#- 12 ,77#00 '1 '"#0# 4#0+?& )(17#00#0G SNEs woiking in the
cieative inuustiies (such as auveitising, mash-up, cuiatois etc.) aie fai bettei able to
imagine, exploie, analyse anu pieuict the most favouiable uiiections in which theii assets
can then be ueployeu.
Cieating an expeiience is, howevei, highly 0*8H#7'+5# anu the economic value cannot be
piecisely ueteimineu in auvance anu '"+0 0*8H#7'+5# 71/)1&#&' /#,&0 '",' '"#
7*-'*(,- ,&4 7(#,'+5# #&'(#)(#&#*( +0 71&0',&'-@ ',=+&? (+0=0F In view of the size
chaiacteiistics of the majoiity of CCIs anu the high competition, the CCI entiepieneui is
constantly looking foi innovative solutions, new tienus, piouucts anu seivices that aie
moie in line with usei anu consumei uemanu.
1u7
As one inteiviewee noteu:
"Sometbinq tbot people neeJ is to look ot wbot tbey con Jisrupt, tbey neeJ to qo
bock to Jisruption. Con tbey Jisrupt reolisotion? Con tbey Jisrupt Jistribution?
Con tbey Jisrupt tbe woy tbey creote iJeos?".
(Reseaich Institute foi CCI, Knowleuge Economy)
Cultuie has not exclusively been seen fiom the tiauitional point of view of conseiving
cultuial heiitage but moie as a /#,&0 '1 )*(0*+&? , S*,-+','+5#-@ "+?"#( -#5#- 12
4#5#-1)/#&'F This flexible concept has hau the meiit of linking the iuea of cultuie to a
seiies of activities - fiom fashion, to uesign anu the engineeiing of computei games -
pieviously consiueieu outsiue the spheie of cultuial policies.
9F9FRF L&7#(',+& 5,-*# ,&4 7",&?+&? 8*0+� /14#-0
As noteu above, '"# /,(=#' 21( 7*-'*(,- ?1140 +0 81'" 51-,'+-# ,&4 *&)(#4+7',8-#G
piomoting business stiategies that aie 'emeigent', piovisional, highly iesponsive to usei-
uemanu anu baseu on 'intuitive' anu 'emotional' knowleuge as much as stanuaiu maiket
ieseaich.
Consumeis aie often not awaie of theii tastes in cultuial maikets. Rathei they uiscovei
them thiough iepeateu expeiiences in a sequential piocess of laigely unsystematic
'leaining by consuming'. As theie is an infinite vaiiety of cieative offeiings, this uiscoveiy
piocess may be nevei-enuing. To the extent that inuiviuuals aie unsuie of theii
piefeiences, +' +0 &1' 0*()(+0+&? '",' )(14*7#(0 12 ?1140 12 #N)(#00+5# 5,-*# 0'(*??-#
'1 ,&'+7+),'# /,(=#' 5,-*#F
;:_
Noieovei, in auuition to facing unceitainty, high competition anu extieme imbalances
between the micio anu laigei enteipiises, 4+?+',- 71&5#(?#&7# has also mouifieu the
uistiibution piocess of CCI piouucts anu seivices. The bioauening usage of the inteinet
anu content inteiface platfoims has significantly changeu the value chain anu uistiibution
piocess, #&,8-+&? , I4#/17(,'+0,'+1&K 12 ,77#00 '1 4+0'(+8*'+1& ,&4 , "+?"#(
),('+7+),'+1& 12 )(14*7#(0 ,&4 71&'#&' 1(+?+&,'1(0F
;:e
Consequently, this shapes new
maiket stiategies anu new business mouels to which CCIs must auapt. As noteu above, the
inteiaction with the usei anu consumei is moie uiiect than in the physical woilu anu
much moie uynamic anu self-feeuing:
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 27
1u7
EC uieen Papei, (2u1u), op. cit., p. 7.
1u8
uaiboua L L., Nontmaiquette, C., (1996), 'A micio econometiic stuuy of theatie uemanu', }ouinal of Cultuial Economics,
vol. 2u, Numbei 1
1u9
0K Technology Stiategy Boaiu, (2uu9), op. cit., p. 18.
"Tbe purely lineor business moJel is qivinq woy to o mucb more inter-woven
environment, wbere cross-fertilisotion of stimulus onJ response, Joto-Jriven supply
onJ JemonJ, onJ speeJ of communicotion enoble o mucb more ropiJ evolution of
proJuct Jevelopment onJ consumption".
110
This shift has also tiiggeieu an exchange of content anu seivices anu facilitateu peei to
peei shaiing, enuangeiing legal piotection suiiounuing the content¡seivices. Cieative
piocesses aie theiefoie much less lineai anu with the inciease in file-shaiing within
netwoiks, the ability of piouuceis oi uistiibutois to contiol anu chaige foi content has
become a majoi concein. !",' '"# (+?"'0 "1-4#(0 ,&4 '"# 7(#,'1(0 ,(# &1' 8#+&?
(#>,(4#4 >+'" '"+0 8(1,4# ,77#00 '1 71&'#&' +0 , (#,- 7",--#&?# '1 71//#(7+,-
0*77#00F Theie aie piesently impoitant tensions between uiffeient philosophies as a
iesult of the 'uemociatisation' of content anu this is auuiesseu in section S.S below. What
is impoitant is the mannei in which this ",0 ,22#7'#4 '"# 8*0+� /14#-0 of the
companies that have to auapt to this changing enviionment anu at the same time be
sufficiently flexible to iemain upuateu about the newest changes anu oppoitunities.
Consiueiing the specific chaiacteiistics of the CCIs with iegaiu to theii size anu
composition; theii piouuct cieation piocesses; theii intangible assets anu hiuuen
innovation; the shifting output consumption; the changing value chain ecologies; the
shifting uigital enviionment anu the impact it has on business mouels anu inteiaction with
usei; it is cleai that the 3360 ",5# /,&@ 71/)-#N 7",--#&?#0 '1 2,7#F They aie also
woiking in an enviionment that is not always pione to iewaiuing iisk taking behavioui
anu this puts fuithei complications on theii paths to sustainability anu giowth.
9FPF C#,'*(#0 12 '"# 336 0#7'1(0
Bespite all the similaiities between the uiffeient sectois of the CCIs, it is helpful to look at
each specific sectoi of the CCIs in oiuei to highlight the uiffeient piocesses that might
influence the suppoit of entiepieneuiship. 0ne of the most common issues obseiveu
uuiing this stuuy was '"# 4+5+0+1& 8#'>##& '"# 0*80+4+0#4 0#7'1(0 ,&4 '"# &1&J
0*80+4+0#4 1�F This uivision is also a ieflection of the philosophies of each Nembei
State when auuiessing the cultuial sectois anu opening up the cieative economy:
"ln my opinion tbere is o Jifference between tbe creotive onJ tbe clossicol port. Tbe
creotive inJustries ore more entrepreneuriol tbon tbe more clossicol port. Tbis olso
bos to Jo witb tbe wbole subsiJy system, wbere tbe more clossicol port of tbe inJustry
is better oble to receive funJinq from tbe qovernment".
(National Ninistiy of Cultuie, Knowleuge Economy)
Biscussion about the efficiency of uiffeient subsiuy systems is beyonu the scope of this
stuuy. Bowevei, when talking about suppoiting the entiepieneuiial uimension of CCIs,
'"#(# >,0 , ?(1>+&? (#,-+0,'+1& '",' 0*80+4@ 0@0'#/0 ",5# 0",)#4 '"# #N+0'+&?
#&'(#)(#&#*(+,- 4+/#&0+1& 12 7#(',+& 0#7'1(0F Accoiuing to the inteiviewees, heavily
subsiuiseu sectois tenu to be less uiiven by the commeicial siue of unueitaking an
entiepieneuiial activity. These sectois aie piimaiily seen as willing to cieate anu
expeiience, iathei than commeicialise, theii piouucts anu seivices:
"Tbe ortist´s moJel rorely works witb tbe ottituJe or opinion tbot commerciolisotion
strenqtbens tbe creotive output. Host jine ortists onJ cboreoqropbers ore enqoqeJ in
tbe process rotber tbon tbe outcome. 0nce tbe openinq niqbt bos storteJ tbey´ve
olmost lost interest in it. l tbink you neeJ to jinJ people wbo ore interesteJ in tbe
process onJ look beyonJ tbe openinq niqbt".
(Bighei Euucation Institute foi CCI, Knowleuge Economy)
Noieovei, ieceiving public funuing can also imply a ceitain uegiee of political influence on
the piouuct oi seivices. 0veiall, most iesponuents agieeu that subsiuies weie necessaiy to
enable the expeiimentation anu the uevelopment of ceitain sectois. Bowevei, the system
was consiueieu inefficient foi enabling sustainable giowth. Paiallel to the bluiiing of
fiontieis between the uiffeient sectois, this sectoial uiffeientiation may giauually
uisappeai.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 28
11u
Ibiu., p. 19.
Noving beyonu this uuality, the 0K Technology Stiategy Boaiu elaboiateu a mouel of the
CCIs baseu on how commeicial value was cieateu.
111
The mouel is not intenueu to
uiffeientiate in a way that uisciiminates in favoui of a paiticulai segment oi gioup of
sectois. Insteau it is aimeu at shaping policy to uiiect changes anu enhance the
uevelopment of CCIs by taigeting auvice, suppoit anu investment tailoieu to the patteins
of activity anu theii potential foi giowth anu uevelopment. The bounuaiies between the
clusteis aie not fixeu anu some of the sectois may be in moie than one clustei oi cioss
ovei between seveial sectois (foi example music anu games).
The 0K Technology Stiategy Boaiu mouel stiuctuies the CCIs along thiee gioups, baseu on
the physical veisus uigital input, as well as manual veisus technology-aiueu output (see
Appenuix 2.9):
! Cieative seivice pioviueis - tiauitionally non subsiuiseu
! Cieative content pioviueis - mostly non subsiuiseu
! Cieative expeiiences¡oiiginal pioviueis - mostly subsiuiseu
Foi this stuuy, the cieative expeiience anu oiiginal pioviueis have been meigeu into one
clustei as they iepiesent mostly the coie aits (peifoiming aits anu visual aits).
!@)# 12 3-*0'#( Y#7'1(0 W,+& 3",(,7'#(+0'+70
3(#,'+5# 0#(5+7#
)(15+4#(0
Besign, aichitectuie, new
meuia, auveitising
- Biiect inteiaction with usei's
uemanu
- Exchange of time foi IP
piouucts
- Bighly influenceu by
technology anu uigitisation
- Nostly pioject-baseu
- Nostly piivate oi self-financing
3(#,'+5# 71&'#&'
)(15+4#(0
Tv anu Rauio, Fashion, uames,
Nusic, Film, Books
- Piouuceis of IP piouuct
- Bighly influenceu by
uigitisation, mostly foi
"cieation" anu usei-inteiaction
- Nostly pioject-baseu
- Nix of self-financeu anu
subsiuiseu sectois
(auuiovisual anu games,
books)
- Expeiience thieats of piiacy
fiom uigital maiket anu peei
to peei exchange
3(#,'+5# #N)#(+#&7#
)(15+4#(0
3(#,'+5# 1(+?+&,-
)(15+4#(0
Peifoiming aits, visual aits,
(music, games)
- No initial owneiship of woik
anu usually pay foi othei's
copyiight
- Nostly subsiuiseu anu
conceineu by the cultuial
value of theii woik
- Aits aie mostly on contiact
basis
- Bigitisation is mostly foi
uissemination anu as
communication tools
- 0sually one off piouucts anu
seivices
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 29
111
0K Technology Stiategy Boaiu, (2uu9), op. cit., p. 21.
!,8-# PE 3-*0'#(0 +& '"# 3360
{Source: BoseJ on tbe clossijicotion of tbe 0K Tecbnoloqy Stroteqy BoorJ)
The use of such clusteiing was laigely agieeu upon by the paiticipants of the woikshops
helu uuiing the stuuy to valiuate the methouology anu the iesults. This clusteiing enables
us to see geneial tienus in teims of value chains, financial schemes anu subsiuisation.
Befoie uetailing the featuies of each sectoi, it is inteiesting to look at the oveiall tuinovei
of each sectoi as illustiateu in Fig. 7. below which shows that the sectois that geneiateu
most tuinovei weie mainly the seivice pioviueis anu content pioviueis.
C+?*(# VE !1',- !*(&15#( )#( 6&4*0'(@
{Source: Furokleis 2009, stotisticol onolysis)
The laigest total tuinoveis pei inuustiy aie: Fashion (247.189.494 TB t), Besign
(1S7.11S.9S2 TB t) anu Rauio & Television (1SS.192.SS1 TB t). These inuustiies, mostly
the content pioviueis anu cieative seivice pioviueis, have benefiteu fiom the iise of the
uigitisation of society anu the ensuing uigital maiket.
Inuustiies that iequiie gieatei competition anu investment in technology anu¡oi
economies of scale (i.e. Rauio & Television, Softwaie Pub. & uames, Besign, Book & Piess
anu visual Aits) show moie employees in 'laige companies' (i.e. moie than 2Su woikeis)
as seen in Table 2. above.
As can be seen in Fig. 6., the inuustiies that employ moie woikeis aie: Fashion
(2.2Su.SS4), Besign (1.428.64S), Aichitectuie (762.714) anu Book & Piess (7u2.S6S).
Claiifying the uivision between the entiepieneui anu the enteipiise, the inuustiies that
hau the laigest numbei of enteipiises in Euiope weie Fashion (142.212), Besign
(1u1.2SS), Aichitectuie (76.2S6) anu Auveitising (S7.244).
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries Su
C+?*(# _E \#(7#&',?# 12 %&'#()(+0#0 )#( Y#7'1(
{Source: Furokleis 2009, stotisticol onolysis)
0veiall, theie is a pieuominance of the sectois that iequiie gieatei investment in
technology, with the exception of fashion (which is uue to the inclusion of the ietail
inuustiy in the fashion statistics, see Appenuix 2.1u). Fiom the stuuy's statistics, foi the
inuustiies using most technology (laigely content anu seivice pioviueis), the total
tuinovei is geneiateu pieuominantly by the laige companies while in the othei inuustiies
the SNEs play a laigei iole.
9FPF;F 3(#,'+5# 0#(5+7# )(15+4#(0
This clustei consists of Besign, Aichitectuie, Auveitising anu New Neuia. Cieative seivice
enteipiises aie baseu aiounu eaining ievenues in exchange foi uevoting theii time anu
intellectual piopeity (IP) to othei businesses anu oiganisations. The cieative activities aie
embeuueu in a lanuscape of auministiative, oiganisational oi manufactuiing activities that
foim an integial pait of the inuustiies' stiuctuie.
The cieative seivice pioviueis aie usually self-financeu anu consist mostly of micio-SNEs.
The cieative piocess is heavily suppoiteu by technology as the cieative piocess is highly
involveu in usei-inteiaction, incieasingly so with the use of web-baseu platfoims.
9FPF;F;F #( '",& ;: )#1)-#F
In teims of O+&,&7#, the sectoi typically opeiates with piivate financing without specific
goveinmental schemes. Public piocuiement anu piizes aie often seen as moie appiopiiate
foi the sectoi than subsiuies. The geneial piofession is goveineu by the geneial
iegulations of the inteinal maiket of the E0 (fieeuom of establishment, fieeuom of
movement, public contiacts). In the E0 Council Resolution of }anuaiy 2uu7, the E0
amenueu its uiiective to suppoit the aichitectuial sectoi to encouiage mobility thiough
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S1
112
All statistical uata, unless otheiwise inuicateu, come fiom the statistical stuuy unueitaken by Euiokleis.
the mutual iecognition of qualifications in aichitectuie acioss Euiope.
11S
In the past, the
E0 has also suppoiteu the sectoi by piomoting the co-opeiation anu the netwoiking
between institutions ueuicateu to cultuial heiitage anu aichitectuie.
114
In auuition to suppoiting collaboiation anu
a gieatei fieeuom of movement, the access
to the maiket is inuiiectly suppoiteu
thiough legislative means. Inueeu, in
countiies wheie it is not manuatoiy to hiie
aichitects, aichitectuie is piomoteu by
pointing to the cultuial significance of
aichitectuial uesign anu piogiammes foi
subsiuiseu consultation by aichitects. In
the othei countiies, suppoit is inheient
wheie aichitectuial uesigns aie manuatoiy
foi the constiuction of builuings. Some
oiganisations, such as Aichitectuui Lokaal,
seek to involve useis to ensuie quality of seivices (see Appenuix 1, Best Case 7).
ICT tools aie wiuely useu in the sectoi foi uesign, visualisation, infoimation exchange
about piocesses, anu ICT is wiuely useu to inciease efficiency in assembling anu
ieassembling, as well as biinging the vaiious bianches of the uisciplines togethei.
11S
With
such ICT tools, the piouuction phase has shoiteneu, but the sectoi is still veiy laboui
intensive.
9FPF;F9F "+-# 9R` 12 '"# 3360 ",5#
8#'>##& RJe #/)-1@##0F Combineu, the companies unuei 1u employees aie iesponsible
foi 28% of the total tuinovei foi the sectoi.
The iise of ICT has leu EASA (Euiopean
Auveitising Stanuaiu Agency - see
Appenuix 1, Best Case 8) membeis to
ieach a consensus on incluuing uigital
maiketing communications in the iemit of
auveitising self-iegulatoiy oiganisations.
0nline auveitising spenuing pei usei has
iisen uiamatically in the last foui yeais,
with 0K leauing the way. !"# 1&-+&#
,45#('+0+&? /,(=#' in the 0K went fiom
uBP 122 pei usei in 2uu6 to uBP 217 in 2u1u. Fiance's online auveitising is now ieaching
$1SS pei usei, fiom $89 pei usei foui yeais ago. As the stuuy by the 0K Technology
Stiategy Boaiu confiims, 7u% of the value anu giowth potential comes fiom content anu
b3(100d W#4+,
New Neuia is the newest subgioup among the cieative inuustiies. It has emeigeu as a
iesult of iapiu auvances in ICT aimeu at ueveloping the global infoimation infiastiuctuie,
giving iise to the so-calleu Infoimation Society.
128
New meuia is both a piouuct (softwaie, caitoon, game etc.) as well as a seivice; a
communication tool foi maiketing anu uistiibuting othei piouucts. The sectoi coveis a
bioau iange of activities uealing with uigital uesign, but moie specifically seivice uesign: it
ueals with piocesses linkeu to seivices between people anu theii enviionment. This
uefinition makes the activities in this sectoi inheiently cioss-sectoial. The suppoiting
oiganisations give suppoit in this fielu in the foim of innovation anu R&B piojects. In
teims of ICT use, accoiuing to the stuuy's sectoial expeit questionnaiies, the most
impoitant use of ICT technologies foi CCI SNEs aie communication tools (91%) anu
knowleuge¡goous piouuction tools (76%).
The sectoi has ];` 12 71/),&+#0 >+'" 2#>#( '",& R #/)-1@##0G 8*' +' +0 (#0)1&0+8-#
21( 9:F;9` 12 '"# #/)-1@/#&' +& '"# 3360F The tuinovei is, howevei, mostly geneiateu
by the biggei enteipiises (8u% of the total ievenue is geneiateu by companies with Su+
employees out of which 48% is geneiateu fiom enteipiises with Su-249 employees
consisting of S.14% of the sectoi). ICT accounts foi half of the iise in E0 piouuctivity
129
anu is essential to businesses, public seivices anu to making a mouein economy woik anu
a ciucial component of the E0 iecoveiy plan. Such economic effects can be seen in seveial
Nembei States.
1Su
In teims of O+&,&7+,- 0*))1('G the sectoi is not subsiuiseu but exteinal suppoit exists,
although the paths to obtain it aie often fai too complex foi inuiviuual SNEs. In teims of
?(1>'" )1'#&'+,-G the companies have facilities to stait up uue to the shoit time-spans of
R&B anu piouuct lifecycles but the companies have uifficulty in giowing. The issue of
maiket fiagmentation is notable foi this sectoi. Euiope is veiy fiagmenteu in teims of
language anu iegulations about IPR, infoimation access, etc. This system uiscouiages the
companies fiom giowing acioss national boiueis as it usually cieates only locally
opeiating SNEs, although the maiket is global.
1S1
The New Neuia anu ICT technologies
have also the potential to affect the oveiall enviionment foi CCIs uue to the incieasing
impoitance of uigitisation.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S4
126
0pen Innovation was uefineu as the use of puiposive inflows anu outflows of knowleuge to acceleiate inteinal innovation,
anu expanu the maikets foi exteinal use of innovation, iespectively. Chesbiough, B.W., (2uuS), 0pen Innovation: The new
impeiative foi cieating anu piofiting fiom technology, Boston: Baivaiu Business School Piess
127
EC Staff Woiking Bocument, (2uu9a), op. cit., p. S1.
128
0NCTAB,(2uu8), op. cit., p. 1S2.
129
Euiopean Bigital Neuia Association (EBiNA), (2uu9), White Papei on Policy Stiategy foi the Bevelopment of New Neuia
Seivices 2uu9-2u14, see http:¡¡ec.euiopa.eu¡infoimation_society¡eeuiope¡i2u1u¡uocs¡post_i2u1u¡
auuitional_contiibutions¡euima.puf
1Su
In 0K, the uigital maiket anu uigital content is iesponsible foi appiox. 7u% of the tuinovei of the cieative inuustiies in
the 0K: see 0K Technology Stiategy Boaiu, (2uu9), op. cit., p. 12.
1S1
Euiopean Bigital Neuia Association (EBiNA), (2uu9), op. cit., p. 2.
In teims of innovation potential, new
meuia intiouuces new foims of expiession
anu platfoims, such as usei-geneiateu
content. It changes the backgiounu as
smallei companies can compete affoiuably
in biggei maikets anu auveitise theii
piouucts online although the competition
is fieice. The EBiNA White Papei on ICT
stanuaiuisation uemonstiates the willingness to pay incieasing attention to new
technologies as a uiivei of innovation (see Appenuix 1, Best Case 1u).
9FPF9F 3(#,'+5# 71&'#&' )(14*7#(0
This clustei incluues film, Tv, fashion, games, music, books anu publishing. Cieative
content enteipiises piouuce IP, usually making use of technical piotection measuies.
These enteipiises eain ievenues thiough a vaiiety of ielateu business mouels such as
online anu off line sales, auveitising oi subsciiption. These enteipiises invest capital
upfiont in oiuei to uevelop cieative piojects piioi to any ievenues. Bepenuing on the
sectoi, this upfiont investment can be substantial, anu as a iesult the investment often
takes place on a pioject-by-pioject basis iathei than in the context of an ongoing anu
sustainable business. Within this gioup, a loose but impoitant uistinction can be maue
between those enteipiises that focus on the next inuiviuual cieative pioject anu those that
aie stiuctuieu to uevelop a sustainable 'piouuction line' of cieative piouucts anu an
incieasing bouy of IP foi ieneweu exploitation.
In teims of the cieative piocess, the clustei is highly influenceu by uigital conveigence: the
piocesses aie usually highly technologically aiueu, having an impoitant usei-inteiaction
component within the cieative piocess, anu the piouucts anu seivices aie also incieasingly
uigital, with the e-book being an illustiation of this. Piiacy anu peei-to-peei exchange aie
thieatening the loss of value of some of the content piouuct anu seivices. The cieative
content piouuceis have significant ciossoveis with othei sectois of the economy outsiue
the CCIs, such as mobile phone netwoik opeiatois, hanuset manufactuieis foi music
uistiibution, which have consiueiable influence on the business mouels ueployeu.
1S2
9FPF9F;F C+-/
Film is the sectoi that ieceives, geneially speaking, stiong suppoit fiom the state acioss
Euiopean countiies thiough vaiious measuies (tax sheltei, subsiuies etc). Tax shelteis of
vaiying types in Bungaiy, Netheilanus, Iielanu, the 0K, Luxembouig, Fiance, Spain anu
Belgium aie meant to encouiage investments anu consiueiably enhance the funuing
oppoitunities foi film piouuction. The sectoi is also highly subsiuiseu in othei Euiopean
countiies, though the iecent financial ciisis means that this subsiuy is likely to ueciease.
The special piogiamme foi the auuiovisual
sectoi at the Euiopean level, NEBIA,
1SS
also tackles the neeus of the sectoi. NEBIA
co-finances tiaining initiatives foi
auuiovisual inuustiy piofessionals, the
uevelopment of piouuction piojects,
tiaining of piofessionals, anu geneially
uistiibutes anu piomotes films anu
auuiovisual output (see Appenuix 1, Best
Cases 11). 0n top of this, the E0 Neuia piogiamme will launch at the enu of 2u1u a Neuia
Piouuction uuaiantee Funu that will be aimeu at suppoiting anu facilitating the access of
public auuiovisual companies to bank cieuits.
1S4
In teims of the sectoi's composition, the sectoi is highly fiagmenteu. ]:` 12 '"#
%.6W<
EBINA is the E0 netwoik that aims at cieating an
open anu legal fiamewoik foi new uigital piouucts
thioughout the E0 so as to avoiu the legal baiiieis
blocking a single Euiopean uigital maiket.
(See Appenuix 1, Best Case 1u)
W%.6<
NEBIA is the E0 suppoit piogiamme foi the
auuiovisual sectoi. It co-finances piojects , piomotes,
tiains film piofessional anu suppoit the sectoi to
face the uigital shift.
(See Appenuix 1, Best Case 11)
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries SS
1S2
0K Technology Stiategy Boaiu, (2uu9), op. cit., p. 22.
1SS
See http:¡¡ec.euiopa.eu¡infoimation_society¡meuia¡inuex_en.htm
1S4
See http:¡¡ec.euiopa.eu¡cultuie¡meuia¡piogiamme¡oveiview¡funuing¡inuex_en.htm
71/),&+#0 ",5# *&4#( R #/)-1@##0 (see Fig. 2) but these companies piouuce only 12%
of the sectoial tuinovei. The companies that have 4-9 employees iepiesent 26% of the
sectoi's enteipiises anu they geneiate 16% of the total ievenue of the sectoi (see Fig. S.).
Companies that have moie than Su employees iepiesent a bit less than 2% of the total of
enteipiises in the sectoi but geneiate 49% of the total ievenue. The total tuinovei of the
sectoi is 6.1u% of the CCIs tuinovei anu it holus 4.84% of the employees of the total CCIs.
The maiket ieacheu a total spenuing value of 0SBS9 billion in 2uu9.
The uigital maiket has also been changing the peispective foi this sectoi. Theie is a
giowing emeigence of online iental subsciiption seivices anu a consequent iapiu uptake
of v0B anu pay-pei-view (PPv). The v0B maiket just staiteu in 2uu4 but was expecteu to
giow moie than tenfolu fiom 0SB 16S million in 2uu4 to 0SB 1.7 billion in 2uu9.
1SS
9:
9::R 9::f 9::] 9::V 9::_
.+?+',-
Y7(##&0
Su SS 2u4 S27 897 1S29
.+?+',-
0+'#0
27 4S 148 SS8 SSu 81S
!,8-# RE .+?+',- 3+&#/, 0+'#0 ,&4 07(##& +& %*(1)# b9:J9::_d
{Source: HeJio Soles)
1S6
An inability to sustain giowth is one of the main issues foi the film sectoi. Linkeu to the
uifficulty to entei the maiket, the film sectoi suffeis fiom the inaccessibility of giowth
finance aftei the initial company set-up. Inueeu, the iepoit on the evaluation of the NEBIA
piogiamme inuicateu that E0 auuiovisual sectoi suffeieu fiom stiuctuial weaknesses such
as maiket fiagmentation anu the low ciiculation of Euiopean woiks outsiue theii countiy
of oiigin.
1S7
In teims of value chain piocesses, the piouuction time is geneially long,
although the piouuct can be multiplieu anu uistiibuteu.
9FPF9F9F h11=0 ,&4 \*8-+0"+&?
Publishing anu piint meuia constitute an
impoitant subgioup of the cieative
inuustiies fiom both the cultuial anu the
economic point of view. Technologically,
howevei, the publishing anu meuia
inuustiies aie facing new challenges uue to
the giowing tienu towaius electionic
publishing. Accoiuing to the Feueiation of
Euiopean Publisheis (see Appenuix 1, Best
Case 12), the total annual sales ievenue of book publisheis of the E0 anu the EEA in 2uu8
was appioximately t 2S.7S billion.
1S8
The sectoi compiises mostly of enteipiises with ;JP
#/)-1@##0 bfe`d ?#&#(,'+&? ;9` 12 '"# '1',- '*(&15#( 12 '"# 0#7'1(G >"+-# /10'
(#5#&*# bV9`d +0 ?#&#(,'#4 8@ 71/),&+#0 >+'" f:g #/)-1@##0 (2.S8% of the sectoi).
Competition in both the physical anu the uigital maiket influences the stiuctuie of the
sectoi but initiatives such as vAT ieuuction gieatly suppoit the giowth of the sectoi. In 2S
of the 27 Nembei States of the Euiopean 0nion, piinteu books benefit fiom ieuuceu iates
of vAT. Iielanu, Polanu anu the 0niteu Kinguom pioviue foi a zeio vAT iate foi books,
while five moie countiies have extenueu ieuuceu iates to books on all physical suppoit:
Fiance, Spain, Slovenia, Noiway anu the Netheilanus. Sweuen anu Icelanu allow ieuuceu
C#4#(,'+1& 12 %*(1)#,& \*8-+0"#(0
FEP is Euiopean sectoial suppoit oiganisation foi
book publisheis association in the E0. It mainly
ueals with legislative suppoit at the E0 level anu
auvises on copyiight issues.
(See Appenuix 1, Best Case 12)
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S6
1SS
KEA, (2uu6), op. cit., p. 114.
1S6
Euiopean Auuiovisual 0bseivatoiy, (2uu9a), Piess Release, Embaigo Bigital Scieen Base giows 7u% in 2uu8, Stiasbouig¡
Nilan: see http:¡¡www.obs.coe.int¡about¡oea¡pi¡uigital_cinema2uu8.html
1S7
E0REvAL Neuia Consulting gioup, (Novembei 2uu7), Final iepoit of NEBIA piogiamme Plus anu Neuia Foimation,
http:¡¡ec.euiopa.eu¡cultuie¡meuia¡piogiamme¡uocs¡oveiview¡evaluation¡iepoits¡meuia%2uplus¡executive_sum_en.puf
1S8
See http:¡¡www.fep-fee.eu
vAT foi auuio booksF
;Pe
< (#4*7#4 (,'# 12 i1(= '",' #&,8-#0 8*0+� /14#-0 +& '"+0 0#7'1(F
Nany SNEs not only lack technological tiaining, but also sectoi specific tiaining
(management skills, publishing skills, etc.). Cuiiently, sectoial associations pioviue basic
tiaining that pieuominantly focuses on piouuction. The sectoi woiks heavily in 7(100J
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S7
1S9
See http:¡¡www.fep-fee.eu¡2.S.html
14u
Comments fiom Euiopean Sectoial 0iganisation
141
See http:¡¡www.iupf.oig
0#7'1(,- &#'>1(=0G foi example with auuiovisual anu music.
142
9FPF9FPF j,/#0
In auuition to open uesign games, inteiactive enviionments, smait movie games anu
seiious games aie incieasingly acknowleugeu as suitable foi a bioauei use within society
anu economics. Peuagogical games that simulate suigeiy; open space inteiactive
enviionments useu foi city planning; oi games uevelopeu foi people with uisabilities aie
all examples of the iise of multi-functionality in this sectoi.
Bowevei, on a highei level, the sectoi is not sufficiently iecogniseu anu is not sepaiateu
fiom softwaie in most statistics. The sectoi is also only paitially iecogniseu as an
innovative new meuia in the cieative content sectoi
14S
. In teims of total (#5#&*#G the
game sectoi is iesponsible foi 6.47% of the total ievenue geneiateu by the CCIs.
Laige uispaiities exist between the few numbeis of laige companies (u.S1% of companies
have ovei 2Su employees) that aie iesponsible foi S1% of the total ievenue, anu the
micio-SNEs (1-S employees) consisting in ]9` 12 '"# #&'#()(+0#0 ,&4 '",' ?#&#(,'#
f` 12 '"# '1',- '*(&15#(F Aiising fiom this imbalance in the maiket position, accessing
the maiket is uifficult foi small businesses uue to the monopolisation of laige game
platfoims owneis.
144
The sectoi's access to maiket is also influenceu by the exteinal
legislative factois such as the iating system.
Theie aie impoitant uiffeiences in the estimations foi the uiffeient segments of the viueo
games maiket:
!
Console games: they aie heavily uepenuent on the next geneiation of consoles anu
the piices will follow the launch of new haiuwaie. 0veiall, the compounu annual
giowth shoulu inciease at a moueiate iate of 6.4%.
!
0nline games: they will boom as a consequence of the incieasing speeu of
bioaubanu connections. The aveiage spenuing on online games incieaseu fiom
0SB SuS million in 2uu4 to 0SB 4.2 billion in 2uu9 (SS% CAuR). 0nline games will
iepiesent Su% of total viueo games spenuing in 2uu9 (up fiom 7.6% in 2uu4).
!
Wiieless games: they will also expanu following the giowth of Su mobile
penetiation. Wiieless games subsciibeis weie expecteu to inciease fiom 8.S
million in 2uu4 to 96 million in 2uu9 (6S.2% CAuR). The spenuing on wiieless
games iaiseu up to 0SB S.7 billion in 2uu9 (S2% CAuR).
!
PC games: they will continue ueclining, as migiation to othei platfoims will
consoliuate. Beciease is estimateu at a compounu annual iate of S.2% in the yeais
leauing up to 2uu9.
Anothei consequence of the iise in ICT is that value chains aie shoiteneu, anu this enables
enteipiises to skip miuule-men anu incieases the involvement of useis in the piouuction
of a game. Bowevei, the sectoi suffeis fiom piiacy anu gameplay is not yet piotecteu fiom
plagiaiism in copyiight legislation.
14S
In teims of funuing, as most of the companies aie micio-SNEs, theii time is mostly geaieu
towaius cieating value anu maintaining theii netwoiks, leaving veiy little time to
concentiate on looking foi funuing oppoitunities. They aie usually self financeu but they
might ieceive goveinmental suppoit, as seen in Fiance thiough the tax sheltei oi thiough
a tax ielief foi game uevelopeis in the 0K.
146
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S8
142
Inteiview with National Sectoial 0iganisation
14S
Euiopean uames Bevelopei Feueiation, (2uu9), Comments fiom the Euiopean uames Bevelopei Feueiation on "Cieative
Content in a Euiopean Bigital Single Naiket: Challenges foi the Futuie A Reflection Bocument" fiom the Bu INFS0 anu Bu
NARKT, Available online at: http:¡¡ec.euiopa.eu¡inteinal_maiket¡consultations¡uocs¡2uu9¡content_online¡
ieflection_papei%2uweb_en.puf
144
Euiopean uames Bevelopei Feueiation, (2uu9), op. cit., p. 2.
14S
Euiopean uames Bevelopei Feueiation, (2uu9), op. cit., p. 11.
146
See http:¡¡biznewz.co.uk¡business_news¡2u1u¡S91¡uk-buuget-2u1u-measuies-foi-suppoiting-business-anu-giowth
Netwoiks aie an impoitant souice of
suppoit in oiuei to shaie the knowleuge,
in paiticulai about the iapiu changes in the
enviionment in teims of technologies (see
foi example Imaginov in Fiance, Appenuix
1, Best Case 1S). The incieasing integiation
of multiple actois such as mobile
opeiatois, inteinet pioviueis, social
netwoiks, online shops, online iights
aggiegatois anu bioaubanu technology companies, iaises the iisk of oligopolies
ueveloping.
Bespite the highly collaboiative piocess, the sectoi has uifficulty oiganising itself mainly
uue to its size, novelty, anu uiveisity. As a iesult, the capacity foi self-ieflection on
entiepieneuiial habits is limiteu, often leauing to uifficulties in oiganising the sectoi in
iepiesentative oiganisations.
9FPF9FRF h(1,47,0'+&? b!i ,&4 A,4+1d
Accoiuing to the Euiopean Auuiovisual 0bseivatoiy, the Euiopean auuiovisual maiket was
evaluateu at appioximately t 12u billion in 2uu9. Bue to the iise of the Inteinet, the
change in the sectoi will fuithei inciease the maiket anu offei many possibilities as well as
challenges foi the sectoi. The biggest companies have a maiket position that allows them
to contiol some paits of the maiket, but the smallei ones also neeu to have access to
platfoims oi to uevelop v0B platfoims anu
access them. In some countiies, such as
with the Butch Neuia Bub, this neeu foi
inteiopeiability is being auuiesseu (see
Appenuix 1, Best Case 14).
Accoiuing to Stiategy Analytics, the global
iise of v0B is expecteu to go fiom $11,S
billion in 2u1u to $17 billion in 2u12.
147
0nuei such ciicumstances, Euiope will
expeiience giowth in multi-channel
television, spuiieu by uigital teiiestiial Tv (BTT) iollout. BTT has alieauy been launcheu
in seveial E0 countiies anu migiation to uigital is expecteu to be complete acioss all of
Euiope by 2u1u- 2u12.
148
Satellite subsciiptions have been giowing fast in iecent yeais
but in the futuie theii giowth iate will slow uown, challengeu by the emeigence of BTT
anu new uigital platfoims such as Tv ovei BSL (IP-Tv). Looking at the potential evolution
of the sectoi in the electionic maiket, one of the pie-conuitions is access to high speeu
Inteinet as the giowth of v0B is typically uepenuent on Inteinet pioviueis.
149
As in othei sectois, the bioaucasting sectoi is shapeu by fieice competition. In teims of the
sectoi's contiibution, Re` 12 '"# 71/),&+#0 71&0+0' 12 -#00 '",& R #/)-1@##0G >"+-#
PP` 12 '"# 71/),&+#0 ,(# 8#'>##& R J e #/)-1@##0F The micio anu small SNEs
togethei foim the bulk of the sectoi. Bowevei, similai to othei sectois, this latei bianch is
iesponsible foi a small shaie (9%) of the total ievenue. The stuuy statistics show that the
sectoi as a whole is iesponsible foi 1S.Su% of the total tuinovei of the CCI in Euiope,
coming in thiiu aftei fashion anu uesign.
9FPF9FfF W*0+7
"Husic is o tolent-boseJ creotion onJ one of tbe centrol creotive inJustries, witb
6/,?+&15
Imaginov is the game clustei in Fiance which is
specifically suppoiteu by the iegion of Rhone Alpes.
It has attiacteu seveial businesses anu has
stimulateu multi-uisciplinaiy piojects as well to
boost commeice in the iegion.
(See Appenuix 1, Best Case 1S)
.*'7" W#4+, l*8
Butch Neuia Bub gatheis multiple paitneis such as
local anu iegional authoiities as well as CCIs in the
sectoi anu pioviues suppoit foi content piouuction,
uistiibution oi seivice uevelopment. It also
paiticipates in legislative lobbying foi
stanuaiuisation oi inteiopeiability.
(See Appenuix 1, Best Case 14)
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S9
147
Stiategy Analytics, (2uu8) quoteu in Euiopean Auuiovisual 0bseivatoiy, (2uu9c), viueo on uemanu anu Catch up Tv in
Euiope, Stockholm: EA0, http:¡¡www.obs.coe.int¡online_publication¡iepoits¡vou_2uu9.puf
148
Euiopean Auuiovisual 0bseivatoiy Piess ielease, (2u1u), uiowth of the numbei of television channels anu multi-channel
platfoims in Euiope continues uespite the ciisis, http:¡¡www.obs.coe.int¡about¡oea¡pi¡mavise_enu2uu9.html
149
Euiopean Auuiovisual 0bseivatoiy, (2uu9b), The Public Seivice iemit anu the New Neuia, Stockholm: EA0, see http:¡¡
www.obs.coe.int¡oea_publ¡iiis¡iiis_plus¡iplus6_2uu9.puf.en
qreot culturol onJ economic volue in oll societies".
1S0
The music sectoi is a visible Euiopean cultuial piouuct anu like othei sectois it caiiies
gieat impoitance in teims of sustaining Euiopean cultuial uiveisity. Nany banus oi aitists
aie stait-ups but cannot easily ieach an inteinational maiket.
The sectoi has a veiy laige base of micio initiatives with __` 12 '"# 3360 8#+&? *&4#( ;:
)#1)-# (7u% being micio-SNEs with less than 4 employees) confionteu to a few majoi
companies contiolling most pait of the maiket
1S1
. 88% of the companies geneiate Su% of
the music total ievenue, while companies of Su +employees, foiming 2.27% of the sectoi,
geneiate appioximately 4u%.
In teims of innovation potential, the inuepenuents anu small companies aie the innovatois
anu eaily auopteis, uiscoveiing new talent anu piouucing neaily 8u% of all new
ieleases.
1S2
0iganisations such as Banupool suppoit these activities (see Appenuix 1, Best
Case 1S).
Like bioaucasting, film, uesign, new meuia oi aichitectuie, uigitisation is gieatly affecting
the maiket of the music sectoi. Euiope geneiates ovei half the woilu's music publishing
ievenues anu one thiiu of global iecoiuing sales, but only 17% of the woilu's uigital
maiket. Bue to an expanuing uigital maiket, oppoitunities aiise foi SNEs to ieach a wiuei
public but the pioblem of accessing the maiket is even moie pioblematic in the uigital
maiketplace. Laige companies such as uoogle anu Apple contiol most of the uigital music
libiaiies anu aie consequently hinueiing the entiance to the maiket of smallei
inuepenuent labels.
1SS
Noieovei, baiiieis to maiket entiy aie also complementeu by the
fiagmentation of the copyiight anu IPR iules in Euiope.
1S4
The stuuy on "Builuing a Bigital Economy: The Impoitance of Saving }obs in the E0's
Cieative Inuustiies" ueteimineu that in 2uu8 some of the Euiopean 0nion's cieative
inuustiies (film, Tv seiies, iecoiueu music anu softwaie) expeiienceu ietail ievenue losses
of t1u billion anu losses of moie than 18S,uuu jobs uue to piiacy, laigely uigital piiacy.
1SS
Baseu on cuiient piojections anu assuming no significant policy changes, the E0's cieative
inuustiies coulu expect to see cumulative ietail ievenue losses of as much as t24u billion
by 2u1S, iesulting in 1.2 million jobs lost by 2u1S.
In teims of giowth potential, the music
sectoi has some uifficulty setting up
financial flow mouels anu mechanisms that
aiu in the sustainability anu giowth of
activities. Suppoit foi giowth finance is
essential foi allowing the uevelopment of
the miuule-sizeu music companies.
In teims of finance, thioughout the E0,
classical music is heavily suppoiteu by
subsiuies fiom cential, iegional anu local
goveinments anu by piivate sponsoiship. In most countiies, theie is also fuithei financial
suppoit given by music inuustiy oiganisations (such as authois societies). 0nuei theii
iules, authois societies aie peimitteu to spenu up to 1u% of theii ievenues foi "social anu
cultuial puiposes".
1S6
h,&4)11-
Banupool is opeiateu by the Pop Acauemy in
ueimany acts as a coaching tool foi banus, giving
woikshops as well as netwoiking oppoitunities to
aitists. It also stimulates cioss oveis with businesses
as well as with the political scene to inciease the
awaieness of the sectoi.
(See Appenuix 1, Best Case 1S)
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 4u
1Su
0NCTAB,(2uu8), op. cit., p. 119.
1S1
Inteiview with Euiopean Sectoial 0iganisation
1S2
See http:¡¡www.impalamusic.oig¡info_uS_inufact.php, ietiieveu Apiil 2u1u
1SS
Inteiview with Euiopean Sectoial 0iganisation
1S4
Reuing, v., (0ctobei 2uu9), Speech on the Bigital Single Naiket: a key to unlock the potential of the knowleuge base
economy, Available at http:¡¡www.iccwbo.oig¡bascap¡iuSSS6u¡inuex.html
1SS
Available at http:¡¡www.iccwbo.oig¡bascap¡iuSSS6u¡inuex.html
1S6
Laing, B., (1999), "The Economic Impoitance of music in the Euiopean 0nion", Sounuscapes, vol.2, Chap.7, http:¡¡
www.icce.iug.nl¡~sounuscapes¡BATABASES¡NIE¡Pait1_chapteiu7.shtml•NoteiefS1
9FPF9F]F C,0"+1&
Recogniseu thioughout the woilu, Euiopean fashion goes fuithei than its glitteiing image.
Accoiuing to the stuuy statistics, fashion, incluuing fashion ietail, is iesponsible foi the
biggest shaie on the total ievenue of CCIs: 247.189.494 TB t oi 24% of the total ievenue.
The sectoi has the highest total peicentage of employees in the CCI (the fashion sectoi
employs S1% as opposeu to the publishing employing 9.84% of the total employment
foice in the CCIs.)
As seen in Table 2, Figs. 2. anu S., the composition of the sectoi is similai to othei CC
sectoi. f;` 12 '"# 71/),&+#0 71&0+0' 12 -#00 '",& R #/)-1@##0G anu they aie
iesponsible foi 9% of the total ievenue. 27% of the companies aie between 4- 1u
employees. Companies ovei Su -249 employees (S%) aie iesponsible foi Su% of the total
ievenue of the sectoi.
Laige companies often contiol access to maiket. Bowevei this numbei has to be tieateu
caiefully fiom the way the statistics anu NACE coues weie useu anu with the inclusion of
figuies foi fashion ietail (see Appenuix 2.1u).
ueneially speaking, the fashion sectoi is not per se a subsiuiseu sectoi. Bowevei, some
countiies may have ceitain facilities fiom the goveinment anu some encouiagement.
In teims of innovation, theie aie attempts
to moueinise the sectoi in oiuei to
tiansfoim it into a uemanu-uiiven,
knowleuge-baseu anu high-tech
inuustiy.
1S7
0ne example is the 0PTE€
clustei which piomotes innovation (see
Appenuix 1, Best Case 16). The iise of
usei-oiienteu stiategies common to all CCI
sectois has hau an effect on the innovative
uiive of the sectoi. Auvanceu textiles,
peiception of mateiials thiough the senses anu theii wiuei application foi uiffeient
sectois is becoming moie impoitant anu allowing foi uiveise cioss-oveis with othei
sectois such as tianspoit (aeiospace), health, spoit, constiuction etc. The value chain is
composeu of the following steps: mateiials piouuction anu piocessing, piouuct uesign,
manufactuie of maue-up aiticles, tiauing in appaiel, footweai anu textile items, seivicing
of appaiel, footweai anu textile items.
1S8
9FPFPF 3(#,'+5# #N)#(+#&7# X1(+?+&,- )(15+4#(0
This clustei incluues Peifoiming Aits anu the visual Aits as well as live music oiganiseis
anu piomoteis. Cleaily theie may be a ielationship heie between expeiience pioviueis
anu content piouuceis. Foi example, a musician may be involveu in piouucing a iecoiuing,
anu then peifoim paits of this iecoiuing in fiont of an auuience. Nain issues foi this sectoi
ielate to paiticipation anu consumei access, the auaptation to technological auvances, the
mobility oi teiiitoiiality iegulations
1S9
founu both in the physical as well as the uigital
woilu anu the piotection of iights-holueis, as well as the change in consumeis anu the
shift in funuing mechanisms.
These cieative expeiience pioviueis aie typically subsiuiseu anu they have impoitant not-
foi piofit objectives, incluuing bioauening access to cultuie foi social puipose anu othei
multiple objectives.
16u
The value of the cieation takes its meaning fiom the auuience anu
theii value is "iealiseu as a social piocess".
161
Fig. 1u. is NESTA's illustiation of the piesent
value chain foi cultuial oiganisations.
L\!%m
0PTE€ is an innovation clustei that aims at
innovating textile anu fashion sectoi by involving
ieseaich institutes, highei euucation labs, fashion
CCIs anu Chambei of Commeice. It pioviues funuing
anu legal seivices anu infoimation exchange.
(See Appenuix 1, Best Case 16)
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 41
1S7
See http:¡¡www.aeut.oig¡piojects.html
1S8
See http:¡¡www.skillset.oig
1S9
Regulations baseu on the teiiitoiy, such as laboui iegulations oi fiscal iegulations, have a uiiect effect foi aitists' mobility
as they have to face the complexities of multiple iegulatoiy fiames.
16u
Bakhshi, B. Thiosby, B. (}une 2u1u), Cultuie of Innovation: An economic analysis of innovation in aits anu cultuial
oiganisations, Lonuon: NESTA, p. 12.
161
Ibiu., p. 1S.
C+?*(# ;:E !"# i,-*# 7",+& 21( 7*-'*(,- +&0'+'*'+1&0
{Source: NFSTA }une 2010)
162
The cieative expeiience pioviueis anu the oiiginal piouuceis have a numbei of aspects in
common. Nany of the peifoiming aitists (wiiteis, uiiectois, composeis etc) as well as
visual aitists (ciaftspeople, uesigneis anu otheis) can be consiueieu self-employeu
fieelanceis. In the peifoiming anu visual aits theie aie extieme uiffeiences in income
uistiibutions anu cieatois often accept below aveiage pecuniaiy eainings. This is
explaineu eithei by iisk-seeking oi a piefeience foi cieative woik ovei othei types of
woik.
9FPFPF;F \#(21(/+&? ##& RJe #/)-1@##0F
81% of the companies aie thus unuei 1u employees anu they aie iesponsible foi S% of the
total tuinovei, while companies of Su+ employees aie iesponsible foi 89% of the total
sectoi's ievenue anu iepiesent appioximately 1% of the sectoi. 0veiall, the sectoi
contiibutes to 9.71% of the total tuinovei of the CCIs.
The main chaiacteiistic of the maiket foi visual aits is the focus on the exclusivity anu
oiiginality of an aitwoik.
169
In this sense, the iights to the aitwoik aie essential foi the
aitists to be iewaiueu. Noie specifically, the iesale iight oi Jroit Je suite is the most
impoitant copyiight foi authois of fine ait. visual anu fine aits aitists uepenu piimaiily on
the sale of theii oiiginal woik anu thus, on the iesale iight. Without the lattei, the aitist
will not benefit fiom ensuing inciease of value of theii woiks. 0nlike wiiteis anu
composeis who have a iegulai income fiom ioyalties that aie uue whenevei theii woiks
aie peifoimeu oi publisheu, aitists uepenu on the oiiginal woik anu the ensuing value
gaineu ovei time.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 4S
16S
Euiopean Sectoial 0iganisation Inteiview
166
Peaile, (}anuaiy 2u1u), Cieative Content in a Euiopean Bigital Single Naiket: ieflections uocument of Bu INFS0 anu Bu
NARKT, p. 2.
167
Peaile, (}anuaiy 2u1u), op. cit., p. S.
168
Towse, R., (2uu4), op. cit., p. 1S.
169
0NCTAB, (2uu8), op. cit., p. 122.
Even though visual aits aie usually
iepiesenteu as the least technologically
aiueu anu iequiiing less uigital input, the
sectoi is incieasingly influenceu by
technological auvances anu uigitisation.
The impoitance of photogiaphy, anu moie
specifically uigital photogiaphy, is a goou
example. Piivate uigital copying is also
thieatening the iights holueis. Foi
seconuaiy uses of the aitwoik, theie is no
monitoiing anu tiacking system at the
moment to contiol anu iewaiu the use of the aitwoik. Remuneiation schemes aie not
applieu to the same extent as Bigital Rights Nanagement.
17u
Initiatives such as 0nline Ait
seek to close this gap (see Appenuix 1, Best Case 17).
Baving lookeu at each sectoi in tuin, one can cleaily see the 0'(+=+&? 0+/+-,(+'+#0 +& '"#
"+?" 2(,?/#&','+1& 8#'>##& '"# /+7(1JYW%0 ,&4 '"# -,(?#( #&'#()(+0#0G ,0 >#-- ,0
'"# +&7(#,0+&? +/),7' 12 4+?+'+0,'+1&F
9FRF 3(100 71*&'(@ ,&,-@0+0 12 (#?*-,'1(@ 2(,/#>1(=0
Euiopean Nembei States have veiy uiffeient socio-economic anu cultuial backgiounus
anu cultuial expiessions. Some will have specific piogiammes anu measuies foi ceitain
sectois of the CCIs, while othei Nembei States will consiuei CCIs just as any othei
economic sectoi.
In the expeit questionnaiie, it emeigeu that IPR anu tax iegulations weie the most
impoitant iegulatoiy measuies (see Table S. below) foi CCIs.
µuestion: "Select tbe tbree most importont requlotory meosures tbot CCl SHFs foce":
6'#/ \#(7#&' %
6&'#--#7'*,- \(1)#('@ A#?*-,'+1& 7S.91%
!,N A#?*-,'+1& 6u.87%
h*0+� Y',(' *) A#?*-,'+1& S6.S2%
B,81*( (#?*-,'+1&0 47.8S%
Y17+,- M#-2,(# A#?*-,'+1& Su.4S%
0 4.SS%
D'"#( 17.4%
!,8-# fE W10' +/)1(',&' (#?*-,'1(@ /#,0*(#0 2,7#4 8@ 3360
{Source: Furokleis 2009, Pon Furopeon Fxpert µuestionnoire)
To examine the iegulatoiy climate suiiounuing CCIs in Euiope, an inventoiy of the
enviionmental factois was piepaieu, in paiticulai on the iegulatoiy issues which influence
the uevelopment of SNEs. These incluueu fiscal measuies, laboui status, social secuiity,
uiiect measuies such as goveinmental CCI piogiammes, the way cieativity anu CCI aie
valueu as well as innovation anu cultuial policies. The analysis of the enviionmental
factois foi CCIs was not exhaustive but pioviues a fiamewoik to unueistanu the uiffeient
appioaches towaius CCIs. Following this, a countiy by countiy analysis on the uiffeient
cultuial policies, SNE anu innovation policies, a clusteiing of countiies was pioposeu. 0n
the basis of the ieseaich on enviionmental factois, some consiueiations can be maue.
D&-+&# -#4?+&? '"# 017+,-G #71&1/+7 ,&4 7*-'*(,- ,0)#7' 12 3360G iepiesent
a small subset of the countiies.
To establish a national clusteiing that is significant with cioss national common patteins
of piactice, each inuiviuual national piofile was consiueieu anu classifieu accoiuing to the
level of evolution with iegaius to global economic paiauigms. Such a classification allows
us to fiame CCIs within the bioau pictuie of national economic anu social peifoimance anu
match it against its actual capacity to uisclose its potential within the uynamics of global
competition.
0veiall, it seems that theie aie only a few countiies that have fully engageu in iecognising
CCIs as uiiveis of giowth anu innovation in Euiope. Although the iecommenuations maue
by the E0 Council conclusion
171
highlight the neeu to channel national anu Euiopean
financial iesouices towaius new aims that aie moie attuneu to fosteiing aitistic talents,
anu iecognise the paiticulai iole of cultuial anu cieative SNEs as uiiveis of giowth anu
innovation in Euiope, the numbei of countiies following these iecommenuations is not
excessive
172
.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 4S
171
Euiopean Council, (Nay 2uu9), Conclusions foi "Cultuie as a Catalyst foi Cieativity", 2941st Euucation, Youth anu Cultuie,
Council meeting
172
Austiia, Finlanu, Benmaik, Belgium, Estonia, Latvia, Fiance, the Netheilanus, Spain anu the 0K aie countiies that
implement specific measuies in suppoit to Cieative anu Cultuial inuustiies
0veiall, the most geneial appioach to suppoiting Cieative anu Cultuial entiepieneuiship
is tax ueuuction anu favouiable fiscal policies. In Euiope, CCI SNEs aie laigely tieateu like
all othei SNEs anu theiefoie subject to the piioiities anu stiategies set by innovation
policies as outlineu above.
9FRF;F 31*&'(@ 7-*0'#(+&?
In Table 6 below, thiee bioau clusteis of countiies aie iuentifieu, which piesent some
tiaits suggestive of specific economic patteins.
3-*0'#( 3",(,7'#(+0'+70
n&1>-#4?# %71&1/@ ! Reliant on knowleuge baseu piouucts
anu seivices
! Sounu enfoicement of IPR
! Suppoit entiepieneuiship anu
innovation
! CCIs specific piogiammes
! Innovative
!(,4+'+1&,- %71&1/@ Structurolly stronq ! Sounu anu stiong use of knowleuge
baseu piouucts anu seivices but no
significant iewaiu foi cultuial anu
cieative entiepieneuiship anu iisk
taking
! State aiu still significantly piesent
! uoveinment suppoit on stiategic sectoi
CCIs aie appieciateu
!(,4+'+1&,- %71&1/@
Structurolly Weok ! Stiengths in tiauitional sectois anu SNE
clusteis
! Below aveiage innovation measuies anu
stiategies
! CCIs acknowleugeu but no cooiuinateu
stiategies
%/#(?+&? %71&1/+#0 virtuous ! uoou innovation peifoimance anu
sometimes inceptive phase foi
cooiuinateu action foi CCIs
! Lack of iobust investment in R&B anu
infiastiuctuie
%/#(?+&? %71&1/+#0
loqqinq BebinJ ! Staiteu catching up piocess to be
competitive
! Recognition of CCIs but no stiategies
implementeu
!,8-# ]E 3-*0'#(+&? 8@ 71*&'(@ 7",(,7'#(+0'+70
{Source: K2H 2010)
9FRF;F;F n&1>-#4?# #71&1/+#0
These aie #71&1/+#0G >"+7" 7,& ,-(#,4@ 8# 71&0+4#(#4 0'(*7'*(,--@ (#-+,&' 1&
=&1>-#4?#J8,0#4 )(14*7'0 ,&4 0#(5+7#0F All aspects of the system (euucation,
piouuction anu iegulations) have alieauy maue the tiansition fiom tiauitional economy to
knowleuge-baseu economy. All these countiies iely on sounu enfoicement of IPR, a goou
balance between flexibility anu social piotection, goou infiastiuctuies anu suppoit foi
entiepieneuiship anu innovation. uoveinments have alieauy put in place co-oiuinateu
anu syneigistic measuies to suppoit the economy in geneial anu CCIs in paiticulai. These
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 46
economies aie also pieuisposeu to accept a ceitain level of unceitainty anu new mouels of
piouuction anu consumption.
Those countiies that alieauy have a consoliuateu innovation potential tenu to invest in
those sectois anu piocesses that will enable them to maintain competitive euge anu
fuithei shift towaius a full iealisation of a knowleuge economy. In paiticulai they tenu to
invest in euucation anu human iesouices, but also '1 )(1/1'# =&1>-#4?# '(,&02#(
8#'>##& ,7,4#/+7 +&0'+'*'+1&0 ,&4 71//#(7+,- 1(?,&+0,'+1&0G #0)#7+,--@ YW%0F A
ielevant iole in this iegaiu is playeu by incubatois anu univeisity spin-offs, which aie
suppoiteu by policies aimeu at netwoiking anu syneigistic collaboiations as well as
auministiative simplification.
By way of illustiation, C+&-,&4 auopteu a combineu goveinmental stiategy between the
Ninistiy of Euucation anu the Ninistiy of Economics. The measuies uevelopeu in the
Stiategy foi entiepieneuiship in the Cieative Inuustiies sectoi foi 2u1S
17S
aie
summaiiseu in 1S measuies in 4 aieas
174
anu is co-oiuinateu by the Acauemy foi Cieative
Inuustiies. The Ninistiy of Euucation piouuceu the Stiategy foi Cultuial Policy 2u2u with
the action plan of 2uu7-2u1S (publication of Ninistiy of Euucation 2uu9:12).
17S
This
uocument highlights the impoitance of cultuie anu cieativity in the Finnish society as well
as unueilines the contiibution in the economy. The following items will be on the agenua
foi 2u1u:
‚
Sectoi specific uocuments such as new piogiammes incluue a museum policy
piogiamme, a copyiight policy uocument, anu an aichitectuie anu cultuial
enviionment piogiamme to be piepaieu in co-opeiation with the Ninistiy of the
Enviionment
‚
Refiame the fiamewoik act on the uevelopment of cultuie to claiify the legislation
‚
Consoliuate the funuing anu financing system by also integiating ways in which
the piivate funuing anu sponsoiship coulu be encouiageu
‚
Consoliuate the knowleuge economy, by monitoiing anu implementing integiateu
policies, sectoi specific calling foi a bettei inteiaction between Ninistiies anu local
actois
Noieovei, apait fiom ceitain fiscal leveiages anu ieuuctions on CCI's fees anu income anu
tax ueuuctions foi companies investing in CCIs, the Finnish goveinment intiouuceu
specific sectoial piogiamme (foi sectois such as Theatie, Nusic, visual Aits, Auuiovisual
anu Touiism) pioviuing auvice foi maiketing, seivice uevelopment as well as it offeis
mentoiing suppoit. The uoveinment also emphasiseu euucation anu tiaining foi CCIs as
one of the piioiity thiough the piogiamme "Cieative Finlanu".
Similai combineu appioaches can be founu in .#&/,(=. Since 2uu7, the countiy
establisheu the Centie foi Cultuie anu Expeiience Economy that is funueu both by the
Ninistiy of Cultuie anu the Ninistiy of Tiaue anu Business Affaiis. The centie acts as a link
between the cultuial anu the business sectois in oiuei to builu a moie competitive
economy. The centie uoes not aim at uiiectly suppoiting CCIs but iathei at making the
connections between the CCI sectoi anu the othei sectois of the economy, anu in so uoing
suppoiting the giowth of the cieative economy.
9FRF;F9F !(,4+'+1&,- #71&1/+#0
These aie economies '",' ,(# 0'+-- "#,5+-@ (#-+,&' 1& '(,4+'+1&,- )(14*7'+5#G #71&1/+7
,&4 017+,- ),(,4+?/0F They eithei have not completeu the tiansition to the knowleuge
economy, oi aie still in the piocess of completing such a tiansition. Tiauitional Economies
can be fuithei classifieu as:
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 47
17S
Finlanu Ninistiy of Tiaue anu Inuustiy, (2uu7), Bevelopment Stiategy foi entiepieneuiship in the Cieative inuustiies
sectoi foi 2u1S, http:¡¡ec.euiopa.eu¡cultuie¡oui-policy-uevelopment¡uoc¡
fi_uevpmt_stiategy_entiepi_ciea_inuustiies2u1S.puf
174
Bevelopment of opeiating enviionment,; uiowth anu inteinationalization; Piouuct uevelopment (incluuing the funu foi
uemos anu piototypes); anu Reinfoicement of expeitise (incluuing a uegiee in entiepieneuiship).
17S
See http:¡¡www.mineuu.fi¡expoit¡sites¡uefault¡0PN¡}ulkaisut¡2uu9¡liitteet¡opm4S.puf.lang=en
Y'(*7'*(,--@ Y'(1&?E These nations iely on soliu stiuctuial funuamentals acioss
all obseiveu factois, but cannot be consiueieu knowleuge economies as they fail to
iewaiu cultuial anu cieative entiepieneuiship anu iisk-taking attituues.
Euucational systems aie felt as inauequate to piepaie to embiace
entiepieneuiship anu face global competition. In these countiies, the financial
suppoit to CCIs appeais to be mostly state aius anu giants iathei than piivate
investments. The social secuiity system piivileges secuiity ovei flexibility anu this
is also ieflecteu on piouuction anu consumption patteins. uoveinments tenu to
suppoit the establisheu stiategic sectois such as automobile, as a way to maintain
tiauitional competitive auvantage. CCIs aie appieciateu anu cultuial anu cieative
entiepieneuis can benefit fiom some specific measuies, but these aie not
necessaiily seen in a combineu appioach between Ninistiies.
Foi example, in ,0 mostly neeueu in the O+(0'
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S1
18u
Euiopean Clustei 0bseivatoiy, (Naich 2u1u), op. cit., p. 12.
)",0#0 12 '"# -+2#7@7-#Q while fiom )",0# P 1&'1 )",0# f, the #&'#()(+0# >,0 '"# /,+&
',(?#' 21( '"# 0*))1('F The iesponuents agieeu that theie coulu be some oveilap anu
intei-combination of suppoit in some of the lifecycle foi the entiepieneui anu the
enteipiise.
9FfF9F \",0#0
0ne can iuentify five phases within the entiepieneuiial lifecycle:
Pbose 0ne: Preporinq tbe qrounJ
In this phase, the initial unueistanuing of leaining anu piepaiing foi the
entiepieneuiial piactice takes place. 0ften this is uone uuiing the piofessional anu
euucation tiaining, when cieative people piepaie foi a piofessional existence aftei
giauuation.
Pbose Two: Stort 0p
In this phase, the fiist integiation of piactical expeiience anu integiation of leaining
anu entiepieneuiial piactice takes place. Theie is a combination of novel
expeiiences anu auaptable behavioui neeueu in oiuei to get the enteipiise staiteu.
Pbose Tbree: BuilJ 0p
In the builu-up phase, the initial enteipiise moves to its fiist level of stable,
sustainable existence. The novelty of the beginning is changeu into auaptable
behavioui, baseu on piactical ciiteiia anu usability. Extia stiengthening of
competencies to tiansfoim 'uiscoveiy' into 'exploitation' is ciucial in this phase.
Pbose Iour: BuilJ 0ut
In this phase, the enteipiise is matuiing into a moie stable, stiuctuial existence. It is
ueepening its stiuctuial sustainability anu impioving its maiket position.
Pbose Iive: Connectinq networks
The last phase iuentifieu is uealing with matuie giowth within a stiongly netwoikeu
enviionment. Sustainable paths to a continuous enteipiise giowth have been
iuentifieu anu implementeu.
This simple fiamewoik was intenueu to pioviue inuications, iathei than static
iecommenuations, foi suppoiting giowth of CCIs thiough an incieaseu unueistanuing of
the multiple components at stake by uiviuing the piocesses anu the layeis of existing levels
of suppoit, anu making a uiffeience between the peison anu the oiganisation. The
appientice entiepieneuis will mostly neeu suppoit as inuiviuuals in oiuei to be able to tiy
out theii entiepieneuiial activity in an oiganiseu way. The uistinction also implicitly
allows one to integiate the uiffeient motivations of the entiepieneui: what type of
entiepieneui oi enteipiise they want to uevelop, as the suppoit is not solely oiienteu
towaius giowing the oiganisation.
9FfF9F;F B+&#,(+'@G /1'+5,'+1& ,&4 ?(1>'"
The lineaiity anu the top-uown appioach auopteu in this fiamewoik, although inuicative
of a piocess, uoes not of couise coiiesponu to '"# 4@&,/+0/ ,&4 (#,-+'@ 12 '"# 7*-'*(,-
,&4 7(#,'+5# 0#7'1(F Being highly heteiogeneous, seveial paths foi successful CCI giowth
oi sustainable existence can be imagineu, iepiesenting foi example a concentiic
fiamewoik. Bowevei, foi the puipose of claiity, the uiffeient components weie placeu in a
lineai fiamewoik, although the iueal shape woulu be a thiee uimensional foim with
oveilapping layeis which might also incluue uesign phases (novelty, auaptability, usability,
ieplicability anu scalability) anu technology implementation phases (cieate, catalyse,
connect). Inueeu, the teim 'entiepieneuiial lifecycle' can only paitially ieflect the ways in
which CCI SNEs aie constantly auapting to theii enviionment anu emeiging uemanus:
"ln tbe creotive inJustries you bove Jevelopments typicolly runninq in porollel.
Wbile o compony is stortinq up onJ qrowinq, it not only leorns internolly or
exponJs its borizon or sees new tbinqs by experience internolly, but olso
externolly. At tbe some time tbey´re on o steep leorninq curve os for os tbeir
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S2
professionol entrepreneuriol life is concerneJ onJ tbey qrow in size onJ business
typicolly. You bove o number of tbinqs qoinq porollel".
(CC National Suppoit, Stiuctuially stiong tiauitional economies)
Looking at the lineaiity of this appioach, one ciiticism of the fiamewoik was the
unueilying assumption of '"# 336 #&'(#)(#&#*(K0 4#0+(# '1 ?(1>F Bowevei, as explaineu
eailiei, a CCI entiepieneui often combines both the cultuial-cieative uiive anu the
economic-entiepieneuiial uiive. Accoiuing to Bubeit et al, by combining both a cultuial¡
cieative anu an entiepieneuiial positioning, one can finu foui uiffeient appioaches in the
peisonal oiientation of the CC entiepieneui
181
as illustiateu in Table 8. below.
Cultuial anu cieative entiepieneuis position themselves in foui uiffeient sets of iueals:
entiepieneuiial success, piofessional achievement, ait cieation anu puisuing a
piofessional caieei. These foui peisonal piefeiential motivations can be iuentifieu, baseu
upon five uimensions: peisonal aspiiations, iuentification focus, the uivision between
woik anu peisonal life, type of occupation (employei, managei, fieelancei), the uiffeient
inuustiies, anu auuitional typical chaiacteiistics.
B/.' E$&F/&$'G -'*%,#%,',"%./0
6"33,66
5%$2,66.$'/0
/3+.,F,E,'*
H%* 3%,/&$' 5%$2,66.$'/0 3/%,,%
I$E.'/&'(
$33"#/&$'/0
/6#.%/&$'
Success ñrsL, Lhan
auLonomy
8alance beLween
success, auLonomy
and securlLy
AuLonomy and
Arusuc 8ecognluon,
AesLheuc CrlLerla
SecurlLy. 8eclproclLy.
Amllauon of
auLonomy and
success
I$E.'/&'(
.8,'&J3/&$' 2$3"6
Þersonal enLerprlse Þrofesslonal SLaLus
more lmporLanL Lhan
occupauon sLaLus
ArL Communlues, Lhe
ArL Scene
Lmployee
K$%L /'8 0.F, Þrofesslonal acuvlues
ln Lhe cenLre, prlvaLe
acuvlues marglnal
Þrofesslonal acuvlues
more lmporLanL Lhan
prlvaLe llfe, buL
dependlng on acLual
Loplcs
Þrofesslonal acuvlues
as parL of personal
cholces. 8efusal Lo
make dlsuncuon
beLween professlonal
and prlvaLe llfe
Þrofesslonal acuvlues
and prlvaLe llfe
equally lmporLanL.
Separauon of
Þrofesslonal and
ÞrlvaLe acuvlues
M4#, $2 $33"#/&$' Lmployer, manager lreelancer,
Lmployee, 8arely
Lmployer
lreelancer. 8arely
employee or
employer
Lmployee or
lreelancer
N'8"6*%.,6 /'8
#%$2,66.$'
All secLors, ln Lhe
Creauve Lconomy
absenL
1echnlcal
professlons,
ArchlLecLure, Sound
Lechnlclan, Camera
man, eLc
ArL professlons.
ueslgn, lllm,
ArchlLecLure, vlsual
ArLs
l1, Adveruslng, Sales
Þrofesslons
H88.&$'/0 *4#.3/0
3+/%/3*,%.6&36
ÞredomlnanLly men MosLly persons wlLh
long professlonal
experlence
Separauon of 'bread-
earnlng acuvlues' and
arusuc drlve
Ma[orlLy of young
people
!,8-# _E \#(01&,- /1'+5,'+1& +& #&'(#)(#&#*(0"+)
{Source: Ficbmonn, E et ol, 2007)
182
Bepenuing on the CCI entiepieneui's peisonal motivations, any suppoit will have to be
auapteu so that, foi example, local suppoit will be available foi a CC entiepieneui who is
moie uiiven by the cultuial¡cieative content of its piouucts¡seivices, while the E0 anu
iegional levels coulu be moie suppoitive of CCIs wishing to inteinationalise theii maiket.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries SS
181
Ibiu.
182
Eichmann B., Fleckei, }. Reiul, S., (2uu7), Es ist ja eine fieies ueweibe.' Aibeiten in uei Wienei Kieativwiitschaft, vienna:
F0RBA - Foischungs- unu Beiatungsstelle Aibeitswelt
Nany iesponuents highlighteu the neeu '1 4+22#(#&'+,'# 8#'>##& '"# 0*80+4+0#4 ,&4
&1&J0*80+4+0#4 0#7'1(0 12 '"# 3360F The uiffeient sectoi chaiacteiistics have been
elaboiateu above in section 2.S. The fiamewoik ueals with CCIs in geneial, though the
chaiacteiistics pieviously stateu shoulu be taken into account accoiuing to the geneial
stiuctuie of the sectoi.
9FfFPF ##& '"# 4+22#(#&' -,@#(0 12 0*))1('G /,=+&?
'"# 0*))1(' /1(# 71/)-#N 21( #,7" ',(?#' ?(1*)F The type of suppoit pioviueu may, foi
example, be a combination of municipal tax bieaks anu funus as well as laigei EC funueu
piojects oi national sectoial funus. This is often veiy uifficult foi the CCI entiepieneui to
unueistanu.
Noieovei, theie is a misunueistanuing on both siues: financial inteimeuiaiies anu funuing
agencies usually have iigiu anu iisk-fiee pioceuuies that aie almost incompatible with
CCIs that aie, as noteu, baseu on the iewaiu of theii intangible assets. 0n the othei hanu,
CCIs may have a ceitain mistiust towaius those piogiammes foi feai of being oveitaken by
commeicial inteiests anu '"#@ /,@ &1' #00,(+-@ -11= 21( '"# 2*&4+&? ,&4 0*))1('G
eithei out of stubboinness oi lack of infoimation oi competencies to ueal with the
pioceuuies. Bue to the combineu iequiiement of entiepieneuiial activity anu the cultuial¡
cieative one, '"# 336 #&'(#)(#&#*( /,@ -,7= '"# '+/#G ,&4 /,@ 8# *&>+--+&? '1 -11=
21( +&21(/,'+1& ,/1&?0' '"# /*-'+'*4# 12 0*))1(' )(15+4#4F Theie is thus a mismatch
between the ieal neeus of the CC entiepieneui anu the suppoit pioviueu.
The necessity to biing both siues closei by /,=+&? '"# 0*))1(' /1(# ',(?#'#4 '1 '"#
&##40 12 '"# 33 #&'(#)(#&#*( is essential. Theie is , 4#8,'# 8#'>##& '"# &##4 '1
',(?#' '"# 0*))1(' '1 3360 1( '1 /,+&0'(#,/ 3360 >+'"+& #N+0'+&? 07"#/#0F The
question of incluuing the specificities of CCIs (intangible assets, size, piouuction
piocesses) within existing uefinitions may help to bioauen the type of suppoit that the
CCIs can get. Foi example, opening the uefinition of innovation to soft innovation, to
intangible assets, biinging talent scouting as pait of R&B, may inciease the possibilities of
suppoit anu funuing in these aieas.
Bowevei, -11=+&? ,' '"# #N+0'+&? 0*))1(' +& '"# 3",/8#( 12 31//#(7# 1( +& 0+/+-,(
*&+'G '"# 3360 41 &1' ',=# ,45,&',?# 12 '"# 0*))1(' ,5,+-,8-#G compaieu to when theie
is a specific taigeteu suppoit. Foi example in Belgium, CultuuiInvest is a investment funu
foi CCIs anu they aie moie well known than the othei piogiammes ieaching all SNEs. The
CCIs uo not know oi uo not ueal with these oveiall stiuctuies such as Business SNEs
Centies foi -,7= 12 =&1>-#4?#G 0'*881(&�G 4+0'(*0' ,&4 -,7= 12 '+/#F
"We bove lorqe orroy of support proqromme for tbe SHFs in qenerol, but mony
of tbe CCls Jon´t opply for tbese proqrommes, or Jon´t bove occess to or Jon´t
jinJ tbe occess to tbose proqrommes tbot ore for oll SHFs. Tbese supports ore
for tbe moment tbe leost effective. AnJ you con see o Jifference between tbe use
by CCls of tbe "qenerol SHFs" support onJ tbe ones tbot ore toilor moJe to tbe
neeJs of tbe CCls".
(Regional Cultuial Ninistiy, Stiuctuially Stiong Tiauitional Economy)
This pushes foi '"# #-,81(,'+1& 12 ',(?#'#4 )1-+7+#0 21( '"# 3360G in oiuei to oveicome
such uispaiity in suppoit piovision. W1(# 4#/,&4J-#4 )(1?(,//#0 ,&4 )(1?(,//#0
'",' O+' '"# 0)#7+O+7+'+#0 12 '"# 3360 &##4 '1 8# #-,81(,'#4F The uiffeient layeis of
suppoit piovision will be fuithei elaboiateu in the following chapteis accoiuing to the
vaiieu issues faceu by CCI enteipiises.
9F]F 31&7-*4+&? (#/,(=0
Baving consiueieu the chaiacteiistics of the CCIs, the sectoial chaiacteiistics anu the
factois that shape the context suiiounuing the CCIs (ueteiminants anu enviionmental
factois), this chaptei has uesciibeu the geneial fiamewoik useu in oiuei to bettei
unueistanu the taigeteu issues that neeu fuithei attention foi policy makeis to uevelop
suppoiting schemes foi entiepieneuiship that fit the neeus of CCIs. In auuition to the
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S4
factois alieauy outlineu in this chaptei, it is woith ieiteiating the coie competencies
neeueu within the entiepieneuiial lifecycle:
1. vision uevelopment
To opeiate in a complex, high tuibulence enviionment in the cieative economy, anu
to iealise a stiategic position foi the long iun, it is necessaiy that cultuial anu
cieative entiepieneuis aie able '1 4#5#-1) , 5+0+1& 1& '"#+( 1>& 7(#,'+5# O+(/F
Nost of the entiepieneuis have a one-yeai scope on theii cultuial anu cieative
business. Foi a sustainable giowth anu uevelopment ieasons it woulu be auvisable
to cieate a moie longituuinal peispective.
2. Naiket positioning
Within each phase, /,(=#' )10+'+1&0 ,(# 7(*7+,- 21( '"# #N+0'#&7# 12 7*-'*(,- ,&4
7(#,'+5# O+(/0F In the beginning one can stait off by a positioning baseu on one
piouuct oi seivice, anu in the peiiou aftei the pioneeiing phase theie will come a
uiffeientiation with a vaiiety of piouuct-maiket combinations in the matuiing stage.
This coie-competence - scanning one's maiket position - is neeueu in all phases of
the entiepieneuiial uevelopment.
S. Retuin on cieativity competencies
Access to finance anu the skills to ueal with the financial siue of CCI SNEs is a
geneiic pioblem.
18S
Fiom simple to complex financial suppoit, the cultuial anu
cieative entiepieneui is iesponsible foi his oi hei own business mouel anu the
financial souices: bank loans, guaianteeu loans by goveinmental oi non-piofit
agencies, ciowu-souicing, giants anu subsiuies. Business mouels aie focuseu mainly
on components of value piopositions, ielationships with visitois anu clients, the cost
stiuctuie anu income¡piofit.
184
Bue to the involvement of cultuial values, 8*0+�
/14#--+&? 8,0#4 1& 3360 +0 ,& #00#&'+,- ),(' 12 '"# 71/)#'#&7+#0F
4. Communication skills
Cultuial anu cieative entiepieneuis communicate with colleagues, visitois, clients,
expeits, financieis, goveinmental iepiesentatives, giant officeis anu tiaineis. To
optimise the quality of theii communication within a stiong noimative fielu - of
ciucial impoitance within the CCIs - these entiepieneuis have to have ?114
71//*&+7,'+1& 0=+--0G 81'" 1(,- ,&4 >(+''#&G ,))-+7,8-# >+'"+& , 71&'#N' 12
4+5#(0+'@F
S. Netwoiking anu teamwoik
k#'>1(=+&? +0 ,-/10' , I0#71&4 &,'*(#K >+'"+& '"# 3360F Foi many cieative
people netwoiking begins uuiing theii euucation anu takes on a moie piofessional
stiuctuie in the woikplace. Netwoiking (on a peisonal, functional anu multi-layeieu
inteiaction levels) is a quality that foims the iaison-u'etie of a cieative fiim.
!#,/>1(= +0 , S*,-+'@ '",' +0 0'(1&?-@ 71&'#4 >+'" '"# 3360F Coie issues in
the cultuial existence aie the iole of the leaueiship-figuie, team uevelopment within
piojects anu pioject iesponsibilities.
18S
The next chaptei looks at the 'ueteiminants of cultuial anu cieative entiepieneuiship',
baseu on the six themes of ueteiminants of entiepieneuiship elaboiateu above but
auapteu to encompass the neeus of the CCIs. These themes aie access to finance, access to
maiket, iegulatoiy measuies focusing on IPR, entiepieneuiship tiaining anu euucation,
access to innovation (R&B) anu collaboiation anu clusteis.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries SS
18S
Bagooit, u & Kuipei u: Retuin on Cieativity: in seaich foi a foimula. In: Bagooit u & Kooyman, R (Eu): Cieative
Inuustiies; Colouiful Fabiic in multiple uimensions. 0tiecht 2uu9
184
0steiwaluei, Alexanuei: 0n Business Nouel Innovation. As ietiieveu 12 Apiil 2u1u fiom http:¡¡alexosteiwaluei.com
18S
Naaise, B., (2uu9), "Pioject Baseu Leaining: the tempeiatuie of oui bathwatei" in Bagooit u. anu Kooyman, R., (Eu.),
(2uu9), Cieative Inuustiies, Colouiful Fabiic in Nultiple Bimensions, 0tiecht: Bogeschool vooi ue Kunsten 0tiecht
3",)'#( PE W,+& !"#/,'+7 D*'71/#0
It is cleai that CCIs have specific chaiacteiistics that neeu to be taken into account when
looking at cultuial anu cieative entiepieneuiship. Noieovei, CCIs uo not woik in closeu
enviionments; iathei they aie stiongly influenceu by theii iegional anu national
enviionments, as well as the changes uue to uigital conveigence. Baving lookeu at the
ueteiminants of entiepieneuiship, this section examines the key themes that uiiectly
influence the uevelopment of entiepieneuiship in CCIs in Euiope. These key thematic
outcomes fiom the stuuy pioviue an analysis anu oveiview of the aiea anu foim the basis
foi the iecommenuations in Chaptei 4.
Fiom the inteiviews conuucteu foi this stuuy acioss Euiope, one of the geneial finuings
that quickly emeigeu was the oveiiiuing neeu to gathei moie consistent uata iegaiuing
CCIs on a Euiopean level. National statistics aie not homogeniseu anu this means that any
compaiison is flaweu. At Euiopean level, Euiostat, the statistical office of the Euiopean
0nion, is cuiiently woiking with a gioup of Nembei States on an upuate of the fiamewoik
foi cultuial statistics set up in 2uuu as well as on uefining the scope of CCIs. At a moie
mouest level, the Cieative uiowth pioject is a goou example of an effoit to iebalance this
but it iemains limiteu to ceitain cities.
186
This chaptei will look at the main themes that emeigeu fiom the ieseaich unueitaken
coiiesponuing to the ueteiminants of entiepieneuiship, namely: access to finance, access
to maiket, IPR, euucation anu tiaining, innovation anu connective collaboiation anu
clusteiing.
PF; "+7" 71&0+0'#4 12 )(1O+' 1(?,&+0,'+1&0d (#-+#4 1& 0#-2JO+&,&7# ,0 '"#+( /,+&
O+&,&7+,- 01*(7#G as opposeu to 2u% which weie mainly suppoiteu thiough public giants.
µuestion: ln tbe lost jinonciol yeor {2008), wbicb wos
tbe most importont jinoncinq source?
!" $!" %!" &!" '!" (!" )!"
*+,-./0102304
567,32 8910:;
?10
593@1:+ 8910:;
ABC
D3;= E1F3:1,
G+0:69+ E1F3:1,
H?01I?0
J1K 302+0I@+
*++L M30102304
*:?2= N19=+:;
C+?*(# ;PE W10' +/)1(',&' O+&,&7# 01*(7# 9::VJ9::_
{Source: Furokleis 2010 online survey)
It is also cleai that CCI SNEs have a 0"1(' '#(/ 0),& 21( O+&,&7+,- )-,&&+&?F The online
questionnaiie ievealeu that 22% of the CCIs hau no financial anu economic planning while
SS% hau a one yeai foiecast, as can be seen in Fig. 14. D&-@ R` ",4 , O+&,&7+,- 21(#7,0'
12 *) '1 f @#,(0F
Noieovei, coming back to the chaiacteiistics of outsouicing mechanisms anu the necessity
to combine the auministiative tasks with the cieative piocess, the online suivey showeu
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S7
189
SICA, Butch Centei foi Inteinational Cultuial Activities, (}une 2u1u), The Economic Ciisis anu the Piospects foi Aits anu
Cultuie in Euiope, p. 4.
that Vf` 12 '"#0# 71/),&+#0 #-,81(,'#4 '"# 21(#7,0' '"#/0#-5#0 as opposeu to 2u%
that useu a piofessional consultancy seivice.
µuestion: Boes your orqonisotion moke ony jinonciol onJ economic plonninq {buJqet onJ upJoteJ
business plon)?
!" $!" %!" &!" '!" (!" )!"
*+,- ./0+ 1234 ( 5+30, 6/0+73,1
*+,- 89 1/ ( 5+30, 6/0+73,1
*+,- 89 1/ & 5+30, 6/0+73,1
:/
*+,- $ 5+30 6/0+73,1
C+?*(# ;RE C+&,&7+,- ,&4 %71&1/+7 )-,&&+&? bh*4?#' ,&4 8*0+� )-,&d 21( 3360
{Source: Furokleis 2010, online survey)
PF;F;F Y+^# (#-,'#4 71&0'(,+&'0 21( O+&,&7#
In view of the E0 Small Business Act of 2uu8, 0/,-- ,&4 /#4+*/ 0+^#4 #&'#()(+0#0 ,&4
2(##-,&7#(0 )-,@ , 7#&'(,- (1-# +& '"# %*(1)#,& #71&1/@G #0)#7+,--@ +& '"#+( (1-# ,0
+&&15,'1(0F
;e:
Bowevei, the existence of an #S*+'@ ?,) - the inability of small fiims to
access the finance they neeu to giow - has been a long-teim challenge foi goveinments
anu is a majoi consiueiation in Euiope's stiategy foi its innovative futuie.
191
Successive
auministiations have acknowleugeu the impoitance of the ventuie capital inuustiy anu
implementeu vaiious initiatives in suppoit of eaily-stage ventuie capital investment,
incluuing seeu anu stait-up funuing, to suppoit SNEs, anu especially CCI SNEs.
192
0ne chaiacteiistic that sets apait the CCIs anu, in many ways impeues theii access to
finance, is the uepenuency on intangible assets. The cieative entiepieneui tiauitionally
combines tangible infoimation anu communication technology with intangible
infoimation piouucts: cultuial qualities anu 'meuia content'. Bowevei, +&',&?+8-# ,00#'0
0*7" ,0 &15#-'@G 012' +&&15,'+1&G 71)@(+?"' ,&4 7(#,'+5+'@ ,(# 12'#& &1' (#O-#7'#4 +&
,771*&'0G although this is slowly changing.
19S
Financial institutions such as 8,&=0 12'#&
2,+- '1 0*2O+7+#&'-@ (#71?&+0# '"#+( #71&1/+7 5,-*#F
;eR
Fig. 1S. below illustiates the main
obstacles foi CCIs to access finance, wheie the shaie of iisk aveision fiom financial
institutions anu the uifficulty in getting giants accounts foi appioximately Su% of the
iesponses.
Foi this ieason, a loan suppoiting CCI activities is consiueieu iisky anu is not always
enuoiseu. While guaiantee funus such as those elaboiateu in the Netheilanus (Kunst en
Zaken) oi in Flanueis (CultuuiInvest), facilitate the attiaction of such funus, theie
(#/,+&0 , 0'(1&? &##4 21( ?(#,'#( =&1>-#4?# #N7",&?# 8#'>##& '"# O+&,&7+,- 0#7'1(
,&4 0',=#"1-4#(0 +& '"# 3360G as sectoial expeits have inuicateu.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S8
19u
Euiopean Council Conclusions, (Becembei 2uu8), Think Small Fiist- A Small Business Act foi Euiope, uoc 16788¡u8
191
Euiopean Council Conclusions, (Nay 2u1u), Conclusions on Cieating an Innovative Euiope, Su16th Competitiveness
Council Neeting, 26th Nay 2u1u
192
Biggs, P. anu Cunningham, S., (2uu7) Austialia's Cieative Economy: Napping Nethouologies. Technical Repoit.' Biisbane:
Centie of Excellence in Cieative Inuustiies anu Innovation.
19S
0ECB is ueveloping an innovation stiategy to pioviue policy makeis with tools to impiove theii own innovation stiategies
baseu on new innovation measuiements which woulu take into consiueiation soft innovation anu is also expecteu to
integiate the value of usei-innovation. See National Enuowment foi Science, Technology anu the Aits, (Apiil 2u1ua),
Neasuiing usei innovation in the 0K- The impoitance of piouuct cieation by useis, Lonuon: NESTA
194
Euiopean Commission uieen Papei, (2uuS), op. cit., p. 12.
µuestion: Wbot is tbe moin obstocle for your orqonisotion to occess jinonce?
!" $" %" &" '" (!" ($" (%" (&" ('"
)* +,- .* /0012 3*4 54/6.7896:-6+;-7
00*4.
?95@ 96.-4-7. 4/.-7
A.@-4
B>C19: 3>6D 7@*4./5-
)* C/6E 1*/6 5>/4/6.--
F1*G 04*:-D>4-7 3*4 0>C19: 96:-6+;-7
1.2 96 5-I65 54/6.7
J97E /;-479*6 34*, =6/6:9/1 967+.>+*67
C+?*(# ;fE W,+& 180',7-#0 21( 3360 '1 ,77#00 O+&,&7#
{Source: Furokleis 2010, online survey)
PF;F9F Y*80+4@ 5#(0*0 /,(=#' 71/),&+#0
As seen alieauy, the CCIs can be bioauly uiviueu into two categoiies: those that aie moie
71//#(7+,--@ 1(+#&'#4 anu those that ,(# )*8-+7-@ 2*&4#4. While this uistinction is
iuentifieu, the ieality is often not as explicit because "The public anu the piivate sectois
aie integiateu via the CCI thiough sponsoiship anu uonations, as well as effective cioss-
subsiuies".
19S
In any case, the main uiffeiences illustiate the ways in which businesses aie
financially suppoiteu. While commeicial businesses within the CCIs aie subject to
5,(+,'+1&0 +& 71&0*/#( 4#/,&4G SNEs that aie publicly funueu, conveisely, will often be
steeieu by the 71&0',&'-@ 0"+2'+&? )(+1(+'+#0 12 )*8-+7 (#01*(7#0F
The types of financial suppoit maue available to CCI SNEs coiiesponu to the uivision maue
between the cultuial anu the cieative sectois. Nany cultuial seivices, as pait of the CCIs,
aie also public seivices anu aie suppoiteu as such. Taxation measuies, in paiticulai, play
an impoitant iole foi these activities. Though policy makeis incieasingly tuin theii
attention to new methous of funuing, such as public-piivate paitneiships, 7*-'*(,-
0#(5+7#0 71&'+&*# '1 8# )(+/,(+-@ 2*&4#4 8@ '"# Y','#F
196
These seivices, such as
activities in the peifoiming aits anu the auuiovisual sectois aie moie ieauily gianteu
funuing fiom national goveinments while the cieative inuustiies, such as uesign anu
gaming, aie expecteu to be moie commeicial in natuie, ieceiving funuing thiough
entiepieneuiial activities anu piivate equity finance iathei than subsiuies. This contiast
was stiongly confiimeu by iesponuents fiom the Ninistiies of Cultuie in stiuctuially
stiong anu tiauitional economies in the stuuy ieseaich.
An auuitional uistinction shoulu be maue between uiffeient Euiopean countiies. In most
tiauitional anu knowleuge economies, the peifoiming aits benefit fiom goveinment giants
oi subsiuies. In emeiging oi stiuctuially weak economies, howevei, the funus available aie,
by compaiison, veiy limiteu as they aie hampeieu by a piouuct uevelopment focus as
expeits have inuicateu. While subsiuies fiom the public sectoi may assist in the stait-up
anu funuing of SNEs, '"#@ ,(# 12'#& /1(# ,77#00+8-# '1 '"# 7*-'*(,- 0#7'1(0 b#F?F '"#
)#(21(/+&? ,('0d '",& '1 '"# 3360 ,0 , >"1-#F In auuition, iesponses fiom expeits
suggest that public initiatives seem unable to meet the expectations anu neeus of CC
entiepieneuis because they aie complicateu to unueistanu anu often uetacheu fiom the
teiiitoiy in which the company opeiates.
Expeits fiequently expiesseu 7,*'+1& ,' (#-@+&? 1& 0*80+4+#0 0@0'#/0 anu biought up
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S9
19S
Piatt, A. C., (2uu9),"The cieative anu cultuial economy anu the iecession", ueofoium, volume 4u, pp. 49S-496.
196
KEA, (2uu9), op. cit., p. 6.
issues such as SNE sustainability, financial self-sufficiency as well as political influence on
cultuial piouucts anu seivices. Nonetheless, most membeis of the CCIs have in some way
been helpeu to uevelop theii fianchise thiough public suppoit anu investment.
Among iesponuents, suppoit fiom public giants is stiongly expecteu. Beaiing in minu the
shoit-teim, pioject-baseu chaiacteiistics of many CCIs, ?(,&'0 7,& 8# 0'(,'#?+7,--@
1(?,&+0#4 '1 /,N+/+0# '"#+( 7(#,'+5# ,&4 7*-'*(,- +/),7'G ,&4 #&71*(,?# 0'(1&?
0)+--15#( #22#7'0 ,&4 71&'+5+'@ 8#'>##& '"# 71(#G '"# 7(#,'+5# +&4*0'(+#0 ,&4 '"#
>+4#( #71&1/@F Inueeu, though many entiepieneuis iely on piivate funus, '"# /,H1(+'@
12 (#0)1&4#&'0 71&0+4#(#4 )*8-+7 ?(,&'0 '1 8# '"# 8#0' '11- '1 +&7(#,0# O+&,&7+,-
1))1('*&+'+#0F
The neeu foi moie public funuing fiom E0 funuing piogiammes oi national Ninistiies of
Finance was highlighteu (e.g. foi woikspaces). AlteinativelyG , &#> %*(1)#,& 2*&4
0)#7+O+7 '1 336 YW%0 >,0 0*??#0'#4 ,0 ,&1'"#( '@)# 12 O+&,&7+,- 0*))1('F
PF;FPF !@)#0 12 O+&,&7+,- 0*))1('
While many similai types of suppoit aie offeieu thioughout Euiope, the level at which
they aie offeieu anu the sectois to which they aie maue available may uiffei consiueiably.
As uiscusseu above, '"# /10' +/)1(',&' O+&,&7+&? 01*(7# +0 *&41*8'#4-@ 0#-2J
O+&,&7+&?F Public giants, bank loans anu piivate giants have a iesiuual iole, while the
otheis souices aie maiginal.
PF;FPF;F /14 -./012
I00:>/=:0
,D4.2
J1D4.
31:,9 K/.9412
C+?*(# ;]E W10' ,4#S*,'# '11- '1 +&7(#,0# O+&,&7+,- 1))1('*&+'+#0 21( 3360
{Source: Furokleis 2010, online survey)
PF;FPF9F ##& ,&?#-0 ,&4 )1'#&'+,- #&'(#)(#&#*(0 '",'
1'"#(>+0# '#&4 '1 8# +&21(/,-F
9
Foi example, the Butch goveinment planneu in its
iecent policy piogiamme to extenu the Business Angels Piogiamme to incluue CCIs,
2u4
as
CCIs still make ielatively little use of such Business Angel systems.
PF;FPFfF !,N,'+1& +&7#&'+5#0
Apait fiom Austiia, Finlanu, the Netheilanus, Spain anu the 0K, which implement specific
measuies to suppoit CCIs (although uefinitions aie not always homogeneous foi uiffeient
policy fiamewoiks), '"# /10' ?#&#(,- ,))(1,7"#0 '1 0*))1('+&? 7*-'*(,- ,&4 7(#,'+5#
#&'(#)(#&#*(0"+) ,(# ',N 4#4*7'+1& ,&4 2,51*(,8-# O+07,- )1-+7+#0F
Tax incentives can eithei enhance oi impaii competitiveness anu the cieation of a
piospeious entiepieneuiial enviionment, uepenuing on the level anu type of incentive.
The oveiall tax buiuen, which consists of all taxes, uiiect anu inuiiect, anu compulsoiy
social contiibutions, can be useu as an instiument foi the CCIs.
2uS
Expeits at uiffeient
levels fiequently biought up the issue of tax cieuits anu fiscal exemptionsF Togethei with
bank loan guaiantees, tax exemptions weie consiueieu by Euiopean expeits to be the best
way to pioviue financial suppoit.
When askeu about the most ielevant way to access finance foi CCI SNEs, tax exemptions
foi CCIs weie selecteu as the most impoitant initiatives by sectoial expeits (S8%),
followeu by a CCI SNE fiienuly giowth loan (27%), as illustiateu in Fig. 17. Nost of the
'othei' alteinatives (7.4%) suggesteu the implementation of a multi-layeieu appioach
encompassing fiienuly giowth loans, tax exemption, guaiantee facilities, iisk capital, anu
vAT ieuuction. Some only unueilineu the neeu to have a loan oi bank guaiantee. 0n the
othei hanu, foi geneial Euiopean expeits, 0##4 O+&,&7+&? >,0 71&0+4#(#4 '"# /10'
(#-#5,&' >,@ '1 0*))1(' 336 YW%0 (22%) as well as an inciease in public giants.
0ne of the most fiequently useu instiuments to stimulate the CCIs is the cieation of
specific tax iegimes foi cultuial anu cieative entiepieneuis. The EC iecently 71&0+4#(#4
'"# +/)-#/#&','+1& 12 , -1> i*-/,> ?10@
;;= AB7 C-/,053D E-9F*+ 3910
G1H ,H,I:5+(,)3C /5=D6E F=-,
*+,-,.+-3 G)H+.(7
I(,615( ?-;+6-3
B15=;(-, ??@ J-,K
05+H-6( 45-,67
L6E(5
C+?*(# ;_E W10' +/)1(',&' =+&4 12 O+&,&7+,- +&+'+,'+5#0 8#0' ,00+0'+&? 336 YW%0
{Source: Furokleis 2009, Sectorol Fxpert questionnoire)
PF;FPF]F \*8-+7J\(+5,'# \,('&#(0"+)0
The uiveise anu uynamic natuie of CCI SNEs means that the question of access to finance
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 6S
2u6
EC Consultation Papei of Review of Existing legislation on vAT Reuuceu iates, (2uu8), see http:¡¡ec.euiopa.eu¡
taxation_customs¡iesouices¡uocuments¡common¡consultations¡tax¡vat_iates_public_consultation_uocument_en.puf
uepenus on numeious factois. Nultiple anu blenueu foims of financial suppoit aie neeueu
uepenuing on the given sectoi anu phase of a specific pioject at which an SNE finus itself.
The Council Conclusions of Nay 2u1u on Creotinq on lnnovotive Furope stiesseu the neeu
to incluue public piivate paitneiships to finance moie effective banking lines foi Reseaich,
Bevelopment anu Innovation involving actois such as the Euiopean Investment Bank.
2u7
The expeit inteiviewees of this stuuy 0+/+-,(-@ 0'(#00#4 '"# )1'#&'+,- 12 '"#0# ,7'1(0 '1
',) +&'1 '"# 3360F
PF;F9F \",0#0
The impoitance of access to finance vaiies gieatly between SNEs anu may be of gieatei
neeu uuiing the beginning oi latei stages of giowth. Accoiuing to iesponuents (Fig. 19.) an
oveiwhelming majoiity, both fiom the suivey anu qualitative inteiviews, inuicate the
significance of financial suppoit paiticulaily in phases two anu thiee of the lifecycle mouel.
The amount anu type of funuing, howevei, uiffeis between phases. Foi instance, stait up
costs (e.g. iegistiations costs) will be gieatest in phase two. Theiefoie, -1>#(+&? '"# 0',('
*) ,&4 (#?+0'(,'+1& 710'0G theieby uiminishing the financial thiesholus to stait, will
positively influence the numbei of staiteis in the sectoi. Similaily, )(15+4+&? +&&15,'+1&
2*&40 4*(+&? )",0# '"(##G when they aie of gieatei use anu value, can bettei taiget
innovation.
The uivision between suppoiting the #&'(#)(#&#*( anu the #&'#()(+0# becomes
appaient when iegaiuing financial suppoit. The tiansition fiom a one-peison enteipiise to
a multi-peison enteipiise gieatly affects the type anu amount of finances iequiieu,
paiticulaily if auuitional woikeis aie employeu. Similaily, the efficiency of public funus
changes between these two levels, with uiiect subsiuies being veiy efficient at the
beginning to suppoit the entiepieneui, but less so at the enteipiise level.
µuestion: At wbot stoqe of tbe entrepreneuriol lifecycle is jinonciol support most neeJeJ?
!" $!" %!" &!" '!" (!" )!"
*+,-. (/ 0122.3425
*+,-. $/ *6.7,6825 9+.
561:2;
*+,-. '/ :7
C+?*(# ;eE W10' +/)1(',&' )",0# 21( O+&,&7+,- 0*))1('
{Source: Furokleis 2010, online survey)
Since access to finance is impoitant uuiing the eaily phases of the entiepieneuiial
lifecycle, =&1>-#4?# ,&4 +&21(/,'+1& 1& '"# '@)#0 12 O+&,&7+,- 0*))1(' ,5,+-,8-# is of
coiiesponuing significance. Theie aie many types of existing financial suppoit available,
such as multi-sectoial suppoit schemes. Bowevei, CCIs geneially uo not access them uue to
theii lack of knowleuge about funus that aie not specifically taigeteu at CCIs.
2u8
Cultuial
anu cieative entiepieneuis neeu to be awaie of, anu comfoitable with, financial options.
0n the othei hanu, '11 /*7" 2*&4+&? 4*(+&? '"# #,(-@ )",0#0 7,& ,-01 +&"+8+' ?(1>'"F
As seveial expeits expiesseu, too much funuing can make entiepieneuis iisk-aveise anu
stop them biinging theii iueas to the maiket.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 64
2u7
Euiopean Council Conclusions, (Nay 2u1u), op. cit., p.S.
2u8
KEA, (2u1u), op.cit., p. 26.
Buiing the latei stages of the cycle, namely uuiing phase foui anu five, theie aie auuitional
obstacles to oveicome. C1( ?(1>'"J1(+#&'#4 YW%0 ),('+7*-,(-@G 0)#7+O+7 0'(*7'*(,-
O+&,&7# ,&4 >1(=+&? 7,)+',- ,(# &##4#4 +& 1(4#( '1 #N),&4 ?(1>'" ,&4 ,77#00 '1 '"#
/,(=#' b8*+-4 1*'dF Financial suppoit must be accessible uuiing all phases of the
entiepieneuiial life cycle, but the types of suppoit must concui with the evolving neeus of
each phase.
PF;FPF B#5#-0
Financial suppoit pioviueu at local, iegional anu national levels weie cleaily emphasiseu
by the suivey's iesponuents as most auequate foi suppoiting CCIs. As seen in Fig. 2u.
below, S2% of iesponuents consiueieu the (#?+1&,- -#5#- 12 ,*'"1(+'@ ,0 /10' 0*+',8-#
21( 0*))1('+&? ,77#00 '1 O+&,&7#G followeu by the national level (29%) anu the local¡city
level (22%). The E0 level was ueemeu to be less auequate foi uiiect suppoit to the CCIs
mainly uue to the buieauciacy anu complexity involveu in the pioceuuies.
µuestion: Wbot level of outbority is most suitoble for supportinq
occess to jinonce for your orqonisotion?
!" $" %!" %$" &!" &$" '!" '$"
()*+,-./ 0)1)/
2.3,-./ 0)1)/
0,4./56+78 /)1)/
9:;,1(=G +0 #00#&'+,- '1 *&4#(0',&4 '"# ?-18,- /,(=#'F
9;R
uoveinments coulu encouiage anu pioviue SNEs with appiopiiate suppoit to enable them
to access knowleuge in oiuei foi them to bettei access oppoitunities on the maiket. With
existing suppoit in incubatois anu othei suppoit such as seeu finance, staiting up a CCI
SNEs is not the haiuest pait: builuing up anu gaining a maiket position is moie uifficult.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 67
212
Expeit Questionnaiie
21S
See foi example, Euiopean Council Conclusions, (Becembei 2uu8), Think Small Fiist- A Small Business Act foi Euiope,
uoc 16788¡u8; Raffo et al. (2uuu), "Teaching anu leaining entiepieneuiship foi micio anu small businesses in the cultuial
inuustiies sectoi", Euucation anu Tiaining, vol. 42, No 6, p. SS6.
214
NESTA, (Nay 2u1uc), Souicing Knowleuge foi innovation: the inteinational uimension, Lonuon: NESTA , p. 6.
The ueciease of tiaue baiiieis anu the integiation of woilu maikets have maue it possible
foi all types of companies, incluuing new ones, to exploit global oppoitunities. The
globalisation piocesses encouiage an exteinalisation stiategy in the same way as it
confionts two opposite extiemes: the micio-SNEs anu the laige coipoiation. !"# "+?"
71/)#'+'+1&G '"# "1-4 1& '"# /,(=#' 8@ , 2#> -,(?# 71()1(,'+1&0 ,&4 '"# -+/+'#4
=&1>-#4?# ,81*' #N'#(&,- 1))1('*&+'+#0 21(/ '"# #&5+(1&/#&' '",' 71&2(1&'0 '"#
33 #&'(#)(#&#*( ,' '"# 0',(' 12 '"#+( ,7'+5+'@ anu thioughout the entiepieneuiial
lifecycle.
PF9F;F !"# IW+00+&? W+44-#KE 1(=0 '1 , >+4#( )*8-+7G inuepenuently of physical anu
geogiaphical constiaints, potentially incieasing choice anu accessibility foi all. 0n the
othei hanu 63! 4+0(*)'0 '(,4+'+1&,- 71&'#&'F While new mouels stiuggle to emeige, the
iisk is that 7*-'*(,- 71&'#&' /,@ 8# 71&0+4#(#4 ,0 ,&@ 1'"#( 71//14+'@ '(,4#4 +& '"#
5+('*,- >1(-4 ,&4 /,@ 8# 4#5,-*#4F
Bigital meuia can potentially enable SNEs to affoiuably compete in biggei maikets by
allowing foi example, smallei companies to auveitise theii piouucts online, by incieasing
theii competitiveness thiough a gieatei usage of usei-geneiateu content oi by accessing
inteinational netwoiks. The seeming uemociatisation of maiket oppoitunities on the
Inteinet anu the enhanceu iole of the usei in shaping the piouucts anu seivices has
funuamentally alteieu business mouels in ceitain sectois, such as in the meuia inuustiy.
Bowevei, Euiope is cuiiently failing to take full auvantage of the uigital maiket anu new
technologies. The uigital maiket iemains fiagmenteu anu iegulations hinuei the full
uevelopment of a Single Bigital Naiket in Euiope. Recent initiatives aie impoitant signs of
changing oppoitunities.
221
The Agenua foi a Bigital Euiope, a flagship initiative in the
Euiope 2u2u stiategy, aims at coiiecting these imbalances anu is tiying to auapt to these
changes in oiuei to uevelop a Single Bigital Naiket
222
, incieasing the inteiopeiability anu
the conveigence of stanuaius, as well as incieasing the suppoit foi netwoiks.
The E0 funueu EBiNA pioject (Euiopean Bigital Neuia Association) is an alliance of new
meuia companies that aims at cieating an open anu legal fiamewoik foi Pan-Euiopean E-
commeice anu enabling gieatei consumei choice in uiveisity anu enhanceu
competitiveness thioughout the E0. It auuiesses legal baiiieis blocking a single Euiopean
Bigital Naiket. Foi example, EBiNA aims at incieasing the co-oiuination of policy
foimation by establishing a new Euiopean Pailiament gioup on the new meuia sectoi to
ensuie a bettei fit with iegaius to the copyiight licensing iegime foi the uigital age.
22S
Noieovei, it pioviues new meuia platfoims in oiuei to impiove consumei confiuence anu
pioviues online seivices to impiove the use of meuia anu E-commeice in Euiope. The ex-
Commissionei foi Infoimation Society anu Neuia, viviane Reuing, acknowleugeu similai
neeus in completing a Single Bigital Naiket
224
, seeing the potential that the uigital woilu
has to offei.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 69
219
0K Technology Stiategy Boaiu, (2uu9), op. cit., p. 12.
22u
0S National Enuowment foi the Aits, (2u1u), Auuience 2u: Bow Technology Influences Aits Paiticipation, Washington: 0S
National Enuowment foi the Aits, p. 1u. This iepoit founu that SS% 0S auults paiticipate in the aits thiough electionic anu
uigital meuia thiough Tv, iauio, cv¡uvu, computei anu inteinet to view ait peifoimance, ait woiks, museums. A thiiu of the
0S auults paiticipate in 'benchmaik' aits activities such as jazz, classical music, opeia anu all foims of uance, thiough
electionic meuia. Foi eveiy type of aits peifoimance, auults weie moie likely to view oi listen thiough electionic meuia than
attenu live peifoimances.
221
EC Communication, (2u1ub), op. cit., p. S.
222
EC Communication, (Nay 2u1ua), Bigital Agenua foi Euiope, C0N (2u1u) 24S
22S
Euiopean Bigital Neuia Association (EBiNA), (2uu9), op. cit.
224
Reuing, v., (0ctobei 2uu9), Speech on the Bigital Single Naiket: a key to unlock the potential of the knowleuge base
economy, Available at http:¡¡www.iccwbo.oig¡bascap¡iuSSS6u¡inuex.html
PF9FPF !@)#0 12 0*))1(' '1 /,(=#' ,77#00
Conscious of the innovative potential of CCI SNEs, the E0 Council conclusions of Nay 2u1u
acknowleuge the neeu to suppoit 'cultuie-baseu cieativity' SNEs in theii access to maiket
as a way to encouiage innovation.
22S
Public piocuiement, Leau Naiket Initiative,
stanuaiuisation, although highly piomising, iemain *&',))#4 (#01*(7#0 foi innovation
anu foi the encouiagement to access the maiket.
226
The Euiopean platfoim on the potential of cultuial anu cieative inuustiies has emphasiseu
'"# +/)1(',&7# 12 7(#,'+&? ,& #&5+(1&/#&' '",' 210'#(0 '"# 7(#,'+1& ,&4
4#5#-1)/#&' 12 7*-'*(,- YW%0F They state that these shoulu be gianteu specific suppoit
anu benefit fiom positive uisciimination measuies. The Platfoim noteu that:
"Horket occess must be ensureJ for oll culturol onJ creotive octors reqorJless of tbeir
size to quorontee plurolism onJ o reol economy of Jiversity onJ tbe internotionol
promotion onJ excbonqe sboulJ be JevelopeJ {...) tbe presence of ortists onJ culturol
professionols in key internotionol morkets must be mointoineJ tbrouqb tbe
estoblisbment of specijic scbemes onJ tbe focilitotion of excbonqe witb tbirJ
countries."
227
In teims of suppoit foi CCI SNEs to benefit fiom the Euiopean uigital single maiket, most
iesponuents pointeu at '"# &##4 21( O+&,&7+,- 0*))1(' '1 2,7# '"# 4+?+',- 0"+2' (S4%)
anu seconuly, '"# &##4 21( '"# ",(/1&+0,'+1& 12 ,77#00 71&4+'+1&0 (S1%) (Table 9.
below). The 'othei' types of SNE suppoit to entei the Euiopean single uigital maiket weie
taigeting the capacity builuing on access possibilities anu knowleuge suppoit.
µuestion: Eow Jo you tbink CCl SHFs sboulJ be supporteJ to benejit
from tbe Furopeon Biqitol Sinqle Horket?
6'#/ \#(7#&' `
No specific suppoit S.4S%
Baimonization of access
conuitions
S1.uS%
Legal Suppoit 2u.69%
Financial Suppoit S4.48%
0thei 1u.SS%
Capacity builuing on access
possibilities
S.4S%
Bon't know S.4S%
Knowleuge suppoit S.4S%
!,8-# eE 336 YW%0 0*))1(' 21( '"# 4+?+',- /,(=#'
{Source: Furokleis 2009, Sectorol experts)
Although uiiect measuies foi suppoiting access to maiket foi CCIs aie not yet in place at
the E0 level, the E0 has ceitain existing piojects that show signs of possible extension of
suppoit to CCIs. Foi example, the B#,4 W,(=#' 6&+'+,'+5# launcheu by the E0 in 2uu8 was
set to iuentify the new neeus anu new maiket foi innovative piouucts oi seivices. Foi now,
this initiative is taigeteu towaius 6 LNIs,
228
which aie &#+'"#( 0#(5+7# &1( &1&J
'#7"&1-1?+7,- +&&15,'+1& 1(+#&'#4F Bowevei, extenuing a LNI to CC piouuct anu seivices
anu taigeting CCI SNEs, coulu be a way to suppoit access to maiket foi CCIs. Similaily, in
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 7u
22S
Euiopean Council, (Nay 2u1u), op. cit., p. 2.
226
Euiopean Council, (Nay 2u1u), op. cit., p. 2.
227
Platfoim on the Potential of Cieative anu Cultuial Inuustiies, (2uu9), Final Recommenuations of the Platfoim on the
Potential of Cieative anu Cultuial Inuustiies, op. cit., p. 4.; anu 0NC Expeit Woiking uioup on maximising the potential of
cultuial anu cieative inuustiies, in paiticulai that of SNEs, (2u1u), Final Repoit, op. cit., pp. 6-11.
228
EC Woiking Bocument, (Septembei 2uu9c), Leau Naiket Initiatives foi Euiope: Niu Teim piogiess iepoit, SEC (2uu9)
1198: bio-baseu piouucts, eBealth, sustainable constiuction, piotective textiles, iecycling anu ienewable eneigy
the communication Assessing Community Innovation Policies in the peiiou 2uuS-2uu9,
the E0 suggesteu that )*8-+7 )(17*(#/#&' be pait of innovation policy as it can help
fostei the maiket uptake of innovative piouucts.
229
Public Piocuiement pioceuuies coulu
be useu to inciease the uemanu foi specific innovative piouucts anu seivices coming fiom
CCIs anu in so uoing can encouiage the access to maiket foi innovative CCI SNEs. The E0
Council iecommenueu in its Conclusions in Nay 2u1u that the public piocuiement buuget
is incieaseu anu uevoteu to innovative piouucts, piocesses anu seivices
2Su
. This shows the
potential to extenu existing initiatives to suppoit CCIs in theii access to maiket.
Y',&4,(4+0,'+1& also stimulates the maiket foi innovative piouucts by setting up a
playing fielu foi innovatois, accompanying the emeigence of new maikets anu facilitating
the spieau of technology. Bowevei, in its communication in 2uu8, the E0 acknowleugeu
the limiteu numbei of stanuaius foi seivices (mainly uue to the heteiogeneous natuie of
seivices).
The example of Quebec's )10+'+5# /#,0*(#0 '1 #&0*(# /,(=#' ,77#00 '1 3360 is
illustiative of the success that specific measuies foi CCI SNEs can have to access the
maiket anu piomote the CCIs.
2S1
PF9FPF;F \",0#0 12 /,(=#' ,77#00
With iegaius to the entiepieneuiial life cycle, a majoiity of expeits inteivieweu stateu that
,77#00 '1 /,(=#' +0 ),(,/1*&' +& )",0# 9 ,&4 P 12 '"# -+2#7@7-#G as Fig. 22.
uemonstiates. Inueeu, 4S% of the iesponuents founu that suppoit to access the maiket
was most neeueu in the 0',('J*) phase of the life cycle.
In the 8*+-4J*) ,&4 8*+-4J1*' phases of the entiepieneuiial life cycle, entiepieneuis
neeu to uo seveial things simultaneously: cieate stiuctuial sustainability by builuing
stiong netwoiks; uevelop a methouological way of staying cieative to succeeu; have a
futuie-oiienteu giowth plan to expoit into new maikets anu bianuing foi giowth; be
scalable anu ieplicable.
µuestion: ln wbicb pbose of tbe life cycle Jo you see tbe most neeJ
to support occess to morket?
!" $!" %!" &!" '!" (!"
)*+,- (. /011-2314
)*+,- '. 56789 06:
)*+,- $. );-:+;:=6<
C+?*(# 99E \(#2#((#4 )",0# +& '"# -+2# 7@7-# 21( 0*))1(' '1 ,77#00 '"# /,(=#'
{Source: Furokleis 2010, online survey)
Some iesponuents highlighteu the neeu to focus on the lattei stages of the life cycle foi
maiket suppoit in paiallel to accessing inteinational maikets. Bowevei, with the
globalisation of maikets, such stiategies aie now moie focuseu on the eailiei stages. CCI
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 71
229
0S National Enuowment foi the Aits, (2u1u), Assessing Community Innovation Policies in the peiiou 2uuS-2uu9, SEC
(2uu9) 1194
2Su
Euiopean Council Conclusions, (26th Nay 2u1u), op. cit., p. 4.
2S1
Platfoim on the Potential of Cieative anu Cultuial Inuustiies, (2uu9), Final Recommenuations of the Platfoim on the
Potential of Cieative anu Cultuial Inuustiies
fiims aie confionteu fiom phase one with stiong inteinational competition. Euiope's
iegulatoiy enviionment is in this case not helpful.
With iegaiu to foieign maikets,
iesponuents founu that the 0*))1(' '1
,77#00 7(100J81(4#( /,(=#'0 >,0 /10'
&##4#4 +& '"# 8*+-4J*) ,&4 8*+-4J1*'
)",0#0 12 '"# -+2#7@7-#G once the CCIs have
acquiieu some iegulai clients anu can look
at othei oppoitunities. (see Fig. 2S.). The
best case example of Finpio is a useful
illustiation of this (See Appenuix 1, Best
Case 24).
µuestion: ln wbicb pbose of tbe life cycle Jo you see tbe most neeJ to support for cross-borJer qrowtb
onJ cross-borJer morkets?
!" $" %!" %$" &!" &$" '!" '$" (!"
)*+,- %. )/-0+/123 4*- 3/5627
)*+,- &. 84+/4960
)*+,- $. :522-; 8#0' '1 #&71*(,?# 33 #&'(#)(#&#*(0 '1 (#,-+0# ,&4 /,=# *0# 12 6\A ,0 '11-0 +&
'"#+( #&'(#)(#&#*(+,- ,7'+5+'@F Inueeu, the issue of IP management foi the CCIs is ,
7#&'(,- 4#'#(/+&,&' '1 '"#+( #&'(#)(#&#*(+,- 4(+5# as it gives the CCI entiepieneui the
oppoitunity to be iewaiueu anu can act as an enablei foi theii activity.
PFPF9F C1(/0 12 6\A ,&4 4+22#(#&' *0#
In line with the uebate on access anu exploitation, the types of IPR must be uiffeientiateu
to unueistanu theii use by CCI SNES. Foimal IPR mechanisms incluue the following:
uesign piotection,
2S6
tiauemaiks, patents, utility mouels anu copyiight.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 74
2SS
Cabieia Blazquez, F.}, (2uu7), "Bigital Rights Nanagements' systems (BRNs): Recent uevelopments in Euiope", Euiopean
Auuiovisual 0bseivatoiy, see http:¡¡www.obs.coe.int¡oea_publ¡iiis¡iiis_plus¡iplus1_2uu7.puf.en
2S4
Ibiu., p.2
2SS
0K Technology Stiategy Boaiu, (2uu9), op. cit., p. 2S.
2S6
A new iegisteieu Community Besign Right has been iecently intiouuceu.
Infoimal IPR vaiies in its natuie anu puipose but aie also impoitant foi SNEs.
2S7
The most
impoitant infoimal piotection methous
aie: seciecy, iestiicteu access to
infoimation, uatabase anu netwoik
piotection, confiuentiality, technical
piotection, uivision of uuties anu
subcontiacting, ciiculation of staff
between tasks, loyalty builuing among
peisonnel, client ielationship
management, membeiship of piofessional
oiganisations, anu publishing.
2S8
The
Cieative Bepot is a goou example of tackling issues ielateu to infoimal IPR (see Appenuix
1, Best Case 2S).
In the online questionnaiie, , "+?" )#(7#&',?# 12 (#0)1&4#&'0 bPP`d 4+4 &1' *0# ,&@
0)#7+O+7 +&0'(*/#&' 12 )(1'#7'+1&F "#& +' +0 ?+5#& +0 +/)1(',&'F A business mouel that +&'#?(,'#0 6\ ,0
),(' 12 '"# #&'#()(+0# -+2# 7@7-# was seen as impoitant.
2S1
In this iegaiu, the numbei of oveilapping innovation suppoit schemes at both national anu
Euiopean levels complicate the pictuie as piesenteu to SNEs. As iecently noteu, "Not only
uo Nembei States often have seveial funuing schemes anu a vaiiety of competing souices
of auvice, the E0 pioviues its own schemes anu souices (Relay Centies, IPR Belpuesk) anu
seveial funuing iegimes."
2S2
The iesults fiom the online questionnaiie showeu that in most cases, '"# O+(0' )",0#0 of
the life cycle weie most ciucial foi auvice on IPR foi CCI SNEs (see Fig. 27.).
µuestion: ln wbicb pbose of tbe life cycle Jo you see o neeJ for lPR oJvice?
!" $" %!" %$" &!" &$" '!" '$" (!" ($"
)*+,- $. /011-2314
)*+,- (. 56789 06:
)*+,- '. 56789;6<
)*+,- &. =:+>:;6<
)*+,- %. )>-714 :*- 4>0619
C+?*(# 9VE h#0' )",0# 21( '"# )(15+0+1& 12 6\A ,45+7#
{Source: Furokleis 2010, online survey)
The &,'+1&,- (S9%) anu the 0#7'1(,- (2u.S%) levels weie consiueieu most suitable foi
pioviuing IPR auvice foi the iesponuents. 0nly 2u% in total useu -17,- anu (#?+1&,-
institutions foi similai auvice. Bespite the fact that most of the expeit inteiviewees
highlighteu the vital iole that Euiope coulu play in shaping a haimoniseu legal context foi
IPR, veiy few iesponuents (7%) ieceiveu uiiect auvice at a Euiopean level.
In oiuei to inciease the numbei of innovative platfoims, anu to be able to compete with
countiies with much lowei cost of patents such as }apan anu the 0S,
2SS
the Bigital
Agenua
2S4
highlighteu the availability of a wiue anu attiactive online legal offei foi shaping
the iegulatoiy enviionment.
2SS
0veiall, the inteiviewees noteu that cleai auvice anu qualifieu staff be available to catei foi
the neeus of CCIs to effectively use IPR as
an enablei foi theii entiepieneuiial
activity. h1'" '"# (#?*-,'1(@ ,&4 '"#
"*/,& (#01*(7# #&5+(1&/#&' 0"1*-4
8# +/)(15#4 '1 /,=# 6\A ,45+7# /1(#
'(,&0),(#&' ,&4 -#00 '+/# 71&0*/+&?F
0wn It in the 0K is an example of a fiee
IPR auvice centie foi SNEs specialiseu in
the CCIs (see Appenuix 1, Best Case 26).
Y*))1(' 1& 4#/,&4 21( 6\A ,45+7# in
oiuei to bettei iesponu to the changing neeus of the CCIs thioughout theii life cycle >,0
7+'#4 ,0 , #00#&'+,- '1 )(1/1'# '"#+( *0# ,0 ,& #&,8-#( 21( #&'(#)(#&#*(+,- ,&4
7(#,'+5# ,7'+5+'+#0F
DMk 6!
0wn it is a 0K fiee intellectual piopeity auvice foi
cieative businesses. It aims to pioviue cieative
entiepieneuis with accessible, specialiseu
knowleuge IP systems as well as it offeis woikshop,
netwoiking anu coaching anu one to one auvises.
(See Appenuix 1, Best Case 26)
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 77
2S1
Ibiu., p. 14.
2S2
Fooiu, }. (2uu8), "Stiategies foi cieative inuustiies: an inteinational ieview", Cieative Inuustiies }ouinal, volume 1,
Numbei 2., p.96.
2SS
Pio INN0 Euiope, (2uu7), op. cit., p. SS
2S4
EC Communication, (Nay 2u1ua), Bigital Agenua foi Euiope, C0N (2u1u) 24S
2SS
Ibiu., p. 8
PFRF %&'(#)(#&#*(0"+) #4*7,'+1&G 0=+--0 ,&4 '(,+&+&?
It is cleai fiom the stuuy that theie is , ?#&#(,- -,7= 12 #&'(#)(#&#*(+,- 0=+--0 >+'"+& ,--
0#7'1(0 12 '"# 3360F Limiteu business skills weie citeu as the seconu most impoitant
business-ielateu challenge aftei lack of finance when staiting a company (see Fig. 28.
below).
µuestion: Wbicb wos tbe most importont business-reloteJ cbollenqe
wben stortinq your compony?
!" $" %!" %$" &!" &$" '!" '$" (!"
)*+, *- ./,01102,341 56*506,7 6.89,+
:42; *- ))< +*2.41 +0236.,7 +290=0
>4? @36A0/+
B,906
:42; *- ;/*C10A80 4@*3, ,90 =46;0,
D.89 2*=50EE*/ ./ ,90 =46;0,
:.=.,0A ;/*C10A80 */ 9*C ,* 63/ 4 @3+./0++
:42; *- F/4/20
C+?*(# 9_E W10' +/)1(',&' 8*0+� (#-,'#4 7",--#&?# >"#& 0',('+&? , 71/),&@
{Source: Furokleis 2010, online survey)
In the 0ECB's entiepieneuiship fiamewoik, the 'cultuie of entiepieneuiship' is incluueu
as a ueteiminant of entiepieneuiship, being influential in ueveloping a conuucive
enviionment foi fosteiing entiepieneuiial activity.
2S6
Bespite its impoitance, theie is still
+&0*2O+7+#&' +&'#?(,'+1& 12 #&'(#)(#&#*(0"+) #4*7,'+1& +& ?#&#(,- 7*((+7*-, ,&4 +&
,('0 #4*7,'+1&F
2S7
Theie is still ielatively little uata on the outcomes anu impact of the (#7#&' +&7(#,0# +&
?#&#(,- #&'(#)(#&#*(0"+) ,&4 #4*7,'+1& )(1?(,//#0F
2S8
Fosteiing the take up of
entiepieneuiial skills by cultuial anu cieative entiepieneuis may also iequiie non-
tiauitional euucational piogiammes. !"# &,((1> /14#- 12 #&'(#)(#&#*(0"+) 217*0+&?
01-#-@ 1& 71//#(7+,- 0*77#00 41#0 &1' 0##/ '1 71((#0)1&4 '1 '"# 3360G foi whom
ciitical cieative anu cultuial achievements aie often moie impoitant.
2S9
Bowevei,
stimulating the uevelopment anu implementation of entiepieneuiial skills is neeueu in
teims of entiepieneuiial uevelopment, maiket oiientation, ietuin on cieativity,
communication skills, netwoik uevelopment, anu team builuing within the
entiepieneuiial life cycle.
< 0)#7+O+7 0=+-- 0#' ianging fiom basic business planning skills to piesentation (e.g.
pitching an iuea) anu management skills aie ciucial foi the cultuial anu cieative
entiepieneuis to auveitise theii piouucts anu seivices. Fiom the expeit questionnaiies,
/,(=#' #&'(@ +0 4+(#7'-@ +&"+8+'#4 8@ =&1>-#4?#J180'(*7'+&? 2,7'1(0 0*7" ,0 '"# -,7=
12 8*0+� 0=+--0 (as uiscusseu above in section S.2.). Expeits also highlighteu the lack of
business skills as the most impoitant entiy baiiiei. Inueeu, foi fieelanceis, the expeit
iesponuents citeu, fiist, the lack of entiepieneuiial skills (41%) anu then the lack of
knowleuge (22.7%). 0n the othei hanu, foi pan Euiopean expeits, lack of business auvice
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 78
2S6
0ECB (2uu9), Evaluation of Piogiammes Conceining Euucation foi Entiepieneuiship, iepoit by the 0ECB Woiking Paity
on SNEs anu Entiepieneuiship, Paiis: 0ECB p. 9.
2S7
BCNS (2uu6), Beveloping Entiepieneuiship foi the Cieative Inuustiies- The Role of Bighei anu Fuithei Euucation
Lonuon: Bepaitment of Cultuie, Neuia anu Spoit
2S8
0ECB (2uu9), op. cit., p. 9.
2S9
The Bighei Euucation Acauemy Ait Besign Neuia Subject Centie anu NESTA, (2uu7), op. cit., pp. 1S-14.
anu of netwoiks (6u%) account foi the most impoitant knowleuge factois obstiucting CCI
SNEs giowth.
26u
Regaiuing the integiation of entiepieneuiship within the euucational system (see Fig. 29.
below), ]e` 12 '"# (#0)1&4#&'0 +& '"# 1&-+&# S*#0'+1&&,+(# 4+0,?(##4 >+'" '"#
0','#/#&' '",' #&'(#)(#&#*(0"+) >,0 0*2O+7+#&'-@ ,44(#00#4 +& '"# #4*7,'+1&,-
0@0'#/G while 26% agieeu.
261
µuestion: FJucotion onJ troininq is often tbe preferreJ instrument to foster o culture of
entrepreneursbip. Bo you oqree tbot entrepreneursbip is sufjiciently oJJresseJ in tbe eJucotionol
system?
!" $!" %!" &!" '!" (!"
)*+,-./0 1.+22
3,-4* 5-,6
)*+,-./0 3781.+22
9.+22
3781.+22
C+?*(# 9eE
Entrepreneurship is the process of starting a business, a startup company or other organization. The entrepreneur develops a business plan, acquires the human and other required resources, and is fully responsible for its success or failure.[1] Entrepreneurship operates within an entrepreneurship ecosystem.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 1
!"# %&'(#)(#&#*(+,- .+/#&0+1&
12 '"# 3*-'*(,- ,&4 3(#,'+5# 6&4*0'(+#0
.#7#/8#( 9:;:
!"# %&'(#)(#&#*(+,- .+/#&0+1&
12 '"# 3*-'*(,- ,&4 3(#,'+5# 6&4*0'(+#0
This iepoit was piepaieu by 0tiecht School of the Aits (Bogeschool vooi ue Kunsten
0tiecht, BK0) in the Netheilanus. The Ioculty of Art & Fconomics anu the Ioculty of Art,
HeJio & Tecbnoloqy co-opeiateu on this stuuy. The ieseaich auvisei was Piof. uiep
Bagooit anu his managing euitoi was Rene Kooyman. The stuuy was co-oiuinateu by
Baviu Ciombie anu the ieseaich team manageu by Emma Tilquin with the suppoit of K2N
Ltu anu Euiokleis S.i.l.
Noie infoimation about BK0 is pioviueu in the About 0s section. Foi moie infoimation
iegaiuing this iepoit, please contact Pieiie Neisch at BK0 in the fiist instance:
pieiie.meischÇkmt.hku.nl.
-#4?#/#&'0
We woulu like to thank eveiyone who helpeu with this stuuy. Fiistly, we woulu like to
thank the expeits in the cultuial anu cieative inuustiies who agieeu to paiticipate in the
stuuy anu gave up theii time foi questionnaiies, inteiviews anu woikshops. Seconuly, we
woulu like to thank Piof. }eioen van Nastiigt, Bi ueoige Ioanniuis, Bi Fiancesco Bellini,
anu Bis Rogei Lenoii foi theii co-opeiation anu expeitise. Thiiuly, we woulu like to thank
oui ieseaicheis, namely Nauio Navaiia, Naiia Felice Aiezzo, Pieiie Neisch, uiovanni
uiovinazzo, Naiilla valente, Sanuia ten Zijthoff, Chiaia ueilich, Zameei Razack, Kwaku
Afiiyie anu Luz uutieiiez.
.+07-,+/#(
This stuuy is subject to a uisclaimei anu copyiight. The stuuy was caiiieu out foi the
Euiopean Commission anu expiesses the opinions of the oiganisations having unueitaken
the stuuy. The views have not been auopteu oi in any way appioveu by the Euiopean
Commission anu shoulu not be ielieu upon as a statement of the Euiopean Commission's
views. The Euiopean Commission uoes not guaiantee the accuiacy of the infoimation
given in the stuuy, noi uoes it accept iesponsibility foi any use maue theieof.
31)@(+?"'
Copyiight is helu by the Euiopean 0nion. Peisons wishing to use the contents of these
stuuies (in whole oi in pait) foi puiposes othei than theii peisonal use aie inviteu to
submit a wiitten iequest to the following auuiess: Euiopean Commission, Euucation
Auuiovisual & Cultuie Executive Agency, Avenue uu Bouiget 1, B00R ¡ B002*, BE-114u
Biussels
A#2#(#&7#
BK0, (2u1u), The Entiepieneuiial Bimension of the Cultuial anu Cieative Inuustiies,
Bogeschool voi ue Kunsten 0tiecht, 0tiecht.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 2
31&'#&'0
................................................................................................................... Chaptei 0ne: Intiouuction S
....................................................................... 1.1. 0veiview, objectives anu stiuctuie of the stuuy S
.............................................................................................................. 1.2. Appioach anu methouology 7
.......................................................................................................................... 1.S. The Cieative Economy 8
.................................................................................. Chaptei Two: Cieative Entiepieneuiship 1u
............................... 2.1. Befining entiepieneuiship in the cultuial anu cieative inuustiies 1u
........................................................ 2.2. Chaiacteiistics of the cultuial anu cieative inuustiies 17
............................................................................................................... 2.S. Featuies of the CCI sectois 28
................................................................. 2.4. Cioss countiy analysis of iegulatoiy fiamewoiks 44
............................................................. 2.S. Suppoiting cultuial anu cieative entiepieneuiship S1
............................................................................................................................ 2.6. Concluuing iemaiks S4
........................................................................................... Chaptei S: Nain Thematic 0utcomes S6
.................................................................................................................................... S.1 Access to finance S6
.................................................................................................................................. S.2. Access to maiket 66
...................................................................................................... S.S. IPR instiuments anu CCI SNEs 7S
.................................................................... S.4. Entiepieneuiship euucation, skills anu tiaining 78
........................................................................................................................... S.S. Access to innovation 89
................................................................................................................ S.6. Clusteis anu collaboiation 99
......................................................................................................................... S.7. Concluuing iemaiks 1u8
................................................................................................ Chaptei Foui: Recommenuations 1u9
.................................................................................................... 4.1. Tiansveisal iecommenuations 1u9
............................................................................................................................... 4.2. Accessing finance 11u
....................................................................................................................... 4.S. Accessing the maiket 111
................................................................................... 4.4. Biiuging the entiepieneuiial skills gap 112
............... 4.S. Beveloping entiepieneuiship as non-technological uiivei of innovation 11S
.................................................................................................. 4.6. Suppoiting use of uigitalisation 11S
................................................................................................................................................ Appenuix 11S
.................................................................................................................................................. About us 116
......................................................................................................................................... Bibliogiaphy 117
B+0' 12 C+?*(#0
Figuie 1: The 0ECB¡E0R0STAT Fiamewoik foi Beteiminants of Entiepieneuiship 1S
Figuie 2: Size of enteipiises by sectoi acioss CCIs 19
Figuie S: Bistiibution of Total Tuinovei among Inuustiies pei size class of enteipiise 19
Figuie 4: Bistiibution of total Assets among Inuustiies pei size of enteipiise 2u
Figuie S: Peicentage of full time employees pei size class enteipiise in Bec. 2uu8 21
Figuie 6: Peicentage of Employees pei Sectoi 2S
Figuie 7: Total Tuinovei pei Inuustiy Su
Figuie 8: Peicentage of Enteipiises pei Sectoi S1
Figuie 9: 0S Tiaue Wholesale Electionic Book Sales, 2uu2-2u1u (1st quauiimestie) S7
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S
Figuie 1u: The value chain foi cultuial institutions 42
Figuie 11: Simple lifecycle fiamewoik foi suppoiting the CC entiepieneui anu enteipiise S1
Figuie 12: Effect of the iecent financial ciisis on 2uu9 tuinovei S7
Figuie 1S: Nost impoitant financial souice 2uu7-2uu8 S7
Figuie 14: Financial anu Economic planning (Buuget anu business plan) foi CCIs S8
Figuie 1S: Nain obstacles foi CCIs to access finance S9
Figuie 16: Nost auequate tool to inciease financial oppoitunities foi CCIs 61
Figuie 17: Nost ielevant initiative to access finance foi CCI SNEs 6S
Figuie 18: Nost impoitant kinu of financial initiatives best assisting CCI SNEs 6S
Figuie 19: Nost impoitant phase foi financial suppoit 64
Figuie 2u: Nost Suitable Authoiity to suppoit access to finance 6S
Figuie 21: Nost impoitant knowleuge factoi impeuing CCIs 67
Figuie 22: Piefeiieu phase in the life cycle foi suppoit to access the maiket 71
Figuie 2S: Nost appiopiiate phase foi cioss boiuei maiket suppoit 72
Figuie 24: Nost appiopiiate level foi suppoiting access to maiket 7S
Figuie 2S: Nost impoitant iegulatoiy issues faceu by CCI SNEs 7S
Figuie 26: Nost commonly useu instiuments foi the piotection of cieative outputs in CCIs 7S
Figuie 27: Best phase foi the piovision of IPR auvice 77
Figuie 28: Nost impoitant business ielateu challenge when staiting a company 78
Figuie 29: Agieement on sufficient integiation of entiepieneuiship in euucational system 79
Figuie Su: Nost useful suppoit foi acquiiing entiepieneuiial piactices in the stait up phase 8S
Figuie S1: Nost appiopiiate phase foi specific tiaining in technology anu financial skills 8S
Figuie S2: Piefeiieu phase foi LLL in life cycle 86
Figuie SS: Neeu foi uevelopment of auvice anu suppoit centies foi CCIs 87
Figuie S4: Piefeiieu level foi ueveloping auvice anu suppoit centies foi CCIs 87
Figuie SS: Piefeiieu level foi LLL stiategies 88
Figuie S6: Aim of CCIs when innovating 92
Figuie S7: Nost impoitant challenges in teims of innovation (Souice: 9S
Figuie S8: Nost ielevant souices of knowleuge foi CCI SNES 94
Figuie S9: Ways to acquiie knowleuge about ieseaich anu innovation initiatives 9S
Figuie 4u: Nost impoitant measuies foi the piomotion of innovation 97
Figuie 41: Nost impoitant phase foi innovation suppoit foi CCI SNEs 98
Figuie 42: Piefeiieu Levels foi innovation investments foi CCI SNEs 98
Figuie 4S: Piefeiieu level foi paitneiship between piivate business, public institutions anu CCI SNEs 99
Figuie 44: Co-opeiation with othei enteipiises in the same sectoi 1uu
Figuie 4S: Co-opeiation with enteipiises in a uiffeient sectoi 1uu
Figuie 46: Type of netwoik 1u1
Figuie 47: Neeu foi uevelopment of auvice anu suppoit centie specific foi CCI 1uS
Figuie 48: 0se of collaboiative business enviionment (clustei oi incubatoi) within CCIs 1uS
Figuie 49: Piefeiieu phase foi collaboiative business enviionment 1u6
Figuie Su: Neeu foi cioss-sectoial SNE co-opeiation 1u6
Figuie S1: Piefeiieu level foi ueveloping collaboiative business enviionment initiatives 1u7
Figuie S2: Neeu foi an inciease in cioss-iegional co-opeiation to impiove giowth of CCI SNEs 1u7
B+0' 12 !,8-#0
Table 1: Peicentage of economic tuinovei of the CCI pei countiy in seveial Euiopean countiies 16
Table 2: Bistiibution of Enteipiise among Inuustiies pei size class 18
Table S: Clusteis in the CCIs 29
Table 4: Bigital Cinema sites anu scieen in Euiope (2uuS-2uu8) S6
Table S: Nost impoitant iegulatoiy measuies faceu by CCIs 44
Table 6: Clusteiing by countiy chaiacteiistics 46
Table 7: Euiope's top iegions foi CCI employment clusteis Su
Table 8: Peisonal motivation in entiepieneuiship SS
Table 9: CCI SNEs suppoit foi the uigital maiket 7u
Table 1u: Ways of acquiiing entiepieneuiial skills 81
Table 11: Ways to get auvice anu suppoit when staiting a CCI company 1u4
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 4
3",)'#( D&#E 6&'(14*7'+1&
;F;F D5#(5+#>G 18H#7'+5#0 ,&4 0'(*7'*(# 12 '"# 0'*4@
Euiope is wiuely iecogniseu as having a iich uiveisity in its cultuial heiitage anu cultuial
expiessions. Bowevei, in iecent yeais Euiope has been confionteu with seveial macio-
economic challenges, such as the financial ciisis anu a stiongei global competition, as well
as inteinal socio-economic challenges. The Euiope 2u2u Stiategy highlighteu the neeu foi
oui continent to take an innovative path to iesponu to these challenges by builuing upon
one of Euiope's key stiengths; its talenteu anu uiveise cieative population:
1
!"#$%& (%)*&+ #,$-. .&%,-(&+,-/-( 0-)*1,2(, $-2 /--)3$&/)- $. 2%/3,%.
)4 )5% 45&5%, (%)*&+6 Tbis requires improvinq tbe quolity of our eJucotion,
strenqtbeninq our reseorcb performonce, promotinq innovotion onJ knowleJqe
tronsfer tbrouqbout tbe 0nion, mokinq full use of informotion onJ
communicotion tecbnoloqies onJ ensurinq tbot innovotive iJeos con be turneJ
into new proJucts onJ services tbot creote qrowtb, quolity jobs onJ belp oJJress
Furopeon onJ qlobol societol cbollenqes. But, to succeeJ, tbis must be combineJ
witb entrepreneursbip, jinonce, onJ o focus on user neeJs onJ morket
opportunities".
2
The impact of cultuie anu cieativity oi I7*-'*(#J8,0#4 7(#,'+5+'@K
S
has attiacteu much
attention in fosteiing anu unlocking the potential of a Euiopean I7(#,'+5# #71&1/@K. The
incieasing focus on the cultuial anu the cieative sectoi has iesulteu in many stuuies, such
as the 0N Repoit on Cieative Economy in 2uu8, which was collectively publisheu by five
inteinational oiganisations (0NCTAB, 0NBP, 0NESC0, WIP0 anu ITC):
"Tbe interfoce omonq creotivity, culture, economics onJ tecbnoloqy, os expresseJ in
tbe obility to creote onJ circulote intellectuol copitol, bos tbe potentiol to qenerote
income, jobs onJ export eorninqs wbile ot tbe some time promotinq sociol inclusion,
culturol Jiversity onJ bumon Jevelopment. Tbis is wbot tbe emerqinq creotive
economy bos olreoJy bequn to Jo os $ 1,$2/-( 7)#8)-,-& )4 ,7)-)#/7 (%)*&+9
,#81):#,-&9 &%$2,9 /--)3$&/)- $-2 .)7/$1 7)+,./)- in most oJvonceJ economies".
4
In iecent yeais, the E0 Council also followeu the move to iecognise the potential of the
cultuial anu cieative inuustiies in contiibuting to the Lisbon objectives,
S
acting as
catalyseis of Euiope's innovative potential. Similaily, in the Naastiicht Tieaty (the E0
Lisbon piocess foi stiengthening the economic giowth in Euiope), as well as in the
0NESC0 Convention on the Piotection anu Piomotion of the Biveisity of Cultuial
Expiessions (heieaftei nameu 0NESC0 Convention),
6
the iole of the cultuial anu cieative
inuustiies has gaineu gieatei attention.
7
In paiallel, seveial Euiopean initiatives have been
unueitaken to piomote the iuea of the cieative economy; foi example, 2uu9 was
uesignateu the Euiopean Yeai of Cieativity anu Innovation anu the iecent uieen Papei on
'L&-17=+&? '"# )1'#&'+,- 12 '"# 7*-'*(,- ,&4 7(#,'+5# +&4*0'(+#0K (heieaftei iefeiieu to
as the CCIs) soliuifieu this iecognition.
8
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S
1
EC Communication, (Naich 2u1ub), Euiope 2u2u: A Stiategy foi Smait, Sustainable anu Inclusive uiowth, C0N (2u1u)
2u2u, p. 7.
2
Ibiu., p. 1u.
S
KEA, (2uu9), The impact of cultuie on cieativity, KEA Euiopean Affaiis: Biussels
4
0NCTAB, (2uu8), The Cieative Economy, 0NCTAB¡BITC¡2uu8¡2 , p. iii
S E0 Council Conclusions, (2uu7), Contiibution of the Cultuial anu Cieative Sectois to the Achievement of the Lisbon
0bjectives - Auoption of the Council conclusions, 9u21¡u7, BuI-2A, Boc 86SS¡2¡u7 C0LT 2S REv 2
6
The Euiopean Community is paity to this Convention.
7
Fesel B., Sonueimann, N., (2uu7), Cultuie anu Cieative Inuustiies in ueimany, 0NESC0 Bonn
8
EC uieen Papei, (Apiil 2u1u), 0nlocking the Potential of Cultuial anu Cieative Inuustiies, C0N (2u1u) 18S
The abunuance of stuuies on the CCIs, such as those unueitaken by KEA,
9
NESTA,
1u
the
Euiopean Clustei 0bseivatoiy, the woik on 'Besign as a uiivei of usei-centieu innovation',
11
the iepoits piouuceu iecently by the Euiopean Platfoim, anu the Expeit Woiking uioup
on CCIs
12
(set up as pait of the Euiopean Agenua foi Cultuie), have highlighteu the ciitical
impact of CCIs on giowth anu employment,
1S
anu acknowleugeu theii ?(#,' #71&1/+7G
017+,-G 7*-'*(,- ,&4 +&&15,'+5# )1'#&'+,-F CCI activities act as impoitant uiiveis of
'economic anu social innovation' within the sectoi but also outsiue the CCI sectoi,
14
contiibuting to Euiope's stiengths in times of challenges anu, as such, aie in line with the
E0 2u2u Stiategy. M+'" +/,?+&,'+5# 01-*'+1&0 0*7" ,0 '"# +&'#?(,'+1& 12 *0#(J7#&'(#4
,))(1,7"#0G '"# 4#5#-1)/#&' ,&4 *0# 12 63!G '"# 4#0+?& 12 &#> 0#(5+7#0 21(
+&7(#,0#4 017+,- +&7-*0+1&G CCIs contiibute to uiive uynamic change in the economy as
well as contiibuting to bioauei cultuial uiveisity.
With new piocesses, piouucts anu seivices, CCIs may pioviue innovative input foi othei
sectois of the economy.
1S
As innovation is now acknowleugeu as encompassing moie than
just technological anu scientific changes,
16
the CCIs offei the oppoitunity to biing essential
change in non-technological innovation foi piouucts, seivices anu piocesses, contiibuting
to a moie inventive Euiope. Exteinal factois such as globalisation anu the I4+?+',- 0"+2'K
have openeu oppoitunities anu enableu gieatei cultuial uiveisity anu aie uiiveis of
fuithei uevelopment foi the CCIs.
17
Auuitional factois have to be taken into consiueiation
to #N,/+&# 71&4*7+5# #&5+(1&/#&'0 21( *&-17=+&? '"# #&'(#)(#&#*(+,- 4+/#&0+1& 12
3360F Fosteiing entiepieneuiship in the CCIs means stiengthening Euiope's cultuial anu
cieative uiveisity by ieinfoicing the ability of cultuial anu cieative entiepieneuis to
efficiently caiiy out theii activities anu piopose new piouucts anu seivices, anu this can
act as a &1&J'#7"&1-1?+7,- 4(+5#( 12 +&&15,'+1&.
This stuuy iesponus to the giowing impoitance of the cieative economy anu moie
specifically to the iole of the CCIs as a means to tackle futuie challenges in the context of a
globaliseu economy.
18
The focus on knowleuge-intensive piouucts anu seivices anu the
neeu to cieate a level playing fielu foi entiepieneuis in CCIs was put foiwaiu in the iecent
uieen Papei thiough a focus on cieativity anu innovation.
19
The stuuy aims to pioviue a bettei unueistanuing of the opeiations anu specific neeus of
the CCIs, especially small anu meuium-sizeu enteipiises (heieaftei iefeiieu to as SNEs). It
will highlight the '(,&05#(0,- )(18-#/0 71//1& '1 ,-- '"#0# 7*-'*(,- ,&4 7(#,'+5#
+&4*0'(+#0G anu inuicate 0)#7+O+7 7",--#&?#0 that coulu hampei innovation anu pievent
CCIs fiom benefiting fiom the inteinal maiket anu new technologies. This iepoit pioviues
an 15#(5+#> 12 '"# /,+& 7",(,7'#(+0'+70 12 '"# 3360 anu consiueis national
#&5+(1&/#&',- 2,7'1(0 '",' +&O-*#&7# '"# 4#5#-1)/#&' 12 '"#0# #&'#()(+0#0. Aftei this
oveiview, the stuuy suiveys the key 4#'#(/+&,&'0 '1 0'(#&?'"#&+&? #&'(#)(#&#*(0"+)
21( 3360 such as access to finance; access to maiket; intellectual piopeity iights; euucation
anu tiaining; access to innovation; anu collaboiative piocesses.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 6
9
KEA (2uu6), The Economy of Cultuie in Euiope, Biussels: KEA Euiopean Affaiis; KEA, (2uu9), The Impact of Cultuie on
Cieativity, Biussels: KEA Euiopean Affaiis
1u
See http:¡¡www.nesta.oig.uk¡publications
11
EC Staff Woiking Bocument, (2uu9a), Besign as a uiivei of usei-centieu innovation, SEC (2uu9) Su1
12
Furopeon Plotform on tbe Potentiol of tbe Culturol onJ Creotive lnJustries anu the 0pen HetboJ of CoorJinotion Fxpert
Workinq 6roup on Hoximisinq tbe Potentiol of Culturol onJ Creotive lnJustries, in paiticulai that of SNEs. Repoits available at
http:¡¡ec.euiopa.eu¡cultuie¡oui-policy-uevelopment¡uoc224u_en.htm.
1S
Euiopean Clustei 0bseivatoiy, (Naich 2u1u), Piioiity Sectoi Repoit: Cultuial anu Cieative Inuustiies, Stockholm:
Euiopean Clustei 0bseivatoiy, p. 1S.
14
EC uieen Papei, (Apiil 2u1u), op. cit., p. S.
1S
ECCE Innovation, (}uly 2uu9), Napping Innovation 0ppoitunities Stemming Fiom Collaboiation between Cieative
Inuustiies anu 0thei Inuustiies, Stuttgait: ECCE Innovation, p.11.
16
EC Communication "Euiope 2u2u Flagship Initiative Innovation 0nion", (0ctobei 2u1u), C0N (2u1u) S46 final
17
EC uieen Papei, (Apiil 2u1u), op. cit., p. S.
18
EC Communication, (Naich 2u1ub), op. cit., p. 2.
19
EC uieen Papei, (Apiil 2u1u), op. cit., p. S.
Beiiving fiom these key challenges, the stuuy suggests ?#&#(,- ,))(1,7"#0 foi
ueveloping a conuucive enviionment foi CCIs as well as 0)#7+O+7 (#71//#&4,'+1&0 to
pioviue suppoit foi each ueteiminant, highlighting best piactices anu taking into
consiueiation sectoi uiffeiences; the uiffeient levels of authoiity; anu the uiffeient lifecycle
uevelopment phases in which the CCIs finu themselves.
3",)'#( 9 pioviues some unueistanuing of the common featuies of all sectois of the CCIs
anu the uiffeiences in specific sectois, as well as uesciibing the geneial enviionment in
which they opeiate. It fiistly uefines the concept of cultuial anu cieative entiepieneuiship
as a uistinct featuie fiom the geneial iuea of entiepieneuiship. This builus upon the
uiscussion of the common chaiacteiistics anu pioblems of CCIs compaieu to othei
inuustiial sectois. In oiuei to auuiess the common issues, the ueteiminants of
entiepieneuiship aie consiueieu. Noieovei, as CCIs uo not opeiate in a vacuum, the stuuy
pioviues an oveiview of the clusteis of countiies accoiuing to the geneial iegulatoiy
fiamewoik that shapes the context in which the CCIs opeiate. In oiuei to uiscuss suppoit
foi ueveloping entiepieneuiship in the CCIs, a fiamewoik of analysis baseu on the
entiepieneuiial lifecycle was uevelopeu to examine the uiffeient layeis of suppoit offeieu
by local, iegional, national anu Euiopean authoiities.
3",)'#( P looks at the six coie factois foi ueteimining entiepieneuiship in the CCIs,
namely; access to finance; access to maiket; intellectual piopeity iights (IPR); euucation
anu tiaining; access to innovation; anu collaboiation, netwoiks anu clusteis. Specific
attention is given to the effect of uigital conveigence anu its influence on innovation anu
the CCIs.
The stuuy aims to pioviue a package of iecommenuations to take into consiueiation when
looking at the complex iequiiements of CCIs, with a focus on micio-SNEs. This is &1'
+&'#&4#4 '1 8# , 71/)(#"#&0+5# 15#(5+#> 8*' (,'"#( '1 122#( , 0&,)0"1' 12 '"#
7*((#&' 0+'*,'+1&Q to sheu some light on the aiea of cieative entiepieneuiship that
iemains ielatively unexploieu; anu in 3",)'#( R to pioviue some policy suggestions.
Thioughout this iepoit, aiounu 4u Best Cases illustiate key appioaches anu initiatives
(Appenuix 1). Similaily, anonymiseu comments fiom the many expeits inteivieweu uuiing
the stuuy aie piesenteu wheie appiopiiate. A bibliogiaphy of souices can be founu at the
enu of the iepoit.
;F9F 1(=0"1)0 took place uuiing the ieseaich piocess. The fiist was helu at
the enu of the fiist phase of the ieseaich (}anuaiy 2u1u), aftei gatheiing the CCI statistical
chaiacteiistics anu examining the enviionmental factois. The seconu was helu aftei the
oveiall fielu ieseaich was completeu (Naich 2u1u) in oiuei to ieceive feeuback fiom the
stakeholueis on the initial iecommenuations. Paiallel to the expeit inteiviews, thioughout
the stuuy contextual policy scans of national anu Euiopean iepoits anu liteiatuie weie
unueitaken.
In teims of scope, the peifoiming anu visual aits weie incluueu as pait of the CCIs in this
stuuy. Although inclusion of these two sectois within the CCIs vaiies fiom countiy to
countiy anu they aie often iegaiueu as pait of the coie aits sectoi but not the cieative
inuustiies,
22
this stuuy incoipoiates the peifoiming anu visual aits, as they weie incluueu
within the scope of the iecent uieen Papei.
2S
;FPF !"# 3(#,'+5# %71&1/@
ulobalisation piocesses, fastei communication channels, iapiuly changing technologies
anu global connectivity have iauically changeu oui enviionment anu the way we piouuce
anu consume cultuial piouucts anu seivices.
24
This conveigence between technological,
social, economic anu cultuial aspects has foigeu changes that affect oui uaily enviionment.
3(#,'+5+'@ +0 &1> ,7=&1>-#4?#4 ,0 210'#(+&? 7*-'*(,-G 017+,- ,0 >#-- ,0 #71&1/+7
?,+&0F
2S
In this context, the concept of the 'cieative economy' is now bioauly accepteu anu
unueistoou. The initial embiyonic stage of tianslating the unueilying concepts into high-
level policy is now almost complete.
Biffeient mouels exist to explain the cieative economy,
26
but most aie baseu upon the
iecognition of the impoitance of seivices anu the uynamic effects of the CCIs. Each mouel
has a paiticulai iationale, uepenuing on unueilying assumptions about the puipose anu
moue of opeiation of the CCIs. Peihaps the fiist usage of the teim 'cieative inuustiies' can
be founu In the 0K's Bepaitment of Cultuie, Neuia anu Spoit (BCNS), which began
ueveloping its cultuial anu cieative inuustiies stiategy as fai back as 1997. In the 0K
appioach, the cieative inuustiies aie those iequiiing TFFF7(#,'+5+'@ ,&4 ',-#&'G >+'"
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 8
21
In this iepoit, we have incluueu both figuies fiom the online expeit questionnaiie (sectoial anu uiveise expeits) anu the
online suivey (CCIs). The figuies iefeiiing to the foimei aie souiceu as "Euiokleis 2uu9", while the figuies fiom the online
suivey iesults aie souiceu as "Euiokleis 2u1u".
22
Some of the uefinitions, such as the one fiom the Bepaitment of Cultuie, Neuia anu Spoit in the 0K, incluueu peifoiming
aits within the coie aits oi cultuial oiganisation, but not as pait of the cieative inuustiies.
2S
EC uieen Papei, (Apiil 2u1u), op. cit., p. S.
24
0NCTAB, (2uu8), The Cieative Economy, 0NCTAB¡BITC¡2uu8¡2 , p. iii
2S
KEA, (2uu9), op. cit., p. SS. p. 44.
26
See the WIP0 mouel, the 0K Classification, the "concentric circles moJel" anu the uiffeient national appioaches to tackle
the Cieative Economy, such as; Santagata,W. , (2uu9), White papei on Cieativity : Towaius an Italian mouel of uevelopment,
Nilan: Bocconi 0niveisity Eu; BCNS (2uu8), Cieative Biitain- New Talents foi the New Economy, Lonuon: BCNS;
Netheilanus Ninistiy of Cultuie anu Ninistiy of Economics (2uu9), Cieative value- Cultuie anu Economy Policy Papei, The
Bague: Netheilanus Ninistiy of Cultuie anu Ninistiy of Economics
)1'#&'+,- 21( >#,-'" ,&4 H18 7(#,'+1& '"(1*?" #N)-1+','+1& 12 '"#+( +&'#--#7'*,-
)(1)#('@FU
9V
The iepoit 'Cieative Economy', publisheu in 2uu8 by 0NCTAB, 0NESC0, the Woilu
Intellectual Piopeity 0iganisation (WIP0), the 0niteu Nations Bevelopment Piogiamme
(0NBP) anu the Inteinational Tiaue Centie (ITC), was also a coineistone in entienching
the concept.
28
In this iepoit, foui uiffeient mouels foi the cieative economy weie
consiueieu, highlighting uiffeient classification systems.
0NCTAB makes a uistinction between 'upstieam activities' (tiauitional cultuial activities
such as peifoiming aits oi visual aits) anu 'uownstieam activities' (those closei to the
maiket, such as auveitising, publishing oi meuia ielateu activities) anu aigues that the
seconu gioup ueiives its commeicial value fiom low iepiouuction costs anu easy tiansfei
to othei economic uomains. 0thei appioaches have uefineu the CCIs in many ways,
incluuing the 'coie' aits oi even culinaiy aits, as pait of the cieative oi expeiience
economy.
29
The stuuy 'The Economy of Cultuie in Euiope', commissioneu by the Euiopean
Commission in 2uu6, was the staiting point foi a political ievaluation of the CCIs in Euiope
anu its membei states.
Su
It makes a uistinction between 'cultuie' anu 'economy'' anu
aigues that although the E0 was foimeu on the basis of economic anu maiket foices,
cultuie anu Euiopean cultuial uiveisity is an impoitant factoi foi the E0's political,
economic anu social stiength. It makes a uistinction between the cultuial sectoi,
subuiviueu into an inuustiial anu non-inuustiial sectoi; anu the cieative sectoi.
Notwithstanuing the uiveisity of these mouels of the cieative economy, it is iemaikable
that the vaiious uefinitions leau to bioauly the same collection of inuustiies making up the
cieative sectoi.
In this stuuy, 'Cultuial inuustiies' aie uefineu as those inuustiies piouucing anu
uistiibuting goous oi seivices which at the time they aie uevelopeu aie consiueieu as a
specific attiibute, use oi puipose, which embouy oi convey cultuial expiessions,
iiiespective of the commeicial value they may have.
S1
These incluue the coie aits such as
peifoiming aits, visual aits, as well as film, BvB anu viueo, Tv anu iauio, games, new
meuia, music, books anu piess. 'Cieative inuustiies' aie those inuustiies which use cultuie
as an input but whose outputs aie mainly functional. This classification incluues uesign,
fashion, auveitising anu aichitectuie. 0thei inuustiies that aie 'peiipheial' to those
inuustiies, such as touiism oi culinaiy ait, aie not taken into account.
The CCIs have uevelopeu consiueiably ovei the past yeais, contiibuting to aiounu 2.6% of
the E0 uBP in 2uu8 anu cieating substantial employment. Noieovei, CCIs maintain anu
uevelop Euiope's cultuial uiveisity, which is also impoitant in teims of social inclusion.
Looking at the place of CCIs in Nembei States' national policies, they play an evei-
incieasing iole in teims of pioviuing content as well as seivices anu innovative
spilloveis.
S2
The use of this cieativity to fostei TFFF7(#,'+5#G #&'(#)(#&#*(+,- ,&4 +&'#(7*-'*(,- 0=+--0
'",' >+-- "#-) 8#''#( (#0)1&4 '1 &#> #71&1/+7 ,&4 017+,- 7",--#&?#0U
SS
iequiies us to
ieach a ueepei unueistanuing of the complexity of CCIs anu the way they aie influenceu
anu alteieu by theii enviionment. Foi these ieasons, this stuuy seeks to pioviue a cleai
pictuie of the main chaiacteiistics of CCIs anu the piincipal iequiiements foi suppoiting
entiepieneuiship.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 9
27
BCNS, (2uu1), Cieative Inuustiies Napping Bocument 2uu1 (2 eu.), Lonuon: Bepaitment of Cultuie, Neuia anu Spoit
28
0NCTAB, (2uu8), op. cit., pp. 12-1S.
29
Santagata, W. , (2uu9), op. cit., p. Su.
Su KEA, (2uu6), op. cit., p. SS.
S1
EC uieen Papei, (Apiil 2u1u), op. cit., p. S.
S2
By way of illustiation, the iole of CCIs is cleaily iecogniseu in national policies in the 0K, Netheilanus, Benmaik, Sweuen,
Finlanu, Fiance anu ueimany but also in Italy, Poitugal, Lithuania, Czech Republic, Bulgaiia, Estonia anu Iielanu.
SS
EC uieen Papei, (Apiil 2u1u), op. cit., p. 18.
3",)'#( !>1E 3(#,'+5# %&'(#)(#&#*(0"+)
In this chaptei the uimensions of entiepieneuiship in the CCIs aie consiueieu. To this enu,
it is necessaiy to biiefly uiscuss the concept of entiepieneuiship, its ueteiminants anu the
necessity foi a specific teim such as 'cultuial anu cieative entiepieneuiship'. This involves
examining the chaiacteiistics of the CCIs in geneial anu theieaftei the specific featuies of
CCI sectois. In auuition, the way in which enviionmental factois influence cieative
entiepieneuiship anu ueteiminants of entiepieneuiship is consiueieu. Beaiing in minu
the challenging context of the CCIs, the geneial entiepieneuiial lifecycle fiamewoik useu
foi this stuuy is uesciibeu foi analytical puiposes.
9F;F .#O+&+&? #&'(#)(#&#*(0"+) +& '"# 7*-'*(,- ,&4 7(#,'+5# +&4*0'(+#0
"Fntrepreneursbip in tbese sectors meons to bove creotive iJeos onJ to pursue
tbem in o commerciol woy, witb tbe purpose to moke o projit. Eowever, tbe
projit olone is not tbe Jriver; it is tbe creotivity onJ tbe possibility to builJ
sometbinq, tbe self-fuljilment or beinq oble to pursue your own creotive
interests. Tbere is o mix between tbe entrepreneuriol siJe onJ tbe creotive siJe".
(Sectoial 0iganisation, Stiuctuially Stiong Tiauitional Economy)
Although theie is a no geneial agieement on how to uefine entiepieneuiship, whethei as
iisk-beaiing, enteipiise cieation oi stimulation of innovation, theie is even less agieement
on how this can be uefineu within the cultuial anu cieative sectoi.
S4SS
Bowevei, given the
stiong economic contiibution maue by the CCI sectoi to uBP in Nembei States,
S6
uefining
the entiepieneuiial uimension of this sectoi is cleaily impoitant. This is neeueu in oiuei
to 71&0+4#( "1> 8#0' '"#0# ,0)#7'0 7,& 8# 0*))1('#4 ,&4 '1 #N,/+&# '"# 5,(+1*0
2,7'1(0 8#,(+&? *)1& '"# 7*-'*(,- ,&4 7(#,'+5# #&'(#)(#&#*(F
With the complex changes that the E0 is expeiiencing as a iesult of the ongoing economic
ciisis anu the uigital shift anu its consequences foi emeiging innovation policies, theie is a
neeu to examine how cultuial anu cieative entiepieneuiship can bettei be uesigneu in
oiuei to suppoit moie cieative Euiopean innovation anu contiibute to Euiope's futuie
giowth.
S7
9F;F;F 3(#,'+5+'@ ,&4 #&'(#)(#&#*(0"+)
The concept of 'cultuial entiepieneuiship' has gaineu iecognition uuiing the last uecaue.
S8
Biffeient mouels have been put foiwaiu as a means of pioviuing a systematic
unueistanuing of the stiuctuial chaiacteiistics of the CCIs anu in so uoing tiying to foim a
common uefinition of cultuial anu cieative entiepieneuiship. This is a uifficult task as it
combines teims that aie seemingly uiveigent anu poses the challenge of 7(100+&? 7*-'*(,-
,&4 #71&1/+7 4+071*(0# to uefine a uistinct teim by taking components fiom both
woilus anu unueistanuing the specific suppoit that this entails.
Even though the image of aitists cieating solely foi 'ait's sake' is changing, theie is still a
stiong uiviue between cultuial anu cieative aspects on one siue anu the entiepieneuiial
aspects on the othei. The /1'+5,'+1&0 of the cultuial anu cieative entiepieneui will likely
uiffei accoiuing to the inuiviuual anu to the CCI sectoi in which they aie opeiating. !"#
'#&0+1& 8#'>##& '"# 7(#,'1( 12 , 7*-'*(,- >1(= ,&4 '"# #&'(#)(#&#*(G typical of many
CCI enteipiises, is often ieflecteu in the uesiie to piioiitise the cultuial value of the
cieation with little motivation foi geneiating economic value (7(#,'+1&J1(+#&'#4), while
the entiepieneui will piioiitise the economic exploitation ovei its cultuial value (?(1>'"J
1(+#&'#4). These tensions suggest that 4+22#(#&' =+&40 12 0*))1(' &##4 '1 8#
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 1u
S4
Bagooit, u., (2uu7), Cultuial Entiepieneuiship. 0n the Fieeuom to Cieate Ait anu the Fieeuom of Enteipiise, Inauguial
Lectuie }une 6, 0tiecht 2uu7
SS
Kooyman, R., (eu), (2uu9), Pieliminaiy Liteiatuie Review, BK0
S6
0K Technology Stiategy Boaiu, (2uu9), op. cit., p. 12.
S7
EC Communication, (Naich 2u1ub), op. cit., p. 9-1u.
S8
Klamei, A., (2uu6), Cultuial Entiepieneuiship, Rotteiuam: Eiasmus 0niveisity, Acauemia vitae
#-,81(,'#4 uepenuing on the natuie of the oiganisation anu the sub-sectoi in which they
opeiate.
9F;F9F %&'(#)(#&#*(0"+)
In common pailance, being an entiepieneui is associateu with staiting a business, but this
is a veiy loose application of a teim that has a iich histoiy anu a much moie significant
meaning. The teim 'entrepreneur´ oiiginateu in Fiench economics as eaily as the 17th
centuiy to mean someone who 'unueitakes' a significant pioject oi activity. Noie
specifically, it came to be useu to iuentify the ventuies of some inuiviuuals who stimulateu
economic piogiess by finuing new anu bettei ways of uoing things. The Fiench economist
most commonly cieuiteu with giving the teim this paiticulai meaning is }ean-Baptiste Say.
Wiiting aiounu the tuin of the 19th centuiy, Say put it this way, "Tbe entrepreneur sbifts
economic resources out of on oreo of lower onJ into on oreo of biqber proJuctivity onJ
qreoter yielJ".
S9
In othei woius, #&'(#)(#&#*(0 7(#,'# 5,-*#F
In the 2uth centuiy, the economist most closely associateu with the teim was }oseph
Schumpetei.
4u
Be uesciibeu entiepieneuis as the innovatois who uiive the I7(#,'+5#J
4#0'(*7'+5#K piocess of economic societies. In his woius, "Tbe function of entrepreneurs is
to reform or revolutionise tbe pottern of proJuction". They can uo this in many ways:
"...by exploitinq on invention or, more qenerolly, on 5-&%/,2 &,7+-)1)(/7$1 8)../;/1/&:
for proJucinq o new commoJity or proJucinq on olJ one in o new woy, by openinq up o
new source of supply of moteriols or o new outlet for proJucts, by reorqonisinq on
inJustry onJ so on".
Schumpetei's entiepieneuis aie the change agents in the economy. By seiving new
maikets oi cieating new ways of uoing things by cieatively innovating, they cieate value
anu move the economy foiwaiu. Entiepieneuiship is incieasingly iecogniseu as an
impoitant uiivei of economic giowth, piouuctivity, innovation anu employment, anu it is
wiuely accepteu as a key aspect of economic uynamism: the biith anu ueath of fiims anu
theii giowth oi uownsizing.
Accoiuing to Schumpetei, a numbei of factois embouy entiepieneuiial behavioui:
! Beveloping new anu innovative piouucts
! Pioposing new foims of oiganisation
! Exploiing new maikets
! Intiouucing new piouuction methous
! Seaiching foi new souices of supplies anu mateiials
Seen fiom an occupational peispective, cultuial anu cieative entiepieneuis own anu
manage theii business enteipiise like a 'geneial' entiepieneui. They can be categoiiseu as
'business owneis'; they cieate value. In essence, the cieative entiepieneui is a cieatoi of
economical value.
41
They shaie with the geneial entiepieneui the >+--+&?� '1 ,00*/# (+0=0 in the face of
unceitainty. Foi example, iisks such as a possible loss of business capital oi peisonal
financial secuiity, oi iisks associateu with the unceitain outcome of an entiepieneuiial
unueitaking.
42
They also shaie the ,-#('� 12 1))1('*&+'@; the focus on the uetection of
entiepieneuiial oppoitunities eithei foi financial piofit, oi foi sake of new content. This
aleitness allows the entiepieneui to exploit maiket oppoitunities that have been
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 11
S9
Say, }- B., (18uS), Tiaité u'économie politique, ou simple exposition ue la manieie uont se foiment, se uistiibuent, et se
composent les iichesses, Paiis
4u
Schumpetei, }.A. (197S). Capitalism, Socialism, anu Bemociacy, New Yoik: Baipei
41
Steinbeig, R. anu Wennekeis, S., (2uuS), "Beteiminants anu effects of new business cieation using global
entiepieneuiship monitoi uata", Small Business Economics, volume 24, Numbei S, pp. 19S-22u.
42
Knight, F. B., (1921), Risk, 0nceitainty, anu Piofit, Boston: Bait, Schaffnei & Naix
oveilookeu oi gone unuiscoveieu by otheis.
4S
Like othei entiepieneuis they shaie the
change peispective. I"1 7,&&1' /,&,?# , 8*0+�
,&4 -,7=0 O+&,&7+,- 0=+--0 +0 0'+-- 71//1&-@ "#-4 ,/1&? #71&1/+7 )1-+7@J/,=#(0 anu
influences the ongoing uistinction between entiepieneuiship policies anu cultuial policies.
Regaiuless of these uiffeient peispectives, theie is a neeu foi a specific uistinction, a
specific teim to iecognise the cultuial basis of cieativity anu of this type of
entiepieneuiship. Bespite the fact that it encompasseu a uiveise iange of sectois, most
iesponuents iecogniseu the neeu, at this time, to make a case in geneial foi cultuial anu
cieative entiepieneuiship ,0 '"# 5,-*# 12 7*-'*(,- ,&4 7(#,'+5# +&4*0'(+#0 ",0 &1' @#'
8##& 0*2O+7+#&'-@ (#71?&+0#4 ,&4 '(,&0-,'#4 +& '"# )1-+7@ ,(#&,G uespite new
initiatives, such as the iecent Euiope 2u2u Stiategy:
S6
"Tbot's o biq Jiscussion: wbetber or not tbere sboulJ be o common Jejinition for
tbe CCls. Hoybe now it is useful to Jistinquisb [tbe CCls from tbe otber
inJustries]. ln tbe future, wben we bove probobly evolveJ toworJ o more
creotive economy onJ creotive society, tbis Jistinction won´t be useful onymore.
Now it is useful to be oble to unJerstonJ tbe tbinkinq, tbe process onJ bow to
succeeJ. lt is olso useful in orJer to bove it on tbe politicol oqenJo".
(Regional Cultuie Ninistiy, Stiuctuially Stiong Tiauitional Economy)
In essence, a cultuial anu cieative entiepieneui can be unueistoou ,0 01/#1&# >"1
7(#,'#0 1( +&&15,'#0 , 7*-'*(,- 1( 7(#,'+5# )(14*7' 1( 0#(5+7# ,&4 >"1 *0#0
#&'(#)(#&#*(+,- )(+&7+)-#0 '1 1(?,&+0# ,&4 /,&,?# "+0X"#( 7(#,'+5# ,7'+5+'@ +& ,
71//#(7+,- /,&&#(F Bowevei, achieving a balance between 'cultuie-baseu cieativity'
anu entiepieneuiship is not stiaightfoiwaiu anu as noteu entiepieneuis uiffei accoiuing
to theii motivations anu the sectois in which they opeiate. The teim thus iefeis to the fact
that these enteipiises have ceitain chaiacteiistics (see section 2.2 below) which will affect
the management of theii entiepieneuiial activity.
The teim cultuial anu cieative entiepieneuiship thus attempts to uiaw these woilus
togethei: (#71?&+0+&? '"# -,'#&' #&'(#)(#&#*(+,- 0)+(+' 12 ,& ,('+0'G '"# -,'#&' 7(#,'+5#
0)+(+' 12 '"# #&'(#)(#&#*( anu the paiticulai enviionments in which cultuial anu
cieative enteipiises opeiate. Baving fiameu the uistinct teim in compaiison to the geneial
teim, the entiepieneuiial uimension of CCIs can be bettei unueistoou using the
ueteiminants of entiepieneuiship auapteu to the chaiacteiistics of CCIs (see Chaptei S
below).
9F;FRF 31/8+&+&? 7(#,'+5+'@ ,&4 #&'(#)(#&#*(0"+) 21( +&&15,'+1&
The concept of 'cultuie-baseu cieativity' iecognises that the combination of peisonal
abilities, cultuie, cieativity, technical skills anu social enviionments can have a substantial
impact on stimulating ieseaich, optimising human iesouices anu inspiiing people.
S7
The
economic value of this 'cultuie-baseu cieativity' has been incieasingly iecogniseu,
S8
as
seen below in Table 1. which illustiates the total tuinovei of CCIs in seveial laigei
countiies. Accoiuing to the KEA iepoit of 2uu6, the cieative economy geneiateu aiounu
2.6% of the Euiopean uBP in 2uuS anu employeu ovei S million people.
S9
The latest
ieseaich by Teiiaconsult estimateu that in 2uu8 it geneiateu 4.S% of the total Euiopean
uBP. In the same stuuy, they estimateu that in Fiance, the coie activities of the CCIs (not
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 1S
S6
Euiopean Commission Communication, (Naich 2u1ub), op. cit.
S7
KEA, (}une 2uu9), op. cit., p. 8u.
S8
Ibiu., p. 42.
S9
KEA, (2uu6), op.cit., p. 6, anu Euiopean Commission uieen Papei (2u1u), op.cit., p. 2.
incluuing the suppoit enteipiises such as lawyeis) geneiateu 4.9% of the uBP, in ueimany
4.2% , S.8% in Italy , anu S.6% in Spain.
6u
!,8-# ;E \#(7#&',?# 12 #71&1/+7 '*(&15#( 12 '"# 336 )#( 71*&'(@
+& 0#5#(,- %*(1)#,& 71*&'(+#0
61
{Source: Terroconsult 2010)
The inteiviews foi this stuuy showeu that cultuial anu cieative entiepieneuis aie an
essential pait of a post-inuustiial economy which is incieasingly uemanu-uiiven, usei-
centieu anu which is moie focuseu on the expeiience taken out of piouucts anu seivices.
62
0ne of the key aiguments is the neeu to focus on incentives foi cultuie anu 'cultuie-baseu
cieativity' as iesouice foi cieativity, entiepieneuiship anu innovation, (,'"#( '",& 01-#-@
217*0+&? 1& '#7"&1-1?+7,- +&&15,'+1&F
Tapping into the potential of cultuial anu cieative entiepieneuis, anu iecognising theii
'cultuie-baseu cieativity' alongsiue theii entiepieneuiial uiive, can allow enteipiises to
unleash innovative solutions that aie not necessaiily technology-baseu. Entiepieneuiship
in the CCIs can thus be linkeu to auvances in non-technological innovation. A#71?&+0+&?
'"# -+&= 8#'>##& I7*-'*(#J8,0#4 7(#,'+5+'@KG '"# 4#'#(/+&,&'0 12 #&'(#)(#&#*(0"+)
,&4 &#> 21(/0 12 +&&15,'+1& +0 '"*0 7(*7+,- 21( *&-17=+&? 3360K )1'#&'+,-F
Bowevei, 0+&7# /10' 12 '"# %L 8,0#4 O+&,&7+,- 0*))1(' 21( +&&15,'+1& (#/,+&0 -,(?#-@
217*0#4 1& 2*&7'+1&,- ,&4 '#7"&1-1?+7,- +&&15,'+1&G the KEA iepoit unueilineu that E0
effoits have not been sufficiently taigeteu to cultuie anu to non-technological anu non-
scientific innovation.
6S
Aits anu cultuie aie thus seen as essential in ueveloping anu
fosteiing a cieative enviionment offeiing a iich cultuial uiveisity, as well as pioviuing
innovative piocesses essential foi a changing economic anu social enviionment by
ueveloping expeiience.
64
The iecent policy changes at E0 level aie acknowleuging this
neeu with the plans to ieview innovation policy in a changing economy that is incieasingly
uefineu by expeiience, non-technological innovation anu quality of life conceins.
In this iespect, CCIs have a specific iole to play in innovation by fosteiing cieativity anu
piouucing outputs that can seive as input to the innovation piocess.
6S
Theie is a neeu foi
?(#,'#( 217*0 1& '"# )(17#00 12 +&&15,'+1& ,0 ,& #N)#(+#&7# to which the CCIs can
meaningfully contiibute.
Bowevei, in piactical teims, the '#&0+1& 8#'>##& '"# )(17#00 12 7(#,'+1& ,&4 '"#
#00+'@ 12 4#,-+&? >+'" '"# ,4/+&+0'(,'+1& ,&4 /,&,?#/#&' 12 ,& #&'(#)(#&#*(+,-
,7'+5+'@ is paiticulaily uifficult foi the CCI entiepieneui. The aitist oi cieatoi may not have
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 dif?culty 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 Europe’s 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.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 16
6u
Teiaconsultant, (Naich 2u1u), Builuing a Bigital Economy: The Impoitance of Saving }obs in the E0's Cieative Inuustiies,
p. 17, see http:¡¡www.iccwbo.oig¡uploaueuFiles¡BASCAP¡Pages¡BuiluingaBigitalEconomy-TERA(1).puf
61
Inuepenuent & Suppoit incluue activities ielateu to facilitating bioaucast, communication, sales of woik. They incluue a
fiaction of geneial wholesale anu ietailing, geneial tianspoitation, telephony anu the Inteinet.
62
Ibiu., p. 4u.
6S
Ibiu., p. 12S.
64
Euiopean Council Conclusions, (Nay 2uu9), Conclusions foi "Cultuie as a Catalyst foi Cieativity", 2941st Euucation, Youth
anu Cultuie Council meeting
6S
Potts, }., (2uu9a), "Cieative Inuustiies anu Innovation Policy" in Innovation: Nanagement, Policy anu Piactice, volume 11,
No 2, pp. 1S8-147.
all the skills anu knowleuge to ueal with the complexity of a business. Ceitain
oiganisations, such as Flanueis Bistiict of Cieativity (see Appenuix 1, Best Case 1), have
catalyseu the &##4 '1 /,'7" '"# 7*-'*(,- ,&4 7(#,'+5# #&'(#)(#&#*( >+'" ,
)(12#00+1&,- /,&,?#( '1 /+'+?,'# '"#+( -+/+'#4 #&'(#)(#&#*(+,- 0=+--0F
3(#,'+5# +&4+5+4*,-0 >+-- +&7(#,0+&?-@
(#S*+(# #&",&7#4 ,8+-+'+#0 ,&4 0=+--0 '1
8-#&4 4+07+)-+�G /#'"140 ,&4
+&0'(*/#&'0 in oiuei to geneiate anu
exploit these highly uynamic maikets. The
cultuial anu cieative entiepieneui has to
be able to uiaw upon expeit knowleuge
fiom seveial aieas anu uisciplines anu to
move efficiently between them in oiuei to
ueal with both the aitistic cieation anu the
iequiiements linkeu with an
entiepieneuiial activity. Foi example,
Aiteconomy biings togethei the aitistic
anu business woilus by stimulating
collaboiation (see Appenuix 1, Best Case
2). Suppoiting cultuial anu cieative
entiepieneuiship means &1' 1&-@
4#5#-1)+&? , 71&4*7+5# #&5+(1&/#&'
21( , ?#&#(,- #&'(#)(#&#*( 8*' ,-01
0*))1('+&? ,& #&5+(1&/#&' '",'
(#71?&+0#0 I7*-'*(#J8,0#4 7(#,'+5+'@KG
encompassing both aspects of the cultuial
anu cieative entiepieneui.
A moie favouiable cieative climate will, in tuin, iesult in moie iueas, anu gieatei cieativity
is assumeu to inciease R&B anu innovative activities, anu contiibute to fosteiing
innovative solutions. 0ltimately, cieativity can be founu in oui cultuies, in oui suiiounuing
teiiitoiy, in the quality of oui eveiyuay life anu oui piouucts. 6' +0 &1' ,& #&4 +& +'0#-2G 8*'
, )(17#00G ,& #N'(,1(4+&,(@ /#,&0 '1 )(14*7+&? &#> +4#,0F
]]
In this sense, 7(#,'+5+'@ ,&4 7*-'*(# ,(# '"# )+--,(0 12 017+,- S*,-+'@G seen in the context
of a fiee, economically uevelopeu, faii anu cultuially lively communities enjoying a high
quality of life. Cieativity anu cultuie aie inextiicably bounu. They aie a successful
combination, which can stiengthen Euiopean innovation at a time of stiategic tiansition in
the inteinational piocess of globalisation.
9F9F 3",(,7'#(+0'+70 12 '"# 7*-'*(,- ,&4 7(#,'+5# +&4*0'(+#0
The CCIs have a paiticulai chaiactei that is maikeuly uiffeient fiom othei inuustiies.
When consiueiing these chaiacteiistics seveial issues weie consiueieu
67
incluuing:
! Size of CCI enteipiises
! Chaiacteiistics of the CCI laboui maiket
! Chaiacteiistics of CCI enteipiise piocesses
! Naiket conuitions anu shifting business mouels
Regaiuing the selection of the NACE coues,
68
seveial limitations have to be claiifieu. uiven
the impossibility of accuiately estimating the companies ielateu to CCIs within the 17
NACE coues (in teims of the total numbei of fiims, employees anu tuinovei), ceitain
sectoial biases aie incluueu in the statistical analyses. These aie explaineu in Appenuix
2.1u.
C-,&4#(0 .3
Flanueis BC is a Flemish goveinmental oiganisation
that piomotes entiepieneuiial cieativity in the
iegion in oiuei to boost Flanueis cieativity anu
innovation. They offei pationage seivices foi the
fashion sectoi anu matching with business
manageis.
(See Appenuix 1, Best Case 1)
+'" /,&@ 01-# '(,4#(0 1( /+7(1JYW%0 employing only a
hanuful of people. 6& 2,7'G 336 >1(=#(0 ,(# /1(# '",& '>+7# ,0 -+=#-@ '1 8# 0#-2J
#/)-1@#4 ,0 '"# >"1-# #71&1/@ ,5#(,?#F
71
Bowevei, although the vast majoiity of CCI
businesses aie micio-enteipiises (employing fewei than 1u people), they aie iesponsible
foi only a mouest peicentage of the total tuinovei of the CCIs (18 %).
As seen in Table 2. belowG >+'"+& '"+0 /,H1(+'@ 12 a/+7(1J#&'#()(+0#0aG ,-/10' ]:` ,(#
5#(@ 0/,-- 8*0+�#0 >+'" 1&-@ ; '1 P #/)-1@##0F
72
The statistical analysis unueitaken
uuiing this stuuy confiims that the oveiwhelming majoiity of CCI enteipiises aie veiy
small micio-SNEs. !"# &*/8#( 12 -,(?#J07,-# #&'#()(+0#0 +0 /,(?+&,-G ,' -#00 '",& 1&#
)#(7#&'G 8*' '"#@ ,(# (#0)1&0+8-# 21( /1(# '",& R: ` 12 '"# ,&&*,- '*(&15#(F
%&'#()(+0# 0+^# 3-,00 12 #&'#()(+0# bc 12 #/)-1@##0d 3-,00 12 #&'#()(+0# bc 12 #/)-1@##0d 3-,00 12 #&'#()(+0# bc 12 #/)-1@##0d 3-,00 12 #&'#()(+0# bc 12 #/)-1@##0d 3-,00 12 #&'#()(+0# bc 12 #/)-1@##0d
YW%0 YW%0 YW%0 YW%0
Y#7'1( ; J P R J e ;: J Re f: J 9Re 9f: g
##& '"# '>1
I'@)#0K 12 #&'(#)(#&#*( +0 12'#& (#O-#7'#4 +& 1(?,&+0,'+1&,- 0'(*7'*(#0F
9F9F9F;F YW%0 ,&4 2(##-,&7#(0
3*-'*(,- ,&4 7(#,'+5# #&'(#)(#&#*(0 ,(# 2,( /1(# -+=#-@ '1 "1-4 &1&J71&5#&'+1&,-
21(/0 12 #/)-1@/#&'G such as pait-time woik, tempoiaiy contiacts anu fieelancing, than
,5#(,?# )#7*&+,(@ #,(&+&?0F This can be paitially explaineu eithei by iisk-
seeking behavioui,
79
oi a piefeience foi cieative woik ovei othei types of employment.
8u
It emeigeu fiom the online suivey that S4% of the CCI enteipiises hau less than ten full
time employees in theii company (see Fig. S. below). As noteu above, this fiagmentation of
CCIs into small enteipiises has consequences foi theii stiuctuies. To compete with laigei
companies with stiuctuial auvantages in teims of auministiation anu ieseaich, the smallei
enteipiises tenu to auopt a moie flexible anu uynamic attituue when iesponuing to maiket
oppoitunities. This may involve 1*'01*(7+&?G taking up /*-'+)-# )(1H#7'0 oi 7-*0'#(+&?
>+'" 4+22#(#&' 1(?,&+0,'+1&0 in oiuei to benefit fiom a laigei collective stiuctuie. To
mitigate against this lack of guaiantee of success, CCIs often woik on multiple piojects to
spieau the iisk
81
anu often focus on pioject-baseu investment iathei than company
finance.
82
µuestion: Eow mony full-time employees JiJ your enterprise bove on S1st Becember 2008?
!" $" %!" %$" &!" &$" '!" '$"
( &$!
$! )( &*+
% ) &
%! )( *+
' )( +
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 21
7S
Benhamou, F. (2uuS), L'Economie ue la cultuie, Paiis: La Bécouveite, 4th eu.
76
Thiosby, B., (2uu1), op. cit., pp. 126-28.
77
Towse, R., (2uu4), op. cit., p. 8.
78
NKW Wiitschaftsfoischung umbB, (2uu1), Exploitation anu uevelopment of the job potential in the cultuial sectoi in the
age of uigitalization, Papei commissioneu foi Euiopean Commission, Bu Employment anu Social Affaiis, Nunich
79
Towse, R., (2uu4), "Towaius an economy of cieativity." in F0K0S, (2uu4), Cieative Inuustiies: A measuie foi uiban
uevelopment. vienna: F0K0S p. 8.
8u
Thiosby, B., (2uu1), op. cit., anu Caves, R., (2uuu), Cieative Inuustiies: Contiacts Between Ait anu Commeice, Cambiiuge:
Baivaiu 0niv. Piess
81
0K Technology Stiategy Boaiu, (2uu9), op. cit., p. 17.
82
KEA, (Nay 2u1u), Piomoting Investment in the Cultuial anu Cieative Sectoi: Financing Neeus, Tienus anu 0ppoitunities,
Repoit piepaieu foi ECCE Innovation- Nantes Netiopole, p. 24.
C+?*(# fE \#(7#&',?# 12 2*-- '+/# #/)-1@##0 )#( 0+^# 7-,00 #&'#()(+0# +& .#7F 9::_
{Source: Furokleis 2009- 0nline Survey)
Noieovei, CCIs iequiie skilleu employees anu aie consequently manual laboui intensive.
The cieative piouucts anu seivices ielateu to these inuustiies usually iequiie not only
stiictly cieative employees but many geneial oi commeicial employees that contiibute to
the oveiall piouuction anu supply chain. Tiauitionally, cultuial anu cieative entiepieneuis
aie inteiesteu mainly in the uevelopment of theii piouucts anu seivices iathei than
focuseu on theii uistiibution: in othei woius, 'R&B is tbe moin octivity, wbile proJuction is
seconJory'.
8S
The company will geneially (#',+& , 0/,-- 71(# 12 2*-- '+/# #/)-1@##0
>"+-# 7,--+&? 1& ,44+'+1&,- #/)-1@##0 ,0 (#S*+(#4G accoiuing to the company's
neeus.
84
9F9F9F9 .+5#(0+'@ +& 0=+--0 ,7S*+0+'+1&
Bue to the abunuance of piactitioneis with veiy uiveise backgiounus (ceitification by
uegiee, acquiiing expeiience thiough inteinship, vocational uegiee, etc.), theie aie often
4+2O+7*-'+#0 >"#& (#71?&+0+&? 1( 7#('+2@+&? '"# S*,-+'@ ,&4 (#)*','+1& 12 7*-'*(,- ,&4
7(#,'+5# #&'(#)(#&#*(0F This makes the position of the potential employei in the Aits (as
compaieu to othei laboui maikets) especially uifficult because of a lack of infoimation anu
quality ciiteiia.
8S
Awaius can act as inteimeuiate stanuaius on the quality of the cultuial anu cieative
entiepieneui.
86
Commissioneis in the Aits place little ieliance on ceitification baseu on
foimal schooling anu often use theii own scieening uevices (ait competitions, iefeiees,
peei-ieviews, etc.). Leaining 'on the fly' is common foi cultuial anu cieative
entiepieneuis. In oui online questionnaiie, V_` 12 '"# (#0)1&4#&'0 5,-*#4 '"#+( 1& '"#
H18 '(,+&+&? ,0 /*7" ,0 '"#+( )(12#00+1&,- '(,+&+&?F
0n one hanu, the majoiity of enteipiises achieve veiy low iewaius, 0+?&+O+7,&'-@ 8#-1>
>1(=21(7#0 +& 1'"#( +&4*0'(+#0 >+'" 0+/+-,( "*/,& 7,)+',- ,''(+8*'#0F 0n the othei
hanu, theie aie a ielatively small numbei of 'stais' with veiy high tuinovei.
87
9F9F9FPF 336 #/)-1@/#&' 8@ 0#7'1(0
Fiom the aggiegateu uata in the statistical analysis, the laigest inuustiies pei numbei of
woikeis employeu aie: Fashion (S1.41%, of total employees), Besign (2u.12%),
Aichitectuie (1u.74%) anu Book & Piess (9.89%). The inclusion of the ietail sectoi within
the fashion sectoi may explain the unexpecteuly high numbei of woikeis in this sectoi
(See Fig. 6.).
These numbeis covei the total numbei of employees in uiffeient sectois of the CCIs. As
noteu above, cultuial anu cieative entiepieneuis aie also employeu in many othei sectois
of the economy, contiibuting to the uevelopment of the 'cieative capacity' of non CCI
companies. Foi example, the 0K Technology Stiategy Boaiu estimates that fiom the 1.1
million people uiiectly employeu in the cieative inuustiies in the 0K, '"#(# ,(# ,&1'"#(
_::G::: +&4+5+4*,-0 >1(=+&? 1*'0+4# '"# 7*-'*(,- ,&4 7(#,'+5# 0#7'1(F
88
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 22
8S
Lash, S. anu 0iiy, }., (1994), Economies of Signs anu Space, Lonuon: Sage Publications, as citeu in: Banuke C., (2uu6),
Suiveying innovation in the Cieative inuustiies, Beilin¡Rotteiuam 2uu6
84
0K Technology Stiategy Boaiu, (2uu9), op. cit., p. 18.
8S
Towse, R., (eu) (2uuS) A Banubook of Cultuial Economics, Cheltenham, Euwaiu Elgai.
86
See Wijnbeig (2uuS) foi a uiscussion of the iole of awaius in the aits. Wijnbeig, N. (2uuS) 'Awaius' in: Towse, R. (eu) A
Banubook of Cultuial Economics, Cheltenham, Euwaiu Elgai: pp. 81-84.
87
0NCTAB et al (2uu8), The Cieative Economy, 0NCTAB¡BITC¡2uu8¡2, ueneva
88
0K Technology Stiategy Boaiu, (2uu9), op. cit., p. 12.
C+?*(# ]E \#(7#&',?# 12 %/)-1@##0 )#( Y#7'1(
{Source: Furokleis 2009-
89
)
In anothei example, the iecent EC Woiking Papei on 'Besign as a uiivei of usei-leu
innovation' confiimeu this tienu in the uesign sectoi, uemonstiating that many uesigneis
woikeu in non-uesign inuustiies as in-house uesigneis.
9u
This suggests that the 7*-'*(,-
,&4 7(#,'+5# #&'(#)(#&#*( ,&4 '"# 3360 ",5# , ?(#,'#( +/),7' 1& '"# #71&1/@ ,0 ,
>"1-# '",& ,771*&'#4 21( +& '"# 0','+0'+70F
9F9FPF 3",(,7'#(+0'+70 12 336 #&'#()(+0# )(17#00#0 ,&4 1*')*'0
In auuition to the specific chaiacteiistics of CCIs both in teims of stiuctuie anu laboui, the
piocesses of piouuct anu seivice cieation in which the CCIs engage aie highly uistinctive,
especially uue to theii small size. CCI SNEs often engage in netwoik baseu piocesses. Some
of '"#0# 5,-*# ,&4 =&1>-#4?# 7(#,'+1& )(17#00#0 ,(# 12'#& &1' (#71?&+0#4 ,0
'(,4+'+1&,- (#0#,(7" ,))(1,7"#0 anu CCI SNEs may theiefoie be unable to access
ieseaich funuing iesouices.
CCIs often supply content that iequiies 'cultuie-baseu cieativity' as =&1>-#4?#J8,0#4
,&4 -,81*(J+&'#&0+5# input that is haiu to measuie in teims of economic value. This
complicates the piovision of financial suppoit to CCIs, as they cannot always uemonstiate
the economic viability of theii piouucts anu seivices. Cultuial anu cieative piouucts anu
seivices often have specific economic chaiacteiistics: foi example, they can be piouuceu
'on the spot' anu cannot be consumeu in any othei context (theatie peifoimances, uance,
live conceits). These piouucts¡seivices aie an extieme example of piouuct
uiffeientiation.
91
The fact that many piouucts anu seivices aie intangible assets, subjective in value anu
often pioject-baseu,
92
uistinguishes them fiom othei manufactuieu piouucts. Bue to the
high uegiee of unceitainty suiiounuing the success of these intangible assets, '"#
71&'#&'J8,0#4 +&4*0'(+#0 +& ),('+7*-,( >+-- '#&4 '1 >1(= 1& 0#5#(,- )(1H#7'0 ,' '"#
0,/# '+/# +& 1(4#( '1 8,-,&7# '"# (+0= associateu with less successful piouucts oi
seivices. Bowevei, this also implies that the cultuial anu cieative entiepieneuis may
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 2S
89
The statistical analysis on fiim chaiacteiistics was taken fiom the Chambeis of Commeice as explaineu in section 1.2
9u
EC Staff Woiking Bocument, (2uu9a), op. cit., p. 27.
91
The 0NESC0 consiueis local cultuial inuustiies ielevant to counteibalance the stanuaiuisation of cultuie as a iesult of the
ongoing piocess of globalisation in the infoimation society (0NESC0, 2uu1: 1S; 0NESC0, 19¡11¡2uu1: 1-S; 0NESC0,
21-22¡u9¡2uuu; 0NESC0, 14-1S¡u6¡1999).
92
Especially sectois such as film, Tv, music, games. 0K Technology Stiategy Boaiu (2uu9), op. cit., p. 18.
ieceive only paitial financial auvances foi ceitain piouucts oi seivices that will not be
successful anu this may leau to significant financial limitations foi the entiepieneuis.
Natuially, intangible innovation is haiu to quantify anu is not easily iecogniseu by those
outsiue the CCIs. Cuiiently, '"# 012' +&&15,'1(0 ,(# &1' -,8#--#4 ,0 71&'(+8*'+&? '1 AZ.
anu cannot ieceive funuing oi equal iecognition fiom eithei scientific oi applieu ieseaich
initiatives. Y7+#&'+O+7 (#0#,(7" +&0'+'*'#0 0'+-- (#7#+5# /10' 12 '"# AZ. 2*&4+&? as
opposeu to applieu ieseaich institutes oi othei emeiging communities. In a iecent stuuy
on innovation in Sweuish seivice companies, it was shown that Su% of the innovation
came uiiectly fiom customeis, SS% fiom employees anu 1&-@ P` 2(1/ #N'#(&,- AZ.F
eP
9F9FPF; \(14*7'+1& )(17#00#0
Piouuction takes place eithei in small-scale uiiect contact between piouucei anu
consumei, oi with iepiouucible, mass meuia piouucts, in &#'>1(=0 12 +&'#(/#4+,(+#0F
These inteimeuiaiies such as publisheis, film piouuction companies oi iecoiu companies,
biing cultuial piouucts anu seivices anu an auuience togethei. They exploit economies of
scale anu scope that apply in paiticulai to capital-intensive aspects of piouuction anu
piomotion iathei than in the laboui anu knowleuge-intensive piocess of cieation.
Bowevei, the incieasing uigitisation of content anu seivices has openeu new piouuction
anu uistiibution possibilities.
94
The impoitance of uigital content foi the
CCIs has leu to the uevelopment of new
applications anu the integiation anu ie-
aggiegation of existing meuia. Ciossovei
Labs is an example of an oiganisation that
suppoits integiation in the piouuction
piocess (see Appenuix 1, Best Case 4).
Nuch like Ciossovei Labs, the uATE
pioject integiates uiffeient actois to apply
new technology foi the game sectoi (see
Appenuix 1, Best Case S). The cieative
content inuustiy is giowing in impoitance
anu is well uevelopeu thioughout the value
chain. The Inteinet anu changing
consumei piefeiences aie auuing to the
complexity of the flow of funus between
the uiffeient playeis in these value chains.
Consumei spenuing is the single most
impoitant souice of funus. Physical meuia
still iepiesent a substantial pait of the maiket, but this is most exposeu to online
substitution.
9S
The tiauitional iuea of the piouuction chain is now evolving, anu in many cases
inteimeuiaiies can be bypasseu.
96
Taking its uistance fiom the lineai piouuction piocess
implieu in the concept of a value chain, the teim I5,-*# 7(#,'+&? #71-1?+#0K encompasses
the iuea of a 'constellation of fiims that aie uynamic, with value flow being multi-
uiiectional anu woiking thiough clusteis of netwoiks'.
97
3(10015#( B,80
Ciossovei Labs in the 0K oiganises woikshops with
multi-uisciplinaiy paiticipants aimeu at exchanging
infoimation in oiuei to cieate innovative piojects
with the use of new meuia tools.
(See Appenuix 1, Best Case 4)
j1(=0 12 -,>@#(0G 8*0+�J/,&,?#(0 1(
,771*&',&'0 71&'(+8*'# '1 '"# 0)#7+O+7,'+1& 12 71&'(,7'*,- ,((,&?#/#&'0 +& '"# 3360
,&4 ,(# ,& +&'#?(,- ),(' 12 '"# +&4*0'(+#0K 0'(*7'*(#F
9F9FPF9 D*'01*(7+&?
Nany CCIs aie 'cieation-oiienteu' anu many of them 7"110# '1 (#/,+& 0/,-- +& 1(4#( '1
=##) '"+0 O-#N+8+-+'@ ,&4 ,4,)',8+-+'@ that laigei CCI enteipiises uo not necessaiily
possess. As noteu above, laigei companies have a stiuctuial auvantage in teims of
ieseaich, uevelopment, auministiative management anu uesign activities to which the
micio-SNEs have little access. Equally, the iepiouuction, uistiibution anu piomotion of
cieative piouucts anu the auministiation of iights aie complex pioceuuies wheie laigei
companies have an auvantage compaieu to the smallei ones.
BoweveiG '"# -,(?#( #&'#()(+0#0 41 &1' ',=# '"# 0,/# (+0=0 ,0 /+7(1JYW%0F
1u1
Nicio-
SNEs often auopt a flexible attituue with new uynamic anu small-scale tools anu piocesses
to pioviue solutions to specific pioblems in oiuei foi them to compete with laigei
oiganisations that aie not capable of being as veisatile. !"+0 ,--1>0 '"# 336 YW%
#&'(#)(#&#*( '1 /,+&',+& , (+0=J',=+&? ,''+'*4#F This attituue is not necessaiily easy to
sustain in a laigei company, as expiesseu by one inteiviewee:
"Tbe creotive inJustries con be o moJel for bow tbe knowleJqe economy in
qenerol is Jevelopinq. So smoller componies ore jlexible, tbey bove more
colloborotion, more free-loncers, onJ tberefore tbey con be o test beJ for tryinq
out new support mecbonisms tbot con eventuolly be rolleJ out to tbe wiJer
economy".
(Euiopean Think Tank)
8F!M%%k
b.TWEEN is a cioss platfoim uevelopment lab in the
0K that fosteis the exchange of iueas between
uiffeient uisciplines as well as offeiing auvice anu
methous foi blenuing uigital meuia methous within
the CCI enteipiise.
(See Appenuix 1, Best Case 6)
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 2S
98
Ibiu, p. 1u. Netwoik value is thus cieateu anu extiacteu in a netwoik of ielationships anu value can best be unueistoou
holistically as a function of the entiie netwoik.
99
Ibiu., p. 7. : The combination of competitive anu coopeiative piocesses is teimeu co-ompetition. In a value cieating
ecology, the CCIs mouels follow the iueas of simultaneous co-opeiation anu competition between membeis of an eco-system,
Ibiu, p. 14
1uu
0K Technology Stiategy Boaiu, (2uu9) , op. cit., p. 11.
1u1
EC uieen Papei, (2u1u), op. cit., p. 7.
The stiuctuie of the CCI SNE enteipiise is moie auaptive, )(#2#((+&? 1*'01*(7+&?
01-*'+1&0 21( $2 +)7 0#(5+7#0 >"+-# /,+&',+&+&? , 0/,-- 71(# '#,/ 12 #/)-1@##0F The
solution favouieu by many oiganisations in the CCIs is '1 5,(@ '"# 4#?(## 12 +&'#?(,'+1&
,&4 71&'(1- 15#( 5,(+1*0 ,0)#7'0 12 )(14*7'+1& ,&4 '1 1*'01*(7# '"+0 '1 0/,--#(G
(+0=J',=+&?G 4@&,/+7 #&'#()(+0#0F
Even the laigest inteimeuiaiy enteipiises iegulaily oiganise the piouuction of new meuia
content in ielatively small, semi-autonomous teams. 0utsouicing also iesults in the neeu
foi micio-SNEs to be able to 71/8+&# 81'" '"# 7(#,'+1& ,0 >#-- ,0 '"# ,4/+&+0'(,'+1&
linkeu to theii fieelance activities. As noteu by a iegional institute:
"Tbe biq componies in tbe CCls bove reJuceJ tbeir employees in tbe post S0
yeors...tbey outsource. Tbe Jeqree of outsourcinq is very biqb. Tbis olso meons
tbot people Jon't Jo wbot tbey ore qooJ ot {tbey neeJ to ocquire tbe job, bove to
moke tbeir own toxes, bove to Jo everytbinq, morketinq). AnJ in tbe post tbis
wos Jeolt witb tbrouqb tbe Jivision of lobour. So creotive people lose o lot of
time Joinq tbinqs tbey ore not qooJ ot onJ tbot sboulJn't be tbeir job!".
(Regional Institute foi CCI, Stiuctuially Stiong Tiauitional Economy)
The fact that CCIs have consequent uispaiities in size anu giowth stiengthens the
tenuency to outsouice, especially in sectois in which automation of piouuction
enables outsouicing, such as the ietail woik in the fashion sectoi oi in ceitain
computei games. Fuithei, to ueal with the monopolistic tenuencies of some CCIs, ,
"+?" )#(7#&',?# 12 2(##-,&7#(0 ,&4 /+7(1JYW%0 (#-@ 1& &#'>1(=0 ,&4 )#(01&,-
71&',7'0 in oiuei to act as a gioup.
9F9FPFPF 3",(,7'#(+0'+70 12 336 1*')*'
Inteinational bouies, such as 0NESC0 with its Convention on the Piotection of Cultuial
Biveisity,
1u2
note that 7*-'*(,- ?1140 ",5# '1 8# 0#' ,),(' 2(1/ 0',&4,(4+0#4 /,00
71&0*/)'+1& oi even excluueu fiom inteinational tiaue agieements anu competition
iegulations.
1uS
Cultuial piouucts aie not 'simply meichanuise', 8*' #N)(#00 7*-'*(,-
*&+S*#� ,&4 210'#( 7*-'*(,- 4+5#(0+'@F
1u4
Theii utility anu quality foi any inuiviuual cannot often be ueteimineu with any ceitainty
piioi to consumption anu sometimes taste changes as a iesult of iepeateu consumption. In
geneial, uemanu will inciease with exposuie, in a piocess of 'iationale auuiction'.
1uS
Cultuial anu cieative piouucts anu seivices aie also expeiience goous.
1u6
Cultuial piouucts
anu seivices stage an expeiience that is uiiectly ielateu to the usei. In oiuei to stage this
expeiience, the usei's uemanus will be taken into consiueiation in the uesign of the
piouucts anu seivices continuously, thiough 'feeuback loops'. These piocesses of
inteiaction foim inuiiect outputs of the piouucts¡seivices.
These feeuback loops impiove the uesign of the piouuct oi the seivice offeieu by the CCI
enteipiise anu useis aie actively taking pait in the iemouluing of the piouuct. The enu
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 26
1u2
In 0ctobei 2uuS, 148 countiies suppoiteu the 0NESC0 Convention on the Piotection anu Piomotion of the Biveisity of
Cultuial Contents anu Aitistic Expiessions; expiessing the position, that mechanisms to maintain anu uevelop uomestic
piouuction aie necessaiy because the uiveise goous piouuceu aiounu the woilu aie not simply meichanuise, but
expiessions of iich inuiviuual uniqueness anu cultuial iuentities.
1uS
0N¡0NESC0 uatts Agieement, 0nesco's ulobal Alliance on Cultuial Biveisity, E0 exceptions on competition law,
exemptions on state aiu anu the state aiu pioceuuie. State aiu is usually consiueieu as incompatible with the common
maiket when it uistoits competition by favouiing ceitain unueitakings oi the piouuction of ceitain goous. Financial suppoit
to SNE's in the sectoi of the cultuial anu cieative inuustiies can be justifieu when it is (1) piomoting economic uevelopment
of aieas with an abnoimally stanuaiu of living of seiious unueiemployment, (2) it is facilitating the uevelopment of ceitain
economic activities of ceitain economic aieas, (S) it is piomoting cultuie anu heiitage conseivation. Retiieveu at 14 Bec.
2uu9 fiom: http:¡¡www.euiopa.eu.int.scauplus¡leg
1u4
Foi a uiscussion on the tensions between commeicialisation on the one hanu anu cultuial meiit on the othei, see:
Steuman u., (2uu6), "Fiom uentlemanly Publishing to Conglomeiates: The Contempoiaiy Liteiaiy Fielu in the 0K" In
Eisenbeig, C., ueilach, R. anu Banuke, C., (eus.), (2uu6), Cultuial Inuustiies: The Biitish Expeiience in Inteinational
Peispective, Beilin: Bumbolut 0niveisity
1uS
Thiosby, B., (2uu1), op. cit., p. 11S.
1u6
KEA (2uu9), op. cit., p. S9.
iesult of these feeuback loops may pioviue insight into uesign piocesses that can be ie-
useu in the futuie. As such, the CCI enteipiise output is not meiely a piouuct oi a seivice
but also incluues a uesign piocess. The benefits of being able to ieplicate these uesign
piocesses aie obvious in a commeicial sense. An auuitional benefit is also available foi the
uesignei, who can examine anu ieflect upon his own woikflows anu this may leau to new
outputs in teims of impioveu piouucts oi paths that appeai to leau in a piomising
uiiection.
Bowevei, the uesign piocess of foiming a piouuct oi a seivice is not always explicit. Those
woiking in the cioss-meuia sectoi aie familiai with the aitefacts fiom paiticulai cieative
uomains but aie iaiely able to access the uesign piocesses that cieateu these aitefacts. h@
)(15+4+&? ,& +&'*+'+5# -#5#- 12 ,77#00 '1 '"#0# 4#0+?& )(17#00#0G SNEs woiking in the
cieative inuustiies (such as auveitising, mash-up, cuiatois etc.) aie fai bettei able to
imagine, exploie, analyse anu pieuict the most favouiable uiiections in which theii assets
can then be ueployeu.
Cieating an expeiience is, howevei, highly 0*8H#7'+5# anu the economic value cannot be
piecisely ueteimineu in auvance anu '"+0 0*8H#7'+5# 71/)1&#&' /#,&0 '",' '"#
7*-'*(,- ,&4 7(#,'+5# #&'(#)(#&#*( +0 71&0',&'-@ ',=+&? (+0=0F In view of the size
chaiacteiistics of the majoiity of CCIs anu the high competition, the CCI entiepieneui is
constantly looking foi innovative solutions, new tienus, piouucts anu seivices that aie
moie in line with usei anu consumei uemanu.
1u7
As one inteiviewee noteu:
"Sometbinq tbot people neeJ is to look ot wbot tbey con Jisrupt, tbey neeJ to qo
bock to Jisruption. Con tbey Jisrupt reolisotion? Con tbey Jisrupt Jistribution?
Con tbey Jisrupt tbe woy tbey creote iJeos?".
(Reseaich Institute foi CCI, Knowleuge Economy)
Cultuie has not exclusively been seen fiom the tiauitional point of view of conseiving
cultuial heiitage but moie as a /#,&0 '1 )*(0*+&? , S*,-+','+5#-@ "+?"#( -#5#- 12
4#5#-1)/#&'F This flexible concept has hau the meiit of linking the iuea of cultuie to a
seiies of activities - fiom fashion, to uesign anu the engineeiing of computei games -
pieviously consiueieu outsiue the spheie of cultuial policies.
9F9FRF L&7#(',+& 5,-*# ,&4 7",&?+&? 8*0+� /14#-0
As noteu above, '"# /,(=#' 21( 7*-'*(,- ?1140 +0 81'" 51-,'+-# ,&4 *&)(#4+7',8-#G
piomoting business stiategies that aie 'emeigent', piovisional, highly iesponsive to usei-
uemanu anu baseu on 'intuitive' anu 'emotional' knowleuge as much as stanuaiu maiket
ieseaich.
Consumeis aie often not awaie of theii tastes in cultuial maikets. Rathei they uiscovei
them thiough iepeateu expeiiences in a sequential piocess of laigely unsystematic
'leaining by consuming'. As theie is an infinite vaiiety of cieative offeiings, this uiscoveiy
piocess may be nevei-enuing. To the extent that inuiviuuals aie unsuie of theii
piefeiences, +' +0 &1' 0*()(+0+&? '",' )(14*7#(0 12 ?1140 12 #N)(#00+5# 5,-*# 0'(*??-#
'1 ,&'+7+),'# /,(=#' 5,-*#F
;:_
Noieovei, in auuition to facing unceitainty, high competition anu extieme imbalances
between the micio anu laigei enteipiises, 4+?+',- 71&5#(?#&7# has also mouifieu the
uistiibution piocess of CCI piouucts anu seivices. The bioauening usage of the inteinet
anu content inteiface platfoims has significantly changeu the value chain anu uistiibution
piocess, #&,8-+&? , I4#/17(,'+0,'+1&K 12 ,77#00 '1 4+0'(+8*'+1& ,&4 , "+?"#(
),('+7+),'+1& 12 )(14*7#(0 ,&4 71&'#&' 1(+?+&,'1(0F
;:e
Consequently, this shapes new
maiket stiategies anu new business mouels to which CCIs must auapt. As noteu above, the
inteiaction with the usei anu consumei is moie uiiect than in the physical woilu anu
much moie uynamic anu self-feeuing:
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 27
1u7
EC uieen Papei, (2u1u), op. cit., p. 7.
1u8
uaiboua L L., Nontmaiquette, C., (1996), 'A micio econometiic stuuy of theatie uemanu', }ouinal of Cultuial Economics,
vol. 2u, Numbei 1
1u9
0K Technology Stiategy Boaiu, (2uu9), op. cit., p. 18.
"Tbe purely lineor business moJel is qivinq woy to o mucb more inter-woven
environment, wbere cross-fertilisotion of stimulus onJ response, Joto-Jriven supply
onJ JemonJ, onJ speeJ of communicotion enoble o mucb more ropiJ evolution of
proJuct Jevelopment onJ consumption".
110
This shift has also tiiggeieu an exchange of content anu seivices anu facilitateu peei to
peei shaiing, enuangeiing legal piotection suiiounuing the content¡seivices. Cieative
piocesses aie theiefoie much less lineai anu with the inciease in file-shaiing within
netwoiks, the ability of piouuceis oi uistiibutois to contiol anu chaige foi content has
become a majoi concein. !",' '"# (+?"'0 "1-4#(0 ,&4 '"# 7(#,'1(0 ,(# &1' 8#+&?
(#>,(4#4 >+'" '"+0 8(1,4# ,77#00 '1 71&'#&' +0 , (#,- 7",--#&?# '1 71//#(7+,-
0*77#00F Theie aie piesently impoitant tensions between uiffeient philosophies as a
iesult of the 'uemociatisation' of content anu this is auuiesseu in section S.S below. What
is impoitant is the mannei in which this ",0 ,22#7'#4 '"# 8*0+� /14#-0 of the
companies that have to auapt to this changing enviionment anu at the same time be
sufficiently flexible to iemain upuateu about the newest changes anu oppoitunities.
Consiueiing the specific chaiacteiistics of the CCIs with iegaiu to theii size anu
composition; theii piouuct cieation piocesses; theii intangible assets anu hiuuen
innovation; the shifting output consumption; the changing value chain ecologies; the
shifting uigital enviionment anu the impact it has on business mouels anu inteiaction with
usei; it is cleai that the 3360 ",5# /,&@ 71/)-#N 7",--#&?#0 '1 2,7#F They aie also
woiking in an enviionment that is not always pione to iewaiuing iisk taking behavioui
anu this puts fuithei complications on theii paths to sustainability anu giowth.
9FPF C#,'*(#0 12 '"# 336 0#7'1(0
Bespite all the similaiities between the uiffeient sectois of the CCIs, it is helpful to look at
each specific sectoi of the CCIs in oiuei to highlight the uiffeient piocesses that might
influence the suppoit of entiepieneuiship. 0ne of the most common issues obseiveu
uuiing this stuuy was '"# 4+5+0+1& 8#'>##& '"# 0*80+4+0#4 0#7'1(0 ,&4 '"# &1&J
0*80+4+0#4 1�F This uivision is also a ieflection of the philosophies of each Nembei
State when auuiessing the cultuial sectois anu opening up the cieative economy:
"ln my opinion tbere is o Jifference between tbe creotive onJ tbe clossicol port. Tbe
creotive inJustries ore more entrepreneuriol tbon tbe more clossicol port. Tbis olso
bos to Jo witb tbe wbole subsiJy system, wbere tbe more clossicol port of tbe inJustry
is better oble to receive funJinq from tbe qovernment".
(National Ninistiy of Cultuie, Knowleuge Economy)
Biscussion about the efficiency of uiffeient subsiuy systems is beyonu the scope of this
stuuy. Bowevei, when talking about suppoiting the entiepieneuiial uimension of CCIs,
'"#(# >,0 , ?(1>+&? (#,-+0,'+1& '",' 0*80+4@ 0@0'#/0 ",5# 0",)#4 '"# #N+0'+&?
#&'(#)(#&#*(+,- 4+/#&0+1& 12 7#(',+& 0#7'1(0F Accoiuing to the inteiviewees, heavily
subsiuiseu sectois tenu to be less uiiven by the commeicial siue of unueitaking an
entiepieneuiial activity. These sectois aie piimaiily seen as willing to cieate anu
expeiience, iathei than commeicialise, theii piouucts anu seivices:
"Tbe ortist´s moJel rorely works witb tbe ottituJe or opinion tbot commerciolisotion
strenqtbens tbe creotive output. Host jine ortists onJ cboreoqropbers ore enqoqeJ in
tbe process rotber tbon tbe outcome. 0nce tbe openinq niqbt bos storteJ tbey´ve
olmost lost interest in it. l tbink you neeJ to jinJ people wbo ore interesteJ in tbe
process onJ look beyonJ tbe openinq niqbt".
(Bighei Euucation Institute foi CCI, Knowleuge Economy)
Noieovei, ieceiving public funuing can also imply a ceitain uegiee of political influence on
the piouuct oi seivices. 0veiall, most iesponuents agieeu that subsiuies weie necessaiy to
enable the expeiimentation anu the uevelopment of ceitain sectois. Bowevei, the system
was consiueieu inefficient foi enabling sustainable giowth. Paiallel to the bluiiing of
fiontieis between the uiffeient sectois, this sectoial uiffeientiation may giauually
uisappeai.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 28
11u
Ibiu., p. 19.
Noving beyonu this uuality, the 0K Technology Stiategy Boaiu elaboiateu a mouel of the
CCIs baseu on how commeicial value was cieateu.
111
The mouel is not intenueu to
uiffeientiate in a way that uisciiminates in favoui of a paiticulai segment oi gioup of
sectois. Insteau it is aimeu at shaping policy to uiiect changes anu enhance the
uevelopment of CCIs by taigeting auvice, suppoit anu investment tailoieu to the patteins
of activity anu theii potential foi giowth anu uevelopment. The bounuaiies between the
clusteis aie not fixeu anu some of the sectois may be in moie than one clustei oi cioss
ovei between seveial sectois (foi example music anu games).
The 0K Technology Stiategy Boaiu mouel stiuctuies the CCIs along thiee gioups, baseu on
the physical veisus uigital input, as well as manual veisus technology-aiueu output (see
Appenuix 2.9):
! Cieative seivice pioviueis - tiauitionally non subsiuiseu
! Cieative content pioviueis - mostly non subsiuiseu
! Cieative expeiiences¡oiiginal pioviueis - mostly subsiuiseu
Foi this stuuy, the cieative expeiience anu oiiginal pioviueis have been meigeu into one
clustei as they iepiesent mostly the coie aits (peifoiming aits anu visual aits).
!@)# 12 3-*0'#( Y#7'1(0 W,+& 3",(,7'#(+0'+70
3(#,'+5# 0#(5+7#
)(15+4#(0
Besign, aichitectuie, new
meuia, auveitising
- Biiect inteiaction with usei's
uemanu
- Exchange of time foi IP
piouucts
- Bighly influenceu by
technology anu uigitisation
- Nostly pioject-baseu
- Nostly piivate oi self-financing
3(#,'+5# 71&'#&'
)(15+4#(0
Tv anu Rauio, Fashion, uames,
Nusic, Film, Books
- Piouuceis of IP piouuct
- Bighly influenceu by
uigitisation, mostly foi
"cieation" anu usei-inteiaction
- Nostly pioject-baseu
- Nix of self-financeu anu
subsiuiseu sectois
(auuiovisual anu games,
books)
- Expeiience thieats of piiacy
fiom uigital maiket anu peei
to peei exchange
3(#,'+5# #N)#(+#&7#
)(15+4#(0
3(#,'+5# 1(+?+&,-
)(15+4#(0
Peifoiming aits, visual aits,
(music, games)
- No initial owneiship of woik
anu usually pay foi othei's
copyiight
- Nostly subsiuiseu anu
conceineu by the cultuial
value of theii woik
- Aits aie mostly on contiact
basis
- Bigitisation is mostly foi
uissemination anu as
communication tools
- 0sually one off piouucts anu
seivices
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 29
111
0K Technology Stiategy Boaiu, (2uu9), op. cit., p. 21.
!,8-# PE 3-*0'#(0 +& '"# 3360
{Source: BoseJ on tbe clossijicotion of tbe 0K Tecbnoloqy Stroteqy BoorJ)
The use of such clusteiing was laigely agieeu upon by the paiticipants of the woikshops
helu uuiing the stuuy to valiuate the methouology anu the iesults. This clusteiing enables
us to see geneial tienus in teims of value chains, financial schemes anu subsiuisation.
Befoie uetailing the featuies of each sectoi, it is inteiesting to look at the oveiall tuinovei
of each sectoi as illustiateu in Fig. 7. below which shows that the sectois that geneiateu
most tuinovei weie mainly the seivice pioviueis anu content pioviueis.
C+?*(# VE !1',- !*(&15#( )#( 6&4*0'(@
{Source: Furokleis 2009, stotisticol onolysis)
The laigest total tuinoveis pei inuustiy aie: Fashion (247.189.494 TB t), Besign
(1S7.11S.9S2 TB t) anu Rauio & Television (1SS.192.SS1 TB t). These inuustiies, mostly
the content pioviueis anu cieative seivice pioviueis, have benefiteu fiom the iise of the
uigitisation of society anu the ensuing uigital maiket.
Inuustiies that iequiie gieatei competition anu investment in technology anu¡oi
economies of scale (i.e. Rauio & Television, Softwaie Pub. & uames, Besign, Book & Piess
anu visual Aits) show moie employees in 'laige companies' (i.e. moie than 2Su woikeis)
as seen in Table 2. above.
As can be seen in Fig. 6., the inuustiies that employ moie woikeis aie: Fashion
(2.2Su.SS4), Besign (1.428.64S), Aichitectuie (762.714) anu Book & Piess (7u2.S6S).
Claiifying the uivision between the entiepieneui anu the enteipiise, the inuustiies that
hau the laigest numbei of enteipiises in Euiope weie Fashion (142.212), Besign
(1u1.2SS), Aichitectuie (76.2S6) anu Auveitising (S7.244).
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries Su
C+?*(# _E \#(7#&',?# 12 %&'#()(+0#0 )#( Y#7'1(
{Source: Furokleis 2009, stotisticol onolysis)
0veiall, theie is a pieuominance of the sectois that iequiie gieatei investment in
technology, with the exception of fashion (which is uue to the inclusion of the ietail
inuustiy in the fashion statistics, see Appenuix 2.1u). Fiom the stuuy's statistics, foi the
inuustiies using most technology (laigely content anu seivice pioviueis), the total
tuinovei is geneiateu pieuominantly by the laige companies while in the othei inuustiies
the SNEs play a laigei iole.
9FPF;F 3(#,'+5# 0#(5+7# )(15+4#(0
This clustei consists of Besign, Aichitectuie, Auveitising anu New Neuia. Cieative seivice
enteipiises aie baseu aiounu eaining ievenues in exchange foi uevoting theii time anu
intellectual piopeity (IP) to othei businesses anu oiganisations. The cieative activities aie
embeuueu in a lanuscape of auministiative, oiganisational oi manufactuiing activities that
foim an integial pait of the inuustiies' stiuctuie.
The cieative seivice pioviueis aie usually self-financeu anu consist mostly of micio-SNEs.
The cieative piocess is heavily suppoiteu by technology as the cieative piocess is highly
involveu in usei-inteiaction, incieasingly so with the use of web-baseu platfoims.
9FPF;F;F #( '",& ;: )#1)-#F
In teims of O+&,&7#, the sectoi typically opeiates with piivate financing without specific
goveinmental schemes. Public piocuiement anu piizes aie often seen as moie appiopiiate
foi the sectoi than subsiuies. The geneial piofession is goveineu by the geneial
iegulations of the inteinal maiket of the E0 (fieeuom of establishment, fieeuom of
movement, public contiacts). In the E0 Council Resolution of }anuaiy 2uu7, the E0
amenueu its uiiective to suppoit the aichitectuial sectoi to encouiage mobility thiough
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S1
112
All statistical uata, unless otheiwise inuicateu, come fiom the statistical stuuy unueitaken by Euiokleis.
the mutual iecognition of qualifications in aichitectuie acioss Euiope.
11S
In the past, the
E0 has also suppoiteu the sectoi by piomoting the co-opeiation anu the netwoiking
between institutions ueuicateu to cultuial heiitage anu aichitectuie.
114
In auuition to suppoiting collaboiation anu
a gieatei fieeuom of movement, the access
to the maiket is inuiiectly suppoiteu
thiough legislative means. Inueeu, in
countiies wheie it is not manuatoiy to hiie
aichitects, aichitectuie is piomoteu by
pointing to the cultuial significance of
aichitectuial uesign anu piogiammes foi
subsiuiseu consultation by aichitects. In
the othei countiies, suppoit is inheient
wheie aichitectuial uesigns aie manuatoiy
foi the constiuction of builuings. Some
oiganisations, such as Aichitectuui Lokaal,
seek to involve useis to ensuie quality of seivices (see Appenuix 1, Best Case 7).
ICT tools aie wiuely useu in the sectoi foi uesign, visualisation, infoimation exchange
about piocesses, anu ICT is wiuely useu to inciease efficiency in assembling anu
ieassembling, as well as biinging the vaiious bianches of the uisciplines togethei.
11S
With
such ICT tools, the piouuction phase has shoiteneu, but the sectoi is still veiy laboui
intensive.
9FPF;F9F "+-# 9R` 12 '"# 3360 ",5#
8#'>##& RJe #/)-1@##0F Combineu, the companies unuei 1u employees aie iesponsible
foi 28% of the total tuinovei foi the sectoi.
The iise of ICT has leu EASA (Euiopean
Auveitising Stanuaiu Agency - see
Appenuix 1, Best Case 8) membeis to
ieach a consensus on incluuing uigital
maiketing communications in the iemit of
auveitising self-iegulatoiy oiganisations.
0nline auveitising spenuing pei usei has
iisen uiamatically in the last foui yeais,
with 0K leauing the way. !"# 1&-+&#
,45#('+0+&? /,(=#' in the 0K went fiom
uBP 122 pei usei in 2uu6 to uBP 217 in 2u1u. Fiance's online auveitising is now ieaching
$1SS pei usei, fiom $89 pei usei foui yeais ago. As the stuuy by the 0K Technology
Stiategy Boaiu confiims, 7u% of the value anu giowth potential comes fiom content anu
b3(100d W#4+,
New Neuia is the newest subgioup among the cieative inuustiies. It has emeigeu as a
iesult of iapiu auvances in ICT aimeu at ueveloping the global infoimation infiastiuctuie,
giving iise to the so-calleu Infoimation Society.
128
New meuia is both a piouuct (softwaie, caitoon, game etc.) as well as a seivice; a
communication tool foi maiketing anu uistiibuting othei piouucts. The sectoi coveis a
bioau iange of activities uealing with uigital uesign, but moie specifically seivice uesign: it
ueals with piocesses linkeu to seivices between people anu theii enviionment. This
uefinition makes the activities in this sectoi inheiently cioss-sectoial. The suppoiting
oiganisations give suppoit in this fielu in the foim of innovation anu R&B piojects. In
teims of ICT use, accoiuing to the stuuy's sectoial expeit questionnaiies, the most
impoitant use of ICT technologies foi CCI SNEs aie communication tools (91%) anu
knowleuge¡goous piouuction tools (76%).
The sectoi has ];` 12 71/),&+#0 >+'" 2#>#( '",& R #/)-1@##0G 8*' +' +0 (#0)1&0+8-#
21( 9:F;9` 12 '"# #/)-1@/#&' +& '"# 3360F The tuinovei is, howevei, mostly geneiateu
by the biggei enteipiises (8u% of the total ievenue is geneiateu by companies with Su+
employees out of which 48% is geneiateu fiom enteipiises with Su-249 employees
consisting of S.14% of the sectoi). ICT accounts foi half of the iise in E0 piouuctivity
129
anu is essential to businesses, public seivices anu to making a mouein economy woik anu
a ciucial component of the E0 iecoveiy plan. Such economic effects can be seen in seveial
Nembei States.
1Su
In teims of O+&,&7+,- 0*))1('G the sectoi is not subsiuiseu but exteinal suppoit exists,
although the paths to obtain it aie often fai too complex foi inuiviuual SNEs. In teims of
?(1>'" )1'#&'+,-G the companies have facilities to stait up uue to the shoit time-spans of
R&B anu piouuct lifecycles but the companies have uifficulty in giowing. The issue of
maiket fiagmentation is notable foi this sectoi. Euiope is veiy fiagmenteu in teims of
language anu iegulations about IPR, infoimation access, etc. This system uiscouiages the
companies fiom giowing acioss national boiueis as it usually cieates only locally
opeiating SNEs, although the maiket is global.
1S1
The New Neuia anu ICT technologies
have also the potential to affect the oveiall enviionment foi CCIs uue to the incieasing
impoitance of uigitisation.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S4
126
0pen Innovation was uefineu as the use of puiposive inflows anu outflows of knowleuge to acceleiate inteinal innovation,
anu expanu the maikets foi exteinal use of innovation, iespectively. Chesbiough, B.W., (2uuS), 0pen Innovation: The new
impeiative foi cieating anu piofiting fiom technology, Boston: Baivaiu Business School Piess
127
EC Staff Woiking Bocument, (2uu9a), op. cit., p. S1.
128
0NCTAB,(2uu8), op. cit., p. 1S2.
129
Euiopean Bigital Neuia Association (EBiNA), (2uu9), White Papei on Policy Stiategy foi the Bevelopment of New Neuia
Seivices 2uu9-2u14, see http:¡¡ec.euiopa.eu¡infoimation_society¡eeuiope¡i2u1u¡uocs¡post_i2u1u¡
auuitional_contiibutions¡euima.puf
1Su
In 0K, the uigital maiket anu uigital content is iesponsible foi appiox. 7u% of the tuinovei of the cieative inuustiies in
the 0K: see 0K Technology Stiategy Boaiu, (2uu9), op. cit., p. 12.
1S1
Euiopean Bigital Neuia Association (EBiNA), (2uu9), op. cit., p. 2.
In teims of innovation potential, new
meuia intiouuces new foims of expiession
anu platfoims, such as usei-geneiateu
content. It changes the backgiounu as
smallei companies can compete affoiuably
in biggei maikets anu auveitise theii
piouucts online although the competition
is fieice. The EBiNA White Papei on ICT
stanuaiuisation uemonstiates the willingness to pay incieasing attention to new
technologies as a uiivei of innovation (see Appenuix 1, Best Case 1u).
9FPF9F 3(#,'+5# 71&'#&' )(14*7#(0
This clustei incluues film, Tv, fashion, games, music, books anu publishing. Cieative
content enteipiises piouuce IP, usually making use of technical piotection measuies.
These enteipiises eain ievenues thiough a vaiiety of ielateu business mouels such as
online anu off line sales, auveitising oi subsciiption. These enteipiises invest capital
upfiont in oiuei to uevelop cieative piojects piioi to any ievenues. Bepenuing on the
sectoi, this upfiont investment can be substantial, anu as a iesult the investment often
takes place on a pioject-by-pioject basis iathei than in the context of an ongoing anu
sustainable business. Within this gioup, a loose but impoitant uistinction can be maue
between those enteipiises that focus on the next inuiviuual cieative pioject anu those that
aie stiuctuieu to uevelop a sustainable 'piouuction line' of cieative piouucts anu an
incieasing bouy of IP foi ieneweu exploitation.
In teims of the cieative piocess, the clustei is highly influenceu by uigital conveigence: the
piocesses aie usually highly technologically aiueu, having an impoitant usei-inteiaction
component within the cieative piocess, anu the piouucts anu seivices aie also incieasingly
uigital, with the e-book being an illustiation of this. Piiacy anu peei-to-peei exchange aie
thieatening the loss of value of some of the content piouuct anu seivices. The cieative
content piouuceis have significant ciossoveis with othei sectois of the economy outsiue
the CCIs, such as mobile phone netwoik opeiatois, hanuset manufactuieis foi music
uistiibution, which have consiueiable influence on the business mouels ueployeu.
1S2
9FPF9F;F C+-/
Film is the sectoi that ieceives, geneially speaking, stiong suppoit fiom the state acioss
Euiopean countiies thiough vaiious measuies (tax sheltei, subsiuies etc). Tax shelteis of
vaiying types in Bungaiy, Netheilanus, Iielanu, the 0K, Luxembouig, Fiance, Spain anu
Belgium aie meant to encouiage investments anu consiueiably enhance the funuing
oppoitunities foi film piouuction. The sectoi is also highly subsiuiseu in othei Euiopean
countiies, though the iecent financial ciisis means that this subsiuy is likely to ueciease.
The special piogiamme foi the auuiovisual
sectoi at the Euiopean level, NEBIA,
1SS
also tackles the neeus of the sectoi. NEBIA
co-finances tiaining initiatives foi
auuiovisual inuustiy piofessionals, the
uevelopment of piouuction piojects,
tiaining of piofessionals, anu geneially
uistiibutes anu piomotes films anu
auuiovisual output (see Appenuix 1, Best
Cases 11). 0n top of this, the E0 Neuia piogiamme will launch at the enu of 2u1u a Neuia
Piouuction uuaiantee Funu that will be aimeu at suppoiting anu facilitating the access of
public auuiovisual companies to bank cieuits.
1S4
In teims of the sectoi's composition, the sectoi is highly fiagmenteu. ]:` 12 '"#
%.6W<
EBINA is the E0 netwoik that aims at cieating an
open anu legal fiamewoik foi new uigital piouucts
thioughout the E0 so as to avoiu the legal baiiieis
blocking a single Euiopean uigital maiket.
(See Appenuix 1, Best Case 1u)
W%.6<
NEBIA is the E0 suppoit piogiamme foi the
auuiovisual sectoi. It co-finances piojects , piomotes,
tiains film piofessional anu suppoit the sectoi to
face the uigital shift.
(See Appenuix 1, Best Case 11)
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries SS
1S2
0K Technology Stiategy Boaiu, (2uu9), op. cit., p. 22.
1SS
See http:¡¡ec.euiopa.eu¡infoimation_society¡meuia¡inuex_en.htm
1S4
See http:¡¡ec.euiopa.eu¡cultuie¡meuia¡piogiamme¡oveiview¡funuing¡inuex_en.htm
71/),&+#0 ",5# *&4#( R #/)-1@##0 (see Fig. 2) but these companies piouuce only 12%
of the sectoial tuinovei. The companies that have 4-9 employees iepiesent 26% of the
sectoi's enteipiises anu they geneiate 16% of the total ievenue of the sectoi (see Fig. S.).
Companies that have moie than Su employees iepiesent a bit less than 2% of the total of
enteipiises in the sectoi but geneiate 49% of the total ievenue. The total tuinovei of the
sectoi is 6.1u% of the CCIs tuinovei anu it holus 4.84% of the employees of the total CCIs.
The maiket ieacheu a total spenuing value of 0SBS9 billion in 2uu9.
The uigital maiket has also been changing the peispective foi this sectoi. Theie is a
giowing emeigence of online iental subsciiption seivices anu a consequent iapiu uptake
of v0B anu pay-pei-view (PPv). The v0B maiket just staiteu in 2uu4 but was expecteu to
giow moie than tenfolu fiom 0SB 16S million in 2uu4 to 0SB 1.7 billion in 2uu9.
1SS
9:
9::R 9::f 9::] 9::V 9::_.+?+',-
Y7(##&0
Su SS 2u4 S27 897 1S29
.+?+',-
0+'#0
27 4S 148 SS8 SSu 81S
!,8-# RE .+?+',- 3+&#/, 0+'#0 ,&4 07(##& +& %*(1)# b9:
J9::_d{Source: HeJio Soles)
1S6
An inability to sustain giowth is one of the main issues foi the film sectoi. Linkeu to the
uifficulty to entei the maiket, the film sectoi suffeis fiom the inaccessibility of giowth
finance aftei the initial company set-up. Inueeu, the iepoit on the evaluation of the NEBIA
piogiamme inuicateu that E0 auuiovisual sectoi suffeieu fiom stiuctuial weaknesses such
as maiket fiagmentation anu the low ciiculation of Euiopean woiks outsiue theii countiy
of oiigin.
1S7
In teims of value chain piocesses, the piouuction time is geneially long,
although the piouuct can be multiplieu anu uistiibuteu.
9FPF9F9F h11=0 ,&4 \*8-+0"+&?
Publishing anu piint meuia constitute an
impoitant subgioup of the cieative
inuustiies fiom both the cultuial anu the
economic point of view. Technologically,
howevei, the publishing anu meuia
inuustiies aie facing new challenges uue to
the giowing tienu towaius electionic
publishing. Accoiuing to the Feueiation of
Euiopean Publisheis (see Appenuix 1, Best
Case 12), the total annual sales ievenue of book publisheis of the E0 anu the EEA in 2uu8
was appioximately t 2S.7S billion.
1S8
The sectoi compiises mostly of enteipiises with ;JP
#/)-1@##0 bfe`d ?#&#(,'+&? ;9` 12 '"# '1',- '*(&15#( 12 '"# 0#7'1(G >"+-# /10'
(#5#&*# bV9`d +0 ?#&#(,'#4 8@ 71/),&+#0 >+'" f:g #/)-1@##0 (2.S8% of the sectoi).
Competition in both the physical anu the uigital maiket influences the stiuctuie of the
sectoi but initiatives such as vAT ieuuction gieatly suppoit the giowth of the sectoi. In 2S
of the 27 Nembei States of the Euiopean 0nion, piinteu books benefit fiom ieuuceu iates
of vAT. Iielanu, Polanu anu the 0niteu Kinguom pioviue foi a zeio vAT iate foi books,
while five moie countiies have extenueu ieuuceu iates to books on all physical suppoit:
Fiance, Spain, Slovenia, Noiway anu the Netheilanus. Sweuen anu Icelanu allow ieuuceu
C#4#(,'+1& 12 %*(1)#,& \*8-+0"#(0
FEP is Euiopean sectoial suppoit oiganisation foi
book publisheis association in the E0. It mainly
ueals with legislative suppoit at the E0 level anu
auvises on copyiight issues.
(See Appenuix 1, Best Case 12)
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S6
1SS
KEA, (2uu6), op. cit., p. 114.
1S6
Euiopean Auuiovisual 0bseivatoiy, (2uu9a), Piess Release, Embaigo Bigital Scieen Base giows 7u% in 2uu8, Stiasbouig¡
Nilan: see http:¡¡www.obs.coe.int¡about¡oea¡pi¡uigital_cinema2uu8.html
1S7
E0REvAL Neuia Consulting gioup, (Novembei 2uu7), Final iepoit of NEBIA piogiamme Plus anu Neuia Foimation,
http:¡¡ec.euiopa.eu¡cultuie¡meuia¡piogiamme¡uocs¡oveiview¡evaluation¡iepoits¡meuia%2uplus¡executive_sum_en.puf
1S8
See http:¡¡www.fep-fee.eu
vAT foi auuio booksF
;Pe
< (#4*7#4 (,'# 12 i1(= '",' #&,8-#0 8*0+� /14#-0 +& '"+0 0#7'1(F
Nany SNEs not only lack technological tiaining, but also sectoi specific tiaining
(management skills, publishing skills, etc.). Cuiiently, sectoial associations pioviue basic
tiaining that pieuominantly focuses on piouuction. The sectoi woiks heavily in 7(100J
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S7
1S9
See http:¡¡www.fep-fee.eu¡2.S.html
14u
Comments fiom Euiopean Sectoial 0iganisation
141
See http:¡¡www.iupf.oig
0#7'1(,- &#'>1(=0G foi example with auuiovisual anu music.
142
9FPF9FPF j,/#0
In auuition to open uesign games, inteiactive enviionments, smait movie games anu
seiious games aie incieasingly acknowleugeu as suitable foi a bioauei use within society
anu economics. Peuagogical games that simulate suigeiy; open space inteiactive
enviionments useu foi city planning; oi games uevelopeu foi people with uisabilities aie
all examples of the iise of multi-functionality in this sectoi.
Bowevei, on a highei level, the sectoi is not sufficiently iecogniseu anu is not sepaiateu
fiom softwaie in most statistics. The sectoi is also only paitially iecogniseu as an
innovative new meuia in the cieative content sectoi
14S
. In teims of total (#5#&*#G the
game sectoi is iesponsible foi 6.47% of the total ievenue geneiateu by the CCIs.
Laige uispaiities exist between the few numbeis of laige companies (u.S1% of companies
have ovei 2Su employees) that aie iesponsible foi S1% of the total ievenue, anu the
micio-SNEs (1-S employees) consisting in ]9` 12 '"# #&'#()(+0#0 ,&4 '",' ?#&#(,'#
f` 12 '"# '1',- '*(&15#(F Aiising fiom this imbalance in the maiket position, accessing
the maiket is uifficult foi small businesses uue to the monopolisation of laige game
platfoims owneis.
144
The sectoi's access to maiket is also influenceu by the exteinal
legislative factois such as the iating system.
Theie aie impoitant uiffeiences in the estimations foi the uiffeient segments of the viueo
games maiket:
!
Console games: they aie heavily uepenuent on the next geneiation of consoles anu
the piices will follow the launch of new haiuwaie. 0veiall, the compounu annual
giowth shoulu inciease at a moueiate iate of 6.4%.
!
0nline games: they will boom as a consequence of the incieasing speeu of
bioaubanu connections. The aveiage spenuing on online games incieaseu fiom
0SB SuS million in 2uu4 to 0SB 4.2 billion in 2uu9 (SS% CAuR). 0nline games will
iepiesent Su% of total viueo games spenuing in 2uu9 (up fiom 7.6% in 2uu4).
!
Wiieless games: they will also expanu following the giowth of Su mobile
penetiation. Wiieless games subsciibeis weie expecteu to inciease fiom 8.S
million in 2uu4 to 96 million in 2uu9 (6S.2% CAuR). The spenuing on wiieless
games iaiseu up to 0SB S.7 billion in 2uu9 (S2% CAuR).
!
PC games: they will continue ueclining, as migiation to othei platfoims will
consoliuate. Beciease is estimateu at a compounu annual iate of S.2% in the yeais
leauing up to 2uu9.
Anothei consequence of the iise in ICT is that value chains aie shoiteneu, anu this enables
enteipiises to skip miuule-men anu incieases the involvement of useis in the piouuction
of a game. Bowevei, the sectoi suffeis fiom piiacy anu gameplay is not yet piotecteu fiom
plagiaiism in copyiight legislation.
14S
In teims of funuing, as most of the companies aie micio-SNEs, theii time is mostly geaieu
towaius cieating value anu maintaining theii netwoiks, leaving veiy little time to
concentiate on looking foi funuing oppoitunities. They aie usually self financeu but they
might ieceive goveinmental suppoit, as seen in Fiance thiough the tax sheltei oi thiough
a tax ielief foi game uevelopeis in the 0K.
146
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S8
142
Inteiview with National Sectoial 0iganisation
14S
Euiopean uames Bevelopei Feueiation, (2uu9), Comments fiom the Euiopean uames Bevelopei Feueiation on "Cieative
Content in a Euiopean Bigital Single Naiket: Challenges foi the Futuie A Reflection Bocument" fiom the Bu INFS0 anu Bu
NARKT, Available online at: http:¡¡ec.euiopa.eu¡inteinal_maiket¡consultations¡uocs¡2uu9¡content_online¡
ieflection_papei%2uweb_en.puf
144
Euiopean uames Bevelopei Feueiation, (2uu9), op. cit., p. 2.
14S
Euiopean uames Bevelopei Feueiation, (2uu9), op. cit., p. 11.
146
See http:¡¡biznewz.co.uk¡business_news¡2u1u¡S91¡uk-buuget-2u1u-measuies-foi-suppoiting-business-anu-giowth
Netwoiks aie an impoitant souice of
suppoit in oiuei to shaie the knowleuge,
in paiticulai about the iapiu changes in the
enviionment in teims of technologies (see
foi example Imaginov in Fiance, Appenuix
1, Best Case 1S). The incieasing integiation
of multiple actois such as mobile
opeiatois, inteinet pioviueis, social
netwoiks, online shops, online iights
aggiegatois anu bioaubanu technology companies, iaises the iisk of oligopolies
ueveloping.
Bespite the highly collaboiative piocess, the sectoi has uifficulty oiganising itself mainly
uue to its size, novelty, anu uiveisity. As a iesult, the capacity foi self-ieflection on
entiepieneuiial habits is limiteu, often leauing to uifficulties in oiganising the sectoi in
iepiesentative oiganisations.
9FPF9FRF h(1,47,0'+&? b!i ,&4 A,4+1d
Accoiuing to the Euiopean Auuiovisual 0bseivatoiy, the Euiopean auuiovisual maiket was
evaluateu at appioximately t 12u billion in 2uu9. Bue to the iise of the Inteinet, the
change in the sectoi will fuithei inciease the maiket anu offei many possibilities as well as
challenges foi the sectoi. The biggest companies have a maiket position that allows them
to contiol some paits of the maiket, but the smallei ones also neeu to have access to
platfoims oi to uevelop v0B platfoims anu
access them. In some countiies, such as
with the Butch Neuia Bub, this neeu foi
inteiopeiability is being auuiesseu (see
Appenuix 1, Best Case 14).
Accoiuing to Stiategy Analytics, the global
iise of v0B is expecteu to go fiom $11,S
billion in 2u1u to $17 billion in 2u12.
147
0nuei such ciicumstances, Euiope will
expeiience giowth in multi-channel
television, spuiieu by uigital teiiestiial Tv (BTT) iollout. BTT has alieauy been launcheu
in seveial E0 countiies anu migiation to uigital is expecteu to be complete acioss all of
Euiope by 2u1u- 2u12.
148
Satellite subsciiptions have been giowing fast in iecent yeais
but in the futuie theii giowth iate will slow uown, challengeu by the emeigence of BTT
anu new uigital platfoims such as Tv ovei BSL (IP-Tv). Looking at the potential evolution
of the sectoi in the electionic maiket, one of the pie-conuitions is access to high speeu
Inteinet as the giowth of v0B is typically uepenuent on Inteinet pioviueis.
149
As in othei sectois, the bioaucasting sectoi is shapeu by fieice competition. In teims of the
sectoi's contiibution, Re` 12 '"# 71/),&+#0 71&0+0' 12 -#00 '",& R #/)-1@##0G >"+-#
PP` 12 '"# 71/),&+#0 ,(# 8#'>##& R J e #/)-1@##0F The micio anu small SNEs
togethei foim the bulk of the sectoi. Bowevei, similai to othei sectois, this latei bianch is
iesponsible foi a small shaie (9%) of the total ievenue. The stuuy statistics show that the
sectoi as a whole is iesponsible foi 1S.Su% of the total tuinovei of the CCI in Euiope,
coming in thiiu aftei fashion anu uesign.
9FPF9FfF W*0+7
"Husic is o tolent-boseJ creotion onJ one of tbe centrol creotive inJustries, witb
6/,?+&15
Imaginov is the game clustei in Fiance which is
specifically suppoiteu by the iegion of Rhone Alpes.
It has attiacteu seveial businesses anu has
stimulateu multi-uisciplinaiy piojects as well to
boost commeice in the iegion.
(See Appenuix 1, Best Case 1S)
.*'7" W#4+, l*8
Butch Neuia Bub gatheis multiple paitneis such as
local anu iegional authoiities as well as CCIs in the
sectoi anu pioviues suppoit foi content piouuction,
uistiibution oi seivice uevelopment. It also
paiticipates in legislative lobbying foi
stanuaiuisation oi inteiopeiability.
(See Appenuix 1, Best Case 14)
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S9
147
Stiategy Analytics, (2uu8) quoteu in Euiopean Auuiovisual 0bseivatoiy, (2uu9c), viueo on uemanu anu Catch up Tv in
Euiope, Stockholm: EA0, http:¡¡www.obs.coe.int¡online_publication¡iepoits¡vou_2uu9.puf
148
Euiopean Auuiovisual 0bseivatoiy Piess ielease, (2u1u), uiowth of the numbei of television channels anu multi-channel
platfoims in Euiope continues uespite the ciisis, http:¡¡www.obs.coe.int¡about¡oea¡pi¡mavise_enu2uu9.html
149
Euiopean Auuiovisual 0bseivatoiy, (2uu9b), The Public Seivice iemit anu the New Neuia, Stockholm: EA0, see http:¡¡
www.obs.coe.int¡oea_publ¡iiis¡iiis_plus¡iplus6_2uu9.puf.en
qreot culturol onJ economic volue in oll societies".
1S0
The music sectoi is a visible Euiopean cultuial piouuct anu like othei sectois it caiiies
gieat impoitance in teims of sustaining Euiopean cultuial uiveisity. Nany banus oi aitists
aie stait-ups but cannot easily ieach an inteinational maiket.
The sectoi has a veiy laige base of micio initiatives with __` 12 '"# 3360 8#+&? *&4#( ;:
)#1)-# (7u% being micio-SNEs with less than 4 employees) confionteu to a few majoi
companies contiolling most pait of the maiket
1S1
. 88% of the companies geneiate Su% of
the music total ievenue, while companies of Su +employees, foiming 2.27% of the sectoi,
geneiate appioximately 4u%.
In teims of innovation potential, the inuepenuents anu small companies aie the innovatois
anu eaily auopteis, uiscoveiing new talent anu piouucing neaily 8u% of all new
ieleases.
1S2
0iganisations such as Banupool suppoit these activities (see Appenuix 1, Best
Case 1S).
Like bioaucasting, film, uesign, new meuia oi aichitectuie, uigitisation is gieatly affecting
the maiket of the music sectoi. Euiope geneiates ovei half the woilu's music publishing
ievenues anu one thiiu of global iecoiuing sales, but only 17% of the woilu's uigital
maiket. Bue to an expanuing uigital maiket, oppoitunities aiise foi SNEs to ieach a wiuei
public but the pioblem of accessing the maiket is even moie pioblematic in the uigital
maiketplace. Laige companies such as uoogle anu Apple contiol most of the uigital music
libiaiies anu aie consequently hinueiing the entiance to the maiket of smallei
inuepenuent labels.
1SS
Noieovei, baiiieis to maiket entiy aie also complementeu by the
fiagmentation of the copyiight anu IPR iules in Euiope.
1S4
The stuuy on "Builuing a Bigital Economy: The Impoitance of Saving }obs in the E0's
Cieative Inuustiies" ueteimineu that in 2uu8 some of the Euiopean 0nion's cieative
inuustiies (film, Tv seiies, iecoiueu music anu softwaie) expeiienceu ietail ievenue losses
of t1u billion anu losses of moie than 18S,uuu jobs uue to piiacy, laigely uigital piiacy.
1SS
Baseu on cuiient piojections anu assuming no significant policy changes, the E0's cieative
inuustiies coulu expect to see cumulative ietail ievenue losses of as much as t24u billion
by 2u1S, iesulting in 1.2 million jobs lost by 2u1S.
In teims of giowth potential, the music
sectoi has some uifficulty setting up
financial flow mouels anu mechanisms that
aiu in the sustainability anu giowth of
activities. Suppoit foi giowth finance is
essential foi allowing the uevelopment of
the miuule-sizeu music companies.
In teims of finance, thioughout the E0,
classical music is heavily suppoiteu by
subsiuies fiom cential, iegional anu local
goveinments anu by piivate sponsoiship. In most countiies, theie is also fuithei financial
suppoit given by music inuustiy oiganisations (such as authois societies). 0nuei theii
iules, authois societies aie peimitteu to spenu up to 1u% of theii ievenues foi "social anu
cultuial puiposes".
1S6
h,&4)11-
Banupool is opeiateu by the Pop Acauemy in
ueimany acts as a coaching tool foi banus, giving
woikshops as well as netwoiking oppoitunities to
aitists. It also stimulates cioss oveis with businesses
as well as with the political scene to inciease the
awaieness of the sectoi.
(See Appenuix 1, Best Case 1S)
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 4u
1Su
0NCTAB,(2uu8), op. cit., p. 119.
1S1
Inteiview with Euiopean Sectoial 0iganisation
1S2
See http:¡¡www.impalamusic.oig¡info_uS_inufact.php, ietiieveu Apiil 2u1u
1SS
Inteiview with Euiopean Sectoial 0iganisation
1S4
Reuing, v., (0ctobei 2uu9), Speech on the Bigital Single Naiket: a key to unlock the potential of the knowleuge base
economy, Available at http:¡¡www.iccwbo.oig¡bascap¡iuSSS6u¡inuex.html
1SS
Available at http:¡¡www.iccwbo.oig¡bascap¡iuSSS6u¡inuex.html
1S6
Laing, B., (1999), "The Economic Impoitance of music in the Euiopean 0nion", Sounuscapes, vol.2, Chap.7, http:¡¡
www.icce.iug.nl¡~sounuscapes¡BATABASES¡NIE¡Pait1_chapteiu7.shtml•NoteiefS1
9FPF9F]F C,0"+1&
Recogniseu thioughout the woilu, Euiopean fashion goes fuithei than its glitteiing image.
Accoiuing to the stuuy statistics, fashion, incluuing fashion ietail, is iesponsible foi the
biggest shaie on the total ievenue of CCIs: 247.189.494 TB t oi 24% of the total ievenue.
The sectoi has the highest total peicentage of employees in the CCI (the fashion sectoi
employs S1% as opposeu to the publishing employing 9.84% of the total employment
foice in the CCIs.)
As seen in Table 2, Figs. 2. anu S., the composition of the sectoi is similai to othei CC
sectoi. f;` 12 '"# 71/),&+#0 71&0+0' 12 -#00 '",& R #/)-1@##0G anu they aie
iesponsible foi 9% of the total ievenue. 27% of the companies aie between 4- 1u
employees. Companies ovei Su -249 employees (S%) aie iesponsible foi Su% of the total
ievenue of the sectoi.
Laige companies often contiol access to maiket. Bowevei this numbei has to be tieateu
caiefully fiom the way the statistics anu NACE coues weie useu anu with the inclusion of
figuies foi fashion ietail (see Appenuix 2.1u).
ueneially speaking, the fashion sectoi is not per se a subsiuiseu sectoi. Bowevei, some
countiies may have ceitain facilities fiom the goveinment anu some encouiagement.
In teims of innovation, theie aie attempts
to moueinise the sectoi in oiuei to
tiansfoim it into a uemanu-uiiven,
knowleuge-baseu anu high-tech
inuustiy.
1S7
0ne example is the 0PTE€
clustei which piomotes innovation (see
Appenuix 1, Best Case 16). The iise of
usei-oiienteu stiategies common to all CCI
sectois has hau an effect on the innovative
uiive of the sectoi. Auvanceu textiles,
peiception of mateiials thiough the senses anu theii wiuei application foi uiffeient
sectois is becoming moie impoitant anu allowing foi uiveise cioss-oveis with othei
sectois such as tianspoit (aeiospace), health, spoit, constiuction etc. The value chain is
composeu of the following steps: mateiials piouuction anu piocessing, piouuct uesign,
manufactuie of maue-up aiticles, tiauing in appaiel, footweai anu textile items, seivicing
of appaiel, footweai anu textile items.
1S8
9FPFPF 3(#,'+5# #N)#(+#&7# X1(+?+&,- )(15+4#(0
This clustei incluues Peifoiming Aits anu the visual Aits as well as live music oiganiseis
anu piomoteis. Cleaily theie may be a ielationship heie between expeiience pioviueis
anu content piouuceis. Foi example, a musician may be involveu in piouucing a iecoiuing,
anu then peifoim paits of this iecoiuing in fiont of an auuience. Nain issues foi this sectoi
ielate to paiticipation anu consumei access, the auaptation to technological auvances, the
mobility oi teiiitoiiality iegulations
1S9
founu both in the physical as well as the uigital
woilu anu the piotection of iights-holueis, as well as the change in consumeis anu the
shift in funuing mechanisms.
These cieative expeiience pioviueis aie typically subsiuiseu anu they have impoitant not-
foi piofit objectives, incluuing bioauening access to cultuie foi social puipose anu othei
multiple objectives.
16u
The value of the cieation takes its meaning fiom the auuience anu
theii value is "iealiseu as a social piocess".
161
Fig. 1u. is NESTA's illustiation of the piesent
value chain foi cultuial oiganisations.
L\!%m
0PTE€ is an innovation clustei that aims at
innovating textile anu fashion sectoi by involving
ieseaich institutes, highei euucation labs, fashion
CCIs anu Chambei of Commeice. It pioviues funuing
anu legal seivices anu infoimation exchange.
(See Appenuix 1, Best Case 16)
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 41
1S7
See http:¡¡www.aeut.oig¡piojects.html
1S8
See http:¡¡www.skillset.oig
1S9
Regulations baseu on the teiiitoiy, such as laboui iegulations oi fiscal iegulations, have a uiiect effect foi aitists' mobility
as they have to face the complexities of multiple iegulatoiy fiames.
16u
Bakhshi, B. Thiosby, B. (}une 2u1u), Cultuie of Innovation: An economic analysis of innovation in aits anu cultuial
oiganisations, Lonuon: NESTA, p. 12.
161
Ibiu., p. 1S.
C+?*(# ;:E !"# i,-*# 7",+& 21( 7*-'*(,- +&0'+'*'+1&0
{Source: NFSTA }une 2010)
162
The cieative expeiience pioviueis anu the oiiginal piouuceis have a numbei of aspects in
common. Nany of the peifoiming aitists (wiiteis, uiiectois, composeis etc) as well as
visual aitists (ciaftspeople, uesigneis anu otheis) can be consiueieu self-employeu
fieelanceis. In the peifoiming anu visual aits theie aie extieme uiffeiences in income
uistiibutions anu cieatois often accept below aveiage pecuniaiy eainings. This is
explaineu eithei by iisk-seeking oi a piefeience foi cieative woik ovei othei types of
woik.
9FPFPF;F \#(21(/+&? ##& RJe #/)-1@##0F
81% of the companies aie thus unuei 1u employees anu they aie iesponsible foi S% of the
total tuinovei, while companies of Su+ employees aie iesponsible foi 89% of the total
sectoi's ievenue anu iepiesent appioximately 1% of the sectoi. 0veiall, the sectoi
contiibutes to 9.71% of the total tuinovei of the CCIs.
The main chaiacteiistic of the maiket foi visual aits is the focus on the exclusivity anu
oiiginality of an aitwoik.
169
In this sense, the iights to the aitwoik aie essential foi the
aitists to be iewaiueu. Noie specifically, the iesale iight oi Jroit Je suite is the most
impoitant copyiight foi authois of fine ait. visual anu fine aits aitists uepenu piimaiily on
the sale of theii oiiginal woik anu thus, on the iesale iight. Without the lattei, the aitist
will not benefit fiom ensuing inciease of value of theii woiks. 0nlike wiiteis anu
composeis who have a iegulai income fiom ioyalties that aie uue whenevei theii woiks
aie peifoimeu oi publisheu, aitists uepenu on the oiiginal woik anu the ensuing value
gaineu ovei time.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 4S
16S
Euiopean Sectoial 0iganisation Inteiview
166
Peaile, (}anuaiy 2u1u), Cieative Content in a Euiopean Bigital Single Naiket: ieflections uocument of Bu INFS0 anu Bu
NARKT, p. 2.
167
Peaile, (}anuaiy 2u1u), op. cit., p. S.
168
Towse, R., (2uu4), op. cit., p. 1S.
169
0NCTAB, (2uu8), op. cit., p. 122.
Even though visual aits aie usually
iepiesenteu as the least technologically
aiueu anu iequiiing less uigital input, the
sectoi is incieasingly influenceu by
technological auvances anu uigitisation.
The impoitance of photogiaphy, anu moie
specifically uigital photogiaphy, is a goou
example. Piivate uigital copying is also
thieatening the iights holueis. Foi
seconuaiy uses of the aitwoik, theie is no
monitoiing anu tiacking system at the
moment to contiol anu iewaiu the use of the aitwoik. Remuneiation schemes aie not
applieu to the same extent as Bigital Rights Nanagement.
17u
Initiatives such as 0nline Ait
seek to close this gap (see Appenuix 1, Best Case 17).
Baving lookeu at each sectoi in tuin, one can cleaily see the 0'(+=+&? 0+/+-,(+'+#0 +& '"#
"+?" 2(,?/#&','+1& 8#'>##& '"# /+7(1JYW%0 ,&4 '"# -,(?#( #&'#()(+0#0G ,0 >#-- ,0
'"# +&7(#,0+&? +/),7' 12 4+?+'+0,'+1&F
9FRF 3(100 71*&'(@ ,&,-@0+0 12 (#?*-,'1(@ 2(,/#>1(=0
Euiopean Nembei States have veiy uiffeient socio-economic anu cultuial backgiounus
anu cultuial expiessions. Some will have specific piogiammes anu measuies foi ceitain
sectois of the CCIs, while othei Nembei States will consiuei CCIs just as any othei
economic sectoi.
In the expeit questionnaiie, it emeigeu that IPR anu tax iegulations weie the most
impoitant iegulatoiy measuies (see Table S. below) foi CCIs.
µuestion: "Select tbe tbree most importont requlotory meosures tbot CCl SHFs foce":
6'#/ \#(7#&' %
6&'#--#7'*,- \(1)#('@ A#?*-,'+1& 7S.91%
!,N A#?*-,'+1& 6u.87%
h*0+� Y',(' *) A#?*-,'+1& S6.S2%
B,81*( (#?*-,'+1&0 47.8S%
Y17+,- M#-2,(# A#?*-,'+1& Su.4S%
0 4.SS%
D'"#( 17.4%
!,8-# fE W10' +/)1(',&' (#?*-,'1(@ /#,0*(#0 2,7#4 8@ 3360
{Source: Furokleis 2009, Pon Furopeon Fxpert µuestionnoire)
To examine the iegulatoiy climate suiiounuing CCIs in Euiope, an inventoiy of the
enviionmental factois was piepaieu, in paiticulai on the iegulatoiy issues which influence
the uevelopment of SNEs. These incluueu fiscal measuies, laboui status, social secuiity,
uiiect measuies such as goveinmental CCI piogiammes, the way cieativity anu CCI aie
valueu as well as innovation anu cultuial policies. The analysis of the enviionmental
factois foi CCIs was not exhaustive but pioviues a fiamewoik to unueistanu the uiffeient
appioaches towaius CCIs. Following this, a countiy by countiy analysis on the uiffeient
cultuial policies, SNE anu innovation policies, a clusteiing of countiies was pioposeu. 0n
the basis of the ieseaich on enviionmental factois, some consiueiations can be maue.
D&-+&# -#4?+&? '"# 017+,-G #71&1/+7 ,&4 7*-'*(,- ,0)#7' 12 3360G iepiesent
a small subset of the countiies.
To establish a national clusteiing that is significant with cioss national common patteins
of piactice, each inuiviuual national piofile was consiueieu anu classifieu accoiuing to the
level of evolution with iegaius to global economic paiauigms. Such a classification allows
us to fiame CCIs within the bioau pictuie of national economic anu social peifoimance anu
match it against its actual capacity to uisclose its potential within the uynamics of global
competition.
0veiall, it seems that theie aie only a few countiies that have fully engageu in iecognising
CCIs as uiiveis of giowth anu innovation in Euiope. Although the iecommenuations maue
by the E0 Council conclusion
171
highlight the neeu to channel national anu Euiopean
financial iesouices towaius new aims that aie moie attuneu to fosteiing aitistic talents,
anu iecognise the paiticulai iole of cultuial anu cieative SNEs as uiiveis of giowth anu
innovation in Euiope, the numbei of countiies following these iecommenuations is not
excessive
172
.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 4S
171
Euiopean Council, (Nay 2uu9), Conclusions foi "Cultuie as a Catalyst foi Cieativity", 2941st Euucation, Youth anu Cultuie,
Council meeting
172
Austiia, Finlanu, Benmaik, Belgium, Estonia, Latvia, Fiance, the Netheilanus, Spain anu the 0K aie countiies that
implement specific measuies in suppoit to Cieative anu Cultuial inuustiies
0veiall, the most geneial appioach to suppoiting Cieative anu Cultuial entiepieneuiship
is tax ueuuction anu favouiable fiscal policies. In Euiope, CCI SNEs aie laigely tieateu like
all othei SNEs anu theiefoie subject to the piioiities anu stiategies set by innovation
policies as outlineu above.
9FRF;F 31*&'(@ 7-*0'#(+&?
In Table 6 below, thiee bioau clusteis of countiies aie iuentifieu, which piesent some
tiaits suggestive of specific economic patteins.
3-*0'#( 3",(,7'#(+0'+70
n&1>-#4?# %71&1/@ ! Reliant on knowleuge baseu piouucts
anu seivices
! Sounu enfoicement of IPR
! Suppoit entiepieneuiship anu
innovation
! CCIs specific piogiammes
! Innovative
!(,4+'+1&,- %71&1/@ Structurolly stronq ! Sounu anu stiong use of knowleuge
baseu piouucts anu seivices but no
significant iewaiu foi cultuial anu
cieative entiepieneuiship anu iisk
taking
! State aiu still significantly piesent
! uoveinment suppoit on stiategic sectoi
CCIs aie appieciateu
!(,4+'+1&,- %71&1/@
Structurolly Weok ! Stiengths in tiauitional sectois anu SNE
clusteis
! Below aveiage innovation measuies anu
stiategies
! CCIs acknowleugeu but no cooiuinateu
stiategies
%/#(?+&? %71&1/+#0 virtuous ! uoou innovation peifoimance anu
sometimes inceptive phase foi
cooiuinateu action foi CCIs
! Lack of iobust investment in R&B anu
infiastiuctuie
%/#(?+&? %71&1/+#0
loqqinq BebinJ ! Staiteu catching up piocess to be
competitive
! Recognition of CCIs but no stiategies
implementeu
!,8-# ]E 3-*0'#(+&? 8@ 71*&'(@ 7",(,7'#(+0'+70
{Source: K2H 2010)
9FRF;F;F n&1>-#4?# #71&1/+#0
These aie #71&1/+#0G >"+7" 7,& ,-(#,4@ 8# 71&0+4#(#4 0'(*7'*(,--@ (#-+,&' 1&
=&1>-#4?#J8,0#4 )(14*7'0 ,&4 0#(5+7#0F All aspects of the system (euucation,
piouuction anu iegulations) have alieauy maue the tiansition fiom tiauitional economy to
knowleuge-baseu economy. All these countiies iely on sounu enfoicement of IPR, a goou
balance between flexibility anu social piotection, goou infiastiuctuies anu suppoit foi
entiepieneuiship anu innovation. uoveinments have alieauy put in place co-oiuinateu
anu syneigistic measuies to suppoit the economy in geneial anu CCIs in paiticulai. These
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 46
economies aie also pieuisposeu to accept a ceitain level of unceitainty anu new mouels of
piouuction anu consumption.
Those countiies that alieauy have a consoliuateu innovation potential tenu to invest in
those sectois anu piocesses that will enable them to maintain competitive euge anu
fuithei shift towaius a full iealisation of a knowleuge economy. In paiticulai they tenu to
invest in euucation anu human iesouices, but also '1 )(1/1'# =&1>-#4?# '(,&02#(
8#'>##& ,7,4#/+7 +&0'+'*'+1&0 ,&4 71//#(7+,- 1(?,&+0,'+1&0G #0)#7+,--@ YW%0F A
ielevant iole in this iegaiu is playeu by incubatois anu univeisity spin-offs, which aie
suppoiteu by policies aimeu at netwoiking anu syneigistic collaboiations as well as
auministiative simplification.
By way of illustiation, C+&-,&4 auopteu a combineu goveinmental stiategy between the
Ninistiy of Euucation anu the Ninistiy of Economics. The measuies uevelopeu in the
Stiategy foi entiepieneuiship in the Cieative Inuustiies sectoi foi 2u1S
17S
aie
summaiiseu in 1S measuies in 4 aieas
174
anu is co-oiuinateu by the Acauemy foi Cieative
Inuustiies. The Ninistiy of Euucation piouuceu the Stiategy foi Cultuial Policy 2u2u with
the action plan of 2uu7-2u1S (publication of Ninistiy of Euucation 2uu9:12).
17S
This
uocument highlights the impoitance of cultuie anu cieativity in the Finnish society as well
as unueilines the contiibution in the economy. The following items will be on the agenua
foi 2u1u:
‚
Sectoi specific uocuments such as new piogiammes incluue a museum policy
piogiamme, a copyiight policy uocument, anu an aichitectuie anu cultuial
enviionment piogiamme to be piepaieu in co-opeiation with the Ninistiy of the
Enviionment
‚
Refiame the fiamewoik act on the uevelopment of cultuie to claiify the legislation
‚
Consoliuate the funuing anu financing system by also integiating ways in which
the piivate funuing anu sponsoiship coulu be encouiageu
‚
Consoliuate the knowleuge economy, by monitoiing anu implementing integiateu
policies, sectoi specific calling foi a bettei inteiaction between Ninistiies anu local
actois
Noieovei, apait fiom ceitain fiscal leveiages anu ieuuctions on CCI's fees anu income anu
tax ueuuctions foi companies investing in CCIs, the Finnish goveinment intiouuceu
specific sectoial piogiamme (foi sectois such as Theatie, Nusic, visual Aits, Auuiovisual
anu Touiism) pioviuing auvice foi maiketing, seivice uevelopment as well as it offeis
mentoiing suppoit. The uoveinment also emphasiseu euucation anu tiaining foi CCIs as
one of the piioiity thiough the piogiamme "Cieative Finlanu".
Similai combineu appioaches can be founu in .#&/,(=. Since 2uu7, the countiy
establisheu the Centie foi Cultuie anu Expeiience Economy that is funueu both by the
Ninistiy of Cultuie anu the Ninistiy of Tiaue anu Business Affaiis. The centie acts as a link
between the cultuial anu the business sectois in oiuei to builu a moie competitive
economy. The centie uoes not aim at uiiectly suppoiting CCIs but iathei at making the
connections between the CCI sectoi anu the othei sectois of the economy, anu in so uoing
suppoiting the giowth of the cieative economy.
9FRF;F9F !(,4+'+1&,- #71&1/+#0
These aie economies '",' ,(# 0'+-- "#,5+-@ (#-+,&' 1& '(,4+'+1&,- )(14*7'+5#G #71&1/+7
,&4 017+,- ),(,4+?/0F They eithei have not completeu the tiansition to the knowleuge
economy, oi aie still in the piocess of completing such a tiansition. Tiauitional Economies
can be fuithei classifieu as:
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 47
17S
Finlanu Ninistiy of Tiaue anu Inuustiy, (2uu7), Bevelopment Stiategy foi entiepieneuiship in the Cieative inuustiies
sectoi foi 2u1S, http:¡¡ec.euiopa.eu¡cultuie¡oui-policy-uevelopment¡uoc¡
fi_uevpmt_stiategy_entiepi_ciea_inuustiies2u1S.puf
174
Bevelopment of opeiating enviionment,; uiowth anu inteinationalization; Piouuct uevelopment (incluuing the funu foi
uemos anu piototypes); anu Reinfoicement of expeitise (incluuing a uegiee in entiepieneuiship).
17S
See http:¡¡www.mineuu.fi¡expoit¡sites¡uefault¡0PN¡}ulkaisut¡2uu9¡liitteet¡opm4S.puf.lang=en
Y'(*7'*(,--@ Y'(1&?E These nations iely on soliu stiuctuial funuamentals acioss
all obseiveu factois, but cannot be consiueieu knowleuge economies as they fail to
iewaiu cultuial anu cieative entiepieneuiship anu iisk-taking attituues.
Euucational systems aie felt as inauequate to piepaie to embiace
entiepieneuiship anu face global competition. In these countiies, the financial
suppoit to CCIs appeais to be mostly state aius anu giants iathei than piivate
investments. The social secuiity system piivileges secuiity ovei flexibility anu this
is also ieflecteu on piouuction anu consumption patteins. uoveinments tenu to
suppoit the establisheu stiategic sectois such as automobile, as a way to maintain
tiauitional competitive auvantage. CCIs aie appieciateu anu cultuial anu cieative
entiepieneuis can benefit fiom some specific measuies, but these aie not
necessaiily seen in a combineu appioach between Ninistiies.
Foi example, in ,0 mostly neeueu in the O+(0'
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S1
18u
Euiopean Clustei 0bseivatoiy, (Naich 2u1u), op. cit., p. 12.
)",0#0 12 '"# -+2#7@7-#Q while fiom )",0# P 1&'1 )",0# f, the #&'#()(+0# >,0 '"# /,+&
',(?#' 21( '"# 0*))1('F The iesponuents agieeu that theie coulu be some oveilap anu
intei-combination of suppoit in some of the lifecycle foi the entiepieneui anu the
enteipiise.
9FfF9F \",0#0
0ne can iuentify five phases within the entiepieneuiial lifecycle:
Pbose 0ne: Preporinq tbe qrounJ
In this phase, the initial unueistanuing of leaining anu piepaiing foi the
entiepieneuiial piactice takes place. 0ften this is uone uuiing the piofessional anu
euucation tiaining, when cieative people piepaie foi a piofessional existence aftei
giauuation.
Pbose Two: Stort 0p
In this phase, the fiist integiation of piactical expeiience anu integiation of leaining
anu entiepieneuiial piactice takes place. Theie is a combination of novel
expeiiences anu auaptable behavioui neeueu in oiuei to get the enteipiise staiteu.
Pbose Tbree: BuilJ 0p
In the builu-up phase, the initial enteipiise moves to its fiist level of stable,
sustainable existence. The novelty of the beginning is changeu into auaptable
behavioui, baseu on piactical ciiteiia anu usability. Extia stiengthening of
competencies to tiansfoim 'uiscoveiy' into 'exploitation' is ciucial in this phase.
Pbose Iour: BuilJ 0ut
In this phase, the enteipiise is matuiing into a moie stable, stiuctuial existence. It is
ueepening its stiuctuial sustainability anu impioving its maiket position.
Pbose Iive: Connectinq networks
The last phase iuentifieu is uealing with matuie giowth within a stiongly netwoikeu
enviionment. Sustainable paths to a continuous enteipiise giowth have been
iuentifieu anu implementeu.
This simple fiamewoik was intenueu to pioviue inuications, iathei than static
iecommenuations, foi suppoiting giowth of CCIs thiough an incieaseu unueistanuing of
the multiple components at stake by uiviuing the piocesses anu the layeis of existing levels
of suppoit, anu making a uiffeience between the peison anu the oiganisation. The
appientice entiepieneuis will mostly neeu suppoit as inuiviuuals in oiuei to be able to tiy
out theii entiepieneuiial activity in an oiganiseu way. The uistinction also implicitly
allows one to integiate the uiffeient motivations of the entiepieneui: what type of
entiepieneui oi enteipiise they want to uevelop, as the suppoit is not solely oiienteu
towaius giowing the oiganisation.
9FfF9F;F B+&#,(+'@G /1'+5,'+1& ,&4 ?(1>'"
The lineaiity anu the top-uown appioach auopteu in this fiamewoik, although inuicative
of a piocess, uoes not of couise coiiesponu to '"# 4@&,/+0/ ,&4 (#,-+'@ 12 '"# 7*-'*(,-
,&4 7(#,'+5# 0#7'1(F Being highly heteiogeneous, seveial paths foi successful CCI giowth
oi sustainable existence can be imagineu, iepiesenting foi example a concentiic
fiamewoik. Bowevei, foi the puipose of claiity, the uiffeient components weie placeu in a
lineai fiamewoik, although the iueal shape woulu be a thiee uimensional foim with
oveilapping layeis which might also incluue uesign phases (novelty, auaptability, usability,
ieplicability anu scalability) anu technology implementation phases (cieate, catalyse,
connect). Inueeu, the teim 'entiepieneuiial lifecycle' can only paitially ieflect the ways in
which CCI SNEs aie constantly auapting to theii enviionment anu emeiging uemanus:
"ln tbe creotive inJustries you bove Jevelopments typicolly runninq in porollel.
Wbile o compony is stortinq up onJ qrowinq, it not only leorns internolly or
exponJs its borizon or sees new tbinqs by experience internolly, but olso
externolly. At tbe some time tbey´re on o steep leorninq curve os for os tbeir
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S2
professionol entrepreneuriol life is concerneJ onJ tbey qrow in size onJ business
typicolly. You bove o number of tbinqs qoinq porollel".
(CC National Suppoit, Stiuctuially stiong tiauitional economies)
Looking at the lineaiity of this appioach, one ciiticism of the fiamewoik was the
unueilying assumption of '"# 336 #&'(#)(#&#*(K0 4#0+(# '1 ?(1>F Bowevei, as explaineu
eailiei, a CCI entiepieneui often combines both the cultuial-cieative uiive anu the
economic-entiepieneuiial uiive. Accoiuing to Bubeit et al, by combining both a cultuial¡
cieative anu an entiepieneuiial positioning, one can finu foui uiffeient appioaches in the
peisonal oiientation of the CC entiepieneui
181
as illustiateu in Table 8. below.
Cultuial anu cieative entiepieneuis position themselves in foui uiffeient sets of iueals:
entiepieneuiial success, piofessional achievement, ait cieation anu puisuing a
piofessional caieei. These foui peisonal piefeiential motivations can be iuentifieu, baseu
upon five uimensions: peisonal aspiiations, iuentification focus, the uivision between
woik anu peisonal life, type of occupation (employei, managei, fieelancei), the uiffeient
inuustiies, anu auuitional typical chaiacteiistics.
B/.' E$&F/&$'G -'*%,#%,',"%./0
6"33,66
5%$2,66.$'/0
/3+.,F,E,'*
H%* 3%,/&$' 5%$2,66.$'/0 3/%,,%
I$E.'/&'(
$33"#/&$'/0
/6#.%/&$'
Success ñrsL, Lhan
auLonomy
8alance beLween
success, auLonomy
and securlLy
AuLonomy and
Arusuc 8ecognluon,
AesLheuc CrlLerla
SecurlLy. 8eclproclLy.
Amllauon of
auLonomy and
success
I$E.'/&'(
.8,'&J3/&$' 2$3"6
Þersonal enLerprlse Þrofesslonal SLaLus
more lmporLanL Lhan
occupauon sLaLus
ArL Communlues, Lhe
ArL Scene
Lmployee
K$%L /'8 0.F, Þrofesslonal acuvlues
ln Lhe cenLre, prlvaLe
acuvlues marglnal
Þrofesslonal acuvlues
more lmporLanL Lhan
prlvaLe llfe, buL
dependlng on acLual
Loplcs
Þrofesslonal acuvlues
as parL of personal
cholces. 8efusal Lo
make dlsuncuon
beLween professlonal
and prlvaLe llfe
Þrofesslonal acuvlues
and prlvaLe llfe
equally lmporLanL.
Separauon of
Þrofesslonal and
ÞrlvaLe acuvlues
M4#, $2 $33"#/&$' Lmployer, manager lreelancer,
Lmployee, 8arely
Lmployer
lreelancer. 8arely
employee or
employer
Lmployee or
lreelancer
N'8"6*%.,6 /'8
#%$2,66.$'
All secLors, ln Lhe
Creauve Lconomy
absenL
1echnlcal
professlons,
ArchlLecLure, Sound
Lechnlclan, Camera
man, eLc
ArL professlons.
ueslgn, lllm,
ArchlLecLure, vlsual
ArLs
l1, Adveruslng, Sales
Þrofesslons
H88.&$'/0 *4#.3/0
3+/%/3*,%.6&36
ÞredomlnanLly men MosLly persons wlLh
long professlonal
experlence
Separauon of 'bread-
earnlng acuvlues' and
arusuc drlve
Ma[orlLy of young
people
!,8-# _E \#(01&,- /1'+5,'+1& +& #&'(#)(#&#*(0"+)
{Source: Ficbmonn, E et ol, 2007)
182
Bepenuing on the CCI entiepieneui's peisonal motivations, any suppoit will have to be
auapteu so that, foi example, local suppoit will be available foi a CC entiepieneui who is
moie uiiven by the cultuial¡cieative content of its piouucts¡seivices, while the E0 anu
iegional levels coulu be moie suppoitive of CCIs wishing to inteinationalise theii maiket.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries SS
181
Ibiu.
182
Eichmann B., Fleckei, }. Reiul, S., (2uu7), Es ist ja eine fieies ueweibe.' Aibeiten in uei Wienei Kieativwiitschaft, vienna:
F0RBA - Foischungs- unu Beiatungsstelle Aibeitswelt
Nany iesponuents highlighteu the neeu '1 4+22#(#&'+,'# 8#'>##& '"# 0*80+4+0#4 ,&4
&1&J0*80+4+0#4 0#7'1(0 12 '"# 3360F The uiffeient sectoi chaiacteiistics have been
elaboiateu above in section 2.S. The fiamewoik ueals with CCIs in geneial, though the
chaiacteiistics pieviously stateu shoulu be taken into account accoiuing to the geneial
stiuctuie of the sectoi.
9FfFPF ##& '"# 4+22#(#&' -,@#(0 12 0*))1('G /,=+&?
'"# 0*))1(' /1(# 71/)-#N 21( #,7" ',(?#' ?(1*)F The type of suppoit pioviueu may, foi
example, be a combination of municipal tax bieaks anu funus as well as laigei EC funueu
piojects oi national sectoial funus. This is often veiy uifficult foi the CCI entiepieneui to
unueistanu.
Noieovei, theie is a misunueistanuing on both siues: financial inteimeuiaiies anu funuing
agencies usually have iigiu anu iisk-fiee pioceuuies that aie almost incompatible with
CCIs that aie, as noteu, baseu on the iewaiu of theii intangible assets. 0n the othei hanu,
CCIs may have a ceitain mistiust towaius those piogiammes foi feai of being oveitaken by
commeicial inteiests anu '"#@ /,@ &1' #00,(+-@ -11= 21( '"# 2*&4+&? ,&4 0*))1('G
eithei out of stubboinness oi lack of infoimation oi competencies to ueal with the
pioceuuies. Bue to the combineu iequiiement of entiepieneuiial activity anu the cultuial¡
cieative one, '"# 336 #&'(#)(#&#*( /,@ -,7= '"# '+/#G ,&4 /,@ 8# *&>+--+&? '1 -11=
21( +&21(/,'+1& ,/1&?0' '"# /*-'+'*4# 12 0*))1(' )(15+4#4F Theie is thus a mismatch
between the ieal neeus of the CC entiepieneui anu the suppoit pioviueu.
The necessity to biing both siues closei by /,=+&? '"# 0*))1(' /1(# ',(?#'#4 '1 '"#
&##40 12 '"# 33 #&'(#)(#&#*( is essential. Theie is , 4#8,'# 8#'>##& '"# &##4 '1
',(?#' '"# 0*))1(' '1 3360 1( '1 /,+&0'(#,/ 3360 >+'"+& #N+0'+&? 07"#/#0F The
question of incluuing the specificities of CCIs (intangible assets, size, piouuction
piocesses) within existing uefinitions may help to bioauen the type of suppoit that the
CCIs can get. Foi example, opening the uefinition of innovation to soft innovation, to
intangible assets, biinging talent scouting as pait of R&B, may inciease the possibilities of
suppoit anu funuing in these aieas.
Bowevei, -11=+&? ,' '"# #N+0'+&? 0*))1(' +& '"# 3",/8#( 12 31//#(7# 1( +& 0+/+-,(
*&+'G '"# 3360 41 &1' ',=# ,45,&',?# 12 '"# 0*))1(' ,5,+-,8-#G compaieu to when theie
is a specific taigeteu suppoit. Foi example in Belgium, CultuuiInvest is a investment funu
foi CCIs anu they aie moie well known than the othei piogiammes ieaching all SNEs. The
CCIs uo not know oi uo not ueal with these oveiall stiuctuies such as Business SNEs
Centies foi -,7= 12 =&1>-#4?#G 0'*881(&�G 4+0'(*0' ,&4 -,7= 12 '+/#F
"We bove lorqe orroy of support proqromme for tbe SHFs in qenerol, but mony
of tbe CCls Jon´t opply for tbese proqrommes, or Jon´t bove occess to or Jon´t
jinJ tbe occess to tbose proqrommes tbot ore for oll SHFs. Tbese supports ore
for tbe moment tbe leost effective. AnJ you con see o Jifference between tbe use
by CCls of tbe "qenerol SHFs" support onJ tbe ones tbot ore toilor moJe to tbe
neeJs of tbe CCls".
(Regional Cultuial Ninistiy, Stiuctuially Stiong Tiauitional Economy)
This pushes foi '"# #-,81(,'+1& 12 ',(?#'#4 )1-+7+#0 21( '"# 3360G in oiuei to oveicome
such uispaiity in suppoit piovision. W1(# 4#/,&4J-#4 )(1?(,//#0 ,&4 )(1?(,//#0
'",' O+' '"# 0)#7+O+7+'+#0 12 '"# 3360 &##4 '1 8# #-,81(,'#4F The uiffeient layeis of
suppoit piovision will be fuithei elaboiateu in the following chapteis accoiuing to the
vaiieu issues faceu by CCI enteipiises.
9F]F 31&7-*4+&? (#/,(=0
Baving consiueieu the chaiacteiistics of the CCIs, the sectoial chaiacteiistics anu the
factois that shape the context suiiounuing the CCIs (ueteiminants anu enviionmental
factois), this chaptei has uesciibeu the geneial fiamewoik useu in oiuei to bettei
unueistanu the taigeteu issues that neeu fuithei attention foi policy makeis to uevelop
suppoiting schemes foi entiepieneuiship that fit the neeus of CCIs. In auuition to the
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S4
factois alieauy outlineu in this chaptei, it is woith ieiteiating the coie competencies
neeueu within the entiepieneuiial lifecycle:
1. vision uevelopment
To opeiate in a complex, high tuibulence enviionment in the cieative economy, anu
to iealise a stiategic position foi the long iun, it is necessaiy that cultuial anu
cieative entiepieneuis aie able '1 4#5#-1) , 5+0+1& 1& '"#+( 1>& 7(#,'+5# O+(/F
Nost of the entiepieneuis have a one-yeai scope on theii cultuial anu cieative
business. Foi a sustainable giowth anu uevelopment ieasons it woulu be auvisable
to cieate a moie longituuinal peispective.
2. Naiket positioning
Within each phase, /,(=#' )10+'+1&0 ,(# 7(*7+,- 21( '"# #N+0'#&7# 12 7*-'*(,- ,&4
7(#,'+5# O+(/0F In the beginning one can stait off by a positioning baseu on one
piouuct oi seivice, anu in the peiiou aftei the pioneeiing phase theie will come a
uiffeientiation with a vaiiety of piouuct-maiket combinations in the matuiing stage.
This coie-competence - scanning one's maiket position - is neeueu in all phases of
the entiepieneuiial uevelopment.
S. Retuin on cieativity competencies
Access to finance anu the skills to ueal with the financial siue of CCI SNEs is a
geneiic pioblem.
18S
Fiom simple to complex financial suppoit, the cultuial anu
cieative entiepieneui is iesponsible foi his oi hei own business mouel anu the
financial souices: bank loans, guaianteeu loans by goveinmental oi non-piofit
agencies, ciowu-souicing, giants anu subsiuies. Business mouels aie focuseu mainly
on components of value piopositions, ielationships with visitois anu clients, the cost
stiuctuie anu income¡piofit.
184
Bue to the involvement of cultuial values, 8*0+�
/14#--+&? 8,0#4 1& 3360 +0 ,& #00#&'+,- ),(' 12 '"# 71/)#'#&7+#0F
4. Communication skills
Cultuial anu cieative entiepieneuis communicate with colleagues, visitois, clients,
expeits, financieis, goveinmental iepiesentatives, giant officeis anu tiaineis. To
optimise the quality of theii communication within a stiong noimative fielu - of
ciucial impoitance within the CCIs - these entiepieneuis have to have ?114
71//*&+7,'+1& 0=+--0G 81'" 1(,- ,&4 >(+''#&G ,))-+7,8-# >+'"+& , 71&'#N' 12
4+5#(0+'@F
S. Netwoiking anu teamwoik
k#'>1(=+&? +0 ,-/10' , I0#71&4 &,'*(#K >+'"+& '"# 3360F Foi many cieative
people netwoiking begins uuiing theii euucation anu takes on a moie piofessional
stiuctuie in the woikplace. Netwoiking (on a peisonal, functional anu multi-layeieu
inteiaction levels) is a quality that foims the iaison-u'etie of a cieative fiim.
!#,/>1(= +0 , S*,-+'@ '",' +0 0'(1&?-@ 71&'#4 >+'" '"# 3360F Coie issues in
the cultuial existence aie the iole of the leaueiship-figuie, team uevelopment within
piojects anu pioject iesponsibilities.
18S
The next chaptei looks at the 'ueteiminants of cultuial anu cieative entiepieneuiship',
baseu on the six themes of ueteiminants of entiepieneuiship elaboiateu above but
auapteu to encompass the neeus of the CCIs. These themes aie access to finance, access to
maiket, iegulatoiy measuies focusing on IPR, entiepieneuiship tiaining anu euucation,
access to innovation (R&B) anu collaboiation anu clusteis.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries SS
18S
Bagooit, u & Kuipei u: Retuin on Cieativity: in seaich foi a foimula. In: Bagooit u & Kooyman, R (Eu): Cieative
Inuustiies; Colouiful Fabiic in multiple uimensions. 0tiecht 2uu9
184
0steiwaluei, Alexanuei: 0n Business Nouel Innovation. As ietiieveu 12 Apiil 2u1u fiom http:¡¡alexosteiwaluei.com
18S
Naaise, B., (2uu9), "Pioject Baseu Leaining: the tempeiatuie of oui bathwatei" in Bagooit u. anu Kooyman, R., (Eu.),
(2uu9), Cieative Inuustiies, Colouiful Fabiic in Nultiple Bimensions, 0tiecht: Bogeschool vooi ue Kunsten 0tiecht
3",)'#( PE W,+& !"#/,'+7 D*'71/#0
It is cleai that CCIs have specific chaiacteiistics that neeu to be taken into account when
looking at cultuial anu cieative entiepieneuiship. Noieovei, CCIs uo not woik in closeu
enviionments; iathei they aie stiongly influenceu by theii iegional anu national
enviionments, as well as the changes uue to uigital conveigence. Baving lookeu at the
ueteiminants of entiepieneuiship, this section examines the key themes that uiiectly
influence the uevelopment of entiepieneuiship in CCIs in Euiope. These key thematic
outcomes fiom the stuuy pioviue an analysis anu oveiview of the aiea anu foim the basis
foi the iecommenuations in Chaptei 4.
Fiom the inteiviews conuucteu foi this stuuy acioss Euiope, one of the geneial finuings
that quickly emeigeu was the oveiiiuing neeu to gathei moie consistent uata iegaiuing
CCIs on a Euiopean level. National statistics aie not homogeniseu anu this means that any
compaiison is flaweu. At Euiopean level, Euiostat, the statistical office of the Euiopean
0nion, is cuiiently woiking with a gioup of Nembei States on an upuate of the fiamewoik
foi cultuial statistics set up in 2uuu as well as on uefining the scope of CCIs. At a moie
mouest level, the Cieative uiowth pioject is a goou example of an effoit to iebalance this
but it iemains limiteu to ceitain cities.
186
This chaptei will look at the main themes that emeigeu fiom the ieseaich unueitaken
coiiesponuing to the ueteiminants of entiepieneuiship, namely: access to finance, access
to maiket, IPR, euucation anu tiaining, innovation anu connective collaboiation anu
clusteiing.
PF; "+7" 71&0+0'#4 12 )(1O+' 1(?,&+0,'+1&0d (#-+#4 1& 0#-2JO+&,&7# ,0 '"#+( /,+&
O+&,&7+,- 01*(7#G as opposeu to 2u% which weie mainly suppoiteu thiough public giants.
µuestion: ln tbe lost jinonciol yeor {2008), wbicb wos
tbe most importont jinoncinq source?
!" $!" %!" &!" '!" (!" )!"
*+,-./0102304
567,32 8910:;
?10
593@1:+ 8910:;
ABC
D3;= E1F3:1,
G+0:69+ E1F3:1,
H?01I?0
J1K 302+0I@+
*++L M30102304
*:?2= N19=+:;
C+?*(# ;PE W10' +/)1(',&' O+&,&7# 01*(7# 9::VJ9::_
{Source: Furokleis 2010 online survey)
It is also cleai that CCI SNEs have a 0"1(' '#(/ 0),& 21( O+&,&7+,- )-,&&+&?F The online
questionnaiie ievealeu that 22% of the CCIs hau no financial anu economic planning while
SS% hau a one yeai foiecast, as can be seen in Fig. 14. D&-@ R` ",4 , O+&,&7+,- 21(#7,0'
12 *) '1 f @#,(0F
Noieovei, coming back to the chaiacteiistics of outsouicing mechanisms anu the necessity
to combine the auministiative tasks with the cieative piocess, the online suivey showeu
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S7
189
SICA, Butch Centei foi Inteinational Cultuial Activities, (}une 2u1u), The Economic Ciisis anu the Piospects foi Aits anu
Cultuie in Euiope, p. 4.
that Vf` 12 '"#0# 71/),&+#0 #-,81(,'#4 '"# 21(#7,0' '"#/0#-5#0 as opposeu to 2u%
that useu a piofessional consultancy seivice.
µuestion: Boes your orqonisotion moke ony jinonciol onJ economic plonninq {buJqet onJ upJoteJ
business plon)?
!" $!" %!" &!" '!" (!" )!"
*+,- ./0+ 1234 ( 5+30, 6/0+73,1
*+,- 89 1/ ( 5+30, 6/0+73,1
*+,- 89 1/ & 5+30, 6/0+73,1
:/
*+,- $ 5+30 6/0+73,1
C+?*(# ;RE C+&,&7+,- ,&4 %71&1/+7 )-,&&+&? bh*4?#' ,&4 8*0+� )-,&d 21( 3360
{Source: Furokleis 2010, online survey)
PF;F;F Y+^# (#-,'#4 71&0'(,+&'0 21( O+&,&7#
In view of the E0 Small Business Act of 2uu8, 0/,-- ,&4 /#4+*/ 0+^#4 #&'#()(+0#0 ,&4
2(##-,&7#(0 )-,@ , 7#&'(,- (1-# +& '"# %*(1)#,& #71&1/@G #0)#7+,--@ +& '"#+( (1-# ,0
+&&15,'1(0F
;e:
Bowevei, the existence of an #S*+'@ ?,) - the inability of small fiims to
access the finance they neeu to giow - has been a long-teim challenge foi goveinments
anu is a majoi consiueiation in Euiope's stiategy foi its innovative futuie.
191
Successive
auministiations have acknowleugeu the impoitance of the ventuie capital inuustiy anu
implementeu vaiious initiatives in suppoit of eaily-stage ventuie capital investment,
incluuing seeu anu stait-up funuing, to suppoit SNEs, anu especially CCI SNEs.
192
0ne chaiacteiistic that sets apait the CCIs anu, in many ways impeues theii access to
finance, is the uepenuency on intangible assets. The cieative entiepieneui tiauitionally
combines tangible infoimation anu communication technology with intangible
infoimation piouucts: cultuial qualities anu 'meuia content'. Bowevei, +&',&?+8-# ,00#'0
0*7" ,0 &15#-'@G 012' +&&15,'+1&G 71)@(+?"' ,&4 7(#,'+5+'@ ,(# 12'#& &1' (#O-#7'#4 +&
,771*&'0G although this is slowly changing.
19S
Financial institutions such as 8,&=0 12'#&
2,+- '1 0*2O+7+#&'-@ (#71?&+0# '"#+( #71&1/+7 5,-*#F
;eR
Fig. 1S. below illustiates the main
obstacles foi CCIs to access finance, wheie the shaie of iisk aveision fiom financial
institutions anu the uifficulty in getting giants accounts foi appioximately Su% of the
iesponses.
Foi this ieason, a loan suppoiting CCI activities is consiueieu iisky anu is not always
enuoiseu. While guaiantee funus such as those elaboiateu in the Netheilanus (Kunst en
Zaken) oi in Flanueis (CultuuiInvest), facilitate the attiaction of such funus, theie
(#/,+&0 , 0'(1&? &##4 21( ?(#,'#( =&1>-#4?# #N7",&?# 8#'>##& '"# O+&,&7+,- 0#7'1(
,&4 0',=#"1-4#(0 +& '"# 3360G as sectoial expeits have inuicateu.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S8
19u
Euiopean Council Conclusions, (Becembei 2uu8), Think Small Fiist- A Small Business Act foi Euiope, uoc 16788¡u8
191
Euiopean Council Conclusions, (Nay 2u1u), Conclusions on Cieating an Innovative Euiope, Su16th Competitiveness
Council Neeting, 26th Nay 2u1u
192
Biggs, P. anu Cunningham, S., (2uu7) Austialia's Cieative Economy: Napping Nethouologies. Technical Repoit.' Biisbane:
Centie of Excellence in Cieative Inuustiies anu Innovation.
19S
0ECB is ueveloping an innovation stiategy to pioviue policy makeis with tools to impiove theii own innovation stiategies
baseu on new innovation measuiements which woulu take into consiueiation soft innovation anu is also expecteu to
integiate the value of usei-innovation. See National Enuowment foi Science, Technology anu the Aits, (Apiil 2u1ua),
Neasuiing usei innovation in the 0K- The impoitance of piouuct cieation by useis, Lonuon: NESTA
194
Euiopean Commission uieen Papei, (2uuS), op. cit., p. 12.
µuestion: Wbot is tbe moin obstocle for your orqonisotion to occess jinonce?
!" $" %" &" '" (!" ($" (%" (&" ('"
)* +,- .* /0012 3*4 54/6.7896:-6+;-7
00*4.
?95@ 96.-4-7. 4/.-7
A.@-4
B>C19: 3>6D 7@*4./5-
)* C/6E 1*/6 5>/4/6.--
F1*G 04*:-D>4-7 3*4 0>C19: 96:-6+;-7
1.2 96 5-I65 54/6.7
J97E /;-479*6 34*, =6/6:9/1 967+.>+*67
C+?*(# ;fE W,+& 180',7-#0 21( 3360 '1 ,77#00 O+&,&7#
{Source: Furokleis 2010, online survey)
PF;F9F Y*80+4@ 5#(0*0 /,(=#' 71/),&+#0
As seen alieauy, the CCIs can be bioauly uiviueu into two categoiies: those that aie moie
71//#(7+,--@ 1(+#&'#4 anu those that ,(# )*8-+7-@ 2*&4#4. While this uistinction is
iuentifieu, the ieality is often not as explicit because "The public anu the piivate sectois
aie integiateu via the CCI thiough sponsoiship anu uonations, as well as effective cioss-
subsiuies".
19S
In any case, the main uiffeiences illustiate the ways in which businesses aie
financially suppoiteu. While commeicial businesses within the CCIs aie subject to
5,(+,'+1&0 +& 71&0*/#( 4#/,&4G SNEs that aie publicly funueu, conveisely, will often be
steeieu by the 71&0',&'-@ 0"+2'+&? )(+1(+'+#0 12 )*8-+7 (#01*(7#0F
The types of financial suppoit maue available to CCI SNEs coiiesponu to the uivision maue
between the cultuial anu the cieative sectois. Nany cultuial seivices, as pait of the CCIs,
aie also public seivices anu aie suppoiteu as such. Taxation measuies, in paiticulai, play
an impoitant iole foi these activities. Though policy makeis incieasingly tuin theii
attention to new methous of funuing, such as public-piivate paitneiships, 7*-'*(,-
0#(5+7#0 71&'+&*# '1 8# )(+/,(+-@ 2*&4#4 8@ '"# Y','#F
196
These seivices, such as
activities in the peifoiming aits anu the auuiovisual sectois aie moie ieauily gianteu
funuing fiom national goveinments while the cieative inuustiies, such as uesign anu
gaming, aie expecteu to be moie commeicial in natuie, ieceiving funuing thiough
entiepieneuiial activities anu piivate equity finance iathei than subsiuies. This contiast
was stiongly confiimeu by iesponuents fiom the Ninistiies of Cultuie in stiuctuially
stiong anu tiauitional economies in the stuuy ieseaich.
An auuitional uistinction shoulu be maue between uiffeient Euiopean countiies. In most
tiauitional anu knowleuge economies, the peifoiming aits benefit fiom goveinment giants
oi subsiuies. In emeiging oi stiuctuially weak economies, howevei, the funus available aie,
by compaiison, veiy limiteu as they aie hampeieu by a piouuct uevelopment focus as
expeits have inuicateu. While subsiuies fiom the public sectoi may assist in the stait-up
anu funuing of SNEs, '"#@ ,(# 12'#& /1(# ,77#00+8-# '1 '"# 7*-'*(,- 0#7'1(0 b#F?F '"#
)#(21(/+&? ,('0d '",& '1 '"# 3360 ,0 , >"1-#F In auuition, iesponses fiom expeits
suggest that public initiatives seem unable to meet the expectations anu neeus of CC
entiepieneuis because they aie complicateu to unueistanu anu often uetacheu fiom the
teiiitoiy in which the company opeiates.
Expeits fiequently expiesseu 7,*'+1& ,' (#-@+&? 1& 0*80+4+#0 0@0'#/0 anu biought up
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries S9
19S
Piatt, A. C., (2uu9),"The cieative anu cultuial economy anu the iecession", ueofoium, volume 4u, pp. 49S-496.
196
KEA, (2uu9), op. cit., p. 6.
issues such as SNE sustainability, financial self-sufficiency as well as political influence on
cultuial piouucts anu seivices. Nonetheless, most membeis of the CCIs have in some way
been helpeu to uevelop theii fianchise thiough public suppoit anu investment.
Among iesponuents, suppoit fiom public giants is stiongly expecteu. Beaiing in minu the
shoit-teim, pioject-baseu chaiacteiistics of many CCIs, ?(,&'0 7,& 8# 0'(,'#?+7,--@
1(?,&+0#4 '1 /,N+/+0# '"#+( 7(#,'+5# ,&4 7*-'*(,- +/),7'G ,&4 #&71*(,?# 0'(1&?
0)+--15#( #22#7'0 ,&4 71&'+5+'@ 8#'>##& '"# 71(#G '"# 7(#,'+5# +&4*0'(+#0 ,&4 '"#
>+4#( #71&1/@F Inueeu, though many entiepieneuis iely on piivate funus, '"# /,H1(+'@
12 (#0)1&4#&'0 71&0+4#(#4 )*8-+7 ?(,&'0 '1 8# '"# 8#0' '11- '1 +&7(#,0# O+&,&7+,-
1))1('*&+'+#0F
The neeu foi moie public funuing fiom E0 funuing piogiammes oi national Ninistiies of
Finance was highlighteu (e.g. foi woikspaces). AlteinativelyG , &#> %*(1)#,& 2*&4
0)#7+O+7 '1 336 YW%0 >,0 0*??#0'#4 ,0 ,&1'"#( '@)# 12 O+&,&7+,- 0*))1('F
PF;FPF !@)#0 12 O+&,&7+,- 0*))1('
While many similai types of suppoit aie offeieu thioughout Euiope, the level at which
they aie offeieu anu the sectois to which they aie maue available may uiffei consiueiably.
As uiscusseu above, '"# /10' +/)1(',&' O+&,&7+&? 01*(7# +0 *&41*8'#4-@ 0#-2J
O+&,&7+&?F Public giants, bank loans anu piivate giants have a iesiuual iole, while the
otheis souices aie maiginal.
PF;FPF;F /14 -./012
I00:>/=:0
,D4.2J1D4.
31:,9 K/.9412
C+?*(# ;]E W10' ,4#S*,'# '11- '1 +&7(#,0# O+&,&7+,- 1))1('*&+'+#0 21( 3360
{Source: Furokleis 2010, online survey)
PF;FPF9F ##& ,&?#-0 ,&4 )1'#&'+,- #&'(#)(#&#*(0 '",'
1'"#(>+0# '#&4 '1 8# +&21(/,-F
9
Foi example, the Butch goveinment planneu in its
iecent policy piogiamme to extenu the Business Angels Piogiamme to incluue CCIs,
2u4
as
CCIs still make ielatively little use of such Business Angel systems.
PF;FPFfF !,N,'+1& +&7#&'+5#0
Apait fiom Austiia, Finlanu, the Netheilanus, Spain anu the 0K, which implement specific
measuies to suppoit CCIs (although uefinitions aie not always homogeneous foi uiffeient
policy fiamewoiks), '"# /10' ?#&#(,- ,))(1,7"#0 '1 0*))1('+&? 7*-'*(,- ,&4 7(#,'+5#
#&'(#)(#&#*(0"+) ,(# ',N 4#4*7'+1& ,&4 2,51*(,8-# O+07,- )1-+7+#0F
Tax incentives can eithei enhance oi impaii competitiveness anu the cieation of a
piospeious entiepieneuiial enviionment, uepenuing on the level anu type of incentive.
The oveiall tax buiuen, which consists of all taxes, uiiect anu inuiiect, anu compulsoiy
social contiibutions, can be useu as an instiument foi the CCIs.
2uS
Expeits at uiffeient
levels fiequently biought up the issue of tax cieuits anu fiscal exemptionsF Togethei with
bank loan guaiantees, tax exemptions weie consiueieu by Euiopean expeits to be the best
way to pioviue financial suppoit.
When askeu about the most ielevant way to access finance foi CCI SNEs, tax exemptions
foi CCIs weie selecteu as the most impoitant initiatives by sectoial expeits (S8%),
followeu by a CCI SNE fiienuly giowth loan (27%), as illustiateu in Fig. 17. Nost of the
'othei' alteinatives (7.4%) suggesteu the implementation of a multi-layeieu appioach
encompassing fiienuly giowth loans, tax exemption, guaiantee facilities, iisk capital, anu
vAT ieuuction. Some only unueilineu the neeu to have a loan oi bank guaiantee. 0n the
othei hanu, foi geneial Euiopean expeits, 0##4 O+&,&7+&? >,0 71&0+4#(#4 '"# /10'
(#-#5,&' >,@ '1 0*))1(' 336 YW%0 (22%) as well as an inciease in public giants.
0ne of the most fiequently useu instiuments to stimulate the CCIs is the cieation of
specific tax iegimes foi cultuial anu cieative entiepieneuis. The EC iecently 71&0+4#(#4
'"# +/)-#/#&','+1& 12 , -1> i*-/,> ?10@
;;= AB7 C-/,053D E-9F*+ 3910
G1H ,H,I:5+(,)3C /5=D6E F=-,
*+,-,.+-3 G)H+.(7
I(,615( ?-;+6-3
B15=;(-, ??@ J-,K
05+H-6( 45-,67
L6E(5
C+?*(# ;_E W10' +/)1(',&' =+&4 12 O+&,&7+,- +&+'+,'+5#0 8#0' ,00+0'+&? 336 YW%0
{Source: Furokleis 2009, Sectorol Fxpert questionnoire)
PF;FPF]F \*8-+7J\(+5,'# \,('&#(0"+)0
The uiveise anu uynamic natuie of CCI SNEs means that the question of access to finance
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 6S
2u6
EC Consultation Papei of Review of Existing legislation on vAT Reuuceu iates, (2uu8), see http:¡¡ec.euiopa.eu¡
taxation_customs¡iesouices¡uocuments¡common¡consultations¡tax¡vat_iates_public_consultation_uocument_en.puf
uepenus on numeious factois. Nultiple anu blenueu foims of financial suppoit aie neeueu
uepenuing on the given sectoi anu phase of a specific pioject at which an SNE finus itself.
The Council Conclusions of Nay 2u1u on Creotinq on lnnovotive Furope stiesseu the neeu
to incluue public piivate paitneiships to finance moie effective banking lines foi Reseaich,
Bevelopment anu Innovation involving actois such as the Euiopean Investment Bank.
2u7
The expeit inteiviewees of this stuuy 0+/+-,(-@ 0'(#00#4 '"# )1'#&'+,- 12 '"#0# ,7'1(0 '1
',) +&'1 '"# 3360F
PF;F9F \",0#0
The impoitance of access to finance vaiies gieatly between SNEs anu may be of gieatei
neeu uuiing the beginning oi latei stages of giowth. Accoiuing to iesponuents (Fig. 19.) an
oveiwhelming majoiity, both fiom the suivey anu qualitative inteiviews, inuicate the
significance of financial suppoit paiticulaily in phases two anu thiee of the lifecycle mouel.
The amount anu type of funuing, howevei, uiffeis between phases. Foi instance, stait up
costs (e.g. iegistiations costs) will be gieatest in phase two. Theiefoie, -1>#(+&? '"# 0',('
*) ,&4 (#?+0'(,'+1& 710'0G theieby uiminishing the financial thiesholus to stait, will
positively influence the numbei of staiteis in the sectoi. Similaily, )(15+4+&? +&&15,'+1&
2*&40 4*(+&? )",0# '"(##G when they aie of gieatei use anu value, can bettei taiget
innovation.
The uivision between suppoiting the #&'(#)(#&#*( anu the #&'#()(+0# becomes
appaient when iegaiuing financial suppoit. The tiansition fiom a one-peison enteipiise to
a multi-peison enteipiise gieatly affects the type anu amount of finances iequiieu,
paiticulaily if auuitional woikeis aie employeu. Similaily, the efficiency of public funus
changes between these two levels, with uiiect subsiuies being veiy efficient at the
beginning to suppoit the entiepieneui, but less so at the enteipiise level.
µuestion: At wbot stoqe of tbe entrepreneuriol lifecycle is jinonciol support most neeJeJ?
!" $!" %!" &!" '!" (!" )!"
*+,-. (/ 0122.3425
*+,-. $/ *6.7,6825 9+.
561:2;
*+,-. '/ :7
C+?*(# ;eE W10' +/)1(',&' )",0# 21( O+&,&7+,- 0*))1('
{Source: Furokleis 2010, online survey)
Since access to finance is impoitant uuiing the eaily phases of the entiepieneuiial
lifecycle, =&1>-#4?# ,&4 +&21(/,'+1& 1& '"# '@)#0 12 O+&,&7+,- 0*))1(' ,5,+-,8-# is of
coiiesponuing significance. Theie aie many types of existing financial suppoit available,
such as multi-sectoial suppoit schemes. Bowevei, CCIs geneially uo not access them uue to
theii lack of knowleuge about funus that aie not specifically taigeteu at CCIs.
2u8
Cultuial
anu cieative entiepieneuis neeu to be awaie of, anu comfoitable with, financial options.
0n the othei hanu, '11 /*7" 2*&4+&? 4*(+&? '"# #,(-@ )",0#0 7,& ,-01 +&"+8+' ?(1>'"F
As seveial expeits expiesseu, too much funuing can make entiepieneuis iisk-aveise anu
stop them biinging theii iueas to the maiket.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 64
2u7
Euiopean Council Conclusions, (Nay 2u1u), op. cit., p.S.
2u8
KEA, (2u1u), op.cit., p. 26.
Buiing the latei stages of the cycle, namely uuiing phase foui anu five, theie aie auuitional
obstacles to oveicome. C1( ?(1>'"J1(+#&'#4 YW%0 ),('+7*-,(-@G 0)#7+O+7 0'(*7'*(,-
O+&,&7# ,&4 >1(=+&? 7,)+',- ,(# &##4#4 +& 1(4#( '1 #N),&4 ?(1>'" ,&4 ,77#00 '1 '"#
/,(=#' b8*+-4 1*'dF Financial suppoit must be accessible uuiing all phases of the
entiepieneuiial life cycle, but the types of suppoit must concui with the evolving neeus of
each phase.
PF;FPF B#5#-0
Financial suppoit pioviueu at local, iegional anu national levels weie cleaily emphasiseu
by the suivey's iesponuents as most auequate foi suppoiting CCIs. As seen in Fig. 2u.
below, S2% of iesponuents consiueieu the (#?+1&,- -#5#- 12 ,*'"1(+'@ ,0 /10' 0*+',8-#
21( 0*))1('+&? ,77#00 '1 O+&,&7#G followeu by the national level (29%) anu the local¡city
level (22%). The E0 level was ueemeu to be less auequate foi uiiect suppoit to the CCIs
mainly uue to the buieauciacy anu complexity involveu in the pioceuuies.
µuestion: Wbot level of outbority is most suitoble for supportinq
occess to jinonce for your orqonisotion?
!" $" %!" %$" &!" &$" '!" '$"
()*+,-./ 0)1)/
2.3,-./ 0)1)/
0,4./56+78 /)1)/
9:;,1(=G +0 #00#&'+,- '1 *&4#(0',&4 '"# ?-18,- /,(=#'F
9;R
uoveinments coulu encouiage anu pioviue SNEs with appiopiiate suppoit to enable them
to access knowleuge in oiuei foi them to bettei access oppoitunities on the maiket. With
existing suppoit in incubatois anu othei suppoit such as seeu finance, staiting up a CCI
SNEs is not the haiuest pait: builuing up anu gaining a maiket position is moie uifficult.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 67
212
Expeit Questionnaiie
21S
See foi example, Euiopean Council Conclusions, (Becembei 2uu8), Think Small Fiist- A Small Business Act foi Euiope,
uoc 16788¡u8; Raffo et al. (2uuu), "Teaching anu leaining entiepieneuiship foi micio anu small businesses in the cultuial
inuustiies sectoi", Euucation anu Tiaining, vol. 42, No 6, p. SS6.
214
NESTA, (Nay 2u1uc), Souicing Knowleuge foi innovation: the inteinational uimension, Lonuon: NESTA , p. 6.
The ueciease of tiaue baiiieis anu the integiation of woilu maikets have maue it possible
foi all types of companies, incluuing new ones, to exploit global oppoitunities. The
globalisation piocesses encouiage an exteinalisation stiategy in the same way as it
confionts two opposite extiemes: the micio-SNEs anu the laige coipoiation. !"# "+?"
71/)#'+'+1&G '"# "1-4 1& '"# /,(=#' 8@ , 2#> -,(?# 71()1(,'+1&0 ,&4 '"# -+/+'#4
=&1>-#4?# ,81*' #N'#(&,- 1))1('*&+'+#0 21(/ '"# #&5+(1&/#&' '",' 71&2(1&'0 '"#
33 #&'(#)(#&#*( ,' '"# 0',(' 12 '"#+( ,7'+5+'@ anu thioughout the entiepieneuiial
lifecycle.
PF9F;F !"# IW+00+&? W+44-#KE 1(=0 '1 , >+4#( )*8-+7G inuepenuently of physical anu
geogiaphical constiaints, potentially incieasing choice anu accessibility foi all. 0n the
othei hanu 63! 4+0(*)'0 '(,4+'+1&,- 71&'#&'F While new mouels stiuggle to emeige, the
iisk is that 7*-'*(,- 71&'#&' /,@ 8# 71&0+4#(#4 ,0 ,&@ 1'"#( 71//14+'@ '(,4#4 +& '"#
5+('*,- >1(-4 ,&4 /,@ 8# 4#5,-*#4F
Bigital meuia can potentially enable SNEs to affoiuably compete in biggei maikets by
allowing foi example, smallei companies to auveitise theii piouucts online, by incieasing
theii competitiveness thiough a gieatei usage of usei-geneiateu content oi by accessing
inteinational netwoiks. The seeming uemociatisation of maiket oppoitunities on the
Inteinet anu the enhanceu iole of the usei in shaping the piouucts anu seivices has
funuamentally alteieu business mouels in ceitain sectois, such as in the meuia inuustiy.
Bowevei, Euiope is cuiiently failing to take full auvantage of the uigital maiket anu new
technologies. The uigital maiket iemains fiagmenteu anu iegulations hinuei the full
uevelopment of a Single Bigital Naiket in Euiope. Recent initiatives aie impoitant signs of
changing oppoitunities.
221
The Agenua foi a Bigital Euiope, a flagship initiative in the
Euiope 2u2u stiategy, aims at coiiecting these imbalances anu is tiying to auapt to these
changes in oiuei to uevelop a Single Bigital Naiket
222
, incieasing the inteiopeiability anu
the conveigence of stanuaius, as well as incieasing the suppoit foi netwoiks.
The E0 funueu EBiNA pioject (Euiopean Bigital Neuia Association) is an alliance of new
meuia companies that aims at cieating an open anu legal fiamewoik foi Pan-Euiopean E-
commeice anu enabling gieatei consumei choice in uiveisity anu enhanceu
competitiveness thioughout the E0. It auuiesses legal baiiieis blocking a single Euiopean
Bigital Naiket. Foi example, EBiNA aims at incieasing the co-oiuination of policy
foimation by establishing a new Euiopean Pailiament gioup on the new meuia sectoi to
ensuie a bettei fit with iegaius to the copyiight licensing iegime foi the uigital age.
22S
Noieovei, it pioviues new meuia platfoims in oiuei to impiove consumei confiuence anu
pioviues online seivices to impiove the use of meuia anu E-commeice in Euiope. The ex-
Commissionei foi Infoimation Society anu Neuia, viviane Reuing, acknowleugeu similai
neeus in completing a Single Bigital Naiket
224
, seeing the potential that the uigital woilu
has to offei.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 69
219
0K Technology Stiategy Boaiu, (2uu9), op. cit., p. 12.
22u
0S National Enuowment foi the Aits, (2u1u), Auuience 2u: Bow Technology Influences Aits Paiticipation, Washington: 0S
National Enuowment foi the Aits, p. 1u. This iepoit founu that SS% 0S auults paiticipate in the aits thiough electionic anu
uigital meuia thiough Tv, iauio, cv¡uvu, computei anu inteinet to view ait peifoimance, ait woiks, museums. A thiiu of the
0S auults paiticipate in 'benchmaik' aits activities such as jazz, classical music, opeia anu all foims of uance, thiough
electionic meuia. Foi eveiy type of aits peifoimance, auults weie moie likely to view oi listen thiough electionic meuia than
attenu live peifoimances.
221
EC Communication, (2u1ub), op. cit., p. S.
222
EC Communication, (Nay 2u1ua), Bigital Agenua foi Euiope, C0N (2u1u) 24S
22S
Euiopean Bigital Neuia Association (EBiNA), (2uu9), op. cit.
224
Reuing, v., (0ctobei 2uu9), Speech on the Bigital Single Naiket: a key to unlock the potential of the knowleuge base
economy, Available at http:¡¡www.iccwbo.oig¡bascap¡iuSSS6u¡inuex.html
PF9FPF !@)#0 12 0*))1(' '1 /,(=#' ,77#00
Conscious of the innovative potential of CCI SNEs, the E0 Council conclusions of Nay 2u1u
acknowleuge the neeu to suppoit 'cultuie-baseu cieativity' SNEs in theii access to maiket
as a way to encouiage innovation.
22S
Public piocuiement, Leau Naiket Initiative,
stanuaiuisation, although highly piomising, iemain *&',))#4 (#01*(7#0 foi innovation
anu foi the encouiagement to access the maiket.
226
The Euiopean platfoim on the potential of cultuial anu cieative inuustiies has emphasiseu
'"# +/)1(',&7# 12 7(#,'+&? ,& #&5+(1&/#&' '",' 210'#(0 '"# 7(#,'+1& ,&4
4#5#-1)/#&' 12 7*-'*(,- YW%0F They state that these shoulu be gianteu specific suppoit
anu benefit fiom positive uisciimination measuies. The Platfoim noteu that:
"Horket occess must be ensureJ for oll culturol onJ creotive octors reqorJless of tbeir
size to quorontee plurolism onJ o reol economy of Jiversity onJ tbe internotionol
promotion onJ excbonqe sboulJ be JevelopeJ {...) tbe presence of ortists onJ culturol
professionols in key internotionol morkets must be mointoineJ tbrouqb tbe
estoblisbment of specijic scbemes onJ tbe focilitotion of excbonqe witb tbirJ
countries."
227
In teims of suppoit foi CCI SNEs to benefit fiom the Euiopean uigital single maiket, most
iesponuents pointeu at '"# &##4 21( O+&,&7+,- 0*))1(' '1 2,7# '"# 4+?+',- 0"+2' (S4%)
anu seconuly, '"# &##4 21( '"# ",(/1&+0,'+1& 12 ,77#00 71&4+'+1&0 (S1%) (Table 9.
below). The 'othei' types of SNE suppoit to entei the Euiopean single uigital maiket weie
taigeting the capacity builuing on access possibilities anu knowleuge suppoit.
µuestion: Eow Jo you tbink CCl SHFs sboulJ be supporteJ to benejit
from tbe Furopeon Biqitol Sinqle Horket?
6'#/ \#(7#&' `
No specific suppoit S.4S%
Baimonization of access
conuitions
S1.uS%
Legal Suppoit 2u.69%
Financial Suppoit S4.48%
0thei 1u.SS%
Capacity builuing on access
possibilities
S.4S%
Bon't know S.4S%
Knowleuge suppoit S.4S%
!,8-# eE 336 YW%0 0*))1(' 21( '"# 4+?+',- /,(=#'
{Source: Furokleis 2009, Sectorol experts)
Although uiiect measuies foi suppoiting access to maiket foi CCIs aie not yet in place at
the E0 level, the E0 has ceitain existing piojects that show signs of possible extension of
suppoit to CCIs. Foi example, the B#,4 W,(=#' 6&+'+,'+5# launcheu by the E0 in 2uu8 was
set to iuentify the new neeus anu new maiket foi innovative piouucts oi seivices. Foi now,
this initiative is taigeteu towaius 6 LNIs,
228
which aie &#+'"#( 0#(5+7# &1( &1&J
'#7"&1-1?+7,- +&&15,'+1& 1(+#&'#4F Bowevei, extenuing a LNI to CC piouuct anu seivices
anu taigeting CCI SNEs, coulu be a way to suppoit access to maiket foi CCIs. Similaily, in
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 7u
22S
Euiopean Council, (Nay 2u1u), op. cit., p. 2.
226
Euiopean Council, (Nay 2u1u), op. cit., p. 2.
227
Platfoim on the Potential of Cieative anu Cultuial Inuustiies, (2uu9), Final Recommenuations of the Platfoim on the
Potential of Cieative anu Cultuial Inuustiies, op. cit., p. 4.; anu 0NC Expeit Woiking uioup on maximising the potential of
cultuial anu cieative inuustiies, in paiticulai that of SNEs, (2u1u), Final Repoit, op. cit., pp. 6-11.
228
EC Woiking Bocument, (Septembei 2uu9c), Leau Naiket Initiatives foi Euiope: Niu Teim piogiess iepoit, SEC (2uu9)
1198: bio-baseu piouucts, eBealth, sustainable constiuction, piotective textiles, iecycling anu ienewable eneigy
the communication Assessing Community Innovation Policies in the peiiou 2uuS-2uu9,
the E0 suggesteu that )*8-+7 )(17*(#/#&' be pait of innovation policy as it can help
fostei the maiket uptake of innovative piouucts.
229
Public Piocuiement pioceuuies coulu
be useu to inciease the uemanu foi specific innovative piouucts anu seivices coming fiom
CCIs anu in so uoing can encouiage the access to maiket foi innovative CCI SNEs. The E0
Council iecommenueu in its Conclusions in Nay 2u1u that the public piocuiement buuget
is incieaseu anu uevoteu to innovative piouucts, piocesses anu seivices
2Su
. This shows the
potential to extenu existing initiatives to suppoit CCIs in theii access to maiket.
Y',&4,(4+0,'+1& also stimulates the maiket foi innovative piouucts by setting up a
playing fielu foi innovatois, accompanying the emeigence of new maikets anu facilitating
the spieau of technology. Bowevei, in its communication in 2uu8, the E0 acknowleugeu
the limiteu numbei of stanuaius foi seivices (mainly uue to the heteiogeneous natuie of
seivices).
The example of Quebec's )10+'+5# /#,0*(#0 '1 #&0*(# /,(=#' ,77#00 '1 3360 is
illustiative of the success that specific measuies foi CCI SNEs can have to access the
maiket anu piomote the CCIs.
2S1
PF9FPF;F \",0#0 12 /,(=#' ,77#00
With iegaius to the entiepieneuiial life cycle, a majoiity of expeits inteivieweu stateu that
,77#00 '1 /,(=#' +0 ),(,/1*&' +& )",0# 9 ,&4 P 12 '"# -+2#7@7-#G as Fig. 22.
uemonstiates. Inueeu, 4S% of the iesponuents founu that suppoit to access the maiket
was most neeueu in the 0',('J*) phase of the life cycle.
In the 8*+-4J*) ,&4 8*+-4J1*' phases of the entiepieneuiial life cycle, entiepieneuis
neeu to uo seveial things simultaneously: cieate stiuctuial sustainability by builuing
stiong netwoiks; uevelop a methouological way of staying cieative to succeeu; have a
futuie-oiienteu giowth plan to expoit into new maikets anu bianuing foi giowth; be
scalable anu ieplicable.
µuestion: ln wbicb pbose of tbe life cycle Jo you see tbe most neeJ
to support occess to morket?
!" $!" %!" &!" '!" (!"
)*+,- (. /011-2314
)*+,- '. 56789 06:
)*+,- $. );-:+;:=6<
C+?*(# 99E \(#2#((#4 )",0# +& '"# -+2# 7@7-# 21( 0*))1(' '1 ,77#00 '"# /,(=#'
{Source: Furokleis 2010, online survey)
Some iesponuents highlighteu the neeu to focus on the lattei stages of the life cycle foi
maiket suppoit in paiallel to accessing inteinational maikets. Bowevei, with the
globalisation of maikets, such stiategies aie now moie focuseu on the eailiei stages. CCI
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 71
229
0S National Enuowment foi the Aits, (2u1u), Assessing Community Innovation Policies in the peiiou 2uuS-2uu9, SEC
(2uu9) 1194
2Su
Euiopean Council Conclusions, (26th Nay 2u1u), op. cit., p. 4.
2S1
Platfoim on the Potential of Cieative anu Cultuial Inuustiies, (2uu9), Final Recommenuations of the Platfoim on the
Potential of Cieative anu Cultuial Inuustiies
fiims aie confionteu fiom phase one with stiong inteinational competition. Euiope's
iegulatoiy enviionment is in this case not helpful.
With iegaiu to foieign maikets,
iesponuents founu that the 0*))1(' '1
,77#00 7(100J81(4#( /,(=#'0 >,0 /10'
&##4#4 +& '"# 8*+-4J*) ,&4 8*+-4J1*'
)",0#0 12 '"# -+2#7@7-#G once the CCIs have
acquiieu some iegulai clients anu can look
at othei oppoitunities. (see Fig. 2S.). The
best case example of Finpio is a useful
illustiation of this (See Appenuix 1, Best
Case 24).
µuestion: ln wbicb pbose of tbe life cycle Jo you see tbe most neeJ to support for cross-borJer qrowtb
onJ cross-borJer morkets?
!" $" %!" %$" &!" &$" '!" '$" (!"
)*+,- %. )/-0+/123 4*- 3/5627
)*+,- &. 84+/4960
)*+,- $. :522-; 8#0' '1 #&71*(,?# 33 #&'(#)(#&#*(0 '1 (#,-+0# ,&4 /,=# *0# 12 6\A ,0 '11-0 +&
'"#+( #&'(#)(#&#*(+,- ,7'+5+'@F Inueeu, the issue of IP management foi the CCIs is ,
7#&'(,- 4#'#(/+&,&' '1 '"#+( #&'(#)(#&#*(+,- 4(+5# as it gives the CCI entiepieneui the
oppoitunity to be iewaiueu anu can act as an enablei foi theii activity.
PFPF9F C1(/0 12 6\A ,&4 4+22#(#&' *0#
In line with the uebate on access anu exploitation, the types of IPR must be uiffeientiateu
to unueistanu theii use by CCI SNES. Foimal IPR mechanisms incluue the following:
uesign piotection,
2S6
tiauemaiks, patents, utility mouels anu copyiight.
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 74
2SS
Cabieia Blazquez, F.}, (2uu7), "Bigital Rights Nanagements' systems (BRNs): Recent uevelopments in Euiope", Euiopean
Auuiovisual 0bseivatoiy, see http:¡¡www.obs.coe.int¡oea_publ¡iiis¡iiis_plus¡iplus1_2uu7.puf.en
2S4
Ibiu., p.2
2SS
0K Technology Stiategy Boaiu, (2uu9), op. cit., p. 2S.
2S6
A new iegisteieu Community Besign Right has been iecently intiouuceu.
Infoimal IPR vaiies in its natuie anu puipose but aie also impoitant foi SNEs.
2S7
The most
impoitant infoimal piotection methous
aie: seciecy, iestiicteu access to
infoimation, uatabase anu netwoik
piotection, confiuentiality, technical
piotection, uivision of uuties anu
subcontiacting, ciiculation of staff
between tasks, loyalty builuing among
peisonnel, client ielationship
management, membeiship of piofessional
oiganisations, anu publishing.
2S8
The
Cieative Bepot is a goou example of tackling issues ielateu to infoimal IPR (see Appenuix
1, Best Case 2S).
In the online questionnaiie, , "+?" )#(7#&',?# 12 (#0)1&4#&'0 bPP`d 4+4 &1' *0# ,&@
0)#7+O+7 +&0'(*/#&' 12 )(1'#7'+1&F "#& +' +0 ?+5#& +0 +/)1(',&'F A business mouel that +&'#?(,'#0 6\ ,0
),(' 12 '"# #&'#()(+0# -+2# 7@7-# was seen as impoitant.
2S1
In this iegaiu, the numbei of oveilapping innovation suppoit schemes at both national anu
Euiopean levels complicate the pictuie as piesenteu to SNEs. As iecently noteu, "Not only
uo Nembei States often have seveial funuing schemes anu a vaiiety of competing souices
of auvice, the E0 pioviues its own schemes anu souices (Relay Centies, IPR Belpuesk) anu
seveial funuing iegimes."
2S2
The iesults fiom the online questionnaiie showeu that in most cases, '"# O+(0' )",0#0 of
the life cycle weie most ciucial foi auvice on IPR foi CCI SNEs (see Fig. 27.).
µuestion: ln wbicb pbose of tbe life cycle Jo you see o neeJ for lPR oJvice?
!" $" %!" %$" &!" &$" '!" '$" (!" ($"
)*+,- $. /011-2314
)*+,- (. 56789 06:
)*+,- '. 56789;6<
)*+,- &. =:+>:;6<
)*+,- %. )>-714 :*- 4>0619
C+?*(# 9VE h#0' )",0# 21( '"# )(15+0+1& 12 6\A ,45+7#
{Source: Furokleis 2010, online survey)
The &,'+1&,- (S9%) anu the 0#7'1(,- (2u.S%) levels weie consiueieu most suitable foi
pioviuing IPR auvice foi the iesponuents. 0nly 2u% in total useu -17,- anu (#?+1&,-
institutions foi similai auvice. Bespite the fact that most of the expeit inteiviewees
highlighteu the vital iole that Euiope coulu play in shaping a haimoniseu legal context foi
IPR, veiy few iesponuents (7%) ieceiveu uiiect auvice at a Euiopean level.
In oiuei to inciease the numbei of innovative platfoims, anu to be able to compete with
countiies with much lowei cost of patents such as }apan anu the 0S,
2SS
the Bigital
Agenua
2S4
highlighteu the availability of a wiue anu attiactive online legal offei foi shaping
the iegulatoiy enviionment.
2SS
0veiall, the inteiviewees noteu that cleai auvice anu qualifieu staff be available to catei foi
the neeus of CCIs to effectively use IPR as
an enablei foi theii entiepieneuiial
activity. h1'" '"# (#?*-,'1(@ ,&4 '"#
"*/,& (#01*(7# #&5+(1&/#&' 0"1*-4
8# +/)(15#4 '1 /,=# 6\A ,45+7# /1(#
'(,&0),(#&' ,&4 -#00 '+/# 71&0*/+&?F
0wn It in the 0K is an example of a fiee
IPR auvice centie foi SNEs specialiseu in
the CCIs (see Appenuix 1, Best Case 26).
Y*))1(' 1& 4#/,&4 21( 6\A ,45+7# in
oiuei to bettei iesponu to the changing neeus of the CCIs thioughout theii life cycle >,0
7+'#4 ,0 , #00#&'+,- '1 )(1/1'# '"#+( *0# ,0 ,& #&,8-#( 21( #&'(#)(#&#*(+,- ,&4
7(#,'+5# ,7'+5+'+#0F
DMk 6!
0wn it is a 0K fiee intellectual piopeity auvice foi
cieative businesses. It aims to pioviue cieative
entiepieneuis with accessible, specialiseu
knowleuge IP systems as well as it offeis woikshop,
netwoiking anu coaching anu one to one auvises.
(See Appenuix 1, Best Case 26)
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 77
2S1
Ibiu., p. 14.
2S2
Fooiu, }. (2uu8), "Stiategies foi cieative inuustiies: an inteinational ieview", Cieative Inuustiies }ouinal, volume 1,
Numbei 2., p.96.
2SS
Pio INN0 Euiope, (2uu7), op. cit., p. SS
2S4
EC Communication, (Nay 2u1ua), Bigital Agenua foi Euiope, C0N (2u1u) 24S
2SS
Ibiu., p. 8
PFRF %&'(#)(#&#*(0"+) #4*7,'+1&G 0=+--0 ,&4 '(,+&+&?
It is cleai fiom the stuuy that theie is , ?#&#(,- -,7= 12 #&'(#)(#&#*(+,- 0=+--0 >+'"+& ,--
0#7'1(0 12 '"# 3360F Limiteu business skills weie citeu as the seconu most impoitant
business-ielateu challenge aftei lack of finance when staiting a company (see Fig. 28.
below).
µuestion: Wbicb wos tbe most importont business-reloteJ cbollenqe
wben stortinq your compony?
!" $" %!" %$" &!" &$" '!" '$" (!"
)*+, *- ./,01102,341 56*506,7 6.89,+
:42; *- ))< +*2.41 +0236.,7 +290=0
>4? @36A0/+
B,906
:42; *- ;/*C10A80 4@*3, ,90 =46;0,
D.89 2*=50EE*/ ./ ,90 =46;0,
:.=.,0A ;/*C10A80 */ 9*C ,* 63/ 4 @3+./0++
:42; *- F/4/20
C+?*(# 9_E W10' +/)1(',&' 8*0+� (#-,'#4 7",--#&?# >"#& 0',('+&? , 71/),&@
{Source: Furokleis 2010, online survey)
In the 0ECB's entiepieneuiship fiamewoik, the 'cultuie of entiepieneuiship' is incluueu
as a ueteiminant of entiepieneuiship, being influential in ueveloping a conuucive
enviionment foi fosteiing entiepieneuiial activity.
2S6
Bespite its impoitance, theie is still
+&0*2O+7+#&' +&'#?(,'+1& 12 #&'(#)(#&#*(0"+) #4*7,'+1& +& ?#&#(,- 7*((+7*-, ,&4 +&
,('0 #4*7,'+1&F
2S7
Theie is still ielatively little uata on the outcomes anu impact of the (#7#&' +&7(#,0# +&
?#&#(,- #&'(#)(#&#*(0"+) ,&4 #4*7,'+1& )(1?(,//#0F
2S8
Fosteiing the take up of
entiepieneuiial skills by cultuial anu cieative entiepieneuis may also iequiie non-
tiauitional euucational piogiammes. !"# &,((1> /14#- 12 #&'(#)(#&#*(0"+) 217*0+&?
01-#-@ 1& 71//#(7+,- 0*77#00 41#0 &1' 0##/ '1 71((#0)1&4 '1 '"# 3360G foi whom
ciitical cieative anu cultuial achievements aie often moie impoitant.
2S9
Bowevei,
stimulating the uevelopment anu implementation of entiepieneuiial skills is neeueu in
teims of entiepieneuiial uevelopment, maiket oiientation, ietuin on cieativity,
communication skills, netwoik uevelopment, anu team builuing within the
entiepieneuiial life cycle.
< 0)#7+O+7 0=+-- 0#' ianging fiom basic business planning skills to piesentation (e.g.
pitching an iuea) anu management skills aie ciucial foi the cultuial anu cieative
entiepieneuis to auveitise theii piouucts anu seivices. Fiom the expeit questionnaiies,
/,(=#' #&'(@ +0 4+(#7'-@ +&"+8+'#4 8@ =&1>-#4?#J180'(*7'+&? 2,7'1(0 0*7" ,0 '"# -,7=
12 8*0+� 0=+--0 (as uiscusseu above in section S.2.). Expeits also highlighteu the lack of
business skills as the most impoitant entiy baiiiei. Inueeu, foi fieelanceis, the expeit
iesponuents citeu, fiist, the lack of entiepieneuiial skills (41%) anu then the lack of
knowleuge (22.7%). 0n the othei hanu, foi pan Euiopean expeits, lack of business auvice
EK0 {2010), Tbe Fntrepreneuriol Bimension of tbe Culturol onJ Creotive lnJustries 78
2S6
0ECB (2uu9), Evaluation of Piogiammes Conceining Euucation foi Entiepieneuiship, iepoit by the 0ECB Woiking Paity
on SNEs anu Entiepieneuiship, Paiis: 0ECB p. 9.
2S7
BCNS (2uu6), Beveloping Entiepieneuiship foi the Cieative Inuustiies- The Role of Bighei anu Fuithei Euucation
Lonuon: Bepaitment of Cultuie, Neuia anu Spoit
2S8
0ECB (2uu9), op. cit., p. 9.
2S9
The Bighei Euucation Acauemy Ait Besign Neuia Subject Centie anu NESTA, (2uu7), op. cit., pp. 1S-14.
anu of netwoiks (6u%) account foi the most impoitant knowleuge factois obstiucting CCI
SNEs giowth.
26u
Regaiuing the integiation of entiepieneuiship within the euucational system (see Fig. 29.
below), ]e` 12 '"# (#0)1&4#&'0 +& '"# 1&-+&# S*#0'+1&&,+(# 4+0,?(##4 >+'" '"#
0','#/#&' '",' #&'(#)(#&#*(0"+) >,0 0*2O+7+#&'-@ ,44(#00#4 +& '"# #4*7,'+1&,-
0@0'#/G while 26% agieeu.
261
µuestion: FJucotion onJ troininq is often tbe preferreJ instrument to foster o culture of
entrepreneursbip. Bo you oqree tbot entrepreneursbip is sufjiciently oJJresseJ in tbe eJucotionol
system?
!" $!" %!" &!" '!" (!"
)*+,-./0 1.+22
3,-4* 5-,6
)*+,-./0 3781.+22
9.+22
3781.+22
C+?*(# 9eE