Issues In Developing An Audio Visual Cluster In The West Midlands

Issues in Developing an Audio-Visual cluster † in the West Midlands Dave Harte Birmingham City Unversity [email_address] † Also known as: Screen, Image, Sound / Interactive Media for Education and Entertainment / Media / Interactive Media /

Outlining the context in which a regional strategy for clustering has developed.
Sources:
My own experience
Academic literature
‘ Grey’ literature
Meeting minutes / internal position papers / PowerPoints / application forms

My role
Author seconded to work with Regional Development Agency on cluster development from January 2003.
Ran delivery project from Oct 2005-March 2008
Cluster Innovation Manager RDA Cluster Manager Business Link LSC Cluster Skills Manager Structure formed Jan 2003 Industry Steering Group (COG)

Outlining the context in which a regional strategy for clustering has developed.
Business Clusters
Tracing a history of cluster development
Why defining & counting accurately doesn’t matter
The influence of industry
Summary and key points

Business Clusters
“ [Cluster theory is] not only a tool for managers but also a microeconomic-based approach to economic development for governments that is closely tied to actual competition” Porter 1998
“ Despite the extensive academic debate over the definition of clusters, Porter’s work has come to represent the definitive explanation for policy makers and is central to UK Government guidance” Tully/Berkeley 2003

Business Clusters
“ His self-confident, authoritative and proselytizing style, lends his cluster concept an apparent authenticity and legitimacy that policy-makers have found difficult to resist.” Martin/Sunley 2003

Business Clusters
Martin/Sunley 2003
Porter’s ideas appeal over others due to emphasis on competitiveness.
Clusters concept ignores more complex work of economic geographers
Clusters untested, more a way of thinking than an economic tool
Concept will inevitably become unfashionable as it fails

A Local/National timeline national west midlands 1998 DTI Competitiveness White Paper 1999 Regional Economic Strategy 1999 BMW pull out of Rover 2001 DTI Clusters – First Assessment 2003 DTI Guide to Clustering 2008 Creative Britain 2001 Agenda for Action 2002 Cluster Needs Analysis 2005-2008 Cluster strategy 2008-2011 Cluster strategy 2004 Regional Economic Strategy 2008 RES 2001 DCMS CI Mapping 1998 DCMS CI Mapping Creative Economy Programme consultation 2005-2007 2003 Porter assessment of UK competitiveness 2004 Cluster Mapping study 2003 clusters set up

A Local/National timeline
Government support cluster agenda
Location Quotient methodology to identify clusters in regions in 2001
West Midlands:
1999 Rover collapse significant
RDA pushes ahead with clusters as one of three delivery mechanisms
Cross-agency infrastructure developed

Local matters
“… .London dominates. While there is undoubtedly scope for considerable growth in the creative industries, attempts to develop strengths in other regions runs the risk of undermining the position of a globally competitive cluster”
DTI 2001 – First Assessment of Clusters

West Midlands – what they said
1999 West Mids RES
Sector-based approach. CI mentioned. “There may be opportunities for developing clusters as the networks become established.”
2001 DCMS Mapping
West Mids: Software, Interactive Leisure, Film, Art & Antiques Market, Advertising, Performing Arts.
2001 DTI Clusters 1st Assessment
Software development, Arts and Antiques, Leisure Software

West Midlands – what they said
2002 AWM Business Needs Analysis
TV and Broadcasting, Film, Music, Interactive Software and Games.
2004 West Mids RES:
“ Recorded media manufacture, media production, distribution, content developers, specialist business services, content creators (education community/museums, etc). (11,000 employees)”

West Midlands – what gets measured
“ The Screen Image and Sound cluster is even more challenging to measure, for it represents a relatively narrowly defined sub-set of the creative industries, and it is particularly difficult to isolate those parts of the economy within the sector using official statistics.”
BOP Cluster Impact Study 2007

Screen, Image and Sound cluster
CI themselves difficult to measure, SIS even more difficult
SIS cluster has been poorly defined, no consistent measurement
2004 Cluster Mapping study
SIC codes are included that could have been excluded
SIC codes are included in full that should have been subject to weightings

Headline figures 2001-2005
Based on BOP methodology:
700 jobs lost
100 more businesses
Size of sector remained same in relation to UK and to West Midlands

Headline Figures
“ Given that the scope and focus of the sector has evolved over time, it is essential to arrive at a new, clear definition of the sector, to state the rationale for the inclusion or exclusion of specific creative industries, and monitor its progress.”
BOP 2007

Outputs
£4.8 million of AWM RDA funds, leveraging in £2.8 million of EU funding plus millions of pounds of private match.
£14.7million of outputs generated by projects funded by the COG
This figure represents a 226% return on the COG and RDA’s investment according to the Agency’s Value for Money tool.

Outputs
107 new jobs created
77 jobs safeguarded
40 people helped to get a job
54 new businesses created or attracted to the region
832 businesses assisted to improve their performance
193 people gaining high level skills
140 collaborations with the knowledge base

Developing Strategy
Misalignment
Govt identification of West Midlands Clusters and regional implementation.
Regional identification of CI clusters and continued support of ‘audio-visual’ cluster.
Mapping of CI nationally and mapping of CI locally.

Implementing Strategy
Cluster dominated by influence of industry group (COG)
Able to impose its own definitions of cluster
Focused on increasing share of public funds locally
Focus on lobbying and influence regionally and nationally

Summary
West Midlands enacted cluster policy speedily due to specific local circumstances
Little evidence of a critical understanding of clusters
Lack of understanding of scope of SIS cluster - impact on employment and business creation negligible?
Input of industry figures key

Key points
West Midlands has conceptualised its audio-visual industries as a business cluster
Little regard for regeneration / creative spaces
In West Midlands a shift to ‘Digital Media’ has allowed greater influence across sectors
4ip / investment funding

Further research
Identifying success
Interviews with actors critical to cluster development
Closer analysis of data in order to better identify trends
Impact on other public funds during cluster development

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Issues In Developing An Audio Visual Cluster In The West Midlands

by Dave Harte

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