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

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)

Author seconded to work with Regional Development Agency on cluster development from January 2003.

Ran delivery project from Oct 2005-March 2008

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

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

“ [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

“ 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

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

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

“… .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

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)”

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

“ 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

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

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

“ 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.

£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

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.

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

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

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

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

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