This document discusses the Latvian design and creative industries. It provides definitions of creative industries and outlines some of Latvia's planning documents that reference developing creative industry clusters. The document then focuses on Latvia's design industry, noting it is mainly seen as styling rather than innovation. Barriers to the industry's development are identified as a lack of awareness, short-term business strategies, and lack of political support. The audiovisual media sector cluster is discussed as being in a declining stage with challenges including developing long-term strategy, improving education, and fostering cooperation between cluster elements.

1. Latvian Design Industry and Creative Industries Cluster Experiences prof.Dr. TatjanaVolkova KasparsSteinbergs Inga Jākobsone Miks Pētersons TCI Regional Cluster Conference: Insipring Clusters in the Beginning of the New Decade Tallinn, March 30-31, 2011

2. Agenda Creative industries Creative industry clusters and planning documents Design industry Audiovisual media sector cluster Main challenges

3. Creative industries - definition ‘The interface between creativity, culture, economics and technology as expressed in the ability to create and circulate intellectual capital, with the potential to generate income, jobs and export earnings while at the same time promoting social inclusion, cultural diversity and human development. This is what the emerging creative economy has already begun to do.’ UNCTAD’s 2008 report Creative Economy

4. Creative industries architecture advertising film art and antiques market designer fashion television and radio performing arts interactive leisure software design music crafts software publishing

5. Creative industry clusters: planning documents Long-Term CulturalPolicy Guidelines 2006-2015 “National State”: “setting up laboratories and business incubators,fostering development of creative industries clusters” Latvian National Development Plan 2007-2013: “to form a creative industry cluster that includes a number of SMEs whichensure continuous activity and to involve educational institutions anduniversities,suppliers and public institutions in developing the industry’slong-term strategy”

6. Report on creative industries and their policiesin Latvia The following four major support areas were identified: quality of and access to creative industries education and information, raising awareness of creative industries; business-related development (especially within the two prioritysectors – design and audiovisual media and multimedia, whichhave the largest export potential); the exploitation of new technologies; strengthening the research anddevelopment of the regulatory framework.

7. Meaning of design. Design industry contribution to sustainable competitiveness of the business “…design is not just about making something look good. […] Design humanizes technology and helps business appeal to the human spirit. […] Successfully forming and implementing strategic goals is a creative act in and of itself, and it requires leaders who share a fundamental understanding of the role of design in promoting culture of innovation throughout the business.” Esslinger H. (2009), founder of frog design designer business business thinking creative thinking In the synergy of both thinking models, new added value of the products, new solutions of processes and sustainable competitiveness is created

9. increases export potentials

10. lowers costs (less waste, more efficient use of resources etc.)

12. increases country reputation

14. Development of design industry and “Design Ladder” framework design development level IV. Design as innovation close collaboration of professional designer and business management to create sustainable competitiveness through innovation culture and capabilities of the organization Finland, UK, Denmark, Italy III. Design in organization processes Integral, multi-disciplinary approach of business process; clear vision on WHAT and HOW design is integrated into processes II. Product design Design as styling; designer is involved at the final stage of product development for visual improvement Latvia I. No design Design plays very limited role or no design at all time scale Source: authors research data (2010) input in Mollerup Designlab AS “Design Ladder” (2004)

15. Obstacles of design industry development in Latvia design is mainly interpreted as stylish element of luxury goods, thus very limited demand for professional design services no public and business awareness of broad application of design to foster innovations, including social innovations dominate short-term business strategy with primarily focus on cost reduction (includes salary cuts, marketing budget cuts, less quality materials etc.) design is treated as additional cost position and it is considered as not appropriate method in time of economical instability lack of systematic political support in development of new tools and methods of innovations, including design-driven innovations

16. Cluster elements of audiovisual media sector Riga Motion Pictures Studio National Film Centre Latvian Academy of Culture Cinevilla studio Filmmakers Union of Latvia Art Academy of Latvia <35 smaller film studios Latvia Film Producers Association Riga International School of Economics and Business Administration > 5 TV channels

17. Is there any cooperation?

18. Cluster life cycle of audiovisual media sector in Latvia declining and transformation 1990 emerging cluster and development ??? 1996 2011 embryonic cluster stagnation stagnation 2003 “museum”

20. Improve education in creative industries with focuson innovation through new business models, tools and methods

21. Develop trainings, seminars and open panel forums of experts for industry participants

22. Foster cooperation and interaction between elements of potential industry cluster, strengthen role of cluster management and cluster internationalisation