Issues in Developing an Audio-Visual cluster† in the

West Midlands

Dave HarteBirmingham City Unversity

dave.harte@bcu.ac.uk

†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

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

A Local/National timeline

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