Transcript Slide 1
Digital and Creative Industries Hard Times and Open Minds Sector snapshot • Digital, Creative, convergent media and ICT • Scale and reputation – second biggest cluster in Europe, not just a UK player • 31,000 businesses employing 320,500 people and generating £15.8bn in GVA (2004) • ICT/Digital sector of 6,000 companies employs 70,000 people, creating £7billion per annum in GVA What are the problems? • Lack of scale – businesses lack working capital to survive prolonged downturn, not sufficiently broadly based to diversify their market • Lack of experience of working through a downturn • Fear, uncertainty and doubt – commissioners go to the little black book (and clients stick with agencies), all seek cost reductions from the incumbent • Risk aversion amongst employees – makes attracting talent more difficult • Structural changes – in newspapers, independent production – exacerbated by recession in advertising spend and shift to measurable online ROI Never waste a good recession • Increased competition will mean the strong survive • Some employees will stay for longer in uncertain jobs market (but not necessarily the ones you want!) • Clients may be more prepared to listen to better offers • Time not spent working for fees can be spent developing skills, innovation and new business models in readiness for the upturn • You can probably access the freelance skills you need at an economic cost Sector strategy - aims • Was to grow Digital and Creative Sector GVA by £1 billion year on year – now to retain jobs and capacity • Create largest digital media cluster in Europe • Be identified as one of world top 3 clusters by 2020 • Create an innovation system from which a worldleading convergent media business can emerge in the next decade • Innovative, long term approach to funding • Influence Govt policy, regulation and infrastructure Sector strategy – before … ‘It is as important for a region to have a strong story to tell about innovation (in order to attract the necessary mass of new inputs to achieve it) as to have a clear policy to support R&D.’ Charles Leadbeater, 2006 • Innovation • Convergence • Internationalisation • World Class Skills Sector strategy now, and after • Ensure that businesses get all appropriate support (Business Link NW, cluster, finance) • Leadership and management skills at a premium • Multi-skilled workforce a basic requirement – convergence has happened • Internationalisation no longer an option – now critical • Innovation – use the time to put thinking into action • Collaboration essential for survival Cluster rationale • You can only go so far to affect the behaviour and performance of a single firm • Very few SMEs can set prices and control markets • Very few SMEs contain all the skills they need • Very few SMEs have sufficient market intelligence • Especially in times of recession, regulation (the way in which access to markets is controlled and priced) and fiscal policy (financial support, tax breaks) are more critical than ever – we need to influence Government ‘Footprint’ of cluster activity • Digital content (film, television, radio and digital media) • Video games (console and network games and mobile content) • ICT and Software development • Creative services (advertising, marketing, graphic design) • Publishing (including electronic publishing) • Music (including promotion of live music) Regional Cluster Organisation • North West Vision + Media – Regional Screen Agency with additional capacity for skills, finance, supply chain • Three year agreement with NWDA • Investment in production through RAF and VCLF • Commissioning framework for demand-led training, informed by Sector Skills Councils • Managing Northern Way Innovation project skills Building scale and collaboration • Experimentation around business models and convergence (Alchemy, AND, b.TWEEN) to be crystallised into Northern Way Innovation Fund • NorthernNET – a dedicated high speed, secure fibre optic MPLS network - 100Mbps up to 1 Gbps from coast to coast – with multiple ‘media access bureaux’ to create economies of scale in a sector predominantly made up of small, fastmoving, entrepreneurial companies • Creative Industries Technology Innovation Network (CITIN) call for collaborative projects (http://pfi.citin.org) • National computer games usability facility – supported by significant Northwest cluster of developers and international publishers, and other more ‘traditional’ content producers Cluster activities • Programme of networking events and seminars • Collaboration with other business sector organisations to open new markets • International trade support (with UKTI) • Work with HEIs to stimulate European partnerships and innovation networks (‘Living Labs) • Marketing for the sector in the Northwest as a whole • Management information and strategic intelligence MediaCityUK • £3 billion, private sector development – 80 ha, 15,500 jobs – unique in scale and ambition – the largest regeneration project in the UK this decade • BBC signed as anchor tenant – 6 departments by 2011- but will be less than 10% of the first phase • Digital Content Lab – SMEs and major players • FIRM – multi-partner research framework • MakeMedia – social media initiative • InfoLab21 projects around ICT and commercialisation of research Thanks for your attention • Any questions? Iain Bennett Sector Leader, Digital and Creative Industries Mobile: 07799 035090 [email protected]