locating innovation in the urban cultural...
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Locating innovation in the urban cultural economy:in the urban cultural economy:
the case of screen‐based industries in Toronto
Charles H. Davis, Ph.D.RTA School of Media
l f C i i & iFaculty of Communication & DesignRyerson University
February, 2012
For presentation at the session on “Searching for the Right Space for Innovation, AAAS annual meeting, Vancouver, Feb. 17, 2012
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agendaagenda
• Innovation in culture‐producing industriesInnovation in culture producing industries
• Some characteristics of the screen‐based industries in Ontarioindustries in Ontario
• How to understand innovation outcomes in lt d i i d t i ? Fi iculture‐producing industries? Five generic
innovation pathways
• conclusions
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Innovation in culture industriesInnovation in culture industries
• Understanding (and improving) innovation in culture‐producing industries raises several challenges (Davis, Creutzberg & Arthurs, 2009)
– sectoral boundaries are increasingly fuzzy (so statistics are often unavailable)unavailable)
– the OECD‐sanctioned TPP model of innovation is not adequate (i.e. innovation is not primarily about how R&D improves production efficiencies)production efficiencies)
– no conventions exist for measuring increments of innovation
– we cannot assume that rate of product innovation reliably predicts commercial success
– “spillovers” or externalities play an important role
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The Ontario Entertainment and lCreative Cluster
• Ontario’s Entertainment and Creative Cluster encompasses book and magazine publishing, music, interactive digital media, and film and television production
• The Ontario Media Development Corporation h f h l $estimates the economic size of the cluster at $12.2B
(larger than Mining, Agriculture & Forestry, and Energy sectors in Ontario) (Th St 2012)Energy sectors in Ontario) (Thorne‐Stone, 2012)
• The cluster is growing rapidly, and around 75% of it is located in the Toronto regionlocated in the Toronto region.
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90% of all film and TV production and post‐production in Canada takes place in three centres: Montreal, Toronto, and Vancouver
Millions of dollars
80.0%
90.0%
100.0%
5000
6000
30 0%
40.0%
50.0%
60.0%
70.0%
all others
QC
ON2000
3000
4000
All others
QC
ON
0.0%
10.0%
20.0%
30.0% BC
0
1000
BC
Note: in each province, the respective principal city‐region accounts for >80% of production volume.Source: CFTPA/CMPA, various years
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Production and post‐production firms in Ontario
HAL, 2009
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Within the GTA, most film/TV production and post‐production firms are located in the central core in three areas: King West‐Liberty Village, the Distillery District, and Yonge St. b Bl d E libetween Bloor and Eglinton
Ontario Film & TV
Post‐Production
HAL, 2008
Production Companies
HAL, 2009
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Innovation pathway #1: from production to IP rights management
• Much European media research accepts that p pcountries have indigenous film and TV industries. – The issue then is what are the implications of convergence,
i ti ti i li ti l b li ti di iti ti tprivatization, regionalization, globalization, digitization, etc., on indigenous content‐producing industries and their audiences.
• Much North American research, in contrast, has regarded the development of centres outside Hollywood and New York in terms of “runaway” or
d doutsourced production. – The issue then is what are the long‐term development prospects for
the resulting “satellite” production centers.
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Each of the three principal Canadian screen industry production centres has developed specialized capabilitiesVancouver: service production dominates
Toronto: English‐language Canadian‐owned IP
Montreal: French‐language Canadian‐owned IP
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Innovation pathway #2: i li i b i h dcommercialization by startups with new products
• About 20 digital media incubators / accelerators have emerged in Ontario
• Ryerson’s Digital Media Zone is currently i b ti th 30 iincubating more than 30 companies.
• Demand is very high for places in incubators and laccelerators
• Cost of validating a business idea has declined substantially•BUT most of the current generation of digital media firms are technology plays , content aggregators, or games
•It remains a challenge to incubate firms that offer narrative‐based contentbased content.
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Innovation pathway # 3: k l d llknowledge spillovers (Frontier Economics, 2007)
• Culture‐producing firms acquire new capabilities through adoption of advanced ICTs
• Recent examples: 3D film or tv, mobile digital television, Internet connected television, explosion of SFX into mainstream film & tv
Mr X Inc – scene from Lust, Caution
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Innovation pathway # 4: d llproduct spillovers (Frontier Economics, 2007)
• In the product spillover pathway, creative products andIn the product spillover pathway, creative products and services induce demand for complementary products in other industries. Example: GeoFreakz (CCI)
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Innovation pathway #5: k llnetwork spillovers (Frontier Economics, 2007)
In a networkIn a network spillover, cultural infrastructure can induce h i hchanges in the surrounding environmentenvironment. Example: TIFF Bell LightBoxg
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conclusionsconclusions• Innovation in culture‐producing industries is less of an exact science than in other industriesof an exact science than in other industries
• Spillovers or externalities can be significant factors in the value creation and capture process
• Innovation ‘spaces’ for cultural products are not exclusively geographic but also have key institutional technological and socialinstitutional, technological, and social dimensions.
• It is important to find ways to extend innovation p ypolicy and strategy to the content‐producing industries.
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Bibliography
David Arthurs, Erin Cassidy, Charles H. Davis, and David Wolfe (2009). “Indicators to Support Innovation Cluster Policy", International Journal of Technology Management 46(3/4): 263‐279.
CMPA. Profile, various years. Ottawa: Canadian Media Production Association
Charles H. Davis (2011). “Media Clusters and Public Policy", pp. 72‐98 in C. Karlsson and R. Picard, eds., Media Clusters Across the Globe: Developing, Expanding, and Reinvigorating Content Capabilities. Cheltenham, UK: Edward Elgar.
Charles H. Davis (2011). "The Toronto Media Cluster: between culture and commerce", pp. 223‐250 in C. Karlsson and R. Picard, eds., Media Clusters Across the Globe: Developing, Expanding, and Reinvigorating Content Capabilities. Cheltenham, UK: Edward Elgar.
Charles H. Davis (2010). “New Firms in the Screen‐based Media Industry: Startups, Self‐employment, and Standing Reserve", pp. 165‐178 in M. Deuze, ed., Managing Media Work. Thousand Oaks: Sage.
Charles H. Davis and Janice Kaye (2010). “International Production Outsourcing and the Development of Indigenous Film and Television Capabilities – the Case of Canada", pp. 57‐78 in G. Elmer et al., eds., Locating Migrating Media. Lanham, Md: Rowman and Littlefield.
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Charles H. Davis and Nicholas Mills (2012). "Innovation and Toronto's Cognitive‐Cultural Economy ", in D. Wolfe, ed., Innovation and Creativity in City‐Regions [TBD]. Toronto: University y , , , y y g [ ] yof Toronto Press, in press.
Charles H. Davis, Tijs Creutzberg and David Arthurs (2009). “Applying an Innovation Cluster Framework to a Creative Industry: the Case of Screen based Media in Ontario" Innovation:Framework to a Creative Industry: the Case of Screen‐based Media in Ontario , Innovation: Management, Policy & Practice 11(2): 201‐214.
Frontier Economics (2007). Creative Industry Spillovers ‐ Understanding Their Impact on the Wider Economy. London: Frontier Economics Ltd.
HAL (2009). Ontario's Creative Cluster Study: Music ‐ Film and TV ‐Magazines ‐ Books ‐Interactive Digital Media. Ottawa: Hickling Arthurs Lowe for the Ontario Ministry of Culture.Interactive Digital Media. Ottawa: Hickling Arthurs Lowe for the Ontario Ministry of Culture.
Richard Hawkins and Charles H. Davis (2012). “Innovation and Experience Goods: a Critical Appraisal of a Missing Dimension in Innovation Theory”, unpublished manuscript.
Karen Thorne‐Stone (2012). “Bucking the Trend – Ontario’s Thriving Creative Industries,” speech to the Economic Club of Canada, 7 Feb. 2012.