CISNET CCI Transnational SWOT Report

SWOT Research into the Creative and Cultural Industries of the CISNET Partner Regions

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CISNET is led by Mayo County Council, Ireland, in partnership with WestBIC, Ireland; University of Wales Trinity Saint David, Wales; Eurocei, Spain; Technopole Quimper-Cornouaille, France and Adist, Portugal.

CISNET is supported by the European Regional Development Fund through the Atlantic Area Transnational Programme.

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Contents Introduction ....................................................................................................................................................... 4 Methodology...................................................................................................................................................... 6 Stage One Research ...................................................................................................................................................... 6 Stage Two Analysis ........................................................................................................................................................ 8

Limitations........................................................................................................................................................ 12 Results of Regional SWOT Research ........................................................................................................................... 13 Identifying the Regional Priority Sub-sectors for Wales: ............................................................................................ 14 Identifying the Regional Priority Sub-sectors for Portugal: ........................................................................................ 15 Identifying the Regional Priority Sub-sectors for Andalusia, Spain: ........................................................................... 16 Identifying the Regional Priority Sub-sectors for Mayo, Ireland: ............................................................................... 18 Identifying the Regional Priority Sub-sectors for Brittany, France: ............................................................................ 21 The Significance of these Regional Results ................................................................................................................. 23 Transnational Sub-sector SWOT Comparison ............................................................................................................. 25 Identifying the Key Commercial Attributes: ............................................................................................................... 28 Utilising these Results: ................................................................................................................................................ 30

Summary .......................................................................................................................................................... 32 Future Recommendations ............................................................................................................................... 33

FIGURE 1: EXTRACT ILLUSTRATING HOW SWOT STAGE ONE WAS COMPLETED. ............................................................................... 6 FIGURE 2: EXTRACT FROM THE WELSH SWOT STAGE TWO, SHOWING THE COMMERCIAL ATTRIBUTES AND THE COUNT. ............ 8 FIGURE 3: STEP ONE OF SWOT STAGE TWO. ...................................................................................................................................... 9 FIGURE 4: STEP TWO OF SWOT STAGE TWO. ..................................................................................................................................... 9 FIGURE 5: RADAR CHART PRODUCED FOR WALES’ CULTURAL MANAGEMENT SUB-SECTOR.......................................................... 10 FIGURE 6: RADAR CHART PRODUCED FOR WALES’ ARCHITECTURE AND INTERIOR DESIGN SUB-SECTOR. ..................................... 11 FIGURE 7: THEMES AND TOPICS COVERED IN THE REGIONAL SWOT RESEARCH ............................................................................. 13 FIGURE 8: WELSH CCI SUB-SECTORS ACCORDING TO HIGH, MEDIUM AND LOW RELATIONSHIP SWING. ...................................... 14 FIGURE 9: RELATIONSHIP OF PORTUGUESE CCI SWOT RESEARCH. .................................................................................................. 16 FIGURE 10: RELATIONSHIP OF ANDALUSIAN CCI SWOT RESEARCH. ................................................................................................ 17 FIGURE 11: ANDALUSIAN CCI SUB-SECTORS ACCORDING TO HIGH, MEDIUM AND LOW RELATIONSHIP SWING. .......................... 18 FIGURE 12: COMMON SUB-SECTORS WITHIN MAYO'S GROUPS. ..................................................................................................... 19 FIGURE 13: RELATIONSHIP OF MAYO CCI SWOT RESEARCH. ............................................................................................................ 20 FIGURE 14: COMMON SUB-SECTORS WITHIN BRITTANY'S GROUPS. ............................................................................................... 21 FIGURE 15: RELATIONSHIP OF BRITTANY'S CCI SWOT RESEARCH. ................................................................................................... 23 FIGURE 16: EXTRACT FROM WELSH SWOT STAGE ONE, ILLUSTRATING HOW THE SWOT RESEARCH CAN BE EXPLOITED. ............. 24 FIGURE 17: TRANSNATIONAL SUB-SECTOR COMPARISON. .............................................................................................................. 25 FIGURE 18: COMMONALITY OF SUB-SECTORS ACROSS ALL FIVE RREGIONS. ................................................................................... 26 FIGURE 19: COMMERCIAL ATTRIBUTES USED TO ASSESS SWOT INFORMATION. ............................................................................ 28 FIGURE 20: THE COMMERCIAL ATTRIBUTES USED IN ASSESSING THE REGIONAL SWOT................................................................. 29 FIGURE 22: THREE COMMERCIAL ATTRIBUTES AFFECTING THE CCI................................................................................................. 30

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Introduction The CISNET project is a support service to the creative and cultural industries that involves five regions across the Atlantic Area. In each region the work of CISNET is conducted by regional partners, of whom there are six in total: Mayo County Council and WestBIC in Ireland, Eurocei-Centro Europeo de Empresas e Innovación in Spain, Technopole Quimper-Cornouaille in France, University of Wales Trinity Saint David in Wales and Adist in Portugal.1 It should be noted that Adist replaced the previous Portuguese partner, CPIN, in October 2011 and the data included in this report was collated prior to this change. The lead partner in the project is Mayo County Council and the work is coordinated by The European Consulting Company, TECC.2

The Project is supported by the European Regional Development Fund, ERDF, with further support from each of the regional partners. CISNET is an INTERREG IVB project that sits within the Atlantic Area Transnational Programme; in particular it is founded within this programme’s priority one Innovation Networks. 3

The objective of the CISNET project is to “promote economic conversion and diversification by promoting regional endogenous potential.”4 Removing the jargon, this means exploiting the existing creative and cultural assets of the regions to support business growth. In order to achieve this goal it is crucial that the project is based on research and intelligence.

One of the key building blocks in this intelligence gathering is understanding the strengths, weaknesses, opportunities and threats, SWOT, of the creative and cultural industries, CCI.5 SWOT research was carried out at a regional level in each of the five partner regions of the CISNET project. At this regional level, the intentions of the SWOT research were twofold: firstly it identified the creative and cultural sub-sectors that offer the strongest strengths and opportunities for business development; Secondly, the sector knowledge gained through the research formed the background for each partner’s regional action plan.

This report brings the findings of the regional SWOT research together to form an overall analysis at a transnational level. At this transnational level, the SWOT analysis compares the findings of the regional reports, seeking possible clusters and synergies that have the potential to be commercially exploited at a transnational level.

The structure of the report is as follows: initially, there will be an overview of the methodology used in compiling and conducting the regional SWOT research. This will be followed by an acknowledgment of the research’s limitations.

The next section will present the results of the regional SWOT research, with emphasis placed on providing an

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explanation of these results. The report will then move on to identifying synergies and clusters across the partnered regions. The report concludes with a summary of the findings and future recommendations.

The initial SWOT research documents are included at the end of the report as appendices 1 to 5.

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Methodology The SWOT research consisted of two parts: stage one qualitative research and stage two quantitative analysis.

Stage One Research Stage one qualitative research was designed upon a matrix version of the traditional SWOT analysis.6 As is standard in SWOT research ‘strengths’ and ‘weaknesses’ referred to internal assets/aspects of a CCI sub-sector and ‘opportunities’ and ‘threats’ referred to external factors that may affect a CCI sub-sector.

The process behind this stage involved researching relevant information and determining whether it was a strength, weakness, opportunity or threat to the CCI. Each piece of information was then placed in the relevant column and alphabetically coded to show the applicable sub-sector.5 For instance, in Wales the ‘Limited mobile phone service in some areas of the region’ was seen as a threat that affected all of the CCI sub-sectors. This example is shown in the Welsh SWOT stage one extract in figure 1 below.

Figure 1: Extract illustrating how SWOT stage one was completed.

This stage of the SWOT research was entirely qualitative, and based upon relevant literature and data sources relating to the CCI sub-sectors. In researching information international, European, and regional sources were

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referred to. In each regional SWOT analysis the sources referred to varied; however, to provide consistency every effort was taken to ensure they were current and relevant, with 2005 set as a crude date limit. All sources referred to have been listed appropriately.

The CCI sub-sectors included in the regional SWOT analysis originate from the sub-sectors listed in the original CISNET application7 with some regional variations. These variations are based on the additional background knowledge of the CISNET officers carrying out the research in each region. For instance, in Portugal, due to their existing CCI knowledge, the CISNET officers choose to focus their research on Audio-visual, Design, Multimedia and Software. In contrast, the SWOT analysis from Mayo took a more inclusive approach based on the ‘Delineation of the Cultural & Creative Sector’ as laid out in The Economy of Culture in Europe, 2006.8 Within this delineation the different sub-sectors are grouped in circles, namely Core Arts, Cultural Industries and Creative Industries and Activities.9

At a regional level these differing approaches allowed greater flexibility for the researcher allowing them the opportunity to capitalise on regional research and their own knowledge. That said, at a transnational level these variations posed a challenge to analysing the regional findings in a consistent and balanced manner. To counter-act this challenge a matrix was created that enabled easier comparison across the regional differences, see appendix 6 Guidance for Understanding Sub-sectors used in Regional and Transnational SWOT.

Across the regions the initial CISNET SWOT research gathered together vast amounts of information and knowledge on the CCI. The sheer scale of this information created a barrier that prevented this information being used as accessible resource. As a solution a second stage of SWOT analysis was devised that transformed pages of information and knowledge into data and then graphics that are capable of communicating the prospects of the region’s CCI in a glance.

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Stage Two Analysis The stage two quantitative research took a very different approach to the first part of the SWOT. At this stage attention was turned into communicating the sources compiled in the first part into accessible quantitative information. A system of coding was devised by CISNET’s Portuguese partners; this coding system allocated a count for each item of information included in the SWOT based on a set of commercial attributes, see figure 2.10

Figure 2: Extract from the Welsh SWOT stage two, showing the commercial attributes and the count.

Each item of information recorded in stage one of the SWOT was assessed against these attributes. If the attribute was deemed relevant to an item, the attribute received a score of one. This system of counting was carried out for the entirety of each regional SWOT, with each attribute receiving a total overall score. Resultantly, it is possible to identify which commercial attributes are most crucial to the development of a region’s CCI. At a transnational level it is possible to compare the regional findings and identify similarities and differences. This count was carried out with Microsoft Excel, and the final results were illustrated in column charts. The steps involved in this process are illustrated in figures 3-4 below.

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Figure 3: Step one of SWOT stage two.

Figure 4: Step two of SWOT stage two.

This system of counting was then developed to include a count for each sub-sector’s strengths, weaknesses, opportunities and threats. Still based on the count for the commercial attributes, a total score was uncovered for the amount of strengths, weaknesses, opportunities and threats applicable to each sub-sector. By looking at the numerical difference between the scores of a sub-sector’s strengths, weaknesses, opportunities and threats it is

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possible to identify those sub-sectors whose strengths and opportunities outweigh its weaknesses and threats. This difference is referred to as a relationship swing.

This process was carried out with Microsoft Excel, and the data produced from the count was illustrated by radar charts. The benefit of using radar charts is that they succinctly visualise the relationship swing between the strengths, weaknesses, opportunities and threats of each sub-sector. Then by simply comparing these radar charts side-by-side, it is possible to identify the sub-sectors that offer proportionately higher strengths and opportunities [a high swing] in comparison to their weaknesses and threats [a low swing]. In doing so it thus becomes possible to recognise the differing prospects of the various sub-sectors.

For instance, examining the radar chart for one of the region’s Cultural Management sub-sector, figure 5, it is possible to recognise in an instant that its strengths and opportunities outweigh its weaknesses and threats.

Relationship of s.w.o.t for Cultural Management Strengths

Relationship Swing Threats

Opportunities

Weaknesses

Figure 5: Radar chart produced for Wales’ Cultural Management sub-sector.

In Comparison, if one was to examine the radar chart of Architecture and Interior Design, figure 6, it is equally clear that this sub-sector has different prospects.

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Relationship of s.w.o.t for Architecture & Interior Design Strengths

Relationship Swing Threats

Opportunities

Weaknesses

Figure 6: Radar chart produced for Wales’ Architecture and Interior Design sub-sector.

This comparison between opportunities and strengths to weaknesses and threats was deliberately carried out on a sub-sector by sub-sector basis; if it was administered collectively across the entire CCI results, a dramatic bias would occur as a result of certain sub- sectors featuring more heavily in the SWOT stage one research. This process was carried out with Microsoft Excel, and the data produced from the count was illustrated by radar charts.

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Limitations One of the most crucial limitations facing this report is the balance between the depth of coverage and the breadth of coverage. A compromise had to be made that allowed for the research into the featured sub-sectors to be openminded and support the notion that CISNET is looking for new opportunities and should not be restrained by preconceived ideas of what is and is not relevant, yet as a consequence the depth of enquiry was sometimes limited.

The depth of research was also affected by the time restrictions placed on carrying out the research and the production of the final report. The research itself has no limit; the CCI and the factors affecting them are continuously developing. Nevertheless, a cut off point had to be implemented in order to ensure a manageable amount of information as well as a timely outcome. That said one of the final recommendations of this report is for the research to be updated towards the end of the project.

A final point worth establishing is that this research and assessment of the CCI is focused on enterprise and business growth. Hence, the information contained in the SWOT research is assessed against commercial attributes. This report acknowledges that the CCI offer many additional non-commercial benefits regionally and transnationally. It is not the intention of this report to disregard these benefits, rather in line with the restrictions already present on breadth and width it was considered prudent to leave these considerations to the regional partners.

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Results of Regional SWOT Research As specified in the CISNET proposal document, the SWOT research focussed its research on the following themes: Markets, Finance, Skills, and Technology.11 In order to a provide a comprehensive analysis, these themes were then broken down into topics, namely: International Presence, Public/Private Initiatives, Innovation, New Markets, Infrastructure, Geography and Tourism, Education, Public Administration, Intellectual Property, Employment, Use of Technology, and Funding, see figure 7. In conducting the stage one SWOT research information perceived as relevant to these areas was collected and listed under these topic headings.

Figure 7: Themes and topics covered in the regional SWOT research

As described in the introduction, the goal of the regional SWOT enquiries was to establish the knowledge needed to create regional action plans and the goal at a transnational level was to identify possible clusters and synergies that have the potential to be commercially exploited. Subsequently, the results that follow focus on what can be learnt from the SWOT research, as opposed to providing an extended narrative of the information it contained.

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Identifying the Regional Priority Sub -sectors for Wales: The Welsh SWOT research was carried out across fifteen sub-sectors and divisions: Animation, Advertising, Architecture, Books & Publishing, TV & Radio, Crafts, Video Games, Design, Film & Video, Cultural Management, Interactive Digital Media, Music, Performing Arts, Software, and Visual Arts. In order to create comparable data for the transnational SWOT, some changes were made to the classification of the sub-sectors after the completion of the SWOT research: Software, Video Games & Interactive Digital Media were amalgamated into one sub-sector, and animation merged with Film & Video. For full details on how this compares to the partner’s and transnational subsectors see Appendix 6. To view all 15 radar charts see Appendix 7.

After comparing the radar charts for all fifteen subsectors, three groups of sub-sectors emerge: those with a high, medium or low swing in favour of ‘strengths’ and ‘opportunities’, see figure 8.

High Swing in Favour of Strengths and Opportunities

Medium Swing in Favour of Strengths and Opportunities

Low Swing in Favour of Strengths and Opportunities Advertising

TV & Radio Books & Press

Architecture Software*

Film & Video [including animation]

Crafts Design

Cultural Management

Performing Arts Music

Interactive Digital Media*

Video Games* Visual Arts

Figure 8: Welsh CCI sub-sectors according to high, medium and low relationship swing.

* Interactive Digital Media, Software and Video games are different divisions of the same sub-sector [Software & Video Games]. However, because there was such disparity between the results of their analysis it was decided to categorise them separately in the above table. If they were to be categorised together they would just fall in the medium swing column.

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Figure 8 enables the swift identification of the subsectors that presently offer the most innate potential. As CISNET’s primary objective is to “promote economic conversion and diversification by promoting regional endogenous potential”12 It is recommended that the sub-sectors of TV & Radio, Film & Video [including animation], Cultural Management, Interactive Digital Media* form Wales’ priority sub-sectors.

Identifying the Regional Priority Sub -sectors for Portugal: The Portuguese SWOT research was carried out across four sub-sectors: Audio-visual, Design, Multimedia and Software. In relation to the transnational sub-sector standard categories Audio Visual corresponds with TV & Radio, and Film & Video; Multimedia and Software both correspond to Software and Video Games, for further details see Appendix 6.

Following the system laid out in the methodology section the radar charts produced for the Portuguese SWOT research are as follows.

Relationship of s.w.o.t for Audio Visual Strengths

Swing Threats

Opportunities

Weaknesses

Relationship of s.w.o.t for Multimedia Strengths

Swing Threats

Opportunities

Weaknesses

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Relationship of s.w.o.t for Software Strengths

Swing Threats

Opportunities

Weaknesses

Relationship of s.w.o.t for Design Strengths

Swing Threats

Opportunities

Weaknesses

Figure 9: Relationship of Portuguese CCI SWOT research.

The swing shown in these charts suggests that the sub-sectors of Audio-visual, Multimedia, and Software are Portugal’s most positive sub-sectors; whereas Design despite scoring highly in strengths may need more assistance to capitalise on its potential.

What is striking is that these results show all relatively positive swings. Interpreting this outcome, one may postulate that this supports the reasoning behind the Portuguese SWOT research to focus on these sub-sectors. Moreover the research clearly supports these areas remaining as CISNET Portugal’s priority sub-sectors.

Identifying the Regional Priority Sub -sectors for Andalusia, Spain: The Andalusian SWOT researched the CCI sub-sectors of Audio-visual, Architecture, Crafts and Advertising; similar to the Portuguese SWOT research this selection was based on existing CCI knowledge and involvement. Following SWOT stage one and two it was possible to visualise the relationship swing of these sub-sectors as follows:

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Relationship of s.w.o.t for Audio Visual Strengths

Swing

Threats

Opportunities

Weaknesses

Relationship of s.w.o.t for Architecture Strengths

Swing

Threats

Opportunities

Weaknesses

Relationship of s.w.o.t for Advertising Strengths Swing Threats

Opportunities

Weaknesses

Relationship of s.w.o.t for Crafts Strengths

Threats

Swing

Opportunities

Weaknesses

Figure 10: Relationship of Andalusian CCI SWOT research.

These radar charts make it possible to identify some crucial differences in the prospects of these pre-selected subsectors. Audio-visual has a clear positive swing towards strengths and opportunities as opposed to threats and

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weaknesses. In contrast Adverting has a large swing towards weaknesses.

Architecture and Crafts are less

straightforward to interpret. In the case of Architecture there is a very strong indication that the strengths outweigh the opportunities, threats and weaknesses; yet because the opportunities score low it is comparable only to the middle swing of Portugal’s SWOT results for Design, For Crafts, there is again a positive swing, this time towards opportunities, yet this is equally balanced by the swing towards weaknesses; given that the Crafts strengths are also relatively balanced this can again only be interpreted as a medium positive swing.

Therefore, as with the Welsh SWOT results, three groups of sub-sectors emerge: those with a high, medium or low swing in favour of ‘strengths’ and ‘opportunities’ see figure 11.

High Swing in Favour of Strengths and Opportunities

Medium Swing in Favour of Strengths and Opportunities

Low Swing in Favour of Strengths and Opportunities

Crafts Audio-visual

Advertising Architecture

Figure 11: Andalusian CCI sub-sectors according to high, medium and low relationship swing.

Identifying the Regional Priority Sub -sectors for Mayo, Ireland: As noted in the methodology section, Mayo based their SWOT research of pre-determined groups, namely Core Arts, Creative industries and Activities, and Cultural Industries. Appendix 8 provides a full example of what is included in these groupings, and Appendix 6 illustrates how these are comparable to the other regional and transnational SWOT sub-sector groupings. Figure 12, below, provides an immediate explanation of this comparison and demonstrates that nearly all off the other sub-sectors covered in the regional SWOT reports feature in Mayo’s three groups.

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Core Arts

Creative Industries & Activities

Visual Arts

Design

Crafts

Cultural Industries Film & Video Broadcasting

Performing Arts

Advertising

Video/Computer Games

Heritage

Music Architecture

Photography

Publishing

Figure 12: Common sub-sectors within Mayo's groups.

One important difference that needs to be noted is that although Video games are a part of the Cultural Industries group, Software is not. Across the remaining regional SWOT research and the transnational categorisation of subsectors, Video games and Software are treated as a unified sub-sector. Therefore, caution should be taken when making any decision on the sub-sectors featured in the Cultural Industries grouping as due to the exclusion of Software they are not fairly or directly comparable.

Nevertheless, as a result of the radar charts, see figure 13, is possible to identify that the strongest positive swings are found firstly in the groupings of Creative Industries and Activities, and then closely followed by Cultural Industries. In both of these groupings the strongest swing is toward opportunities, with the strengths, weaknesses and threats fairly evenly balancing each other out. Core Arts also indicates a strong leaning towards increased opportunities, yet the existing strengths are slightly outweighed by the weaknesses and threats.

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Relationship of s.w.o.t for Creative Industries & Strengths Activities Swing Threats

Opportunities

Weaknesses

Relationship of s.w.o.t for Core Arts Strengths Swing Threats

Opportunities

Weaknesses

Relationship of s.w.o.t for Cultural Industries Strengths

Swing Threats

Opportunities

Weaknesses

Figure 13: Relationship of Mayo CCI SWOT research.

The SWOT findings from Mayo are particularly interesting as none of the sub-sector groups show a strong spike towards strengths. It is important to question any research and this is area that certainly needs more exploration.

From the existing knowledge of the CISNET officers carrying out the research in Mayo it is clear that there certainly are sub-sectors in Mayo that show clear strengths. To understand this paradoxical position, one explanation is likely to be found in the collective groupings of the sub-sector. For instance, if we use the grouping of Cultural Industries as an example it may be that the strengths possibly found in the Music sub-sector are counter-acted by weaknesses found in Video games. Of course this is all hypothetical, but it is certainly an area that needs to be examined further.

An alternative suggestion for these findings may be found in that the sub-sectors and SWOT information was

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assessed according to a business model in the form of the commercial attributes. This may illuminate why the core arts showed a surprising, to the CISNET officers carrying out the research, low swing towards strengths.

Nevertheless, caution should also exercised before rapidly explaining away these results; as the same commercial attributes were used in the Welsh SWOT research which scored Heritage very highly and resulted in an extremely positive swing towards strengths and opportunities.

Identifying the Regional Priority Sub -sectors for Brittany, France: Similar to Mayo, Brittany also opted to conduct their SWOT research according to predetermined groups. Brittany’s groups of sub-sectors largely reflect those chosen by Mayo; however there a few crucial differences. Brittany separated the sub-sectors into four groups namely Cultural Industries, Creative Industries and Activities, Patrimony13 and cultural heritage, and Technology. Software is included in the technology group and the Visual Arts are included in Brittany’s Cultural Industries rather than its Patrimony and cultural heritage which in all other aspects is identical to Mayo’s Core Arts group. Appendix 6 illustrates how Brittany’s groups are comparable to the other regional and

Cultural Industries Audio-visual Image

Creative Industries & Activities

Patrimony and cultural heritage

Technology

Marketing and Communication agencies

Cultural heritage

I.T.C

Radio Publishing

Crafts Design

Press

Antiquity

Music Broadcasting

Advertising

Film & video

Video Games, Performance Arts

Animation Visual arts

Software

Architecture

Theatre

Interactive digital media

Figure 14: Common sub-sectors within Brittany's groups. transnational SWOT sub-sector groupings and Figure 14 below illustrates which sub-sectors fall into which group in Brittany’s SWOT research.

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By comparing the radar charts generated by the Brittanese SWOT, see Figure 15, it is clear to see that the Technology grouping shows a far more dramatic positive swing than the other groups, with the threats and weaknesses appearing negligible in comparison to the strengths and opportunities. This pattern of a minimal threat score is apparent across all of the groups included in the Brittanese SWOT. Of the other groups assessed the Cultural Industries also demonstrates a positive swing, because despite showing a high swing to weaknesses this is more than counteracted by the swing to strengths. Creative industries and activities and Patrimony and cultural heritage present results that are nearly on par; both show very high opportunities and very low threats, but in both cases the strengths and weaknesses are evenly balanced. What these results indicate is that when isolating the priority subsectors for Brittany and in devising their regional action plan specific attention should be paid to the sub-sectors within the Technology and Cultural Industries grouping. The results for the other groups are certainly not negative, yet, as they contain so many sub-sectors, concentrating on all four groups may simply be unmanageable.

Relationship of s.w.o.t for Technology Strengths Relationship Swing Threats

Opportunities

Weaknesses

Relationship of s.w.o.t for Cultural Industries Strengths Relationship Swing Threats

Opportunities

Weaknesses

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Relationship of s.w.o.t for Creative Industries and Strengths activities

Relationship Swing

Threats

Opportunities

Weaknesses

Relationship of s.w.o.t for Patrimony and cultural Strengths heritage

Relationship Swing

Threats

Opportunities

Weaknesses

Figure 15: Relationship of Brittany's CCI SWOT research.

The Significance of these Regional Results Along with fulfilling its original goals of identifying the regional priority sub-sectors and forming the basis of the regional action plan, this research into the SWOT of the CCI sub-sectors offers a value outside the remits of the CISNET project.

The wider value of this knowledge is that it enables decision makers to take greater informed decisions about which areas to promote and which areas to offer more support to. For CCI actors this provides a clear indication of the subsectors ripe for exploitation and promotion as well as succinctly showing the areas that are less strong and are facing greater threats. By possessing this information, actors within the CCI can dig down into the qualitative SWOT research and either capitalise on the identified strengths and opportunities or take steps to rectify the weakness and threats.

Moreover, as the sub-sectors include both ‘buyers’ and ‘suppliers’ the research also offers actors within the CCI useful information in finding potential new suppliers, partners and markets. An example of this information may be found in Figure 16, which is an extract from the Welsh SWOT research stage one.

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Figure 16: Extract from Welsh SWOT stage one, illustrating how the SWOT research can be exploited.

As the table illustrates, Cultural Management actors could capitalise on its sub-sector’s strength of increased digital collections to forge greater links with the Interactive Digital Media sub-sector. Furthermore, these sub-sectors together may prove useful partners in supporting the opportunities presented by the development of web 3.0.

Alternatively, decision makers could take measures to alleviate the often strict restrictions on the use of technology within the Cultural Management sub-sector. Likewise, the Cultural Management sector could become a key campaigner in supporting the development of Wales’ technological infrastructure, with the logic that the current infrastructure acts as a barrier to improved promotion and interaction.

Whatever the example, this knowledge can be used on, in conjunction with the information on the CCI key attributes and ideally with a understanding of the clusters and potential synergies that exist transnationally in the partnered regions of the CISNET project.

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Transnational Sub-sector SWOT Comparison The purpose of the regional SWOT analysis is to identify local priority sub-sectors and information to support each region’s action plan. In contrast the purpose of the transnational comparison is to identify clusters and potential synergies.

The determination of these clusters and synergies is based on the regional analysis above. A simple matrix was developed that listed all of the sub-sectors featured in the regional SWOT research according to the transnational standard categories, see Figure 17. Alongside this list checkboxes were placed that indicated whether that particular sub sector possessed a high swing in a region. Attention was also paid to the sub-sectors that produced a medium swing with the logic that when coupled with a region with a high swing they could form beneficial synergies. Subsectors that produced a high swing in a region are marked by an ‘H.’ Sub-sectors that produced a medium swing in a region are marked by an ‘M.’

Sub-sectors

Wales

Portugal

Andalusia

Advertising M

Architecture & Interior design Books & Press

M

TV & Radio

H

H

H

Mayo

Brittany

M

M

M

M

M

H

M

H

M

Crafts & Antiques Design & Fashion

M

Film & Video

H

Cultural management

H

Music

M

H

H

M

M

M

M

H M

M

Performing Arts Software & Video Games

H M

M

H

Visual Arts

n/a

H H

Figure 17: Transnational sub-sector comparison.

Upon examining this grid, certain sub-sectors start to stand out as having a positive swing across all the regions of the CISNET project, such as Film and Video. Likewise, it is also evident that some sub-sectors are only strong in

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certain regions, such as the Visual Arts. The largest cluster of sub-sectors is unsurprisingly found in the middle ground, with a high or medium swing in three out of the five regions. Figure 18 converts this information in to a proportional pyramid, with the sub-sectors that have a medium or high swing in the majority of regions found in the largest section at the base of the pyramid and the sub-sectors that are least common found in the small top apex

Visual Arts

•Least commonality: Least potential for clusters and synergies

Performing Arts

Advertising Crafts & Antiques Cultural Management

•Little commonality: Low potential for clusters and synergies

Architecture & Interior design Books & Press Design & Fashion Music

•Some commonality: Medium potential for clusters and synergies

Software & Video Games

TV & Radio Film & Video

•Largest commonality: Most potential for clusters and synergies

Figure 18: Commonality of sub-sectors across all five regions.

In considering this information there are two possible paths that emerge: the first option is that the CISNET project could focus its efforts on the sub-sectors that show the most or medium level potential across the all if the regions, namely Architecture & Interior design, Books & Press, Design & Fashion, Music, Software & Video Games, TV & Radio and Film & Video. The second alternative option is that smaller partnerships could form within the CISNET project that capitalise on sub-sectors that show high or medium swing amongst only two or three regions. For instance, a supportive partnership could form between Andalusia and Brittany where Crafts & Antiques produced a medium swing in both areas.

In deciding which path to take, consideration should also be placed on the results of the regional mapping exercise14 as well as considering the strengths, weaknesses, threats and opportunities related to the CCI commercial attributes.

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Identifying the Key Commercial Attributes: The SWOT research also investigated which commercial attributes where the most relevant to the CCI, these factors are referred to in the methodology section, but a recap is provide in figure 19.

Commercial Attributes • Access to funding • Adoption of technology/know-how • Application of a market approach • Existence of partnerships and new markets • Focus on internationalisation • HR capabilities • Managerial capabilities • Private strategies valuing creativity • Public procurement • Public strategies promoting CCI • Size of internal market

Figure 19: Commercial attributes used to assess SWOT information.

These commercial attributes act as variables for the information contained within the SWOT research. By assessing each item of information in the SWOT against these attributes it was possible to identify the most dominant and potentially most crucial attribute. The result of this analysis is laid out in figure 20.

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400 350 300 250 200

Total Strengths

150

Total of opportuinities Total weaknesses

100 50

Commercial Attributes

Size of internal market

Public strategies promoting CCI

Public procurement

Private strategies valuing creativity

Managerial capabilities

HR Capabilities

Focus on internationalization

Existence of partnerships and new markets

Aplication of a market approach

Adoption of technology/know-how

0 Access to funding

Total Count across all regional SWOTs

Dominant Commercial Attributes

Total of Threats

Figure 20: The commercial attributes used in assessing the regional SWOT.

Figure 20 shows the combined totals of all the regional SWOT reports; for instance the total Threats shown as attributed to ‘Access to funding‘ is the combined threat count of all five regional SWOT reports. Attached as appendices to this document are individual column charts showing the individual regional counts for each commercial attributes, see appendices 9-13.

By combining the all of the regional counts it is possible to determine which commercial attributes are most the significant across the transnational partnership. In terms of current commercial strengths affecting the CCI the dominant attribute is ‘public strategies promoting the CCI’, this is followed at a reasonable distance by `Existence of partnerships and new markets‘ and `Adoption of technology and know-how‘. The overriding commercial attribute considered as an opportunity across the region‘s CCI is `Existence of partnerships and new markets‘, which this time is followed by `public strategies promoting the CCI’.

Conversely, this latter attribute, `public strategies promoting

the CCI’ is also perceived as the principal weakness affecting the Partnership‘s CCI, followed by `Managerial capabilities’. When it comes to threats it is interesting to note that this is again slightly paradoxical with the count being topped by `Existence of partnerships and new markets‘ and then followed by `Application of market approach’.

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Utilising these Results: While the information from the CCI commercial attributes analysis may seem paradoxical at times, it also offers a sublime illustration of how and in what areas CISNET can contribute to supporting the CCI. What is particularly interesting about these results is that the same attributes feature highly across all four categories, see Figure 21; the consistency of these attributes is arguably testament to their importance and affect on the CCI.

Strengths

Weaknesses

Opportunites

Threats

Public strategies promoting the CCI

Public strategies promoting the CCI

Existence of partnerships and new markets

Existence of partnerships and new markets

Existence of partnerships and new markets

Managerial capabilities

Public strategies promoting the CCI’

Adoption of technology and know-how

Adoption of technology and know-how

Existence of partnerships and new markets

Access to funding

Application of a market approach

Figure 21: three commercial attributes affecting the CCI Subsequently, it is clear that the areas CISNET needs to focus on supporting are: forming partnerships and entering new markets, capitalising on the opportunities that regional and European public policy provides and at the same time working to minimise some of the obstacles that they create in their wake. Alongside, and at times in conjunction with the latter, a key focus area of the CISNET project should be to support the adoption of new technology, capitalise on new funding opportunities and support efforts to address the development of the CCI in line with business models. At a hands-on level CISNET may wish to investigate supporting the development of management skills within CCI enterprises.

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It is in the remit of the CISNET project to act in all of these areas, for instance through match making and supporting CCI enterprises attend trade shows. Therefore, in developing the CISNET regional action plans it is recommended that emphasis is placed on exploiting or addressing these attributes.

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Summary The objective of the CISNET project is to “promote economic conversion and diversification by promoting regional endogenous potential.”15 In facilitating this objective the SWOT research sought to gather intelligence about the existing CCI sector across the partner regions and provide a transnational overview.

The original SWOT research fulfilled this aim by collating the relevant information in the form of a traditional SWOT analysis and by quantifying this information into accessible data. Based on this information, this report was able to identify both regional and transnational priority sub-sectors. Similarly, this report was also able to identify which commercial attributes have the most significant impact on the development of the regions’ CCI.

The benefits brought by this intelligence will form the basis of CISNET’s regional action plans and it will feed into the development and delivery of outputs throughout the project’s life. By providing a tool to develop new approaches, counteract barriers and capitalise on cross sub-sector opportunities, this report also recognises the value this intelligence brings to regional actors and decision makers outside of the CISNET project.

What is particularly interesting about the results of this research is that, while every effort was taken to avoid subjectivity and pre-conceived results, the results manage to largely reflect previous commentary and research from across the different sub-sectors. Nevertheless, this research is rather unique; as it does not reinforce the usual delineations between, culture, core arts, creative and technical etc. Rather, it examines the CCI at their widest and brings this information together in one report. As a consequence, perhaps the greatest asset of this research is that it fulfils a need of the CCI of bringing previously dispersed sector intelligence together. In this way it is hoped that this report feeds into and contributes to the large body of research being conducted across the European Community and within the Atlantic Area Transnational Programme.

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Future Recommendations The task of researching the SWOT of a region’s entire CCI is a considerable task, and the act of conducting the SWOT research was a learning process both in terms of the research produced and for the researchers involved. As a future recommendation, it is proposed that this SWOT research is continued at a future date, this continuation would take into account changes across the sub-sectors, as well as the deepening knowledge of the CISNET project workers. For Wales it is suggested that continued research is carried out into all fifteen sub-sectors, with efforts taken to pay additional attention to the sub-sectors that featured less heavily in the qualitative SWOT research. For Mayo and Brittany it is proposed that the collective groupings of sub-sectors are broken down and key sub-sectors are examined on a case by case basis. For Portugal it is recommended that the opportunity of further research is used to examine a wider selection of sub-sectors, this would not only serve to test this initial research, but it may also identify sub-sectors that may need additional support. Similarly, it is suggested that Andalusia also widen their selection of sub-sectors; as despite having pre-selected the sub-sectors in this research on their perceived potential not all showed a particularly strong positive swing. Therefore, a wider selection may either highlight the potential of the current selection or draw attention to alternative stringer sub-sectors.

Given the life span of the CISNET project, current recommendations are that this update is carried out towards the end of the project in line with the final reporting period. Naturally, once the updated regional SWOT analysis has been carried out, the information should be used to update the transnational SWOT report.

1

Further information on each of these partners can be accessed at http://cisnetwork.eu/partners/ Further information on TECC can be found at http://www.tecc.eu.com/index.html 3 Further information on the Atlantic Area Transnational Programme can be found at http://atlanticarea.ccdr-n.pt/ 4 CISNET, n.d., Project Application for CISNET, Second call for proposals [6 April to 5 June 2009], [internal document], p1.

5 Over time, the CCI have received multiple definitions, yet for the purposes of this research it will be used in reference to the sub-sectors of: Advertising, Architecture & Interior design, Books & Press, TV & Radio, Crafts & Antiques, Design & Fashion, Film & Video, Cultural management, Music, Performing Arts , Software & Video Games, and Visual Arts.

6 For a succinct introduction to SWOT research see: SWOT (Strengths, Weaknesses, Opportunities, Threats), in Decision Support Tools [webpage] accessed via http://www.ifm.eng.cam.ac.uk/dstools/paradigm/swot.html, accessed on 07/08/2011.

7 CISNET, n.d., Project Application for CISNET, Second call for proposals [6 April to 5 June 2009], [internal document], p24.

8 See: http://www.keanet.eu/en/ecoculturepage.html 9 In the full delineation there is also a circle for ‘related industries’ that includes sectors such as ICT, PC manufacture and the mobile industry. This circle did not feature in the Mayo region’s SWOT analysis.

10 These commercial attributes act as variables for the information contained within the SWOT research. By assessing the contents of the SWOT against these characteristics it is possible to identify the key dynamics affecting the CCI. The attributes considered in the regional SWOT research were: Access to funding, Adoption of technology/know-how, Application of a market approach, Existence of partnerships and new markets, Focus on internationalization, HR Capabilities, Managerial capabilities, Private strategies valuing creativity, Public procurement, Public strategies promoting CCI, Size of internal market.

11 CISNET, n.d., Project Application for CISNET, Second call for proposals [6 April to 5 June 2009], [internal document], p30.

12 CISNET, n.d., Project Application for CISNET, Second call for proposals [6 April to 5 June 2009], [internal document], p1.

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13

Patrimony refers to heritage and traditions.

Each region involved in the CISNET project also conducted a regional mapping exercise. This sought out current information on the structure and nature of the CCI sub-sectors within each region. This information is available in a separate report document.

15 CISNET, n.d., Project Application for CISNET, Second call for proposals [6 April to 5 June 2009], [internal document], p1.

14

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