Services Innovation in Ireland - Options for ... - Europe INNOVA

Sweden’s artists and performers with higher education qualifications. It also has a high level of selfemployment
as well as under employment. 124
Services Innovation in the Stockholm Creative Industries Sector
There is a long tradition of innovation within Stockholm’s creative industries (e.g. film, media,
industrial design). This can be attributed to a range of environmental factors such as openness to
new influences and a large pool of skilled labour. Stockholm also enjoys an established educational
infrastructure (e.g. architecture, design, the arts). Other important environmental factors include
Stockholm’s proactive city council, chambers of commerce and industry organisations; alongside
regional cluster initiatives that are targeted at the creative industries (e.g. Roda Linjen in Botkyrka,
IDEA Plant, Kista Science City). There is also a long tradition of industrial links to other sectors.
Two notable examples of services innovation within the Stockholm creative industries sector concern
the development of new service-products and business models. Service-product development in the
sector is illustrated by the merging of media, advertising and distribution. For example, the free daily
morning newspaper Metro is the largest and fastest growing international newspaper in the world.
It is financed by ads and distributed in locations where people commute, travel etc. In addition, the
development of new business models within the sector can be seen in the merging of production and
publishing companies in the music industry, which results in the creation of small networks oriented
to the identification and development of new talent (e.g. Cheiron, Murlyn Music). 125
Drivers of services innovation include those factors that impact upon firm strategy, structure and
rivalry such as: Government incentives and regulation; new business practices and organisational
structures (e.g. virtual teams); and the ability of companies to capture and capitalise on IP.
Factor conditions also represent an important set of drivers of services innovation, for example,
new and hybrid platforms for distribution; the complementary nature of different platforms;
infrastructure; skills, experience and creative flair; and a multicultural and multilingual workforce.
Demand conditions that drive services innovation include: The increasing size and reach of the
market; affordable and easy access to online facilities; and increasing demand for more (and more
timely) information. These demand conditions are of course common to many related and
supporting industries.
Similarly, barriers to services innovation within the Stockholm creative industries sector can be viewed
on the same basis. For instance, certain factors related to firm strategy, structure and rivalry may
hinder services innovation. These include: A lack of experience in managing IP; poorly developed
business model; and the inability of SMEs to internationalise. Whereas, factor conditions that may
hinder services innovation include: An inadequate combination of appropriate skills, talent and
experience in some sub sectors; and a lack of access to financing. Demand conditions that hinder
services innovation include: Consumers still not adequately educated in new media capabilities; and
a lack of understanding of industry needs among recruitment agencies. Further barriers to services
innovation concerning interaction between the creative industries and related and supporting
industries include: Lack of communication and underdeveloped relationships between firms; and an
absence of a common commercial language to foster collaboration.
An interesting example of public sector support is the RITTS Stockholm project (1999-2000), which
aimed to strengthen the TIME sector by encouraging collaboration between the entertainment,
leisure and technology sectors. Entertainment companies were generally located in the city centre,
while technology companies were based on the outskirts. As a consequence of this geographical
separation, the two sub sectors had limited interaction. The RITTS project facilitated interaction
between representatives from telecoms and IT with film, fashion, music and arts. Another RITTS
outcome was the introduction of innovation support e.g. university-based incubators.
124 Hallencreutz, D and Lundequist, P. Intersecta. 2005. ‘Stockholm case study – the creative industries’.
125 Hallencreutz, D and Lundequist, P. Intersecta. (2005).
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