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

integrated with other creative industries sectors. In addition to these opportunities for the sector,
digital technology has also presented traditional business models with certain threats that require
innovative responses if creative businesses are to continue to be profitable.
Digital technology is enabling these sub sectors to transform the customer/delivery interface and cut
costs, for example, e-business processes in the publishing and music industries. Digital technology is
also leading to the development of new service-products, for example, through integrated mobile
platforms, which rely on the development of new service combinations. The high growth potential
of the creative industries, in particular digital content production rests on close integration between
product and service innovation. This in turn reflects a blurred distinction between manufacturing
and services. Innovation may concern the position or context, for example through the tailoring of
digital content production according to specific cultural norms and new markets. Service innovation
may also occur at strategic, operational and personal service interaction levels and rely upon internal
and collaborative R&D. Real Time Worlds and Denki are examples of software companies in Dundee’s
computer games development cluster, which are engaging in new service-product development.
In practice, these different types of services innovation may display characteristics that are common
with all three models of services innovation, i.e. systematic, fast-track and incremental. However,
the rapid pace of technological development and market trends impacting upon the content of
production may require creative businesses to continually innovate and experiment with and fast
track new service-products on the market.
A broad framework of policy initiatives has been established in support of this important Scottish
economic sector. Policy initiatives to support the sector include: A proof of concept fund; recruitment
fairs; Intermediary Technology Institutes; new sector skills agenda; "Dare to be Digital" programme
(also in Dublin); Co-investment Fund for Creative Projects; Digital Media Project Co-investment
Fund; Venture capital ‘Fund4Games’; Cultural Enterprise Offices, Creative Entrepreneurs Club; Screen
Industries Strategy Group; London and New York centres for creative businesses; Electronic IPR
exchange platform for creative industries; International exchange programme for creative industries
professionals; Pacific Quay (Glasgow-digital media businesses); Seabraes Yards (Dundee-creative media
district) etc. 123
Summary
Scotland’s creative industries sector is characterised by a diverse mix of industry sub-sectors, a highly
skilled workforce, a growing export market, good, international partnerships and access to good
telecommunications and a strong academic/research base, in particular, biotechnology and ICT.
Digital content production represents an important sub sector with high growth potential and has
fostered growing collaboration between sectors, resulting in the reconfiguration of business models,
transformation of the customer delivery interface and development of new service-products through
integrated mobile platforms, which rely on the development of new service combinations.
2. Stockholm Creative Industries Sector
Brief Description of Stockholm Creative Industries Sector
Stockholm is the leading location for companies in the creative industries, particularly media, music,
fashion and the arts with almost 10,000 limited companies located in the area. The sector has
experienced significant growth for employment and average income although the sector growth
rate is lower than other sectors. It has a 52,000 strong workforce and employs more than half of
123 Tibbets, M. Creative Industries Cluster Team. ‘The Creative Industries Cluster Initiative in Scotland’; Presentation to ‘Community Colleges in
Creative Economies’ conference, North Carolina, Nov 4-5, 2004.
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