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Did you know that Argentina is one of the best three places in the world to look for ideas and one of the three best to produce them, according to The Gunn Report? This publication will help you understand the creative industries in Argentina, a growing economic sector in the country due to its talented human resources and competitive costs. This document was produced by ProsperAr, Argentina´s Investment Development Agency. If you need further assistance contact us at [email protected] or use our website www.prosperar.gov.ar
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Creative Industries in ArgentinaCulture + Reputation for an avid global market
INVESTMENT OPPORTUNITIES
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Highlights
>> A RISING GLOBAL MARKET Creative industries have rapidly become a central part of the global economy.
Driven by globalization and increased connectivity, the sector has grown exponentially and global trade of creative products has flourished both in developed and developing countries.
>> A KEY SECTOR Creative industries are the pillars of the ongoing Argentine economic
transformation towards a production pattern centered on the creation and diffusion of knowledge and professional services oriented towards the global market.
>> REMARKABLE POTENTIAL Argentina counts with a unique combination of highly skilled human resources,
a creative and sophisticated design culture and a truly active and committed public sector. The sector shows an important potential for growth as well as an extraordinary ability to foster innovation and design capabilities across other sectors within the economy.
>> PROFITABLE OPPORTUNITIES Argentina has already established a competitive advantage in some segments
within creative industries –notably screen production and post production– and enjoys a growing recognition across a number of other areas including fashion and design.
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I. Why Invest in Creative Industries in Argentina?
•THE SERIOUS BUSINESS OF CREATIVITY.Thediverse
creativeindustriessectorincludesmusic,advertising,
cinema,television,audiovisualproduction,publishing,
designandfashion.Thisthrivingglobalsectoris
expectedtobecomeoneofthepillarsoftheknowledge-
basedeconomy.
•STRONG MARKET GROWTH.Thesectorhasbeen
growingexponentiallyandisincreasinglybecomingone
ofthemostdynamicsegmentsintheglobaleconomy.
AccordingtoUNESCO,creativeindustriesaccounted
for7%ofworldGDPin2005andareexpectedtoriseto
10%in2010.Inthefirsthalfofthecurrentdecade,global
tradeincreativegoodsandserviceshasincreasedat
approximately9%peryear.
•AN INCREASINGLY GLOBAL MARKET.Globalizationand
increasedconnectivityhasdriventhesector’srevenues,
bothindevelopedanddevelopingcountries.Although
mostoftheactivityisconcentratedindeveloped
countries,developingcountries’exportsincreasedover
40%inthelastdecade.
•ARGENTINA’S TALENT-DRIVEN INDUSTRY.Argentina
isarisingproducerandexporterofcreativeindustries’
productsandhasthepotentialtobecomeacreative
playerintheinternationalscene.Acombinationof
highly-skilledhumanresources,renownedprofessionals,
state-of-the-arttechnologies,awiderangeofstriking
scenesandavibrantandcreativecultureendows
Argentinawithremarkableperspectivesforfurther
developitsgloballycompetitivecreativeindustries.
•ATTRACTIVE SEGMENTS.Well-knownsuccessstories
andacriticalmassofentrepreneurialfirmsandtalented
professionalsconfirmthegreatopportunityforrising
segmentssuchasvisualindustries,advertisingand
fashiondesign.
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II. Sector Structure and Performance
INDUSTRY STRUCTURE
A diverse array of interrelated activities.
Argentinaisacountryendowedwithanenormouslyrich
andvariedculture.Frommusic,danceandtheatreto
cinema,literature,designandplasticarts,thecountry’s
intenseculturallifemakesforagrowingcreative
industriessector,whichrepresentsslightlyover3%ofGDP
(alevelabovetheregion’saverage).Thediversecreative
industriessectorincludesadvertising,music,cinema,
television,audiovisualproduction,printing,designand
fashion.Thesesegmentsarecloselyinterrelatedand
exhibitimportantcomplementaritieswithothereconomic
sectors,suchastourism,softwareandprofessional
services.Infact,creativeindustriesnotonlyshowan
importantpotentialforgrowthbutalsoanextraordinary
abilitytofosterinnovationanddesigncapabilitiesacross
othersectorswithintheeconomy.
Diverse firm profiles in urban settings.
Mostsegmentswithincreativeindustriesare
characterisedbyacombinationofleadingcompanies
-nationalandinternational-andanumberofsmaller
creativefirmstakingadvantageofuniqueopportunities
inthemarket.Byandlarge,creativeindustriesare
largelyconcentratedinthecityofBuenosAires,where
theyrepresent7.5%ofthedistrict’sGDPand8%oftotal
employment.Otherbigcities,suchasCórdoba,Mendoza
andRosario,arealsodevelopinganincreasinglylarge
creativeindustriessector.
SECTOR PERFORMANCE
Growth.Creativeindustriesaregrowingatafasterrate
thantheeconomyasawhole–ata14.5%accumulated
annualgrowthratebetween2002and2007—and
contributeswithover2%oftotalemployment.The
sectorhasflourishedinrecentyears,increasingitsglobal
presenceandreputationforqualityandsophistication.
Argentinaisunleashingitsuniquepotentialresultingfrom
thecombinationofabundantandwell-trainedhuman
resourcesandavibrantcultureorientedtowardscreativity
andinnovation.
Exports.Sincethemid1990sArgentinahasexperienced
aboomincreativeexports.In2007,ahistoricalpeakof
overUS$500millionwasreached,morethandoublingthe
figurefor2002.Audiovisualandrelatedservicesstand
outasthemostrelevantcreativeexports(US$214million),
followedbyadvertisingandmarketresearchservices
(US$194million).Infact,almost50%oftotaladvertising
productionsandcommercialsareforexport.Publishing
andprintingexports(includingbooks,newspapers,
periodicpublications,printingandrelatedservices)
reachedUS$80millionin2007,whilecopyrightsexports
borderedUS$20million.
Advertising and Market Research services
��%
Audiovisual and related services
��%
Newspapers andperiodicals
�%
Books, brochuresand related
1�%
Copyrights�%
Creative Industries Growth Creative Industries Exports
Source: National Institute of Statistics and Census and Argentine Cultural Information System (SINCA)Source: National Institute of Statistics and Census and Argentine Cultural Information System (SINCA)
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III. Main Industry Segments
PUBLISHING
Market. Argentinaisaprominentplayerintheediting
ofpublicationsfortheSpanishspeakingcommunity.
Publishingisawellestablishedsectorinthecountry
(comprisingUS$2,000millioninsalesandover42,000
employees),andisthecreativeindustrysegmentwith
thehighestcontributiontoGDP.Withmorethan300
publishersacrossArgentina(69%inthecityofBuenos
Aires),thesectorisgrowingfastandcurrentlyreleases
around25,000titlesayear(atleast15,000newtitles),and
isresponsibleforprintingover92.7millioncopiesannually
Growth. Salesandexportsinthepublishingsectorare
risingsteadily.Productionexpanded74%between2002
and2007.Bookexportsdoubledbetween2002and2006
beingMexico(25%),Chile(13%),Brazil(13%)andSpain
(10%)themainexportdestinations.Anincreasingdemand
hasalsodrivenariseinbookimports.The20most
importantpublishers(mostofthemofforeigncapital)are
responsiblefor50%ofproductionand75%ofmarketsales.
Inaddition,anumberofsmallandmediumenterprises
(SMEs)operateinthesector,withalong-standing
traditioninthepublishingmarket.
Policies.ThecityofBuenosAireshasestablished
relevantincentivesfortheindustry.Amongthese,the
program“LivingBooks”aimsatpromotingindependent
publishinghouses(suchasInterzona,LaMarca,Leviatán,
andMarea,amongothers)withincreasingvisibilityin
bookstoresandstrongeradvertising.Atthesametime,
throughitsMetropolitanDesignCenter,thecityis
offeringseverallinesofsubsidiesorientedtopromoting
theattendancetobusinessfairs,theacquisitionofediting
andtranslationrights,andtheexpansionofproduction
capacity.Between2006and2007,morethanUS$220,000
weregrantedtoover63publishinghousesinthecityof
BuenosAires.
MUSIC INDUSTRY
Growth.Argentina’srecordingindustryisalsobooming.
Theamountofunitssoldin2007surpassed18million
CDsandDVDs.Atthesametime,digitaldownloadsof
musicthreefoldedinthelastyear,drivinganincrease
intotalmusicmarketof9.6%.Exportsofdigitalmusic
alsoexpandedandreachedUS$15millionin2007,asa
growingnumberoflocallabelsarebecomingincreasingly
international.Digitalmarketsareexpectedtocontinue
thisgrowingtrend,propelledbythearrivalof3Gmobile
phonesandtheconsolidationofmusicconsumptionvia
portabledevices.
Market. AllfourmajorrecordlabelsoperateinArgentina
(Universal,EMI,SonyandWarner),accountingfor77%
ofthemarket.Moregenerally,thelargest33recordlabels
explain90%ofthemarketandarerepresentedinthe
recordingindustrychamber(CAPIF).Argentinaalsohas
morethan120independentrecordlabels(mainlylocated
inBuenosAiresandLaPlata),whichareincreasingboth
theirmarketparticipationandproductoffering:they
editedapproximately4millionrecordsandreachedsales
ofalmostUS$30millionin2007.
Policies.Argentinahasinplaceapackageofincentives
topromotethemusicindustry.ThePublicMediaSystem
togetherwithCAPIFinitiatedthe“ArgentinaDiscs”
programaimedatpromotingtheproductionsoflocal
Music Industry: Units Sold (in millions)Publishing Industry Growth
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Source: Argentine Chamber of Phonograph and Video Producers (CAPIF)
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90
100Printed (in millions) Titles
Source: Argentine Book Chamber (CAL) and Cultural Industries Observatory (OIC)
Titl
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independentlabels.Atthesametime,thecityofBuenos
Airesispromotingtheinternationalizationofmusiclabels
throughitsrecentlycreatedMusicExportDepartment.
Resources.OtherinitiativesincludetheBuenos
AiresInternationalMusicFair(BAFIM),theworld-
renownedTangoandJazzFestivals,andMUSICNET
–aninternationalnetworkforthemusicbusiness,witha
numberofexclusiveservicesformembers.Additionally,
thecountryispositioningitselfasaninterestinglocation
formusicproduction,duetoitsavailabilityofwelltrained
humanresources.Infact,differentuniversitiesand
specializedschoolsoffertraininginmusicproductionand
edition.TheUniversityofBuenosAires(withover1,200
newenrollmentsandover250graduateseveryyear)and
ORTtechnicalschoolsstandoutasthemaininstitutions.
AUDIOVISUAL INDUSTRIES
Growing reputation.TheArgentinevisualindustriesare
gainingastrongreputationworldwide.Argentinefeature
films,TVshowsandseries,contentsandadvertisinghave
receivedseveralinternationalawardsaswellasincreasing
recognitionfortheirquality.Anewgenerationoftalented
youngfilmdirectorsisattractinginternationalinterest,as
wellastheskilledcountry’sauthors,actorsandproducers.
Argentinefilmsarewinningcriticalacclaimatinternational
festivals,andoncinemaandtelevisionscreensaroundthe
world.Thetelevisioncontentandadvertisingindustriesare
alsodevelopingatfastpace,increasinglysupplyingregional
andglobalmarkets.
Cinema.Thenationalfilmindustryacquiredanew
significanceduringthelastdecadewiththearrivalon
thesceneofyoungdirectors(suchasDanielBurman,
AdriánCaetano,AlbertinaCarri,MarianoLlinás,Lucrecia
Martel,CelinaMurga,MartínRejtman,PabloTrapero,
andJuanVillegas,amongothers),whomakeupthe“new
Argentinecinema”.Manyoftheseoutstandingartistsand
professionalswereeducatedinspecializedfilmschools
foundedbyapreviousgenerationofArgentinefilm
makers.In2007,Argentinaexperiencedanextraordinary
growthinthedomesticmovieindustry,when80national
filmswerereleased.Locally,thisnewwaveofproductions
accountsfor10%ofthetotalboxoffice(atotalofUS$90
millionwith32millionticketssold).Thefivemost
importantdistributioncompanies(BuenaVistaDisney,
ColumbiaTri-Star,MGM,UIPandWarner/Fox)represent
45%oftotalfilmsexhibited,75%ofdistributedcopies
and85%ofscreen-time.Localdistributioncompanies—of
whichAlfaFilms,DistributionCompany,LíderFilmsand
PrimerPlanoarethemostrelevant—completethemarket.
�
CASE STUDY
TELEFE INTERNATIONAL: TV contents and production for the world
Production and post production.Productionand
postproductionaretwogrowingsegmentswithinvisual
industriesinArgentina.Themainproductionandpost
productioncompaniesareconcentratedinBuenosAires.
Amongthosethatprovidecinematographicservices,the
mostrelevantareCinecolor,MetrovisionandR-T.Local
filmfestivals,suchasBAFICI(BuenosAiresInternational
IndependentFilmFestival)andtheMardelPlata
InternationalFilmFestivalarefosteringtheindustry’s
development.Forindustryfirms,festivalsservebothas
anopportunitytoraisefundsfrominvestors,andreacha
wideraudienceandglobalindustryplayers(infact,BAFICI
attendancefiguresareincreasingeveryyear,reachingover
200,000spectatorsinits10theditionin2007).
markets but also new platforms were explored, as the
company operates today TV, IPTV, VoD, Home Video and
mobile TV.
A few examples illustrate the company’s export success.
“Wild Angel” (Muñeca Brava), originally produced in
199�/1999, was sold to �0 different countries and
adapted to local versions in countries as different as
India and Portugal. “Montecristo”, originally produced in
�00�, was sold to more than �� countries in its original
format and adapted to local versions in five other. “Tiny
Angels” (Chiquititas), originally produced between 199�
and �000, was sold to �0 countries and “Love’s Guard”
(Amor en Custodia), originally produced in �00�, has
been exported to more than �0 countries. The local
success “Forever Julia” (Resistiré), originally produced
in �00�, was sold to �0 countries and locally adapted
in three, including the U.S. (FOX). This performance in
highly demanding markets is not new: Telefe was the
first Latin American TV network to license a fiction
format—“Pretenders” (Los Simuladores)—to a Hollywood
company (SONY).
Telefe has continuously embarked in new markets
and segments. In relation to production services, the
company has successfully produced programs such
as “Frijolito” (Telemundo, México), “Tango para dos”
(Russia), as well as many others exhibited in different
Latin American countries. The production services are
being increasingly exported worldwide.
Telefe International is part of Telefe, a leading TV network
in Argentina, with a catalogue of over �,000 hours of TV
productions and an international satellite signal present
in Latin America, the U.S., Europe, Australia and New
Zealand. The company has highly trained professionals
and outstanding equipment and infrastructure (11,�00
m� of facilities distributed along 1� studios).
Telefe International, established in 199�, has gone a
long way to become the first distributor of TV contents
in Latin America with products currently present in more
than �0 countries, in �� different languages and with a
total of more than ��0 programming slots worldwide.
This expansion process was led from the area in charge
of international sales for the productions of their own
TV network, Telefe. Nowadays, Telefe International’s
activities include the distribution of contents from other
production companies, the commercialization of their
own network contents and formats, the production of
specific adaptations of their own conceived content and
production for others. What initially began as a marginal
business mainly focused on Latin America (originally
representing ��% of total sales), has diversified
tremendously reaching avid markets in Eastern and
Mediterranean Europe, Israel and Asia. Not only new
Cinema: Argentine Releases & Total Spectators
�00��001�000 �00� �00� �00� �00� �00�
.
Cinema spectators (in millions)New Releases
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Source: National Institute for Cinematography and Audiovisual Arts (INCAA) and Cinenacional.com
New
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9
Filming locally.Argentinaisincreasinglyattracting
audiovisualproductionsandpost-productions.The
combinationofabundanthumanresources,competitive
costsandstrikingscenariosmakesthecountryanideal
locationfortheaudiovisualsector,beitinadvertising,
cinemaortelevision.Everyyearatleast15foreign
featurefilms(includingco-productions)andmorethan
400commercialsand600productionsareshotinthe
countryforexternalmarkets.Thistrend,togetherwith
theboominglocalproduction,fosteredanincrease
inemployment(17%)lastyear.Thecombinationof
localindustryexpertiseandworld-classtechnological
infrastructuremakesthecountryanexcellentlocation
forpostproductionandotherservicesrelatedto
audiovisualindustries.Atthesametime,localcostsare
trulycompetitiveinternationally.Forinstance,theagreed
weeklysalaryforanassistantdirectorisUS$830,US$930
foraphotographyorartdirectorandUS$820foranHD
technician.
Policies.Domesticvisualproductionisapublicly
promotedactivity.Differentgovernmentbodies—such
astheNationalInstituteforCinematographyand
AudiovisualArts(INCAA),thecityofBuenosAiresviaits
MetropolitanFundsforArtsandSciences,andSanLuis
Cine—providefundingaimedatpartiallycoveringthe
expensesoftheproductionprocess.
INCAAgivesprioritytoqualityculturalprojects,fostering
co-productionasameansofenhancingthediffusionand
distributionoflocalproductionsabroad.Argentinahas
signedbilateralagreementswithseveralAmericanand
Europeancountries,andmultilateralagreementswith
anumberofIbero-Americancountries.Co-production
agreementssignedwithothercountriesallowproducers
tojointlymakefilmswiththeaimofgettingthemcertified
as“nationalproduction”intheirrespectivecountries,
gainingaccesstoindustry-specificlegalbenefits.When
thereisnoco-productionagreement,theprojectmayenjoy
thebenefitsofa“nationalproduction”ifitisinaccordance
withthegeneralco-productionrules.
Withthegoalofpromotingthecountry’sattractiveness
ineverystageoftheproductionprocess,INCAAcreated
theArgentineFilmingCommission(CAF)topromotethe
useofnaturalstages,historicalsitesandeye-catching
citieswithinArgentinathatmaybeusedaslocations
foraudiovisualproductions.CAFalsofosterscommon
actionsbetweenthepublicsectorandtheparticipants
intheaudiovisualproductionfield,promotestheuseof
localresourcesandoffersafreeservicetohelpproducers
obtainthepermitsrequiredforshooting.CAFprovides
assistanceandinformationabouttheextensiveavailable
infrastructure,acompletedatabankforsearching
locationsandextensivelegalandfiscalassistance.Along
CASE STUDY
CINECOLOR: Post production world-class services
productions. Recent international projects include the
mastering for Playboy Productions, high-resolution
reproduction for Disney’s High School Musical and
movie transfers (with an average of three movies a
month). Many of these projects are transferred using
the ‘smartjog’ system –a satellite transmission system
designed for the worldwide distribution of encrypted
files and automatic verification of shipping. Cinecolor
is heavily involved in the development and growth of
the local cinema scene, presenting its own awards and
grants in BAFICI (Buenos Aires Independent Cinema
Festival) and supporting the emerging film festival
“Pantalla Pinamar”.
Cinecolor Argentina, owned by a Chilean company, is
a pioneer post-production company and audiovisual
laboratory with strong leadership in Latin America. With
more than �� years of history, it offers comprehensive
services to cinema and advertising industries. The
outstanding level of its more than �0 professionals
and the international quality of its technological
infrastructure are the company’s main differentials.
Offering the complete range of processes involved in
post-production, Cinecolor has built a strong reputation
in the region given its involvement in international
feature films (such as Speed Racer, Indiana Jones and
Sex and the City) as well as in national and regional
10
CASE STUDY
MTVN LATIN AMERICA: investing in Argentine creativity
In �00�, MTV Networks decided to establish its
creative and administrative center for Latin America
in Argentina. With a total committed investment
of US$�� million for the next five years, MTV is
relocating in Buenos Aires some of the operations
previously performed in Miami (U.S.). The combination
of innovation capabilities, technological readiness
and first-class creative local talent, in addition to
competitive costs, were crucial to successfully
relocating such operations. The new center plans
to serve as both creative and administrative
headquarters. A wide range of activities will be carried
out: programming, production and art; subtitling
and dubbing; and development of digital media and
communications. It is expected that the location will
generate a total of ��0 jobs (�00 of which will be direct
positions in production, programming, art, technology
and communications). This recent relocation confirms
Argentina’s potential to become a creative player in the
international scene.
thesameline,thecityofBuenosAiresestablishedBuenos
AiresSet(BASET)asthespecializedplatformtoassist
audiovisualproductioninthecity.Infact,morethanhalf
offeaturefilmsandthreequartersofcommercialsmadein
thecountrywereshotinthecityofBuenosAires.During
2007,BASETissued611shootingpermitsforcommercials
and27forfilms.
Television and Entertainment.RegardingTV,
Argentinaiscurrentlytheworld’sfourthlargest
producerandexporteroftelevisioncontent.Mainexport
destinationsareEurope,MexicoandIsrael.Theleading
domesticproductioncompaniesare4-Cabezas,CMG
(specializedincontentsforteens),IdeasdelSur,Pol-Ka,
Underground,andtheTVnetworkTelefe.Themain
playersintheinternationaldistributionofTVcontentare
TelefeInternational(distributingitsownproductionsand
othersdevelopedbyindependentproductioncompanies)
andDoriMediaGroup(anIsraelicompanyestablished
inthecountryin2006).Nowadays,manyproduction
companiesarenotonlyexportingtheirformatsbutalso
offeringtoentirelyproduceinArgentinaneweditions
ofacclaimedseriestosellworldwide.Atthesametime,
differentcablesignals(likeMTVNetworks)arechoosing
thecountryasalocationforproductionbecauseofits
competitiveadvantages.Inaddition,localproduction
companiesareincreasinglyattractinginternational
investmentsfortheearlystagesofproduction,in
exchangeofexclusiverightsforworlddistributionand
commercialization.
Animation.Ananimationindustryisboominginthe
countrywithgrowinganimationproductioncompanies
enteringthemarket.Someofthesefirmsaresubsidiaries
ofdomesticfilmproducingcompanies(asPatagonik
Animation,asubsidiaryofPatagonikfilms)whileothers
areindependentstart-ups,asinthecaseofHookup
animationandEncuadre.Despiteitsyouth,thesefirms
aregaininginternationalreputationforitsproducts
quality,andclientportfoliosthatincludeCartoonNetwork
andWaltDisneyTelevision,amongothers.Someofthe
domesticproductionsattractedabigdealofattentionand
audience,eitherincableTV(as“MercanoElMarciano”)
orintheboxoffices,asinthecaseof“RatónPerez”,
“Dibu”and“Patoruzito”.Severalawardsobtainedin
theAnimationFestivalatAnnecy(France)provethe
qualityoftheindustry.TheArgentineAssociationof
AnimationCinema(AACA)agglutinatestheindustryand
advocatesforrisinglevelsoftechnologicaldevelopment
andknowledge.Establishedasthelocalchapterofthe
AssociationInternationaleduFilmD’Animation(ASIFA),
AACAco-organizesExpotoons,anannualfairand
businessroundwhichhasbecomeafundamentaldatein
theanimationcalendarworldwide.
ADVERTISING
Market.Theadvertisingindustryhasalongtradition
inArgentina,basedondomesticcreativityandtalent.
Infact,theadvertisingindustrytraditionallyservedas
themaintraininggroundformanygiftedyoungmovie
11
directors.Thishighlyartisticandcreativelegacyis
reflectedintherelevanceofthecountryintheindustry’s
internationalfestivals.TheArgentineadvertisingindustry
ischaracterizedbyacombinationofleadingcompanies—
nationalandinternational-andanumberofsmaller
creativefirms.Themainplayersintheinternationalscene
(asDentsu,Havas,Interpublic,Omnicom,PublicisGroupe
andWPP)arewellestablishedinArgentina.Duringthe
lasttwodecades,manyyoungdomesticagenciesgrew
stronglyandrevolutionizedthelocalindustry—being,
eventually,acquiredbyinternationalfirms.Todate,almost
800advertisingagenciesoperateinArgentina,though
lessthan50practicallycontrolthemarket.Themain
agenciesarerepresentedintheArgentineAssociationof
AdvertisingAgencies(AAAP).
Growth.AdvertisingexpenditurerisestooverUS$2
billioninArgentina,andisexpandingataccelerated
rates(figuresfor2007were19%higherthanthoseof
2006).Themostrelevantchannelforadvertisingis
TV,whichtogetherwithgraphicmediaexplains75%
oftotalinvestment.On-lineadvertisingstandsoutasa
particularlydynamicsegment(growing43.7%inthe
lastyear),fosteredbynewcommunicationstrategies
andthearrivalofinternationalfirmslikeGoogleand
MSN.Advertisingexportsalsoboomedinthelastyears,
atanaveragerateof105%from2002to2006,reaching
aroundUS$200million.Everyyearmorethan13,000
peopleareemployedinmorethan600commercialsbeing
producedforexternalmarkets.Argentinahaswell-trained
professionalsataffordableprices:aphotographydirector
andcamera-personreceiveUS$700andUS$250for12
hours,respectively.
DESIGN
Market.Rangingfromarchitecture,decoration,
urbanism,andindustrialdesigntopackaging,stagedesign,
publicity,graphicdesignandcorporatemarketing,the
localdesignindustryisthriving.Designisincreasingly
enteringhighervaluemarketsegmentsinArgentina
throughtheintroductionofdesign-ledprocessesand
innovativetechnologies.Anewgenerationofyoungand
creativedesignershasgivenfreereigntotheirimagination
andtalentandisincreasinglysellingtheircreations
toboththenationalmarketandtheworld.Different
designersanddesignstudiesstandoutglobally,suchas
BKF(Bonet,Kurchan,FerrariHardoy)andManifesto
(officefurniture),amongothers.Morethan60design
studioswerepresentinthelocalDesignFestivalin2006.
Indeed,theUnitedNationsEducational,Scientificand
CulturalOrganization(UNESCO)distinguishedBuenos
AiresasthefirstCityofDesigninAugust2005
Tradition.Thisboomisnotentirelynew:Argentine
designershaveheldimportantpositionsinthedesign
departmentsoflargecompaniesaroundtheworld(suchas
Ferrari,Honda,Lancôme,NokiaandRenault,tonamebut
afew)forquitesometime.Goingbackseveraldecades,we
findoneoftheiconsofArgentinedesign,theBKEchairor
butterflychair.TheBKEchairconqueredtheworldinthe
1950sandbecamepartofthecollectionoftheMuseumof
ModernArtinNewYork.ManyArgentineprofessionals
shineintheglobaldesignscene.Amongthem,Tomás
Maldonadoisknownasoneofthetopdesigntheoristsin
theworld,founderoftheÜlmSchool—themostimportant
designschoolinEuropeaftertheBauhaus
Policies.Differentpublicinitiativesaresupportingthis
fastgrowingdesignindustry.Specifically,theSecretariat
ofIndustryisimplementingaNationalDesignPlan,whose
mainobjectivesaretohighlightdesignasakeyfactorfor
competitivenessandhelpfirmsintheexecutionoftheir
designinitiatives,providingthemwithassistanceand
linkingthemwithavailablefunding.ThePlancomprises
severalprograms,including:PromotingDesigninthe
ProductiveSector;DevelopmentofaNationalDesign
Network;andTrainingandInternationalcooperation.At
thesametime,theprogramdevelopedanindustry-specific
1�
directory,nationalworkshopsandfairsanddifferent
designawards(Marca,DesignandProductiveintegration
inFurniture,Innovar).
TheMetropolitanCenterforDesign(CMD)isapublic
initiativecreatedbythecityofBuenosAireswhichassists
firms,designersandentrepreneurstoimprovetheir
competitivenessviatheuseofdesignandinnovation.
TheCMDimplementsdifferentprogramsaimedat
creatingandtransferringknow-howthatenablesproduct
differentiation.Additionally,theCMDisresponsiblefor
thecity’sdesignfair(ElDorrego)andforINCUBA(an
incubatorforcreativeindustries´firms).
Thevitalityanddriveofthedesignindustryisevident
bythemanycontestsorganizedorsponsoredbyfirmsor
chambersofcommerce:Ternium(orientedtodesignin
steel);Alpargatas(fortextiles);Grimoldi(forshoes);FACIF-
ParaTi(forleathersandalternativetextures);FEDEMA
andPVCAssociation(orientedtothedesignofspecific
materials);and,Unilever,CODEARandHipercasa(aimed
atspecificfunctionalities).
FASHION
Not just a fad.Thenationalapparelindustryis
positioningitselfasaleaderinSouthAmericanhaute-
couturewithBuenosAiresasthefashioncapital
ofMercosur.Withinthelastcoupleofyears,an
extraordinarynumberoffashionshowshavetakenplace
inBuenosAires,establishingtheBuenosAiresFashion
week(BAF)asanimportanteventintheworldwide
fashioncalendarandasaspecialmomentwhereeverybody
inthecityisevenmoreconcernedaboutlooksandfashion.
Animportantfactorinthesector’ssuccessisthebattery
ofactionsundertakenbytheArgentineApparelIndustry
ChamberandotherassociationsalongwiththeFederal
andBuenosAiresgovernments.
Anever-risingnumberofyoungstersarebeingattractedto
theworldoffashiondesigneveryyear.Infact,thefashion
designprogramattheUniversityofBuenosAiresattracts
over2,000newenrollmentseveryyear,havingbecomethe
careerwiththehighestincreaseinuniversityenrollment
intherecentyears
Fashion designers.Successfulfashiondesignersand
trend-setterssuchasCoraGroppo,EstebecorenaBrothers,
JessicaTrosman(Trosman),LucíaSanchez,Mariano
Toledo,MartínChurba(Tramando),PabloRamírezand
VeroIvaldi,amongmanyothers,arepavingthewayfor
newcomers.Manyparallelsarebeingdrawnbetweenthe
successfultextileindustryinNewYorkandBuenosAires’
potential.Thecapitalcityhasthehighestconcentration
oftextileproductioninArgentina.Inthiscontext,new
designsandtexturesarecombinedinthemostinnovative
ways,goingbeyondconventionalstandards.
An evolving industry.Keyindustrystakeholders—
firms,tradeassociationsandgovernments—are
encouraginglocalmanufacturerstotakefulladvantage
Buenos Aires, first City of Design
In August �00�, UNESCO declared Buenos Aires as “City
of Design”, under the umbrella of the Creative Cities
Network. This network aims at establishing new ways
of association between the public sphere, the private
sector and civil society to free the creative, social
and economic potential of creative industries. The
Creative Cities Network—created in �00�—connects
cities which desire to share experiences, ideas and
best practices aiming at cultural, social and economic
development. Cities may apply to be endorsed by the
Network and join the program to ensure their continued
role as centers for excellence and to support other
cities, particularly those in developing countries, in
nurturing their own creative economy.
Buenos Aires was selected as City of Design because of
the combined public-private impulse to the discipline,
making the city a fertile ground for the production
of differentiated and design-intensive goods. Buenos
Aires stands out for the quantity and quality of its
design professionals as well as study, research and
development centers, generating optimal opportunities
to map consumption trends that inspire firms to produce
novel products. Buenos Aires was followed by Montreal
(May �00�) and Berlin (November �00�).
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INNOVAR Promoting originality and innovation
The Ministry of Science, Technology and Productive
Innovation, assisted by the National Technological
University (UTN) and the Ministry of Economy, organize
the contest INNOVAR, which serves as a launching pad for
products and processes that present remarkable features
in their design, technology and originality. INNOVAR offers
several prizes for a total of US$1�0,000 in different
categories, including Innovative Product, Industrial
Design, Graphic Design, and Software design applied to
Videogames. Some of the awards are jointly offered with
the National Institute for Technological Education (INET),
the National Institute for Agricultural Technology (INTA),
the National Institute for Industrial Technology (INTI), and
the World Intellectual Property Organization (WIPO). In its
fourth edition, INNOVAR �00�, the contest had a record
number of accepted presentations (1,�1� projects),
totalizing �,�9� projects accepted since �00�. In the
current edition, projects from all over the country have
been presented, being the most frequent those from the
province of Buenos Aires (��%), the city of Buenos Aires
(1�%), Córdoba (�%), Santa Fe (�%) and Mendoza (�%).
oftheextensivedomesticresourcesavailable.Onlyabout
16%ofleather,30%ofcottonand13%ofnationalwool
productioniscurrentlyconsumedbytheArgentine
apparelsector,withaheftyremainderleavingthecountry
asrawmaterial.Fromabusinessperspective,thegarment
industryhaschangedwiththeaimofconqueringdifferent
domesticandregionalsegments.Thegreatachievements
have,inturn,attractedforeigncapitalstosupportthe
industry.Moreover,theindustry’sgrowthhasgivenrise
toserviceactivitiessuchasmodelingschools,tertiaryand
universityfabricandfashion-relatedstudies.
VIDEOGAMES
Attractive Segments.Thisrisingsegmentemerges
fromtheintersectionoftwohighlydynamicsectorsin
Argentina:creativeindustriesandsoftware.Videogames
areundergoingastrongdevelopmentworldwide,
distributedinfourdifferenttypesofsegments:games
forconsoles(homeorportable);gamesforpersonal
computers;on-linegames;andgamesforwirelessdevices.
Argentinahasalreadyaccomplisheddifferentlevelsof
progressinallsegments.
Market.Inthedomesticvideogamesmarket,brand
newlocalfirmsco-existwithforeigncompanies.More
than50firms(employingover500people)areexclusively
designinganddevelopingvideogames,mostlyoriented
towardsexportmarkets.Someofthesefirmsworkfor
internationalcompanies—likeDigitalBuildersthat
developsproductsforCartoonNetworks—whileothers
workindependentlyontheirownproducts—suchas
ImmuneGames,specializedinthedevelopmentofgames
formobilephones.Growingintegrationtoglobalmarkets
isobservedinsomesegments,suchasinadvergamingand
gamesformobilephones.However,somedevelopments
orientedtothedomesticmarketexhibitedinteresting
performancesrecently(suchas“YoMatías”and“Malvinas
2032”).Anoverwhelmingmajorityofthesefirms(84%)
areinvolvedindevelopinggamesforuseonpersonal
computers.Otherrisingsegmentsincludevideogamesfor
theweb(48%)andformobilephones(39%).
Abundant skills.Intermsoflocation,twothirdsof
thefirmsarelocatedinthecityofBuenosAires,while
another16%islocatedinthecityoutskirts.Thesector
impetusisdrivenbythequalificationsoftheyounglocal
population.Amajorityofthedomesticentrepreneurshave
aformaleducationinprogrammingandsoftware:58%of
theownersachieveduniversityeducationand12.5%have
completedtechnicalstudies.
Sector initiatives.Thissector’sexpansionhasledto
thecreationoftheArgentineAssociationofVideogames
Developers(ADVA)intheyear2000,anassociationwhich
representsthefirmsinthesectorandisalsoresponsible
fortheArgentineVideogamesExhibition(EVA)anda
seriesofchampionshipsandawardsforamateursand
independentdevelopers.
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IV. Foundation for Success
dynamicanddiverseculturalactivitiesinclude740
museums,2,807theatresand498cinemas.
LOCAL SKILLS AND TALENT
Training the creative impulse.Argentina’s
educationallevelissimilartothatofdevelopedcountries
andiswellabovetheeducationalstandardsofotherLatin
Americancountries.Morespecifically,Argentinahasan
abundantpoolofhumanresourcesindesign,fashion,
andaudiovisualproductionandpostproduction.Many
universities,aswellasawiderangeoftertiaryeducation
institutions,offerdegreesindesign,fashiondesign
andcinema.TheMetropolitanInstituteforDesignand
Innovation(IMDI)inthecityofBuenosAiresstandsout
asaspecialinitiativeestablishedbyalocalgovernment.
Inrecentyears,audiovisualartsexperiencedanoutburst
ofspecializededucationalinstitutionswhichwent
beyondtraditionalschools.Manyofthenewgenerationof
filmmakersandtechniciansweretrainedintheCinema
University;theNationalSchoolofExperimentationand
Filmmaking(ENERC),belongingtotheINCAA;the
CinemaResearchCenter(CIC),aspin-offofacinema
reviewmagazine;andORTtechnicalschools..
Acombinationofhighly-skilledhumanresources,
renownedprofessionals,naturalrichness,world-class
technologicalinfrastructureandavibrantandcreative
culturepositionArgentinaasanengineofcreative
industriesworldwide.
CREATIVITY
A vibrant culture.Argentinaisacountryendowed
withanenormouslyrichandvariedculture.Tangomusic
anddanceareworldrenownedandtodaystandsasBuenos
Aires’mainculturalicon,asshownbythegrowingsale
ofrecords,ticketsforconcerts,danceshows,dancing
classes,shoes,trinketsandspecializedmagazines.But
noteverythingboilsdowntoTangoinArgentina.Folk
dancesarepopularandanewgenerationofballetdancers
offersmarvelousperformancesatthesplendidBuenos
AiresOperaHouse(TeatroColón)anddiverseopen-air
scenarios.Argentinaisalsoknownforitstheaterindustry
thatcanbecomparedtothatofveryfewcountriesinthe
world;withover200playsshownregularlyonSaturdays:
10showsperhour.TheArgentinepeople’sgrowing
interestinreadingcanbemeasuredbyattendancerecords
attheBuenosAiresInternationalBookFair,which
wasvisitedby1.2millionpeoplethisyear.Meanwhile,
Argentineworksofartareexperiencinganunprecedented
growthinsales.ThevibrantartisticlifeinArgentina’s
mainurbancentersisalsoknownacrosstheglobe,where
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INTERNATIONAL REPUTATION
Awarded talent.AdmirationforArgentineartistsand
authorsgoeswellbeyondthecountry’snationalborders.
ThemostfamousofArgentineliteratureexponentsis
JorgeLuisBorges,butthesealsoincludethreeother
MigueldeCervantesPrizewinners(ErnestoSábato,
AdolfoBioyCasaresandJuanGelman)andanew
generationofgiftedyoungwriters.Argentineartists
receivedfiveOscarPrizes,severalGoyaandSanSebastian
movieawardsandrecognitionsattheCannesandBerlin
FilmFestivals.Thevividcreativityinadvertisingis
annuallyevidentattheClioawardsandattheCannes
LionsAwards,whereArgentinetalentisincreasingly
recognized.SevenLatinGrammyAwards(2006)and
eighteenMTVawards(2002-2007)alsocontributetoa
growinginternationalprestige.
TECHNOLOGICAL INFRASTRUCTURE
Wired.Thecountryoffersawelldevelopedtechnological
infrastructure,includingamodernandextensive
telecommunicationsnetworkandhigh-speedconnectivity
incontinuousexpansion.ArgentinapresentsaTV
penetrationhigherthantherestoftheLatinAmerican
countries(201TVsets/1,000people)andanimportant
diffusionofcableTV(5.7millionsubscribers).
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V. Main Challenges
Industryplayersandgovernmentagenciesfacekey
challengestosustaingrowthandconsolidatethesector’s
competitiveness.Inthemselves,thesechallengespresent
attractiveopportunitiesfortheindustryandArgentina.
•Support the generation of new firms:facilitatethe
conversionofrawcreativetalentintoprofitablebusiness
opportunities;supportthegrowthandconsolidationof
promisingfirms.
•Capitalize on a remarkable reputation:leverage
thereputationofsuccessfulArgentineprofessionals,
productsandservicestoincreasetheexternalpresence
ofhigh-quality,uniquecreationsandsolutionsin
creativeindustries.
•Strengthen the Argentine Design brand-name:
consolidateindividualsuccessesintoarecognized
brand-name,boostingthevisibilityofArgentinecreative
industries.
•Grow the pool of talents:asustainedeffortwill
havetobemadetofurthersupporttheemergenceof
highlyskilledhumanresourcesincreativeareas,suchas
audiovisualarts,designandfashion.
OUR CHALLENGES ARE YOUR OPPORTUNITIES.
SOURCES: The trends, data and figures included in this material were elaborated by ProsperAr on the basis of: National Institute of Statistics and Census; UNESCO; AAAP; ADVA; Argentine Book Chamber (CAL); CAPIF; Center of Studies for Production (CEP); Cinenacional.com; CMD; INCAA; INTI; Cultural Industries Observatory (city of Buenos Aires); Argentine Cinematographic Industry Workers’ Union (SICA); Argentine Cultural Information System (SINCA) (Ministry of Culture); Getino, O., “El Capital de la Cultura. Las industrias culturales en la Argentina”, CICCUS, �00�; Perelman, P. and Seivach, P., “La Importancia Económica del Sector de Videojuegos. Situación actual y potencialidades en Argentina”, CEDEM, �00�; and Aguilar, G., “Otros Mundos. Un ensayo sobre el Nuevo cine argentino”, Santiago Arcos, �00�.
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The information provided through this brochure does not constitute legal or professional advice whatsoever. ProsperAr (Agencia Nacional de Desarrollo de Inversiones) reserves the right to revise, amend, alter or delete the information provided herein at any time, but shall not be responsible for or liable in respect of any such revisions, amendments, alterations or deletions.Photos: courtesy of Coordinación Area de Cine y Artes Audiovisuales Instituto Cultural Provincia de Buenos Aires, Juan Pablo Cambariere, Furia, nadine Zlotogora, Stock Exchange and Flickr under Creative Commons license.
1�
Argentina at a glance
Country profile
Official name República Argentina
Capital city Buenos Aires
Main cities Córdoba, La Plata, Mar del Plata, Mendoza, Rosario
Surface area �.� million square kilometers
Population �0.� million inhabitants
Population growth 1.0% per year
Adult literacy rate 9�%
Life expectancy at birth �� years
GDP per capita (PPP) US$ 1�,�1�
Currency Argentine peso ($)
Form of government Federal Presidential Republic
Political division �� autonomous provinces and the Autonomous City of Buenos Aires
Time zone GMT-0�:00
Official language Spanish
�00� �00� �00� �00� �00� �00�
GDP growth rate (annual %) �.�% 9.0% 9.�% �.�% �.�% �.0%
GDP (PPP) (millions of US$) ���,�99 ���,0�1 �19,��� ��9,��0 ���,1�0 ���,��0
GDP (millions of US$) 1��,0�� 1��,1�� 1�1,9�� �1�,��� ��0,��� ���,�0�
Exports of goods and services (millions of US$) ��,��9 �9,��� ��,0�� ��,��� ��,0�� ��,�0�
Imports of goods and services (millions of US$) 1�,��� ��,9�0 ��,9�9 �1,1�0 ��,��� ��,�9�
Balance of trade of goods and services (millions of US$) 1�,�1� 11,9�� 1�,0�� 1�,��� 1�,��� 1�,11�
Trade surplus (% of GDP) 1�.�% �.�% �.�% �.�% �.9% �.�%
Current account surplus (% of GDP) �.�% �.1% �.9% �.�% �.�% �.�%
Primary fiscal surplus (% of GDP) �.�% �.9% �.�% �.�% �.�% �.1%
Gross capital formation (% of GDP, constant prices) 1�.�% 1�.�% 19.�% �1.�% ��.�% ��.0%
Gross national savings (% of GDP, current prices) 19.�% �0.�% ��.�% ��.�% ��.�% ��.�%E
Foreign direct investment (millions of US$) 1,��� �,1�� �,��� �,��� �,��� �,9�9
Exchange rate ($/US$) �.9� �.9� �.9� �.0� �.1� �.1�
Foreign reserves (millions of US$) 1�,119 19,��� ��,0�� ��,0�� ��,1�� ��,���
Unemployment rate (% of EAP) 1�.�% 1�.�% 11.�% 10.�% �.�% �.9%
Source: ProsperAr based on data provided by the Argentine National Institute of Statistics and Census, the Central Bank’s Market Expectations Survey (REM), the International Monetary Fund and the United Nations Conference on Trade and Development (as of April �0, �009).
Main Economic Indicators
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ProsperAr is Argentina’s National Investment Development Agency
Our mission is to develop direct foreign and domestic investment to contribute to Argentina’s competitiveness and sustainable development.
ProsperAr’s four main objectives are:
Provide services to investors ProsperArprovidesinvestorswithpersonalizedprofessionalservicesthroughouttheinvestment
process,frominitialadvisoryservicestoinvestmentfacilitationandaftercare.TheAgency’steam
assessesoninvestmentprojects,respondstoqueriesfrominvestorsandprovideskeybusiness
information.LeveragingtheAgency’scooperativerelationshipswithdifferentgovernmentbodies,
ProsperAr’sintegralservicesofferinvestorsaunifiedone-stopsupportsystem.
Attract and generate investment ProsperArworksinthepromotion,attractionandexpansionofbothdomesticandforeigninvestment.
Weidentifyinvestmentandinnovationopportunitiesinhighgrowthsectors,communicating
themtonationalandoverseasinvestorsthroughinternationalmissions,conferences,meetingsand
publications.Weworktobuildrelationshipsthatenablemultinationalcompaniestotakeadvantageof
local,regionalandglobalopportunities.Wealsoencouragedomesticfirmstoexpandanddeveloptheir
businesses.
Boost the Investment EnvironmentProsperArworkstostrengthenArgentina’sinvestmentenvironment.Weinteractwithlocaland
multinationalcompanies,aswellaspotentialinvestors,identifyingandremovingpossibleobstaclesto
doingbusinessinArgentina.Throughactivedialoguewiththeprivatesector,andincoordinationwith
othergovernmentdepartments,weadvocatefortheformulationofpoliciesandprogramstooptimize
theinvestmentandinnovationenvironment.
Promote the internationalization of local companies ProsperArpromotesthegrowthandinternationalizationofArgentinefirms.Fosteringlocalvocation
forinnovationandentrepreneurshipandpromotingoverallcompetitivenessarekeyaspectsof
theAgency’sstrategy.Twoprograms“EntreprenuerDevelopment”and“Pioneers”areinplaceto
strengthenlocalcompanies’criticalcapacitiesindifferentgrowthphases.ProsperAralsoassists
internationalcompaniestoinvestinand/orworkwiththeirlocalcounterpartstoformglobaljoint
ventures.
ProsperAr is your strategic partner to invest and prosper in Argentina.
What ProsperAr can do for you:
>> Provide timely and relevant information on business sectors and geographical locations in Argentina.
>> Help identify investment and innovation opportunities in strategic sectors.>> Troubleshoot red tape and obstacles; facilitate the investment process and doing
business in Argentina.>> Assist in building partnerships between foreign investors and local companies.
To learn more about how investing in CREATIVE INDUSTRIES in Argentina can benefit you, please contact us:
[email protected]+54 11 4328 9510