1

ENTREPRENEURIAL AND

INNOVATIVE POTENTIAL OF THE

CREATIVE INDUSTRY

Martina HARC, Ph. d.

Croatian Academy of Sciences and Arts

Institute for Scientific Research and Artistic Work in Osijek E-mail: harcm@hazu.hr

Ivana BESTVINA BUKVIĆ, Ph. d.

J. J. Strossmayer University of

Osijek Academy of Arts and

Culture

Department of Culture and Creative industries E-mail: ibbukvic@unios.hr

Josipa MIJOČ, Ph. d.

J. J. Strossmayer University of

Osijek Faculty of Economics in

Osijek E-mail: josipa.mijoc@efos.hr

Abstract

The cultural and creative sectors have always played an important role in the

creative economy generating economic growth, employment opportunities, and

innovation capacities. In order to strength European identity, culture, and values,

the creative industry has a significant role in enhancing entrepreneurial and

innovative potential. Although the cultural and creative sector is characterized by

a predominance of small enterprises, the majority of enterprises are one-person-

enterprises. In comparison to other sectors, due to their generally smaller size, they

are knowledge-intensive, generators of innovation and in a position to foster spill-

over effects to other sectors. With regard to their specific characteristics, a high share

of intangible assets, specificity of their business models or uncertain demand for

their products and services, they also face various challenges, limiting them from

improving their full potential. The European Commission has recognized and

undertaken a variety of initiatives and actions in order to provide support to the

Mart

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• Ivana B

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creative industry. Specifically, one of four priority area in Work Plan for Culture

(2015-2018) concerns the cultural and creative sectors, the creative economy and

innovation. This paper highlights the prominent role of creative industry and its still

scarcely explored entrepreneurial and innovative potential contributions to the on-

going debate on the creative industry as indispensable part for almost every new

product and service.

Keywords: creative industry, entrepreneurship, innovation, business models

JEL Classification: L26, O30

1. INTRODUCTION

Culture and creativity are important factors for economic development. Due to the broad

range of impacts that they can generate, they promote creative entrepreneurship, show above-

average growth and create new employment opportunities, while stimulating economic growth

and strengthening social cohesion (EC, 2018). As such, creative industry has been one of the

successes of the UK economy in recent times. Over the past 20 years the contribution made by

companies within these industry has increased from 3.96% to 5.20% of the total UK economy,

while the number of employees working in this industry has also increased by 94%, from 1997

to 2014 (Oliver, 2017). Further, 13% of all start-ups in Germany occurred in creative industries

in 2010, whilst, the self-employment rate in creative industries was 24%, compared to 11% in

the total economy in Germany in 2013 (Kohn and Wewel, 2018). Furthermore, between 2011

and 2017, European Union cultural employment increased up to 8.7 million employees,

accounting for 3.8% of total employment. In 2017, the percentage of self-employed in cultural

employment in the EU was at least a double of that observed in total employment (Eurostat,

2018). According to Eurostat, there was8.7 billion Euros trade surplus in cultural goods, and

cultural and creative sectors are estimated to contribute with 4.2% to EU gross domestic product

in 2016(EC, 2018a). In Croatia, culture and creative industries represent 2.3% of Croatian GDP,

3.0% of the total number of employees, and make up to 5.7% of the total number of business

entities in Croatia (EIZ, 2015).

“Cultural and creative industries are at the heart of the creative economy: knowledge-

intensive, based on individual creativity and talent, they generate huge economic wealth and

preserve European identity, culture and values. Moreover, they include a number of subsectors,

such as architecture, archives and libraries, artistic crafts, cultural heritage, design, fashion, film,

high, end, music, performing and virtual arts, publishing, radio, television and video-games”

(EC, 2018b).

There is no unifying European or global classification of the creative industry sector. In

UNESCO's analysis (UNESCO, 2013), different models of division of the sector and their

relevance to the creative industry were set out, from which the researchers highlight four basic

models of the creative industry: DCMS Model, Symbolic Texts Model, Concentric Circles

Model and WIPO Copyright Model. Analysing European approaches in defining the creative

industry, KEA (KEA, 2006) outlines three European approaches: UK approach - “creative

industries”, The French approach - “cultural industries” and The Nordic approach - “the

experience economy”. UNCTAD defines the “creative economy” as a “growing convergence on

3

a core group of creative industries and their overall interactions both in individual countries and

at the international level” (UNCTAD 2010, 9). In defining creative industry Horvat et al. (2018)

emphasize that creative industry implies copyrighted production covered by the projects

generating non-material products and services intended for market exchange.

According to European Commission, cultural and creative sectors include all sectors whose

activities are based on cultural values or artistic and other individual or collective creative

expressions. On the other hand, the cultural and creative industries, focus more on the further

stages of the value chain, including the production and dissemination stages of industrial and

manufacturing operations (EC, 2018c).

Whatever we addressed them, they are at the forefront of innovation and create the spillover

effects to other sectors and industries, as well as contributing to entirely society. Hence, with the

emergence of more complex and networked business models, the cultural and creative sectors

are becoming a decisive component in the value chain of almost every product and service (EC,

2018c). There is a binding role of the European Commission in strengthening the sense of

European Identity and awareness of cultural heritage. In the Communication of the European

Commission “Promoting cultural and creative sectors for growth and jobs in the EU” (EC, 2012),

the European Commission stated that cultural and creative sectors are a largely untapped

resource for the EU 2020 strategy because they are high growth sectors, catalysts for innovation

as well as a key element in global competition (EC, 2016). In 2014, EC adopted Work Plan for

Culture (2015-2018) in which set out four main priorities for European cooperation in cultural

policy-making. One of them concerned the Cultural and creative sectors, the creative economy

and innovation (Priority area C: Cultural and creative sectors: Creative economy and

Innovation). These are complemented through a variety of actions and initiatives, the Creative

Europe Programme and funding from other Commission sources. In 2018, EC adopted the New

Agenda for Culture in order to achieve full potential of culture, supporting innovation, creativity

and sustainable jobs and growth. Although, the New Agenda has three strategic objectives,

comprises social, economic and external dimensions, many of actions will serve as cross-cutting

actions.

Despite all efforts, still 36% of Europeans do not participate in any of cultural activities

(Eurostat, 2017). Market fragmentation, insufficient access to finance and uncertainty in

contractual conditions and incomes are still most common challenges faced in creative industry

(EC, 2018a).

This paper is aiming at providing recent data on creative industry among EU Member States

enterprises, focusses on its entrepreneurial and innovative potential. Further, this paper is closely

linked to the survey of the European Commission and Austrian Institute for the SME research

and their initiatives to better understanding of the cultural and creative industries. The purpose

of this paper is to provide a better grasp of creative industry by identifying differences between

individual sub-industries and the determining its standing on the EU level measured by

employment and presence of companies. By analysis of existing information, this paper will give

the insight to the level of regional development of cultural and creative industries on the EU

level.

The paper is organised as follows. After introduction, next section provides key findings

from literature on objectives and challenges faced by creative industry. The third section analyses

recent trends in creative industry followed by concluding remarks.

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2. STRATEGIC OBJECTIVES AND CHALLENGES

FACED BY CREATIVE INDUSTRY – KEY FINDING

FROM LITERATURE REVIEW

Cultural and creative enterprises do not fit well in traditional business models due to

asymmetry of information between banks and creative enterprises and whereas lack of specialists

in evaluating cultural and creative business models. Although, creative enterprises are of high

economic importance and show inviable financial results, their access to finance is difficult.

Moreover, small and micro size of such enterprises, high share of intangible assets, complexity

of their business models, uncertainty regarding the demand for their products and services and

uncertainty in income are just some of challenges creative enterprises are facing in accessing

finance and preventing them from exploiting their full potential (EC, 2016).

The most of employee in creative industry is characterised by a high share of educated

people and by a high share of flexibility and mobility within working time (Benhamou, 2003).

Further, the cultural and creative sectors are an important contributor to a youth employment.

According to Lhermitte et al. (2014), in 2013, almost one fifth of employed were between 15

and 29 years old. Furthermore, another important characteristic of the creative industry is the

high percentage of self-employment, so called, “One-Person-Enterprises” (OPEs) and

freelancers (Rammer et al., 2008). Because of the specificity of business models characterised

in creative industry (development of creative goods and services that are complex and hard to

standardise), these models do not fit well in traditional working time (Falk et al., 2011). As of

uncertainty in demand of products and services and incomes, most of employee have irregular

forms of employment such as part-time jobs or temporary form of employment. Many of creative

workers combine freelance or part-time jobs with permanent job in order to provide financial

stability to maintain their creative activities (Kooyman, 2010). Those specific forms of creative

employment directly influence the innovativeness of the creative industry. Creative workers are

often engaged in frequently changing project team, allow a free flow of information and fresh

ideas, facilitating interactive learning and innovation processes (Falk et al., 2011).

Business-to-business (B2B) is the main form of relationship between clients and

customers in creative industry. Austrian's Report on Creative Industries Recent show that sales

to other creative enterprises (either in the same creative sector or in culture creative industries

cross-sector alliances) account for almost one third of total sales in sector (EC, 2016). Another

study from UK showed high importance of purchases of creative products by creative industries

themselves (Bakhshi et al., 2008). Creative alliances across different creative sectors and

integration in creative networks results with better business performance and higher success rates

in attracting customers and interesting projects (Voithofer et al., 2010). The client’s benefits from

the creative industry include high professional competence, flexibility in delivering a product or

services to clients’ specific needs and bringing in innovative ideas. This innovative process also

includes client’s own innovative efforts in order to improve business processes, develop new

products and to gain competitive advantages (Gassler et al., 2015; Voithofer et al., 2010).

Market of the creative industry is characterised by specific market conditions in which

creative enterprises or persons across different creative sectors operates. Many of creative

enterprises operate successfully on domestic markets and abroad. For others, because of

language barriers and specific market demand, but and due to their small size, market is limited

only within national market. In addition, the market demand for creative products and services

is often highly uncertain. There is always uncertainty on how the market will react to new

innovative products or services (Dörflinger et al., 2014). Another reason is high share of

5

intangible assets (Intellectual Property Rights) as part of product or services are made of, the

value which is often inappreciable or uncertain. Hence, the fragmentation of the markets not only

hampers opportunities to access foreign markets and to grow, but also increases distribution and

marketing costs (EC, 2013).

Another feature characterized by creative industry is collaboration and business

networks among enterprises. Due to their generally small or micro-sized enterprises (including

a large share of one-person-companies and freelancers) and because of their high level of

specialization, business relationships with other creative companies become necessary to

combine competencies for the purpose providing more complex and more integrated creative

products. Especially for large orders and large deals. Hence, the creative sector depends on

mutual cooperation and networking, gathering in places high concentration of creative

enterprises, talented individuals and institutions, pooling knowledge and resources such as

creative eco-systems, creative hubs and clusters which are of particular importance to the

creative industry (EC, 2016).Therefore, this industry can be called project industry, as

companies, one-person-companies and freelancers occasionally or permanently associate within

projects that result with creative products.

Moreover, creative industry is among the most innovative industries in the economy.

Their business models are developed through new innovative ideas and the transformation of

these ideas into commercial products for their customers. Innovation and new creative products

in creative industry are usually a result of collaboration, flexible business networks and project

co-operation between enterprises (EC, 2016). The specific structure of the “creative” market, is

characterized by co-operation between business competitors, business networks and clusters,

directly affects the sector's innovation and innovation processes. The so-called Functional

Networks allow creative enterprises to continuously produce and absorb fresh ideas (Falk et al.,

2011). Furthermore, the innovation of creative sector is also influenced by the fluid labour

market and the high level of worker mobility (networking of creative professionals around the

world). Business-to-business (B2B) is another important wheel in knowledge transfer and spill-

over to other sectors (Bakhshi et al., 2008). As well, it was found that cultural and creative

industries were shown as industries resistant to the changes caused by economic crisis and, in

even in recession showed growth trends (Bestvina Bukvic et al., 2017). One of the reasons for

this advantage of these industries could be new forms of innovation processes, such as design

thinking, open design and open innovation are characterised by creative industry. Design is not

used in the innovation process just to create new products and services, but design-thinking

methods can also be applied in the process of creating new business models and organizational

innovations (EC, 2013a). They also encourage innovations and cause spill-over effects across

the entire value chain: encourage innovation in client companies ("forward linkage effects"), but

they also require more innovative products and services from their suppliers ("backward linkage

effects"). Creative enterprises also help their clients to introduce innovations by finding new

ideas, supporting entry into new markets and the implementation of new products, or designing

new products (Rammer et al., 2008). According to European Commission (EC, 2018d), the

innovative potential of “the cultural and creative sectors is essential for the European economies

and societies, because it generates well-being and cohesion, shapes the public space used by

millions of Europeans, modernises industries and business sectors with new creative input and

methods, provides meaning and a feeling of belonging, upgrades urban and rural areas, designs

our products and services, produces and digitises content, enriches our visual experiences and

provides content for debates”. In the addition to spill-over effects of creative innovation, the

main focus of cross-sectoral innovation is how to better use the innovation potential of the

cultural and creative sectors for other parts of the economy and society as a whole. These sectors

6

are able to generate positive influence to other economic sectors by connecting industries.

Further, user-driven innovation base their innovation on existing technologies or develop new

business models or services driven by users or suppliers. So called, co-creation is the process by

which groups of people with different backgrounds getting together with the same goal to create

value through improving or developing services, processes and products. The aim of user-driven

innovation process is to create value for users and to increase the chances of product and market

success. Furthermore, effects of innovation in the cultural and creative sectors that take place in

defined geographical areas like cities or regions are known as place-bound innovation.

Innovation provided by art galleries, museums or cultural festivals boost the attractiveness of

societies and places. At the same time providing economic growth in and around such cultural

and creative locations.

The creative industry is perceived as the "forerunner of the new digital society" as they

are the ones often the first users of new services and technology. Cultural and creative sectors

were among the industries where transformation processes were caused by digitalisation -

influencing the business, consumption patterns and production processes (Lhermitte et al. 2014).

Through the digitalisation creative sector benefit from lower production costs, new distribution

channels, new business models and the development of new markets, products or services (Tera

Consultants, 2010). Further, adaption to rapid changes in consumer expectations driven by new

technological opportunities and loss of revenue due to piracy in digital form is another challenge

creative sector is face with (Tera Consultants, 2010).

Internationalisation and exports are key elements of successful creative industry.

According to Horvat et al. (2018) creative industry contributes to economic development in

general, has an export potential and is based on knowledge, science, technological and art

innovation, development of talents and preservation of national cultural heritage through its

implementation into contemporary products and services. Small and medium enterprises are

essential in requiring for support in order to expand on international markets. Therefore, smart

internationalisation and export promotion policies are needed. As far as exports to third countries

are concerned, numerous tariffs and non-tariff barriers prevent the presence of European creative

enterprises on the markets of third countries. The export intensity differs among the creative

sectors: cultural goods account for 1.6% of total EU exports, fashion-related products account

for 12.3%, and high-end industries account for 18% of total EU exports (EC, 2016).

Due to their form of intangible assets, Intellectual Property Rights (IPR) represent a

major challenge in creative industry, particularly in the modern era of digitalisation and internet.

(EC, 2016). Intellectual property rights promote innovation and creativity, which in turn

generates jobs and improves competitiveness. Intellectual property rights enable authors, artists,

designers, inventors and other IPR users to benefit when others use their creations and inventions

(EC, The Protection of Intellectual Property). According to The Innovation Policy Platform,

“innovations in creative industries are often a collective process involving many heterogeneous

individuals and informal knowledge communities that have very specific IP needs. These actors

often combine different types of intellectual property rights, including copyrights, patents, and

trademarks”. Overall, “IPR-intensive sectors account for around 42% of EU GDP (worth some

EUR 5.7 trillion annually), generate 38% of all jobs, and contribute to as much as 90% of EU

exports. As companies increasingly compete on innovation, creativity and quality in the global

economy, the protection of IPR is essential for them, particularly for SMEs who do not have the

same level of resource” for protection of Intellectual rights as large enterprises (EC, 2017).

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3. ANALYSIS OF ENTREPRENEURIAL AND INNOVATIVE

POTENTIAL OF CREATIVE INDUSTRY According to European Commission, cultural and creative business are characterised by

predominance of small and micro enterprise size (EC, 2012). In general, the vast majority of

enterprises in creative sector (96%) are micro-enterprises with less than 10 employees. Though,

the structure of the enterprise size differs between the sectors: the proportion of One-Person –

Enterprises (OPEs) is highest in design and visual arts as well as performing arts and artistic

creation (83% each), followed by architecture (75%), advertising (72%) as well as software and

games (71%). In the sectors radio and TV (15%), books and press and software and games (6%

each), the proportion of larger enterprises employing 10 persons or more is particularly high.

Further, high-end industries are characterised by large companies and multi-national brand

groups on the one hand, as well as small scale manufacturers as part of supply chain (Figure 1).

Figure 1. Enterprises by size class for selected sectors in %, 2013.

Source: EC, 2016.

According to Eurostat (2018a), in 2015, there were 1.2 million cultural enterprises in the EU,

representing 5% of all enterprises in the non-financial business economy. Cultural businesses

accounted for 2.8% of total value added in the EU, generating 200 billion Euros of value added

and 80% of people employed in the cultural sector in the EU worked in a small or medium-sized

enterprises. The cultural sector’s turnover (the total value of market sales of goods and services)

was around EUR 475 billion, which represented 1.7% of the total turnover of the non-financial

business economy. Further, the only Member States with over 150 000 cultural enterprises in

2015 were France and Italy, accounting for around 15% of all cultural enterprises in the EU,

each. Along with Germany (with around 130 000 enterprises) and the United Kingdom (100

000), represented nearly half of the total number of cultural enterprises in the EU. All those

countries, with the exception of Italy, were above the 5% EU average of cultural enterprises in

the total economy. But the Member States with the most share of cultural enterprises Sweden

with 7.6%, followed by the Netherlands with 7.3%, Belgium with 6.5%, and Slovenia with 6.4%.

72 75

93

83 83

47

71

24 22

0

16 15

38

23

4 3 61 2

15

6

0

10

20

30

40

50

60

70

80

90

100

Advertising Architecture Books and

press

Design and

Visual arts

Performing

artistic

creation

Radio and Tv Software and

games

%

1 employed 2 to 9 employed 10 or more employed

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Figure 2. Number of cultural enterprises as % of total business economy, EU-28, 2015

Source: Eurostat, 2018.

Note: Confidential data for Ireland; Unreliable data for Spain and Malta.

In 2017 around 8.7 million people in the EU were working in a cultural sector or occupation,

accounting for 3.8 % of the total number of employment (Table 1).

Table1. Cultural employment, 2011-2017 (% of total employment)

2011 2012 2013 2014 2015 2016 2017

European Union - 28 3,6 3,8 3,8 3,7 3,7 3,7 3,8

Belgium 3,8 4 3,8 4 4 3,9 4,3

Bulgaria 2,5 2,6 2,7 2,6 2,8 2,8 2,7

Czechia 3,6 3,8 3,9 3,8 3,7 4,1 3,9

Denmark 4,6 4,7 4,7 4,5 4,6 4,4 4,3

Germany 4,1 4,3 4,2 4,1 4,1 4 4

Estonia 5,1 5,8 5,6 4,6 5,3 5,3 5,5

Ireland 3,5 3,5 3,7 3,8 3,6 3,7 3,5

Greece 3,1 3,5 3,5 3,2 2,9 3,2 3,2

Spain 3,1 3,1 3,2 3,4 3,4 3,5 3,6

France 3,4 3,3 3,5 3,4 3,2 3,3 3,5

Croatia 3,6 3,7 3,4 3,8 3,4 3,1 3,5

Italy 3,5 3,6 3,5 3,5 3,5 3,4 3,6

Cyprus 2,9 3 3,3 3,1 3,4 3,5 3,5

Latvia 3,4 3,6 3,9 3,9 4 4,5 4

Lithuania 3,6 3,7 3,8 4 4 3,6 3,7

Luxembourg 5,2 5,3 5,2 6 5 5,1 4,6

Hungary 3,7 3,7 3,9 3,7 3,7 3,6 3,3

Malta 3,9 3,9 4,2 4,4 4,3 4,2 4,7

Netherlands 4,4 4,5 4,7 4,6 4,6 4,5 4,5

Austria 3,8 4 4,2 4 4 4,1 4,1

Poland 3,2 3,2 3,2 3,2 3,3 3,4 3,5

5

7,6 7,3

6,5 6,45,9

5,5 5,5 5,3 5,2 5 4,9 4,9 4,8 4,6 4,5 4,5 4,4 4,4 4,4 4,2 4,23,8

3,4 3,12,7

0

1

2

3

4

5

6

7

8

EU

-28

Sw

eden

Net

her

lan

ds

Bel

giu

m

Slo

ven

ia

Den

mar

k

Fra

nce

Lit

hu

ania

Ger

man

y

Au

stri

a

Un

ited

Kin

gdo

m

Lux

emb

urg

Hu

ng

ary

Ital

y

Est

on

ia

Cze

chia

Cro

atia

Cy

pru

s

Pola

nd

Fin

lan

d

Gre

ece

Lat

via

Port

ugal

Ro

man

ia

Bu

lgar

ia

Slo

vak

ia

Irel

and

Spai

n

Mal

ta

%

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Portugal 2,8 2,8 2,9 3 3,1 3 3,1

Romania 1,4 1,5 1,4 1,5 1,5 1,6 1,6

Slovenia 4,3 4,6 5 4,7 4,5 4,6 4,7

Slovakia 2,6 2,6 2,2 2,6 2,5 2,5 2,9

Finland 5,2 5 4,8 4,8 5,1 4,8 4,7

Sweden 4,7 4,8 4,8 4,7 4,7 5 4,8

United Kingdom 4,3 4,5 4,5 4,5 4,6 4,6 4,7

Source: Eurostat, 2018.

According to Eurostat (2018), analysing each Member State, the percentage of people employed

in culture in 2017 varied from 1.6% in Romania to more than 5% in Estonia (Figure 3). The

share of cultural employment in the total employment between 2012 and 2017 varied among EU

Member States. In the majority of countries there was a slight increase or stagnation of cultural

employment, while in some other countries (Luxembourg, Denmark, Germany, Estonia, Greece,

Hungary and Finland) a slight decrease was observed. Further, with around 155 000 more

cultural jobs in 2017 than in 2012, the United Kingdom accounted for almost 30% of the total

increase in cultural employment in the EU, followed by the Spain with 22%. Spain was observed

as country with the largest relative increase in the share of cultural employment, from 3.1% in

2011 to 3.6% of total employment in 2017.Regarding Croatia, the percentage of employed

people in culture varied from 3.6% in 2011 to 3.8% in 2014 and then decreased to 3.1% in 2016.

Compared to surrounding countries, such as Slovakia, the percentage is much higher, but

compared to Slovenia, Croatia is just around EU average with no significant increase, like

Slovenia. This could indicate a lack of developing economic measures on the state level

encouraging small and medium-sized businesses, especially in cultural and creative industries.

As well, it could also be an indicator of unfavourable economic environment for

entrepreneurship development in the countries shown at the bottom of the list (Figure 3).

Figure 3. Self-employment in cultural employment and in total employment (%), 2017

Source, Eurostat, 2018

Note:(¹) Low reliability for cultural employment

0

5

10

15

20

25

30

35

40

45

50

Culture Total

10

Moreover, among the labour characteristics available for analysis, self-employment take a

significant part for cultural employment (Figure 3). At EU level in 2017, one third of cultural

workers were self-employed (33%), against 15% observed for total employment. In other words:

the percentage of self-employed in the cultural employment is over twice as much then in the

total employment.

4. CONCLUDING REMARKS

Cultural and creative sector trough sub-industries of creative industry contributes directly to

employment, economic growth and social cohesion. This paper is aimed to provide recent data

on creative industry among EU Member States enterprises, focusses on its entrepreneurial and

innovative potential. Despite the lack of data, the analysed research, however, proves that this

industry is fast growing along with its entrepreneurial and innovative potential. On the other

hand, the lack of secondary data resulted in reduced scientific interests and open space that

allowed uneven interpretation of available data as well as multidisciplinary analyses and

interpretations. This can be justified by the fact that this industry is in the process of

institutionalization, but also and due to absence of unified model by which the creative industry

and its sub-industries would be defined. Although the interest in creative industry is growing as

well as number of scientists and scientific research in this field, it is necessary to highlight its

multi disciplinarity and existence of collaboration between different scientific fields. The study

found that there is a strong imbalance in the development of cultural and creative industries in

different EU countries. In order to reduce the negative effects of these differences it is necessary

to create development measures at the level of the Member States but also on the regional level

that would reduce the inequalities in development of cultural and creative industries and as well,

the economies of the Member States as a whole. The Recommendations for future research are

arising from the data limitations of the research, hence it is necessary to conduct more

comprehensive primary research by analysing creative employment, both for the creative

industry and its sub-industries in order to identify key similarities and differences in this

heterogeneous industry.

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