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Part-financed by the European Union (European
Regional Development Fund and European Neighbourhood and Partnership Instrument)
SWOT ANALYSIS OF CULTURAL AND
CREATIVE INDUSTRIES IN KLAIPEDA Study on the status quo of cultural and creative industries The situation of cultural and creative industries (CCI) was analyzed in Urban Creative
Poles (UCP) project partner’s cities during this parallel poll SWOT analyses. This study
has elaborated and uses uniform definitions modelled on definitions by the German
federal government and the European Union (EU) and the methodology by Brandenburg
University of technology in Cottbus.
2011
Klaipeda Economic Development Agency, www.kepa.lt 12/14/2011
Study on the status quo of cultural and creative industries in Klaipeda
2 |
SWOT ANALYSIS OF CULTURAL AND CREATIVE
INDUSTRIES IN KLAIPEDA
Klaipeda Economic Development Agency
In cooperation with:
Study on the status quo of cultural and creative industries in Klaipeda
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Context of Klaipeda SWOT analysis
0. Background of the study
A. Presentation of framework conditions
1. Framework conditions at national level
2. Framework conditions of the city of Klaipeda
B. Cultural and creative industries in Klaipeda
1. Description of statistic data gathering
2. Portrait of the cultural and creative industries in Klaipeda
3. Build up of institution for coaching and platform for network
4. Map representation of Klaipeda CCI sub-sectors
C. Presentation of public and intermediate cultural sectors
D. Presentation of polls, expert interviews and workshops
1. Implementation and procedure
E. SWOT analysis
1. SWOT analysis for CCI sub-sectors
2. SWOT evaluations
3. Results of CCI surveys
F. Conclusions and recommendations for action
1. Conclusions
2. Recommendations from a business and management perspective
3. Recommendations for action by framework-setting stakeholders
4. Recommendation for developing of incubation infrastructure
References
Annexes
Study on the status quo of cultural and creative industries in Klaipeda
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Background of the study
The situation of cultural and creative industries (CCI) was analyzed in Urban Creative
Poles (UCP) project partner’s cities during this parallel poll SWOT analyses. This study
has elaborated and uses uniform definitions modelled on definitions by the German federal
government and the European Union (EU) and the methodology by Brandenburg
University of technology in Cottbus.
The fundamental element for the preparation of actions relating to Urban Creative Poles is
the production of this study on the status quo of cultural and creative industries in
Klaipeda. The study aims at providing facts and figures about the current situation of the
cultural and creative industries but also at identifying potentials and challenges for
companies active in this field in Klaipeda. The part of the realization income of the CCI
activity in the Lithuanian GDP increased from 2 per cent in 2002 to 5.2 per cent in 2006
and to 6, 4 percent in 2009. It indicates that the CI sector takes up an important place in the
Lithuanian economy and its role is rapidly increasing.
Several surveying and analytical steps serve to fill the SWOT analysis with contents and,
following evaluation, enable deduction of recommendations for action. Previous Klaipeda
project CITIES Creative industries business surveys results were elaborated to fill the
SWOT as well. Four workshops with local CCI stakeholders were organized and hosted to
discuss fundamental issues. The workshop outcomes were also evaluated in this analysis.
Statistical data was obtained from State Statistical Office Lithuania to perform
calculations.
A. Presentation of framework conditions
1. Framework conditions at national and federal state levels
1.1. National and regional Status of cultural and creative industries
Cultural and creative industries – a distinctive economic sector characterized by wide
diversification of economic activity, an exclusive need in human capital and knowledge as
well as talents for creation of added value. Cultural and creative industries (CCI) received
political attention only recently – a bit more than a few years ago and this attention is
Study on the status quo of cultural and creative industries in Klaipeda
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growing given the importance of the CCI input info Lithuania‘s GDP (more than 6 % and
growing). Nonetheless, in Lithuania there is no concept such as „politics of the cultural
and creative industries“ or „creation and culture politics“ - Lithuanian culture politics
fosters only a part of all CCI sector activities – starting from cultural areas and ending with
creative areas, but mostly associated with art and publishing. Government of the Republic
of Lithuania prepared „The strategy for stimulation and development of the cultural
industries“ in 2007 (2007 03 28 law No. ĮV-217) and up to date it‘s the only document of
this kind, intended as the sector‘s stimulation strategy and action plan. In 2009 this strategy
was renewed – the strategy goals were corrected and a new action plan was prepared. The
main goal of the industry stimulation and development strategy - „to contribute in order to
stimulate the creative industry, as a perspective and innovative field, to become a weighty
and strategic part of the country‘s economic and public development, so the country‘s
creative industry‘s products and services could successfully compete in Lithuania and
abroad“. To achieve this objective these goals are anticipated:
To secure a systematic stimulation of creativity in the fields of culture, education,
science and economics in order to increase the share of cultural industries in
Lithuania‘s GDP and the employment of Lithuanian citizens in creative activities;
To store, analyse and spread the information about the development of the sector;
To start forming favourable surroundings for the development of the creative
industries.
In the studies and mapping of the CCI sector done to this day, the methodology chosen for
the analysis of the cultural and creative sectors situation is the United Nations (UNCTAD)
model. UNCTAD method is characterized by the widest view towards the CCI framework
and structure, so it is one the most coinciding models with the Lithuanian Ministry of
Culture's approach to the creative sector (The UNCTAD methodology and the first sector
analysis was done by M. Starkeviciute).
Data from the Lithuanian Department of Statistics were retrieved for this study that
represents the current situation of the CCI sector in Lithuanian and Klaipeda region quite
well. The main problem with data precision incurred is that Lithuanian statistical data
collection system classifies companies into groups by their first named main field of
activity (4 NACE digit analysis) without taking into regard related secondary activities,
and this may significantly distort the CCI sector statistical analysis. The data doesn‘t take
into account certain groups of creative occupations and production, namely - artists and
Study on the status quo of cultural and creative industries in Klaipeda
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performers working as freelancers (individual activity), contribution to the CCI sector of
other creative freelancers. According to the data provided by M. Starkeviciute, in 2002 the
creative sector created ca 2% of the Lithuania‘s GDP and earned approximately around 2.1
billion of LTL income, and which together with the governmental funding made ca 2.4
billion litas total income of the sector. To compare, Great Britain‘s creative industries
create more than 5% of the GDP in the same 2002. According to the latest data of the
Lithuanian Statistics Department (2011), the part to the CCI sector companies in the
national GDP exceeded the 6% barrier in 2009.
The vitality of the sector was proven during the time of economic downturn, when the
subjects of the CCI sector managed to increase their value added and sustain economic
activity, while national GDP fell sharply. This resulted in the increased share of the
cultural and creative industries in the national GDP and it reached 6.36% in 2009. In the
same time some structural shifts in the sector were approached: reducing number of active
enterprises in the sector (down to 6714 companies), and growth of active companies with
the increasing number of employees increased up to 70 thousand which made 5% of all
working population in 2009.
The activities of the CCI sector and entire shifts show an increasing growth of the role of
CCI sector within national economy.
CCI indicators in Lithuania 2001 2005 2006 2007 2008 2009
Percentage of total CCI turnover
in total GDP %
2% 4,8% 5,2% 6,36%
Turnover of CCI in billion euro 0,58 1,012 1,257 1,686
No of CCI employees 58.000 59.605 62.300 66.000 70.000
Percentage of total employees 3,8% 3,97% 4% 4,35% 5%
No of CCI enterprises 5412 5693 6252 6787 6714
Percentage of total enterprises 7,48% 7,8% 8% 8,34% 7,9%
Fig. 1: CCI economic coefficients 2001-2009 for Lithuania. Sources: Authors’ Calculation acc. to State
Statistical Office data); „National complex programme “Lithuanian Cultural and Creative
Industries”.
The CCI sector took the economic downturn quite well when compared to other sectors in
Lithuania. The income of Lithuanian industries over 2007-2009 fell around 10%
(including, the work scope of construction companies falling almost 47%), but the share of
Study on the status quo of cultural and creative industries in Klaipeda
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CCI companies‘income in gross Vilnius region income increased twofold from 4.7% to
7.9% in the same time.
Another important peculiarity of the sector is the share of self-employed out of the whole
workforce of the professional group. In EU-15 member states the creative workers (writers,
artists, performers, fashion creators and entertainment industry personalities) act as self-
employed (around 40%), but also a big part of the employees in the creative sector work on
the basis of fixed-term contract or part-time. The same is confirmed by research done in
the Klaipeda city CCI sector in 2010. The status of self-employed has its own advantages
and disadvantages. On one hand, it allows the creative worker to exploit its competencies
and create value added in varieties of forms and sectors (adding value in traditional
industries, services, etc. by creative inputs); on the other hand – it restricts the productivity
of creative worker because of the unsustainable and ad-hoc relationship in the value chains.
In order to maximise creation of value added and encourage development of sustainable
business systems linked to CCI, we need to think of systematic efforts on the sector
development, which would encourage more sophisticated forms of work than the single ad-
hoc activities of self-employed agents in interrupted value chains. Creative sector in
Lithuania and Klaipeda region can find growth potential in varieties of value chains:
adding value to the traditional industry products, development of creative clusters and new
business systems, new forms or work organisation that would stimulate the synergies
across single creative talents, i.e. creative communities, art hubs and incubators or various
association establishments, that would allow engagement in to the dynamic mutual value
creation chains and increase employment and productivity rates.
The CCI sector shows the concentration trend across the centre – periphery, with the share
of CCI companies increasing in the capital city of Vilnius, and decreasing in the rest of
Lithuania over the period analysed. It is demonstrated first, by the concentration of
companies across regions, second, growth tendencies size of the enterprises, and third,
productivity/ revenue rates. The largest concentration of creative businesses is found in
Vilnius – almost ½ of the companies are established here - 46.2% of total number in
Lithuania. A large part of CCI companies are also concentrated in other larger cities in
Lithuania – more than 15% of companies and organizations were registered in Kaunas over
2007-2009, in Klaipeda - 6%, in Siauliai and Panevezys –3% accordingly. The creative
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economic strives still best in Vilnius – here close to 13% of the companies record to be
active in the CCI sector.
7,94%
12,60%
8,75%
6,58%5,42% 5,71%
0,00%
2,00%
4,00%
6,00%
8,00%
10,00%
12,00%
14,00%
Lithuania
Vilnius
Kaunas
Klaipėda
Šiauliai
Panevėžys
Fig. 2: The share of CCI companies over all operators in the largest Lithuanian cities in
2009. (Source: Authors’ calculation acc. to statistical sources).
0
2
4
6
8
10
12
14
Lithuania
Vilniuje
Kaune
Klaipėdoje
Šiauliuose
Panevėžyje
Fig.3: The number of employees of the CCI sector in overall number of employees in the
largest Lithuanian cities in 2007-2009, %
The tendency of concentration is approached not only on the base of geographical
proximity, but also according to the size of companies. Only CCI companies based in
Vilnius demonstrate growth as regarded in size of the enterprise (number of employees),
which corresponds with the general tendencies of national companies. In Klaipeda, very
much like in other remaining regions of Lithuania, the CCI sector is dominated my micro
enterprises (less than 10 employees) and large number of active enterprises. Micro
enterprises here make 85.5% of total CCI sector companies. The third criteria,
demonstrating disparities between the capital city and Klaipeda, is the levels of
productivity and revenue. Despite the fact that 6% of Lithuanian CCI companies are
Study on the status quo of cultural and creative industries in Klaipeda
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situated in the region, their revenue reaches only 3% of the total national CCI income, i.e.
twice less than the national average. The pure performance of the sector could be explained
by the asymmetric development of the city’s economy and the lack of policy incentives
and little attention given to the CCI compared to the long term development of Klaipeda
towards the port and the traditional industrial sectors.
Export activities of Lithuanian CCI sector are somewhat less developed compared to other
innovative industries, but still it was affected by the economic downturn. Compared to
2007 the turnovers of CCI sector‘s product and service exports fell almost twice in 2009.
The dominating form of business organisation is the joint-stock company with limited
responsibility (up to 63% of all CCI companies). Individual company takes up second
place by its popularity and accounts for a fifth of all CI companies. More than a tenth of
Lithuanian CI companies are NGO. A small number of the CCI companies are controlled
by national or local governments (together they make up less than 7%). The given data
show, that CCI sector is mainly represented by private and social entrepreneurial
initiatives, with very limited participation of the state mainly taking a role of funding of
cultural organizations and projects of national importance.
The constituted analysis of the CCI sector across the largest cities allows concluding that
regional disparities are important in terms of size, value added, and concentration and
development dynamics of CCI sector in Lithuania. Even though the CCI sector managed
to increase its created added value over the downturn period, most of the generated income
was created at the capital, and its share of the total national generated CCI turnover is
almost 70%. It is also important to note, the more efforts should be done towards the
sustainable development of the CCI sector across regions while maximising its inputs not
only to the national, but also to the regional and local economies and sectors.
1.1.1. Definition of CCI at national and regional levels
The growing creative sector is identified differently all over the world – some countries
accentuate the creative sector, some – cultural, some – knowledge economics and
intellectual property. Per ex., Great Britain, one of the pioneers of identifying the CCI
sector, incorporates creative and cultural fields and the sector is called creative or creative
and cultural industries. The creative sector is handled similarly in Lithuania, as the analysis
Study on the status quo of cultural and creative industries in Klaipeda
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and policy measures include creative and cultural industries. The most common CCI sub-
groups are distinguished in Lithuanian CCI city maps: cultural areas, crafts, traditional
cultural expression, performing arts, visual arts, books and publications, audio-visual
media, new media, design, architecture creative services, advertising, creative R&D,
recreation, IT and digital creation. Some cities add tourism (but not Klaipeda).
Creative and cultural industry sector links two separate, but also connected fields – creative
economic activities and culture. At this time, UNESCO1 defines cultural industries as
those activities, goods or services that can be defined as specific means created with the
goal of using, formatting or conveying cultural phenomena, without taking its commercial
value into account. Because of this concept of cultural industries, creative industries can‘t
be identical, though cultural and creative industries can complement each other that‘s why
they‘re appointed one main sector. „Green Paper 2010“published by European
Commission in 2010 defines this wide concept of creative and cultural industries which
connects economic and cultural activities. Creative industries include such activities that
aren‘t usually regarded as cultural, for ex.; architecture, advertising, design, fashion,
software development. Also creative industries, as defined by the Department for Culture,
Media and Sport (DCMS) of Great Britain, doesn‘t include non-profit seeking activities
that are generally included into cultural industry. In practice, economic politics dominate
the creative industry and cultural politics is more important to the development of cultural
industries. This happens because one of the most important factors of production in
creative sector is human capital, and the products created are the results of intellectual
activity.
1.2. Brief description of the CCI administrative system at state and regional level
Administration of CCI industries at the moment is assigned to several bodies, according to
the field of intervention and profile of activities supported (culture, businesses, arts,
etc.).There‘s no single national or regional coordinating institution, which would analyse
and coordinate the development of sector in the systematic and continued mode. The
cultural side of the sector is coordinated by the Ministry of Culture that implements culture
policies together with its subordinate institutions. The creativity related to CCI doesn‘t
have specific management policies – the development and stimulation strategy for creative
industries foresees general CI development directions, but participation of the Ministry of
Economy when stimulating the country‘s creative businesses is much missed despite the
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fact that the design and development of creative industries is among the innovation policy
priorities, and several measures directed towards the development of CCI were designed
and implemented under the programming period for EU SF 2007-2013 (development of
creative business incubators, national complex programme for the CCI research under the
general competiveness programme, and few others).
The main institution that implements culture policy is the Ministry of Culture, which
participates in the creation and realization of this policy, separate CM branches or
subordinate institutions manage various fields of culture. Media, radio and TV
sponsorship fund (SRTRF) finances culture activities of associated new media,
contributes to educational project funding. Culture support fund (KRF) is established to
finance projects of traditional fields – from the visual to performing arts, architecture and
associated fields. Subordinate councils and committees help the Ministry of Culture to
coordinate and implement culture policies. Aside the mentioned most important
institutions that set cultural policies, there are other organizations in Lithuania at the
moment that are especially established for coordination of certain cultural fields.
Lithuania‘s Millennium Commemoration Directorate (LTMD) is one of the national
institutions that creates programs for cultural project funding. Organizations that actively
support cultural and creative fields operate in Lithuania such as Association of Lithuanian
Art Creator‘s, National Association of Cultural and Creative Industries (KiKa) and
various development centres for artistic activities. International Centre for Culture
Programs – is a budgetary institution established by the LR Ministry of Culture in 2008.
The institution continues the work of eliminated (in 2008) public entities – „European
Centre for Culture Programs“ and „Media Program Bureau“ – it coordinates Lithuania‘s
participation in the EU CCI funding programs „Culture (2007-2013), „Europe for citizens
(2007-2013), „Media“. The development of creative and cultural economics is highly
depended on the harmonious actions of the three main spheres – culture, business (national
economy) and education. Because the Ministry of Economy is one of the most important
institutions that coordinates business subjects, it‘s only natural that it has a great influence
of the CI sector activities. A vision in Lithuanian export development strategy is provided
for 2015: Lithuania - the Baltic region centre for services. The strategy foresees that the
Lithuanian export structure will change strongly until 2015 – around 50% of export will be
services (intellectual services – 20%, tourism – 10%, other services – 20%). Here there‘s a
possibility to make use of the CI sector‘s potential – creative industries are basically
Study on the status quo of cultural and creative industries in Klaipeda
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innovative activities based on intellectual activity that creates a further higher added value
when compared with other economic sectors. Also it‘s based on highly qualified specialists
and it secures their creative self-expression over wide market areas.
1.3. Description of activities to support creative industries and businesses
Lithuania budgeted financing for the CI sector in its 2007-2013 Structural funds
implementation programmes, but these funds are directly intended for culture and art areas,
and the creative business subjects have fewer possibilities to receive funding for the
development. The main obstruction is that the most of the EU structural funding
programmes intended for businesses aren‘t suited for CCI business support because of the
business structure and specific activities performed by most of CCI businesses, which
make them hard to meet eligibility for funding criteria. Regardless of the fact that the EU
structural funding programmes for Lithuania don‘t have the direct means for the CI
business sector, businesses engaged in creative activities have the possibility to use EU
funding possibilities. In Lithuania, CI companies that have the status of SME (small and
medium enterprises), can compete for the funding under the support schemes and measures
for innovation and competitiveness. The group of measures that is aimed at the direct R&D
support in business Idea LT, Intellect LT, Intellect L+ research and prototyping as well as
acquisition of R&D related equipment in enterprises, and only few of the CCI activities
could directly benefit form the measure as they face the direct competition form high tech
sectors, and well established companies in more traditional industries. The other group of
measures is oriented towards the development of business and increase its competitiveness
by e-business applications, and support to business activities, i.e. E-Business LT, New
possibilities. CCI subjects that cooperate with other private legal entities have the
possibilities to participate in programs intended for joint competency nucleuses –
Inocluster LT, Inocluster LT+. Associated business structures, the founders and developers
of S&T parks and Science, business and study valleys and other public institutions
associated with CCI, can get financing according to the means – Assistant 1, Assistant 2,
Inogeb LT, Inoget LT-2.
Assistant 2 – a measure intended for business incubators, and especially towards the
development of creative industries art incubators, has an ambition to stimulate the
creation and development of new creative industries, create favourable conditions to
creative start-ups, develop them and increase their vitality. Investments into art incubator
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infrastructure are supported: construction of buildings, reconstruction of existing spaces
and acquisition of CCI related equipment. Art incubator is a non-profit public legal entity
with an aim to gather creators of various art forms, their groups and the developers of art-
associated businesses (creative industry) into one space while making use of the present
infrastructure (premises, equipment and other), and in this way create conditions for artists
to create and present their work, start own business, develop economic activities associated
with arts, stimulate the community to participate in cultural life more actively. 9 art
incubators are being established under this measure in Lithuania (one of them in
Klaipeda’s old tobacco factory).
Public company “Exporting Lithuania” was established on November 6th
, 2009 by the
Ministry of Economy and its mission is to crate welfare for Lithuanian businesses by
actively stimulating export, supporting small and medium-sized enterprises, stimulating the
competitive ability of Lithuania’s business. This institution has a “Companies’ Group
Export Initiative” (IGEI) project support program which can be used by the CI sector’s
companies in order to improve the quality of Lithuanian CI products and services exported
to foreign countries. The possibilities to receive financial support for many CI sector
companies are limited by problems associated with intellectual property or
intellectual/creative activity result pricing, so these companies constantly lack capital.
Contrary to the companies working in the technologic field, one of the main assets the
company possesses - ideas, the intellect of its workers – isn’t reflected on the company’s
balance sheets and their investments into new talents and innovative ideas doesn’t adhere
to the usual concept of scientific research and development.
Public company “Exporting Lithuania” implements “Companies’ Group Export Initiative”
(IGEI) project support program which can be used by the CI sector’s companies in order to
improve the quality of Lithuanian CI products and services exported to foreign countries.
JSC “Investment and business guarantees” (INVEGA) – another publically owned
company that takes care of financing small and medium-sized businesses. INVEGA gives
guarantees to the bank for the loans taken by SVV as well as compensates part of the
interest paid on them. The guarantees provided by INVEGA should become another mean
of supporting creative sector industries.
Study on the status quo of cultural and creative industries in Klaipeda
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2. Description of the framework conditions of Klaipeda city
2.1. Introduction of the Klaipeda city
Klaipeda is the third largest city of Lithuania in terms of its size. But it is the second city
(after the capital city of Vilnius), in terms of economic and social prosperity.
Its unique geographical position makes Klaipeda a gateway and distribution hub
connecting the land, sea, and rail routes from the East and West Ice-free sea-port, the only
Lithuanian port and the largest transport hub with 40 million tons of cargo capacity and 33
specialized terminals.
Main facts about Klaipeda city:
Territory: 98.35 km2
Population: 178,000 (2010) - 50% of Klaipeda region population
Ethnic groups: 71 % Lithuanian, 21.3 % Russian
The largest investors: Switzerland, Denmark, Germany
Employment: 64 %
2.2. Geography and demography
Klaipeda county population exceeds 269 thousand and Klaipeda city has over 123
thousand people of working age, which accounts for about 70 % of the city’s total
population. The unemployment rate is 14 % (2011). Education enrolment and levels are
relatively high following the general trends of the country.
In Klaipeda:
> More than 90 % of population aged 25 to 64 has obtained a secondary or higher
education (ranking 2nd in the EU, EU-27 average 70 %).
> 30 % hold higher education degrees, compared to the EU average of 24 %.
> 40 % of the working population (including 25–34 year olds) have a higher education,
which is almost twice as high as the EU-15 average.
> Two universities, five colleges and 5,000 graduates yearly.
> Ethnic groups: 71 % Lithuanian, 21.3 % Russian.
> The average resident age: 39.4 years.
The birth-rate in Klaipeda County is growing by 2-3 percent annually and exceeds the
average of national rates. Still, the mortality rate is higher than the birth rate in Klaipeda
Study on the status quo of cultural and creative industries in Klaipeda
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and in Lithuania as well. In 2006 internal migration saldo for 1000 Inhabitants in Klaipeda
region were biggest in Lithuania. This tendency shows that Klaipeda region is one of the
best regions to live and work in Lithuania.
2.3. Spatial structure
The current shape of Klaipeda city was formed over centuries and fundamentally
transformed by WWII and soviet occupation, at this point an idea of “linear city” was
embodied. The beginning of the city is near the mouth where river Dane flows into the
Curonian Lagoon which is in its part a continuation of another river’s flow – Nemunas –
into the Baltic Sea. This connection to the sea created conditions for the castle built in the
middle Ages to become the first port, that’s now one of the biggest in the region.
WWII completely changed the constitution of inhabitants and built-over area of the city.
Squares and plazas appeared instead of ruined areas. The city’s natural growth around the
river Dane was radically turned southwards along the Curonian Lagoon in XX century.
Post-war industrial and residential apartment block turned south following the streets and
pipelines developed for the port. In this way the second Klaipeda was formed over few
decades. Architects of the time followed the region’s typical tradition of using red brick in
construction as well as soviet ideology and created an original “red Klaipeda” image that
separates Klaipeda from other cities in the region.
The third wave of the development of Klaipeda started forming at the end of the soviet
period and flourished when Lithuania gained independence in 1990. Because of the
increased financial and acting capabilities of the strenuous inhabitants intensive building
started towards the Baltic Sea beaches and coastal forests in the north. The building
expanded over the economic upturn, suburbs extended into the former agricultural land in
the east. Individual finished and under-development districts appeared far from the main
body of the city. The city’s development planning lessons, suburb expansion and emptying
of the Old Town are being reconsidered and harmonious development foundations are
being built now. The economic stagnation in the construction sector gives architects time
to draw conclusions and prepare for future city’s improvement projects. New competition
projects for rebuilding of Klaipeda Castle and Music Theatre on the shores of the Curonian
Lagoon gained vast interest and appreciation. This one more time proved great
perspectives for harmonious and quality development of the city.
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2.4. Description of the economy
Klaipeda is well positioned to compete in the global economy, especially in the areas of
transport & logistics, IT, food processing, plastics, furniture & wood processing,
shipbuilding & repair. Its well-developed network infrastructure system has been
internationally acknowledged and has created excellent opportunities for logistics,
transport and warehousing providers. The port operations create 4.5% of Lithuania’s GDP.
In January 1 th 2011 m. in Klaipeda city labour market 24.906 people were registered as
looking for the job, 21.439 from them – unemployed and 50,3 % from that - women. The
ratio between unemployment and working age inhabitants’ was 13,4 proc. In Klaipeda
region unlike Vilnius and Kaunas, mostly employed persons concentrated in service sector
– around 60 proc.
Real estate activities, rental and
other business activities
23%
Wholesale and retail trade; repair of
motor vehicles and motorcycles
23%
Transportation and storage
12,5%
Construction10%
Manufacturing7,13%
Education, health and social work
6%
Accommodation and food service
activities4%
Information and communication
1,6%Financial and
insurance activities0,8%Agriculture and
fishing 0,9%
Fig.4: TOP 10 branches of economic activities in Klaipeda city, % from total economic
entities (2010).
Foreign companies have invested about 950 million EUR in the Klaipeda region during
2010. Danish investors occupy the leading positions, as their investments make up around
20 % of the total figure. Other main investors are also Cyprus (16 %), Switzerland (12 %),
Germany (9.5 %), Estonia (7.7 %), USA (6.8 %) and others.
Study on the status quo of cultural and creative industries in Klaipeda
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Being the third largest city in Lithuania in terms of the country’s population and the second
most attractive city to work and live in, after the capital, Vilnius, Klaipeda has a well
developed educational system which provides a highly skilled workforce. It offers
competitive wages and lower operational costs relative to other European cities of
comparable size. Klaipeda hosts two nationally accredited universities, Klaipeda
University, LCC International University and five colleges. Each year, both universities
produce more than 2,000 graduates in business, humanities, natural sciences, marine
engineering, performing arts and technology-related disciplines. LCC International
University is a nationally and internationally recognized liberal arts institution in the city
of Klaipeda with classes being taught in English. One-third of the LCC faculty is
Lithuanian while two-thirds are from Western Europe, Canada and the United States.
Association “Baltic valley” was established in order to coordinate research, academic and
business activities within the “Integrated Science, Studies and Business Centre (Valley) for
Lithuanian maritime sector”. The founders of the association are public scientific and
academic institutions and business entities.
In 1 January 2011 in Lithuania was 85 696 active economical subjects, which figure
compare with 2010 decrease on 21, 6 proc.
Lithuania macroeconomic indicators 2008
2009 2010 2011
(1-09)
2012p 2013p
Variation of GDP, proc. 2,8 -14,8 1,6 2,8 1,2 2,4
General domestic product, million EUR 32 460 26 619 27 533 22 644
Average annual inflation, proc. 3,6 -3,0 1,8 2,5 2,5
Average monthly salary, Lt 2165,5 2043,5 2080,3 2134,8 2230,9
Average annual unemployment level,
proc.
5,8 13,7 16,7 15,5 14,4 12,3
Exports as a share of GDP, % 60.2 44.3 34.9 36.2
Fig.5: Lithuanian economy. Key statistics. (Source: www.finmin.lt,
www.stat.gov.lt, www.verslolietuva.lt)
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0
5000
10000
15000
20000
25000
30000
35000
2007K4 2008K2 2008K4 2009K2 2009K4 2010K2 2010K4
Fig.6: General domestic product of Lithuania, million LT/quarterly dynamic (2007-2010),
Source: http://db1.stat.gov.lt
The most prevalent economic sectors in Klaipeda are: shipbuilding and repair, transport
& logistics, PET/Plastics, furniture & wood processing, the food and beverage industries
and tourism.
In 1 January 2011 in Klaipeda region was 8440 active enterprises with 85 101
employees, the largest part of them are SME’s – 99 proc. That composed 12, 6% of
Lithuania enterprises.
During 2010 number of enterprises in Klaipeda city decreased by 1, 6 proc. - till 27,
5 SME for 1000 inhabitants (in 2009 year – 28, in 2008 year – 26,7). In Vilnius on
this period were 37 SME for thousand inhabitants.
In 2010 general domestic product of Klaipeda region was 3.166 million EUR and
constant 11, 5 % of all Lithuania GDP
Enterprises in Klaipeda 2008
(1-12)
2009
(01-06)
2010
(01-06)
2011
(01-06)
New registered SME (city) 777 541 468 497
Check out SME (city) 319 287 272 -
Total number of enterprises (Klaipeda region) 8870 - - 8440
Total number of enterprises in Klaipeda city 6770 6205 6105 6280
CCI enterprises in Klaipeda city 501 479 461 -
Fig.7: New registered, check out and all working enterprises in Klaipeda region and city (Source:
http://db1.stat.gov.lt)
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2.5. Brief overview of the cultural situation of the city
Klaipeda offers a stable quality of life that includes attractive business opportunities,
stunning natural beauty, and a relaxed lifestyle. Known as culturally developing, vibrant
and open, Klaipeda offers plenty of creative places to explore: art galleries, concert halls,
music theatres, libraries, museums and various cultural spaces for all kinds of cultural
activities.
Surrounded by white sandy beaches, natural sand dunes, the Baltic Sea and the Curonian
Lagoon, Klaipeda has a bounty of valuable and unique landscapes to enjoy. About 30
traditional festivals are held in the city annually. The favourites are the Sea Festival and the
Klaipeda Castle Jazz Festival. The 2011 European Basketball Championship, universally
referred to as Euro Basket 2011, was hosted by Lithuania and Klaipeda. Each second year,
the International Sail Training Organization lists Klaipeda in a spectacular sailing event –
The Culture Tall Ships Regatta.
B. Cultural and creative industries in Klaipeda
1. Description of statistic data gathering
The statistical description of creative industries in European Union is based on
DCMS exclusion system of creative industries (United Kingdom) and it‘s generally
accepted in various countries. EU Department of Statistics (Eurostat) when excluding the
creative and cultural industries, in addition to the United Kingdom‘s model, bases its
evaluation on the most recognized methodical principle of aggregation. For that purpose
European network of national statistical systems was created in 2009 which was combined
by Eurostat in order to work more efficiently and harmonize the statistics of cultural and
creative activities. Nonetheless, creative and cultural industries (CCI) are defined
differently in various countries and there isn‘t a unified world renown evaluation system,
so each country tends to attribute different sub-sectors to the industry. According to the
Lithuanian Ministry of Culture, the reviews should be done in his sector (and in some cities
was done) according to the UNCTAD methodology that has the widest view of the CCI
sectors. It differs from the KEA method because it has a wider view on information
technologies and activities connected with it (for ex., computer programming).
The most common EU classification methodologies of creative and cultural industries:
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- KEA model
- Eurostat approach to culture
- WIPO approach to intellectual property industries
- United Kingdom approach to creative industries
- United Nations (UNCTAD) approach to creative economics
It is important to identify parts with the biggest potential when analyzing current sector
situation, but it doesn‘t mean that one should concentrate only on these sub-sectors or
activities that generate the greatest growth – some activities might show no economic
potential from the first sight, but frequently plays an essential role when creating added
value or can generate export.
When looking at the perspectives of the Baltic States a question arises – is the main goal of
the region to support the CI sector as it is or to encourage the abilities of the employees to
integrate into value generating chains of other economical business subjects. It‘s hard to
hope for prosperity of the CCI sector in regions that are far from the biggest cities or the
capital (Klaipeda is like that in Lithuania), but if this sector and its workforce can stimulate
the economics in far regions or cities – it‘s the perspective that has to be encouraged.
Economy politics is associated with the creative industries through the entrepreneur part of
the CI sector – these creative activities are the greatest income generators for the sector and
they‘re not „protected“by cultural policy – it‘s the new media (press, radio, TV, film),
advertising, design, creative activities associated with information technologies. For this
reason, economic policy directed to these activities and their influence on the traditional
economics can be especially significant, and influence indirect CCI sector effects on the
economy, prompt the development of the city or the whole country.
Out of five most spread methodologies that are used in many countries all over the world,
KEA method was chosen as the one that fits Klaipeda situation best in 2009 when creating
the first creative and cultural industry map of Klaipeda. Six main CCI sectors were
excluded on Klaipeda map:
(1)Performing Arts, (2) Visual Arts, music; (3) New media and creative
services; (4) Sound and audio-visual media; (5) Architecture; (6)Non-formal creative
communities/Other activities.
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The concentric model used by KEA looks comparatively widely to the creative industries –
from the United Nations model it differs because KEA methodology doesn‘t include
computer programming (except computer games).
The main CI sector classification model differences analyzed here are simply if they
include a particular industry or not. The broadest cultural classification is created by the
United Nations (UN) Trade and Development Conference (UNCTAD) and covers almost
all fields that are included in other methodologies – except for intellectual property
protection communities that are excluded only by World Intellectual Property Organization
(WIPO).
CCI sector classification presented in the EU report „Cultural Economics in Europe“
(2006) is used in this study and it divides the creative sectors as follows:
11 core branches
∙ Visual Art
∙ Performing Art
∙ Film Industry
∙ Broadcasting Industry
∙ Games/Software Industry
∙ Music Industry
∙ Book Market
∙ Press Market
∙ Design Industry
∙ Architectural Market
∙ Advertising Market
∙ Other/new activities
Fig.8: Methodology proposed by URBAN CREATIVE POLES partners‘network
The Study “proposes a new framework based on the need to distinguish between a ‘cultural
sector’ constituted of traditional art fields and cultural industries, whose outputs are
exclusively ‘cultural’, and the creative sector which gathers the remaining industries and
activities that use culture as an added-value for the production of non-cultural products. In
order to investigate in more detail what both sectors entail, it is proposed to present the
economy of culture as a ‘radiation processes. […]” ( The Economy of Culture in Europe,
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European Commission 2006, p. 53). The radiation process (cf. Fig. 9) enables identifying
the different categories of activities/sectors covered by the economy of culture:
– The centre is constituted of non-industrial cultural products, i.e. ‘the arts field’.
– A first circle around this core includes industries whose outputs are exclusively
cultural, namely ‘cultural industries’.
– A second circle includes activities whose outputs are functional but which
incorporate elements from the two previous layers into the production process,
“creative industries and activities”. In this case, “activities” are referred to, and not
only “industries”. Taking the example of design, not all industries that use design
activities to incorporate creativity and improve their performances are included in the
definition. The whole car industry cannot reasonably enter into the assessment of the
economy of culture because of its design activities- yet, its design activities are very
important to its overall performances.” (The Economy of Culture in Europe, European
Commission 2006, p.54)
CREATIVE INDUSTRIES AND
ACTIVITIES
CULTURAL
INDUSTRIES
THE ARTS
FIELD
RELATED INDUSTRIES
∙ non-industrial cultural products
∙ industries whose outputs are
exclusively cultural
∙ activities whose outputs are
functional
∙ incorporate elements from the two
previous layers into the production
process
∙ Belong not to the “cultural &
creative sector” but is strongly
linked to it
∙ specialized in the production,
manufacture and sale of
equipments whose function is
wholly or primarily to facilitate the
creation, production or use of
works
Fig. 9: Radiation process according to the study “The Economy of Culture in
Europe”, European Commission 2006
The sector of culture and creative activities can be disposed into the public and the private
sector. According to the Swiss three-sector-model, the cultural sector is divided into a core
area of artists / cultural production and a peripheral surrounding area comprising the
Study on the status quo of cultural and creative industries in Klaipeda
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public, the intermediate (non-profit) and the private (market-oriented) sub-sectors. While
the first two sectors belong to the field of ‘non-profit oriented culture’, the third sub-sector
is seen as ‘profit-oriented’ or ‘commercial’ culture, and this sector is denoted as ‘culture
and creative industries’ (CCI). The sub-sectors are connected by a ‘capillary’ system of
mutual exchange. The culture industries are built on the creativity potential of the public
and the not-for-profit cultural sectors and provide innovative feedback – at least under
ideal conditions.
Lithuanian EVRK activity and code attribution to NACE sectors
Lithuanian economic activity classificatory codes and sector descriptions (EVRK) wary
from NACE classification and sub-sectors (code level 4). For this reason the data in this
comparison CCI analysis for UCP partner cities was done when keeping to the following
assumptions:
1. In Lithuania EVRK codes practically don’t match the NACE classification – there
are no core CCI branches and activity explanations. Some of the EVRK statistical
class double-digit codes adhere to EVRK 4th
level codes, but there are a lot of
related statistical codes that have different codes in the national Lithuanian system
– these were attributed according to its meaning to the nearest NACE sector code
(table No.2);
2. Even though EVRK classification isn’t fully suitable for the analysis of the CCI
activities and there can be discrepancies, this classificatory is used when gathering
and processing statistical information of Lithuanian companies. The information
collected by Lithuania Department of Statistics using the EVRK classificatory best
indicates the CI sector dynamics. Four-six digit activity codes were removed from
the EVRK classificatory in order to best represent the CI sector;
3. The Department of Statistics database doesn’t have statistical data on the 1 or 2
operating companies of a statistical class, not all statistical classes in table 2
attributed to NACE statistical classes, so their financial information isn’t taken into
account. On the other hand, this data doesn’t include such EVRK classes that have
no companies operating in the city;
4. The data for CI sector analysis was chosen by the Department of Statistics based on
what is the main activity of the company. Because of this reason some statistical
Study on the status quo of cultural and creative industries in Klaipeda
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data might not represent precise information, as some companies can be involved
not only in cultural, but in other type of activities. Also we have to keep in mind
that the CI sector companies are small businesses and it’s likely that they get the
biggest income from its main activity, so the data presented by the Department of
Statistics can be treated as sufficiently accurate;
5. All the data from the Department of Statistics is about various private entities (joint
stock companies, individual companies and public companies); intermediate status
sector can only be understood as non-governmental organizations and their data
isn’t separately accounted for in Lithuania;
6. Data of some sectors obviously don’t adhere to the real situation in Klaipeda, for
ex.: the music industry doesn’t supply its data, probably because most of the
subjects of this field work according to short-term licenses or because of the reason
No. 4 of this list;
7. Design field doesn’t have an EVRK code, so in this research we’ve attributed only
jewellers making code to this part;
8. In the statistical tables (tables 3-15) about companies operating on separate
branches the Department supplies digits of two values: smaller amount of
companies supply economical data; bigger amount of companies defines the
number of all companies operating in this field, including those ones whose data is
gathered by the Department of Statistics.
Core
branches/se
ctors
Sectors/ NACE level 4/main
group of NACE sub-branches
Classes based on EVRK
(Lithuania)
EVRK
codes
Performing
Art
90.01 Performing Arts (Actors
activities, Dance band,
Theatrical presentations..)
90.02 Support activities to
performing arts (Lighting
engineers, Activities of directors
and producer...)
90.04 Operation of arts facilities
(private)
- Performing arts
- Support activities to performing
arts
- Operation of arts facilities
90.01
90.02
90.04
Visual Art 90.03 Artistic Creation (Artists,
Sculptors, Painters, Etchers
- Manufacture of ceramic household
and ornamental articles
23.41
23.70
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activities, Art restoration)
74.20 Photographic Activities
-Cutting, shaping and finishing of
stone
-Manufacture of imitation jeweller
and related article
-Retail sale of souvenirs, art works
and religious goods
-Photographic activities
-Artistic creation
32.13
32.12
47.78.1
0
74.20
90.03
Film
Industry
59.11 Motion picture, video and
television program production
activities
59.12 Motion picture, video and
television program post-
production activities
59.13 Motion picture, video and
television program distribution
activities
59.14 Motion picture projection
activities
-Motion picture projection activities
-Motion picture, video and
television program production
activities
59.11
59.14
Broadcastin
g Industry
60.10 Radio broadcasting
60.20 Television programming
and broadcasting activities
-Radio broadcasting
-Television programming and
broadcasting activities
60.10
60.20
Music
Industry
59.20 Sound recording and
music publishing activities
-Sound recording and music
publishing activities
59.20
Book
Market
58.11 Book publishing
-Book publishing
-Other publishing
58.11
58.19
Press
Market
58.13 Publishing of newspapers
58.14 Publishing of journals and
periodicals
58.19 Other publishing
activities
63.91 News agency activities
-Publishing of newspapers
-Publishing of journals and
periodicals
-Public relations and
communication activities
-Media representation
58.13
58.14
70.21
73.12
Design 74.10 Specialized design
activities
( Jewellery designing)
-Manufacture of jewellery and
related articles
32.12
Architectur
al Market
71.11 Architectural activities -Architectural activities;
-Engineering activities and related
technical consultancy;
-Specialized design activities;
-Landscape design
71.11
71.12
74.10
81.30
Advertising
Market
73.11 Advertising agencies
73.12 Media representation
-Advertising agencies
-Market research and public opinion
polling
73.11
73.20
Games/Soft
ware
Industry
58.21 Publishing of computer
games
58.29 Other software publishing
62.01 Computer programming
activities
-Publishing of computer games
-Other software publishing
-Computer programming activities
-Web portals
58.21
58.29
62.01
63.12
Other/new
activities
91.01 Library and archives
activities
-Retail sale of antiques in stores
-Tour operator activities
47.79.1
0
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Fig.10: Lithuanian EVRK activity and code attribution to NACE sectors
3. Portrait of the cultural and creative industries in Klaipeda
Almost 470 enterprises (without freelancers’) have consisted CCI sector of Klaipeda city in
2010. The revenue of the CCI companies in Klaipeda compare with Lithuania sector are
quite poor – 6% of all Lithuanian CCI companies are situated in the city but generate only
3% of the total Lithuania CCI income. There are mostly small companies, the total
turnover of which makes up about 2,5 per cent of the added product as created in the city,
and the employed about 2 per cent of all the employed. These data do not include separate
artists, the number of which is quite high according to actively working professional units
– only in Klaipeda branch of Lithuania Unions of Artists there almost 100 artists working
in Klaipeda and also about 100 members in the Union of Architects.
0
1000
2000
3000
4000
5000
6000
7000
8000
2008 2009 2010
Total number of enterprises in Klaipeda city
CCI enterprises in Klaipeda city
Fig.11: Klaipeda city CCI enterprises in total number of enterprises 2008-2010 (Source:
http://db1.stat.gov.lt)
91.02 Museums activities
91.03 Operation of historical
sites and buildings and similar
visitor attractions
85.52 Cultural education
-Other entertainment and recreation
activities
79.12
93.29
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2010 Performing
Visual
arts
Film
industry
TV and
radio Music
Book
market
Number of companies 8 63 *4 3 *1 7
Size of companies:
Freelance with patents 12 76 0 0 0 0
1 – 9 employees 8 55 3 3 1 7
10 - 49 employees 8 1
50 - 249 employees 1
250 employees and more
Number of business start-ups 2 3 1 0 0 1
Annual turnover (th. eur) 211 16305 * 887612 * 237
GDP (th.eur) 43 1792 * 478657 * 50
Number of full-time employees 17 417 * 12 * 15
Number of self-employed
entrepreneurs 2 26 1
0 0
3
2010
Press
market Design
Architectu
ral
Advertisin
g Software
Other
activities
Number of companies 12 12 207 69 28 65
Size of companies:
Freelance with patents 0 56 10 10 0 17
1 – 9 employees 10 12 183 67 26 62
10 - 49 employees 1 22 1 2 2
50 - 249 employees 1 2 1
250 employees and more
Number of business start-ups 1 1 22 10 7 7
Annual turnover (th. eur) 3677 248 15507 4929 1376 1947
GDP (th.eur) 868 103 7339 1280 903 260
Number of full-time employees 117 39 941 277 86 171
Number of self-employed
entrepreneurs 3 7 107 28 8 35
Fig. 12: The comparison of statistical data of 12 sub-branches of Klaipeda CCI, 2010 (Source:
Authors’ presentation acc. to statistical sources)
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4. Build up of institution for coaching and platform for network
According the researched have done in Klaipeda by KEDA in 2010 there are tendencies
in CCI sector to work individually – almost 32% of interview respondents’ not belongs to
any cooperation networking and 31% join only social networking on internet. In Klaipeda
are several professional traditional culture platforms for artist’s collaboration, such as
Union of artist, Union of Architects, Union of photographer. There also few non formal
creative networks of young artists as loft communities. A new association for Klaipeda
region creative industries (IKRA) was established in 2011.
General coaching offers for SME’s are provided partly by Klaipeda Science Technology
Park in the form of separate seminars and conferences on topics such as EU support, HR
management, retail and sale and also special innovation seminars. Klaipeda Economic
Development Agency (KEDA) specifically addresses to creative start-ups and provide
consultancy and education services directly on line as virtual incubator services. During
last 4 years specialized courses round for CCI was offered by KEDA on topic such as
“Creation as business” as well. Support services for start-ups have increased in recent years
in Klaipeda thankfully EU support project for creative industries implemented by KEDA.
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5. Map representation of Klaipeda CCI sub-sectors
Visual arts
Music and stage arts
New media and creative services
Sound and audiovisual media
Architecture
Informal creative communities and places
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Klaipeda city centre CCI map
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Klaipeda North part CCI map
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Klaipeda South part CCI map
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C. Presentation of public and intermediate cultural sectors
According the researched has done in Klaipeda in 2009 by KEDA the ratio between CCI
private and public enterprises correspondently is 58% in private sector to 42% in public
enterprises (Source: “Creative industries business survey, Klaipeda 2010”; example of
questioners in the Annex 1). Joint Stock Company is the dominating company type in
Lithuanian creative sector as well in Klaipeda – it makes up almost 63% of all Lithuania
CCI companies - more than in Klaipeda sector. Individual company takes up second place
by its popularity and accounts for a fifth of all CCI companies. More than a 10% of
Lithuanian CCI companies are public companies, at the same time other legal forms of
company aren‘t popular among the CCI subjects. A small part of the CCI companies is
controlled national or local governments (together they make up less than 7%), which
means that almost all of creative sector is represented by private capital.
Municipal financing of culture take an important place in the artistic life. About 160
cultural employees work at Klaipeda city municipality cultural institutions. The
municipality takes care of 8 budget enterprises that provide cultural services with almost 2,
9 million euro financing from city budget. Also there are institutions of Ministry of culture
in the city: Klaipeda state music theatre, Drama Theatre, Gallery of P. Domsaitis,
Lithuania Marine museum and Delfinarium, Museum of Clock. Almost 40 public
institution and unions, 20 non-governmental organizations, almost 1200 artists with status
of creators are active in Klaipeda. Young creators are educated in 8 art schools of the city
(2 of them are higher education schools). More than 900 students study in higher art
schools, and about 300 students graduate from them each year.
D. Presentation of polls, expert interviews and workshops
Key sources of the contents of the SWOT analysis are the polls, expert interviews and four
workshops that were hosted with local stakeholders. This section of the report presents the
related working steps with local key informants. Conversations were conducted with 75
individuals in the course of this research, either in telephone or face-to-face interviews or
as part of a group discussion. The research team would like to thank them for their time.
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1. Information about the SWOT workshops and meetings
There were 4 workshops conducted: on 3rd
August, 2011, on 13th
October, 2011, on 18th
October, 2011 and on 26 th
November, 2011.
Workshop 3rd
August, 2011. The participants of UCP project summer academy in
Cottbus were invited to come to the workshop. All 5 participants, representing such CCI
sectors like architectural market, performing art market, press market and design industry
came and discussed the issues concerning status quo of each represented sector. During the
workshop every participant presented each sector, its strengths, and weaknesses. After that
there was a common discussion and final conclusions on common CCI opportunities and
threats.
Workshop 13th
October, 2011. The participants were invited according to Klaipeda
Economic Development Agency (KEDA) creative industries stakeholders’ mailing list.
The list contains of 30 contacts of architectural market, 15 contacts of audio and visual
market, 45 contacts of design and press market, 39 contacts of visual art market and 27
various creative and cultural entities contacts. 23 participants came to the workshop to
represent the markets they work in and discuss on actual problems on CCI ant they sectors.
The presentation of initial SWOT results was done by director of KEDA. The work was
arranged in groups, such as a group of representatives of design and advertising market, a
group of film, music and TV and radio broadcasting market, a group of books and
newspapers publishing market, a group of architectural market, a group of arts related
creative services market and a group of non formal education activities, CCI research and
new creative services. After working in groups the conclusions were compared among
every sector and general conclusions about CCI threats and opportunities were made as
well.
Workshop 18th
October, 2011. During presentation of virtual incubator platform services
where 30 participants were invited (included 8 representatives from games and
programming software industry); totally 25 attended in the seminar. Main features of IT
sector market and internet marketing was discussed during the workshop. The questioners
about the sector needs and problems were fulfilled by participants.
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Workshop 26 th
November, 2011. During the broad-brush SWOT workshop the main
goals and problems and possibilities of CCI sector were mark off in separate working
groups. The 18 participants contains of architectural market, audio and visual market,
media, design and press market. During the workshop decision of creation of CCI local
networking association have been decided.
Part E
SWOT analysis for Klaipeda CCI sub-sectors (branches):
1. Traditional cultural activities: performing and visual arts (for performing arts
mostly public and intermediate representatives, for visual arts - mostly individual
creators, photographers and galleries)
2. New media industries (Film, Broadcasting and music Industries)
3. Press and book markets
4. Design and advertising industries (from design activities - mostly graphic design
and Jewellers design)
5. Architecture market
6. IT software creators
7. New creative activities, non formal education, creative services and creative places
Branches of
Klaipeda CCI
Strengths of the branch Weaknesses of the branch
1. Traditional
cultural
activities:
performing and
visual arts
- Old music festival traditions,
there are a few good public concert
halls;
- Klaipeda University prepares
many music and performing Arts
specialists (around 300 graduates
from the city‘s higher education
establishments); physical
infrastructure is present;
-Strong support of the local
budgetary institutions;
- An increasing number of
individual business certificates for
performing Art activities;
- Undeveloped private sector,
only budgetary and public
institutions present;
- Lack of national-level stars;
- Cultural import
predominates, export is almost
nil;
- The physical infrastructure of
the performing Arts is in need
of investment and renewal;
- There is no close cooperation
between Art schools and
institutions;
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- An increasing number of private
galleries and public performing Arts
companies;
- Contemporary visual Arts events
that are supported by local budget
are emerging.
- Dependent on the country‘s
economic situation and
budgetary expenses on culture.
2. New media
industries
- New private non-traditional spaces
for music events have emerged in
the city (Neoloft’as, Fanierkė, Art
Dock);
- The number of film industry
sector companies has increased
marginally over the recent years;
- There are no consistent film
presentation traditions except
for the national film festivals
that come to the city;
- A lack of qualified specialists
and young professionals who
have the know-how of
technologies and tendencies;
- Very poorly quantitavely
developed sector, small
number of companies;
- There is no local and national
politics of the sector, no
tutelary institution;
- The sector isn‘t seen in the
city.
3. Press and book
markets
- Historically old sector that has
wide know-how;
- Special national fund‘s support
for this sector;
- A network of informal relations,
traditions, local awards, union;
- Public importance and
acknowledgement of the sector;
- Comparative stability of the
activity;
- Orders from the local
government (indirect support);
- Still less than half of value added
tax for informative publications
(%)
- Decreasing confidence in
press;
- Nonconformity to the
changed economic situation
and the decline in the
consumer market, lack of
secondary activities;
- Small investments in
employee education;
- Non-sufficient development
of secondary activities;
- Small investments in
physical basis and
technologies;
- The sector strongly
diminished over the crisis:
from 4,9 mill. Lt profit in 2007
to - 1,7 mill. Lt in 2009.
4. Design and
advertising
- Traditionally strong amber and - Only one type of design is
developed – visual design,
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industries other jewellers sector traditions;
- Graphic designers are prepared
at the local colleges and
Universities;
- Many private advertising design
and manufacture companies.
other sub-sectors such as
product or fashion design are
almost non-existent;
- There‘s no product export,
international capital and high
level advertising companies
- There are no local programs
for public art and design;
- The architectural projects
lack interior design
innovations because usually
they are not financed by the
clients;
- The whole sector lacks
innovations and application of
new technologies.
5. Architecture
market
- The sector is fully formed with
many companies and own
traditions;
- The communication network is
open and accessible (the
Architects‘ Union);
- Cooperation with educational
institutions is present and the local
representatives are known;
-There are political benchmarks at
national level;
- There is an established
infrastructure: exhibitions of the
sector‘s products and projects;
- It‘s the biggest sub-sector in the
city by its turnovers, the number of
companies is big;
- Connected companies that
participate in value creation
channel (co-creation channels).
- Learning infrastructure is
disembodied from practice
with small possibilities to
influence it;
- Strong addiction and little
cooperation with the
municipality;
-Private and public sectors
have difficulties
communicating;
-The sector is strongly
influenced by the real estate
market so the economic
decline has affected it more
than other sub-sectors of CCI;
- Development policy is
implemented poorly, no
lobbying personalities are
present;
- The city‘s marketing doesn‘t
stimulate the sector;
- The activity lacks creativity
and contemporary architectural
innovations;
- The activity and projects
meet with very high
requirements and usually
uncoordinated actions of the
regulating institutions.
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6. IT software
creators
- Sufficiently cheap, qualified
city‘s workforce in the sector;
- Small competition and high
demand for IT services;
- The activity doesn‘t require
difficult infrastructure and
monetary investment – the value
is exclusively created by human
resources.
- Service rates aren‘t high in
the local market and the
revenues aren‘t sufficient to
safeguard growth of the
companies;
- Some marketable products
such as games aren‘t created
by the local companies solely
because of lack of know-how
and order deficiency;
-The best local specialists are
employed by competitive
international companies in the
capital, thus creating high
deficiency in the regions;
-Small IT companies don‘t
have international work
experience;
-Poor protection of intellectual
property.
7. New creative
activities, non
formal
education,
creative services
and creative
places
- New innovative activities attract
more users of the service;
- Interdisciplinary activities freely
experiment with the concepts and
it allows the use of non-traditional
areas and methods;
- The experience, infrastructure
and resources of other CCI sectors
can be used;
- There is a high demand for
informal and cultural trainings,
seminars to promote creativity, etc.
- This activity is hard to define
and presentation to the public
gets complicated. That‘s why
there are no local support
policies or programs;
- Lack of experience and
professionalism.
Opportunities of the branch Threats of the branch
1. Traditional
cultural
activities:
performing and
visual arts
- Relative resistance to the
economic crisis in cultural sector;
- Easily exported culture good;
- Large amount of qualified
specialists;
-Cultural tourism cluster formation
is possible in the city if local
budget support is used;
- Consumption of pop culture
is increasing and the need for
high quality culture is
diminishing among young
people.
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- An old drama theatre which is
being renovated at the moment
will become one of the most
important cultural objects of the
city in a few years.
2. New media
industries
- There‘s no competition in this
sector in the city;
-A large local and international
demand for media products.
3. Press and book
markets
- Many users are faithful to the
traditional printed format of press
or books;
- Freedom of speech thrives and
the limitations to publicity are
relatively small;
- The competition between
publishers and printing houses in
the city is little;
- The infrastructure of private
printing houses was renovated
before the crisis so it‘s at a rather
high technological level.
- The market for digital press
and books is growing, so the
traditional market share will
diminish in the future;
- Ever diminishing income
from advertising clients;
- Diminishing national
donations for publishing,
libraries and author
remunerations;
- Fiscal exemptions are almost
obsolete for publishing houses
and authors.
4. Design and
advertising
industries
- No local competition in design
area (except visual and
commercial design);
- Design solutions still aren‘t
used in traditional industries and
its value makes up a small part of
the chain.
- National statistics system
doesn‘t identify design as a
sector, so its results are hidden
under other statistical codes
and aren‘t clearly identified;
- There are no national
programs or parenting
institutions;
- Highly undeveloped design
sector has no opportunities to
compete at an international
level and progress.
5. Architecture
market
- There‘s a possibility to influence
this sector via local planning
policies and structural reforms;
- There‘s a possibility to
participate in European open
tender designing competitions;
- Building and real estate markets
are resurgent;
-Ministry-level law reforms would
create more favourable conditions
- Ever changing building and
designing laws and
subordinate legislations;
- A new wave of real estate
crisis;
- There are no procedures to
warrant the quality of the
projects.
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for the activity and would warrant
quality of the projects
- Large number of specialists is
prepared all over the country;
- Landscape, interior architecture
activities aren‘t tapped into.
6. IT software
creators
- Local and international market
for IT products and solutions is
large and growing;
- Possibilities to commercialize an
original solution are great;
- The activity can be developed
according to flexible and modern
business models;
- Many various events and private
investment possibilities for start-up
IT businesses in the sector;
- Unlimited possibilities for
international partnerships, co-
creation and online services.
- Young talents are „leaking“
to the capital and abroad, IT
talent head-hunting.
7. New creative
activities, non
formal education,
creative services
and creative
places
- Interdisciplinary activity
concepts allow for free
experimentation, the use of non-
standard spaces and methods;
- Undeveloped local market.
- Undeveloped local market
and the demand are hard to
forecast.
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2. SWOT evaluations. Summary of the SWOT- analysis for all Klaipeda CCI
sector
Strengths of CCI
Tradition
-The city has traditional culture festivals and feasts;
-The strongest sub-sectors are the ones with the long-term business activity traditions
(architecture, publishing, traditional direct budget assignation based culture);
Economic situation
- The CCI sector can be defined as a flexible, dynamic, and fast growing compared to other
sectors of Lithuanian economy.
- Creative work creates a higher added value, thus giving a long-term competitive advantage
and presumptions for a fast income growth;
- Flexible labour market (creative jobs via short-term activity licenses is growing) adds
vitality to the sector and increases is attractiveness compared to traditional sectors and well
established businesses whereas long term work contracts dominate with inflexible hiring
and firing procedures.
- low capital intensity - implementation of culture projects doesn‘t necessarily require high
capital investment;
- expansion of the sector by 5% over the time of economic crisis shows that cultural sector is
capable of adjusting to difficult conditions;
- It is a rapidly growing economic field with relatively high added value. it makes up around
2,5% GDP of the city and accounts for around 2% of the total employed population (data
of private sector, only);
- Private entities (including private and public companies) constitute more than 90% of all
CI sector. Private sector adds flexibly, dynamics and universality to the culture economics
which is especially important over the years of downturn;
Support structures, politics, and administration
-Subjects of the CCI sector participate in various international projects; higher education
establishments have tight ties with foreign schools that prepare various Art majors.
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Infrastructure
-Local infrastructure for culture specialist education is good enough; Many sectors have well
integrated cultural education system (from lowest to the highest level), for ex.: music; fine
arts.
- Artists, performers and other creative workers have the possibility to create workplaces for
themselves without large investments.
Network
-Formal and informal open networks, meeting places and internet platforms are in place (in
sub-sector frames);
-Adoptive and creative human resources;
-CCI activities are very popular among young people;
-The city‘s CCI sector has active various non-profit seeking and non-governmental
organizations, associations, unions participating in its activities. Cultural development
centres represent various field artists, their creative or business interests, engages in
lobbying activities.
Coaching/mentoring
- Flexible and dynamic activity of CCI specialists;
- The creation of intellectual property/activity has low costs and high added value;
-A growing number of CI associated studies and their variety in Klaipeda colleges and
universities.
Marketing/promotion
- There are nationally renowned artists;
- Art works and cultural products have their own market which creates great investment
presumptions;
- A possibility to use CCI knowledge and know-how to meet the changing
consumers‘needs.
Other aspects
- New private cultural subjects are slowly emerging;
- Creative work provides opportunities for self-expression. Art majors are becoming more
and more popular among young people, because a job that allows for self-expression
attracts youth;
- CCI researcher field is forming, CCI subjects are joining associations create great
presumptions for clustering of the sector, thus ensuring effective Exchange of information
and knowledge;
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- CCI is distinguished by high variety of activities in the sector.
Weaknesses of CCI
Tradition
- The city doesn‘t have film use traditions, movie production traditions have never existed
here, product and fashion design activities have never developed into a separate CCI sub-
sector;
- One-sided and narrow-developed traditions;
- In the city Art is traditionally understood very narrowly as visual and performing arts and
music. This approach limits the application of local and national policies and slows down
the modernization and investment promotion processes.
Business and management aspects
- Entrepreneurship prestige and culture is lacking among the representatives of the creative
sector;
- Non-sufficient development of secondary creative business activities;
- The political, social and economic status of CCI representatives is very low;
- The operators of national/state operated culture field are still connected to the
infrastructure by their organization and finances – they live off it, so they‘re not active and
competitive and the working costs of the infrastructure are unnecessary inflated;
- Businesses of CCI sector are highly specific, thus more risky. That‘s why bigger part of
support intended for small and middle-sized businesses is hard to obtain for creative
businesses.
Economic situation
-Klaipeda CCI sector is dominated by micro companies: almost a third of respondents
work with 2-5 employees, 21% work in a private enterprise or in a company with less than
10 employees;
-There‘s no export of creative product, only a little bit of artistic product is exported;
-Emigration of the highest level artists because of adverse work conditions;
-The turnovers of operating companies in Klaipeda are small: 34% of them don‘t even
reach 5000 Euro per year.
Support structures, politics, and administration
- Poor cooperation with the city‘s municipality and no CCI support policy or programs;
-Complicated legal regulation when developing protected urban territories;
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- EU support is difficult to get because of lack of information and the administrative
burden of such projects;
-Centralized culture financing doesn‘t reach the creator directly (and CI is based on
individual talent and activity);
- There‘s no national CI development policy;
- Legal and taxing basis‘inadequacy to the specifics of the CI sector:
a) There‘s no social guarantee system and consciousness (in regards to social guarantees)
b) Short-termed/Project work
c) Insufficient intellectual right protection;
-There‘s no system of evaluation and description of the sector;
-There‘s no adequate method and system to collect statistical data (to evaluate the
economic benefit generated by CCI, GDP contribution, products created, number of full
time employees, etc. General indicators of creative activities usually don‘t show specific
aspects of work organization, so the potential of creative economics isn‘t adequately
valued). The methods of statistics don‘t adhere to the European standards in the field of
CCI;
-It is difficult for the government to form an expedient CI development policy, as various
very specific encouragement means and forms are necessary because of the sector‘s
heterogeneous nature. Because of the heterogeneous nature of sector it‘s very difficult to
measure its size.
Infrastructure/ Location
-The city‘s priorities are oriented towards the port, LEZ (Free Economic Zone) and
physical logistic infrastructure, but not towards the development of a creative society and
individual;
-There are no CCI incubators, valleys, the infrastructure of information centres isn‘t
present as well. It has been started, but has no long-term programs or strategies;
-The lack of CCI business support infrastructure doesn‘t allow the creative businesses to
gather into chains creating high added value, joint competence networks, thus the CI
potential is lost.
Networks
- Effective networks of cooperation, clusters, marketing platforms aren‘t present;
- Private and public sector as well as branches of sub-sectors cooperate poorly. The lack of
inter-sectoral cooperation;
-The formation of CCI cluster has just begun (in Europe CCI expansion has been actively
developed for a decade);
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-The integrity of business, practical learning and studies is low, financing is scarce - this
doesn‘t allow to attract known and perspective Art and CCI business professionals into the
learning process.
Coaching/mentoring
- Formal art education infrastructure is disembodied from practice and there are few
possibilities to affect it;
-Little investment into technological and other education of the employees and new
technologies;
-The artists lack entrepreneurship skills: the knowledge of business management,
marketing, accounting and other fields of business isn‘t sufficient;
-Absence of CCI product distribution technologies and intermediaries;
- Education system isn‘t oriented towards the competitive market, entrepreneurship skills
aren‘t provided at any school preparing CCI specialists;
-Technical basis and financing for studies and/or scientific research is scarce;
-The lack of formal and informal learning programs oriented towards technical and social
creation, new technologies, and fast changing surroundings;
-The demand for CCI specialists is highly differentiated and ever changing. Universities
and other institutions that educate CCI specialists aren’t able to satisfy the changing wishes
of art and creative industries specialists’ that they have towards the acquired qualification,
technical knowledge and practical skills of product creation;
- CCI businesses lack information about proper financing sources and credit institutions
have difficulties evaluating business plans of a creative business subject as these
companies are usually based on non-standard business models connected to intellectual
property or creative activity result pricing.
Marketing/promotion
- There‘s no strong general publicity of CCI or it isn‘t seen;
-There‘s no strong coordination and marketing of the sector;
-A decline in trust, shrinking consumer market;
-Illegal actions and tax manipulation doesn‘t allow to advertise and publicize;
-Small local Lithuanian market;
-The platform for CCI product export/import is absent.
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Other aspects
- The number of companies and their turnovers are diminishing, fewer new companies are
established, the creators work according to personal licenses, so a conclusion can be drawn
from the statistics that grey economy is present in the sector;
- The segmentation between high and „low“art/culture is inadequate as consumption
tendencies aren‘t considered;
- Social capital that directly influences the development, expansion and assessment of CI
isn‘t present;
- The link/integration between studies and the market is weak (CCI businesses);
- A tendency can be noticed: creative workers tend to work alone – a large part of
respondents either didn‘t belong to any cooperation networks (32%) or login only to social
internet communities online (31%).
Opportunities of CCI
Arts and culture are the main sources for content for creative industries, media –
they create workplaces (as well as technical service) and contribute to GDP;
A large space for CCI development. All traditional industries and social spheres
require CI product integration;
Promotion of the creative industries affects economic and social fields, helps to
recreate inner-city areas, disused industrial complexes. In this way a creators‘
community is created and creative potential is concentrated;
EU and national support for business and education (culture, press, radio and TV
support fund);
Relatively small culture and creation product entry costs into foreign markets;
Flexible work market;
Klaipeda culture tourism cluster is forming;
New infrastructure is being created – Klaipeda creative incubator „Culture factory“;
The port as a creative city;
Using EU financing we can initiate inter-sectoral projects, intensely develop
clustering processes in CI sectors and integrate business, science establishments and
the community;
Local creation and culture market isn‘t full and there are multiple business
possibilities as the competition is low;
Famous people (well-known faces) improve the image of the sector;
Complicated international economic situation changes political and economic
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priorities;
The high added value created by the CI sector companies and participation in new
value creation chains. Actually 75% of the county‘s GDP is produced by using
„low“technologies that create low added value. That‘s why the high added value
created by the CI sectors allows for greater possibilities to stimulate the country‘s
economic growth;
Representatives of Klaipeda city public sector can study the good CCI practices of
foreign countries to gain knowledge and then have great possibilities to adapt the
best fit models to our city. In this way new culture and creation politics direction
can be developed that will cardinally change the attitude towards the creative and
cultural industry sectors;
Development of creation clusters. Joint competence centres are the source of
innovation, goods and services competitive ability and high added value creation
which promotes wide possibilities;
Vertical integration of CI into other sectors. While making use of the creative
potential to generate ideas and stimulate the growth and expansion of the CI sector
to foreign countries, also by using vertical integration into other sectors, promote
and forward the development of those sectors as well;
International programs to support culture. International cultural industry financing
mechanisms create possibilities for the members of the cultural sector to get
financing for international projects. There are also possibilities for creative
businesses (EU program „Culture“ (2007– 2013 m.), „European economic entity
(EEE) and Norwegian financing mechanisms“, „Media 2007“ (2007–2013 m.),
„European audio-visual sector support program“, „Europe for citizens“ (2007–2013
m.), etc.;
Recreation of inner-city areas and urban development. Government’s support for CI
development and creation of creative incubators at certain areas can help recreate
derelict territories, unused industrial or military complexes and in this way add to
urban and regional development, investment promotion;
A national CCI association is established that round science, study, business and
creative community representatives for cooperation, lobbying, activity coordination,
CCI development in Lithuania; A similar association is being established in
Klaipeda;
The preparation of a national comprehensive CCI program;
Creative clusters generate possibilities to create international cooperation networks;
The universalism of creative industries allows tying the creative business with
modern technologies.
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Threats of CCI
There’s no critical mass of young talented and creative personalities in the city;
The number of creative youth is diminishing because of immigration to the capital
and abroad;
Economic stagnation directly negatively influences the sector;
The torpidity of Old Town;
The CCI sectors aren’t actually fostered/supervised/supported by any public
authority or ministry at national level;
International competition in the fields of culture and creation;
The port’s domination in the city;
The consumption of mass product is increasing and original creative solutions are
devalued;
CCI dominates, is developed and supported in Vilnius;
Insufficient evaluation of problems and topicality of creative industries in
Lithuanian political and economical communities;
Creative people tend to move to places where their talents are acknowledged, areas
with positive social and psychological environment (social capital), where
supporting and stimulating way of life for creative personalities is found;
The CCI development policies of other countries make Lithuania a consumer, not a
creator market;
Good economic indicators of Klaipeda city architecture sub-sector (almost half of
all CCI) can determine one-sided development and specialization of the city’s CCI.
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F. Conclusions and recommendations for action
The issues relating to strengths and weaknesses detailed in the previous chapter will be
summarized in the following chapter and appropriate conclusions will be drawn.
Recommendations for action can be deduced from various SWOT issues and conclusions
are presented later in the entire section.
1. Conclusions
Strengths and weaknesses in individual sector of cultural and creative industries in
Klaipeda come in different manifestations. It is not possible to underpin all weaknesses
with adequate measures within the single branches of CCI sector, especially at the current
development stage. The following conclusions on the CCI development in Klaipeda might
be drawn:
On the CCI sector development:
The CCI sector development is still in the initial stages as a consolidated economy
sector with distinguished activities and business models;
The CCI sector is predominated with separate micro actors, weak cooperation links,
and little connections in value chains;
Internationalization of the sector is still very limited and fragmented, no clear
export directions nor models are developed;
The sector has not positioned itself across the Baltic see, and does not benefit from
the international profile of Klaipeda city yet;
Business cultures and approaches across CCI players vary a lot – from pure
businesses to the nonprofit driven or state subsidized artistic activities, which also
leads to the fragmentation of community and conflicting approaches towards the
sector development in Klaipeda;
It is important to identify parts with the biggest potential when analyzing current
sector situation, but it doesn‘t mean that one should concentrate only on these sub-
sectors or activities that generate the greatest growth – some activities might show
no economic potential from the first sight, but frequently plays an essential role
when creating added value or can generate export;
It is necessary to stimulate anyhow potential the diversity and dynamics of CCI.
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On CCI policy and governance:
The vision of the sector and its role in the regional economy is still unspecified,
clear strategy for sector development and direction is lacking;
Policy ownership of CCI is still not clearly defined nor assigned to the national and
regional implementing bodies, which leads to the fragmentation of development
efforts and policies;
Weak coordination across policies at the national and regional level, little attention
drawn to the CCI leads to the vague development of the sector despite of the
availability of measures for R&D in creative industries related sciences and arts,
business R&D funds, and both, direct and indirect measures for business and
innovation support, provided by the Ministry of Economy, and EU SF
programmers for R&D and competitiveness;
Uneven development levels across CCI industries imply the need to apply selective
and differentiated support measures across separate branches.
On the development challenges:
Clear position in business value chains is missing;
High dependency on the traditional industry branches (i.e. construction for
architects, manufacturing for designers and media specialists, and the like);
Integration in to the industrial business systems is rather weak;
Original creative economy driven business models are lacking, sustainable profit
generation potential is weakly developed;
Public policy supported creative industry development policy is missing, especially
with regard to demand driven innovation policies;
Creative industries did not became yet an important player in innovation policy
design and consequently, implementation, because of the weak association with
innovative business communities, but also because of the lack of consolidated
business representation efforts;
Business development competencies and clustering competencies are still very
weak by the most of the players in the sector.
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2. Conclusions and recommendations from a business and management perspective –
Acquisition of new markets and extension of sales areas
There are several issues creative business is about to face in the coming decade:
Internationalization of consumer markets through digitalization;
Standardized designs and services for manufacturing in the mass consumption
markets dominated in the region (for example IKEA as a main furniture industry
purchaser in the region);
Diminishing local markets because of the demographic changes, but also because
of the international profiles of CCI (internet merchandising, global shipping, etc.).
The need to design new internet based market interface solutions is becoming urgent for
most of the traditional creative activities in order to enhance market access nationally, and
internationally. Micro agents are losing their competitive positions not only because of not
existing international market access mechanisms, but also because of the increasing
competition from the national player’s active on the internet markets, - publishing,
printing, music, but also handcrafts, design and fashion items, etc.
Thus, consolidated incentives on the marketing activities and internet platforms are highly
recommended. The image of Klaipeda’s CCI as linked to the port city image should be
developed in order to benefit from the international awareness of the Klaipeda port city,
and incoming tourists. The Municipality could act in this area as an initiator by
commissioning development of relevant applications or lending a hand in bringing together
relevant stakeholders.
Another aspect that relates to sales markets comes as a consequence of consumption trends
changes i.e. a decline in consumers with local demands for products and services, but
increased interest in international products. Businesses can compensate such decrease by
extending their sales areas. A few businesses in cultural and creative industries in Klaipeda
have already successfully managed to do so. Others are lacking the necessary know-how,
competencies and adequate resources to successful operate nationally and internationally.
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3. Recommendations for action by framework-setting stakeholders
a. Including creative industry businesses into the general innovation and
entrepreneurship policies
Definition, identification and recognition of CCI in the general competitiveness and
innovation policy landscape are of crucial importance for further development of the
sector. The need to include creative industries into the innovation policy landscape with its
peculiarities but not excluding neither releasing it from general business logics and
national development and competitiveness targets would give a direction for CCI
development, and clarify its role in the national and regional economy.
Policy design for CCI as a part of innovation policy should be strengthened while giving
specific attention to the CCI policy support needs. In addition, the coordination between
culture and CCI policies needs to be established in order to achieve synergy effects, but
also distinctions between the eligibility criteria for culture and art support scheme, and
creative industry business support schemes.
As suggested, CCI should provide clear inputs in to the regional and national economies
via profit and nonprofit value generation activities, but also use the culture and art
solutions as innovative inputs into the value creation chains. The mental models between
the art and culture creators and creative entrepreneurs should be adjusted and linked into
the original value chains and emerging business systems of creative industries.
b. Information and consultancy
Many of creative industry professionals are lacking specific knowledge on management
and business development, as the major focus of their activity remains creation of products
but not business development. The basic skills, such as marketing, negotiation and
communication, finances, business planning, general management and innovation
management are lacking as the sector remained out of the competence development and
business training measures for decades. The higher education programmes also do not
include the development of entrepreneurial skills as they remain focused on the artistic
skills in most of the disciplines.
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The ability to absorb innovation policy support for businesses and start –ups is marginal
because of the lack of awareness on the availability of those measures, lack of project
development and management skills, micro size and low profitability of existing
businesses which makes meeting eligibility for funding criteria almost impossible (like
profitability, annual turnover, financial and managerial competence, etc.). Thus, not only
creative business information and consultancy centers are needed, but also specific CCI
cluster initiatives should be designed and supported in order to encourage cooperation and
increase in value added of operating businesses.
Specific attention should be given to the support of entrepreneurial activities, incubation
and acceleration of creative business start-ups by professional management and
consultancy teams, which should be in charge of designing business models across creative
solution, management and development of single businesses, but also facilitate clusters in
order to enhance sector development towards higher value added and increase productivity,
creative industry ideas and business start-ups and how such funds can be obtained.
Possibilities should be reviewed whether business consultants could be commissioned at
reasonable rates or institutional stakeholders could assist in checking support programs for
their suitability and process relevant applications for creative businesses.
Coordinating institution in charge of communication between administration, institutions
and entrepreneurs but also of mediation and assistance in filing applications for support
programs should be established. A consultancy centre with the professional consultancy
and coaching team should be established within the newly created CCI business incubator,
which could also perform a function of CCI business information centre. Such a
consultancy centre could be a central place where businesses can obtain various public and
private-economy consultancy services. The services would reach from arranging the
correct contact person in the administration via supporting financial aid consultancy to
legal counseling and business, marketing and management support.
c. Building new / strengthening existing networks and ties between businesses, artists
and (public) institutions
There are several networks and associations in Klaipeda. In some cases there are also good
relations between individual stakeholders in creative industries and public institutions.
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However, the networking structures are highly heterogeneous, varying from communities
to professional associations. However, the structured productivity and value added
networks, such as clusters are absent. The result is a lack of coordinated and consolidated
actions towards higher productivity and value added.
The establishment of such networks should follow the general logic of industrial cluster
creation:
-Identifying players; cost/benefit analysis of potential cooperation between the players,
identifying common strategies for cooperation, marketing, internationalization, etc. as
earlier examples of cluster development in Lithuania have demonstrated, this is not
achievable without policy anticipated cluster coordination and animation actions.
The cluster animator should be:
Responsible for linking the CCI communities;
Design of joint strategies for higher value added;
Coordination of the joint actions across players;
Implementation of horizontal actions across players, i.e. competence development,
image development and marketing activities of cluster, and the like;
Designing of the shared marketing platform, internet interfaces, etc.
4. Recommendation for developing of incubation infrastructure
The development of incubation infrastructure for CCI should encompass both,
development of incubation spaces, acquisition of related technologies and equipment, and
development of knowledge support and service infrastructure.
The core tasks for the development of incubation spaces and infrastructures are as
follows:
Achieving concentration and proximity of CCI actors in a common space in order
to facilitate cooperative actions
Establishing CCI business start-up office spaces and hubs for free-lancers in order
to facilitate networks and network based value chains
Developing common spaces enhancing communication, knowledge sharing,
creativity and innovation
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Establishing CCI specific technology infrastructures and open access creativity
laboratories for the CCI businesses and community
Establishing spaces for demonstration actions of CCI, and spaces for performing
arts
The development of knowledge and service infrastructure should aim at:
Providing skills and competencies for CCI actors
Professional management and coaching of CCI start-ups
Facilitation of creation of new teams and networks of creative workers that would
lead to the new business creation
Animation and coordination of cluster activities across CCI actors
Support to market development and internationalisation for CCI businesses
Development and maintenance of common CCI e-business platforms
Development of the brand and image of Klaipeda’s Culture and Creative industries
Policy design support actions, such as constant monitoring and analysis of CCI
sector development, and regional policy learning initiatives in CCI,
Aligning creative business policies with the innovation and growth policies of the
region.
The consolidated actions on CCI support infrastructure development, both hard and soft
measures, should lead to the vitalisation of the sector in the mid-term, and growth and
competitiveness in the long term. The CCI sector in Klaipeda should be developed from its
initial stages as an industry and business sector, and thus needs specific support actions
compared to other businesses, that have been receiving relatively larger attention form
policy makers over decade (innovative businesses, traditional industries, high technology
sectors). The development of contemporary infrastructures combined with the business and
policy support services could enhance vital processes of self-sustainable business systems
development within CCI sector and the growth of CCI sector in a national and regional
economy.
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The Economy of Culture in Europe, Study prepared for the European Commision,
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United Nations. Creative Economy Report 2008 (http://www.unctad.org/)
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(http://ec.europa.eu/enterprise/newsroom/cf/_getdocument.cfm?doc_id=6222)
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