Inventing a cluster for Creative Industries in a large European metropolis: the Lyon example

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• Inventing a cluster for Creative Industries in a
  large European metropolis the Lyon example

Loïc Pourchaire (Greater Lyon) Barcelona March
2006
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CONTENTS

• The Lyon metropolitan area
• The value of creative industries in the local
  area
• The development project for creative industries
  in Lyon
• Example the digital entertainment cluster (Lyon
  Game)
  

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Lyon - Key figures

• 2nd largest city in France (after Paris)
• 1,7 million inhabitants
• 146 million GDP (Growth Domestic Product) in
  2004
• 117,500 firms
• 76 company headquarters with more than 1000
  employees
• 750,000 public and private employees
• 144,000 students and 10,000 researchers (10 of
  whom are foreigners)
• 10,700 start-up companies in 2004 (1st city in
  France)
• 2nd largest property Market in France

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Greater Lyon core regeneration initiatives

• - Road maintenance
• - Sanitation/waste collection
• Water service
• - Transportation network

• Economic development
• - Land Development
• - Potential development

Daily management
Conurbations strategy
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Lyon a metropolis on the move

• A metropolitan area driven by entrepreneurship
  and innovation
• 10,700 start-ups
• 115,000 students
• 10,000 researchers
• A metropolitan area with trademark
  specializations
• A global competitiveness cluster (Bio Pôle), a
  global centre of expertise (Chemicals and the
  Environment), 3 national centers of excellence
  (Digital Entertainment, Urban Truck Bus 2015,
  Techtera Technical Textiles)
• A clearly stated ambition
• Enter the ranks of the Top 15 European cities by
  2010 in terms of economic vitality

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The competitive clusters

• A COMPETITIVE CLUSTER 
• Members companies, public and private research
  units, universities and other education
  institutions, 
• Where ? a defined geographical area,
• Why ? Innovative projects to improve global
  effectiveness.
• First teaching
• A spirit of cooperation between
  search-training-firms
• An important implication of major companies in
  the strategys definition and the piloting of the
  clusters
• A lasting impact clusters strategies are
  developed over the long term logic (10 years)
• Strategy
• The extent of the approach 800 M RDs
  industrials projects planed in the region over
  the next 6 years
• A market approach
• A focus on innovation as the motor to firms'
  competitiveness
• The area as a factor of performance

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The competitive clusters

• A national ranking
• 67 clusters selected by the French government (15
  worldwide, 52 national)
• 15 clusters in Rhône-Alpes (whom 5 for Lyon)
• Lyons results
• 2 worldwide clusters
• LYONBIOPOLE
• AXELERA
• 3 national clusters
• LYON URBAN TRUCK BUS 2015
• VIDEO GAMES
• TECHTERA (technical textiles)

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Lyon a metropolis on the move

• A strong determination to capitalize on the
  creative potential of the metropolitan area via
  the L.V.M. project (Lyon Vision Mode) Clothing,
  Textiles, Jewelry, Cosmetology, Design, Leather,
  Fine crafts.
• A project coordinated by Greater Lyon since 2003,
  with four lines of action

Line 1 Start-up assistance
Line 2 Research and Innovation
Line 3 Trade shows and events
Line 4 Communication

• Resource Centers
• European dermo-cosmetology event
• Leather Technical Center

• Village des Créateurs
• Villa CREATIS
• Competitions (Textile designers, ITECH)

• Media plan
• Brochure, newsletter
• Activities

• Lyon Mode City (fashion)
• Print Or (jewelry)
• Sport Achat (buyers)

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CONTENTS

• The Lyon metropolitan area
• The value of creative industries in the local
  area
• The development project for creative industries
  in Lyon
• Example the digital entertainment cluster (Lyon
  Game)
  

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A tough economic context for industry

• But a difficult context in general
• European-wide restructuring of manufacturers of
  personal goods and consumer durables.
• 1.6 annual decline in added value from
  1990-2000
• Direct competition with emerging countries
• A majority of companies ill-prepared to
  reposition (trends, segments) or severely
  lagging in their market (practices, structures,
  hiring, innovation)

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Total restructuring of the fashion and design
sectors

• Innovation as a catalyst for competitiveness and
  development
• Strategies for innovation are increasingly
  multidimensional (marketing, design,
  manufacture/outsourcing, supply chain and sales),
  and closely tied to training
• Markets and sectors with no clear-cut boundaries,
  breaking new ground to offer innovative products
  and services
• Greater connection on a world scale between
  Fashion and Design sectors, under the banner of
  Lifestyles
• Sectors experiencing profound changes include
  housing, transportation, consumer durables,
  cultural products
• Strong continual interaction to keep pace with
  changing lifestyles
• Functional (usages, ergonomics) and symbolic
  added value (personal world, senses, values) is
  ubiquitous in these sectors
• Shared and guiding themes / trends which lead to
  convergence (mobility, ecological design,
  accessibility, health)
• Moving towards a globalized and interconnected
  approach

The Creative Industries
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Which sectors for a Creative Industries cluster?
All creative production based on intellectual
capital and innovative products, apt for
industrialization and with significant long-term
market potential personal goods, consumer
durables, cultural products
? 70,000 jobs ? 8,000 companies
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CONTENTS

• The Lyon metropolitan area
• The value of creative industries in the local
  area
• The development project for creative industries
  in Lyon
• Example the digital entertainment cluster (Lyon
  Game)
  

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Our ambition To position Lyon as a creative
metropolis

• Stakes and objectives
• Economic development reinforce the creative and
  innovative capabilities of companies
• Position Lyon as a European leader in the area of
  Creative Industries
• Creativity and innovation of local companies
  (critical mass)
• Attractiveness of the local territory (quality of
  life, infrastructures, city services, culture and
  events)
• Cross-fertilization with high-level services and
  research/academia
• Preservation of advanced manufacturing activities
  (small series, rapid prototyping)
• Strong local ambition (reach the top 15 European
  cities) City Branding
• Principles
• Take strength from leaders (competitive cluster
  approach)
• Enhance and stimulate existing assets (technical
  centers, resource centers )
• Favor a virtual dimension for the process
  (networking)

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Creative Industries Project methodology

• Phase 0 strategic analysis
• Phase 1 Project launch
• Mobilization of industrialists
• One-on-one meetings with leaders in each branch
• Share observations / analyses of the stakes
• Discuss development issues and devise
  opportunities for collaboration
• Organize group sessions on shared issues
• Discuss shared issues
• Identify partnerships and develop projects
• Qualification of Creative Industries in the
  reference territory
• Quantitative and qualitative study of companies
• Scope, Benchmark
• Phase 3 project deployment
• Led by industrialists (not by the local
  authorities)
• Follow-up for further topics
• Cultural assets, architecture ? creative city

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CONTENTS

• The Lyon metropolitan area
• The value of creative industries in the local
  area
• The development project for creative industries
  in Lyon
• Example the digital entertainment cluster (Lyon
  Game)
  

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Lyon Game a pioneering competitiveness cluster

• Lyon Game, a collective initiative organized by
  business, the local authorities and Lyon
  Infocité. Initially a business club, it grew to
  include 40 of the French industry (mostly SMEs
  of less than 100 people) and world leaders such
  as Ubi Soft, Atari, Electronic Arts
• The industry is driven by a globalized market and
  its actions focus on shared structural projects.
• Public support was a determining factor to
  kick-start coordinated efforts. This support now
  represents 5 to 100 of financing for actions,
  with an average of 40.
• Lyon Game is a service provider, an association,
  a training organization and a trade association
  rolled into one. It has federated the existing
  training organizations, as well as research labs
  in the past two years.

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The role of video games, a creative (and
cultural?) industry

• A creative industry
• 80 of all jobs are involved in creation
  (designers, illustrators, computer graphic
  artists, animation artists)
• Importance of IP and each game universe
• At the interface of cultural industries and home
  equipment (convergence)
• Integrated product (sound, image, dialogue,
  animation)
• The question of cultural value
• An industry perceived as a sub culture due to the
  generation gap
• Sales performance better than cinema and music
• French concept of entertainment/culture
• Creativity in an international and technological
  environment
• Importance of human added value in a highly
  competitive international context
• Dematerialization of the product
• Technological progress

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Lyon Games activities

• Joint actions and services to businesses
• Business and international development
• Human resources
• Research and development
• Financing

Network leader Lyon Infocité Association / Lyon
Game
Coordination of member companies (Game Networks,
conferences)
Linkage with other creative industries
(awareness, joint operations)
Development of an ambitious communication policy
in cooperation with the local authorities and
semi-public partners (Aderly in particular)
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Coordination is the key!

• For the sector
• The vitality of Lyon Game depends on coordination
  to ensure
• Better understanding of the needs of business in
  order to develop appropriate actions
• Connections with institutional and
  non-institutional partners
• Networking of industrialists with each other
• Organization of business clubs to protect and
  strengthen expertise
• Links with other creative industries
• Current pilot actions developed on a small scale
• Fashion designers working with character
  designers
• Virtual fashion shows
• Virtual universes not yet sufficiently realistic
  for other universes

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Support of the metropolitan area for the video
game industry

• Impact on local economic development
• Beyond economic issues
• Impact on the local general public (trade shows,
  festivals)
• The Hollywood dynamics of video games

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CONTACT

• Loïc POURCHAIRE
• Direction des Affaires Économiques et
  Internationales
• Communauté Urbaine de Lyon
• lpourchaire_at_grandlyon.org
• 334 78 63 40 43 / 336 30 55 62 55