Role of Industry Associations in the Vancouver New Media Cluster

1
Role of Industry Associations in the Vancouver
New Media Cluster

• May 6, 2005
• Paper written by by Michelle Petrusevich, MA,
  School of Communication, SFU
• Senior Supervisor Dr. Richard Smith
• Supervisors Prof. Adam Holbrook and Dr. Andrew
  Feenberg

2
Agenda

• Introduction and Definitions
• Methodology and Industry Description
• Findings
• Conclusions

3
Definitions

• Industry Associations - are assumed to be
  non-profit organizations whose activities are
  designed to support and promote their industry.
• Cluster - Geographic concentrations of
  interconnected companies and institutions in a
  particular field.

4
Definitions

• New Media - the use of new and emerging
  interactive digital media for the purposes of
  entertaining, educating and informing.
• Social Capital the value of the relationships
  that individual or an entity derives from a
  network or a combination of values, networks and
  norms that enable a group of people to work
  together

5
Research Question

• What role industry associations play in the
  formation and maintenance of a cluster?

6
Site of Research the Vancouver New Media
Industry

• Located in the Lower Mainland
• Latest studies (according to VPL and New Media
  BC) that there are over 550 companies in the
  Greater Vancouver Area and over 700 in the
  province of BC, provides employment to over
  14,000 people.
• Four sub-clusters e-learning, games,
  web-services and animation.
• Young cluster average company is about 6 years
  old and has 6 people.

7
Methodology

• ISRN data - over 70 ISRN interviews
• Summer 2003 NMBC survey
• Member surveys over 50 new media companies
• Follow up interviews (modified Delphi technique)
  with experts 15 people

8
Findings

• The research revealed a number of ways that shows
  how industry associations support the new media
  industry which makes them a key ingredient for
  cluster presence.
• Activities organized by associations provide
  industry members with opportunities to build
  trust and relationships with each other and
  promote collaboration.
• Associations help to hold new media industry and
  its community together.
• Ten Characteristics were revealed through field
  research - niche and focus voice of the
  industry mentoring volunteering learning
  ground collaboration or co-opetition gender
  differences champions ambassadors and
  enlightened self-interest.

9
Findings - Ten Characteristics

• Niche and Focus (see figure on next slide)
  sub-groups umbrella organizations for the whole
  industry vs. associations that cater to a
  specific audience of a particular sub-sector.
  They cut across the industry and bring together
  companies and individuals from all sub-clusters.
• Voice of the Industry - due to nature of
  associations, they provide a neutral place for
  people to discuss common issues and communicate
  it to government who likes to hear one voice
• Role of Mentoring associations staff members
  are mentored by prominent members of the new
  media community and associations, in turn,
  provide mentoring services to their members

10
Niche and Focus

11
Findings - Ten Characteristics

• Role of Champions they inspire and support the
  industry
• Role of Ambassadors they build networks outside
  of new media community
• Enlightened Self-interest from the employers
  point of view (looking for talent) and vice versa
  
• Role of Volunteers volunteers and associations
  have mutually beneficial relationships. There are
  two types apprentices and experienced seniors
  who lend their brain

12
Findings - Ten Characteristics

• Collaboration or Co-opetitions while there is a
  high degree of collaboration among associations,
  sometimes they compete for resources and members
  which creates politics among organizations
• Learning Ground when associations staff leave,
  they further knowledge transfer within the
  industry.
• Gender Difference with some exceptions, most
  associations staff are women are they better
  social capital builders than men or are there
  other factors at play?

13
Interviews Highlights

• We are the safety net for the industry to make
  sure their members needs are driven forward
  and they are met in some way. It can something as
  simple as someone coming to the event and saying
  I am looking for XYZ, and I say I know exactly
  who you should talk to, to that person over
  there
• Comment from an Interviewee, November 2004

14
Challenges and Tensions

• There are challenges that cause tensions and may
  harm social capital in new media industry, like
• Politics internal and external
• Lack of human and financial resources
• Different needs of members smaller vs. bigger
  companies

15
Conclusions

• While associations encounter hurdles their
  overall influence on formation and maintenance of
  a cluster is positive because
• 10 characteristics make positive contributions to
  generation of social capital in the new media
  industry,
• Industry associations provide a safety net for
  the industry

16
Conclusions

• The presence of associations defines the presence
  of the industrial cluster,
• They facilitate internal and external
  communication for the cluster
• Every company is like an island and
  associations are putting the bridge between
  them and provide communication.

17
The End

• Thank you!