Multimedia and Regional Economic Restructuring

Hans-Joachim Braczyk, Gerhard Fuchs, Hans-Georg Wolf

• Publisher: Taylor & Francis
• Year: 2003
• eBook ISBN: 9781134639762
• Edition: 1
• Topic: Business
• Subtopic: Business General
• Index: Business

Since the explosion of multimedia, the creation and promotion of multimedia clusters has become a target for regional development strategies across the globe. This work offers the first inter-regional comparison of the multimedia industry.Analysing thirteen American, European and Asian regions, leading academics examine factors which drive the emergence of multimedia clusters and processes by which they are formed,

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INTRODUCTION

Hans-Joachim Braczyk, Gerhard Fuchs and Hans-Georg Wolf

In recent years, the emergence of an information society on a global scale has been heralded as one of the most promising developments for spurring technology, economic growth, job creation, and socio-political change in virtually all advanced industrialized countries (see Castells 1996). Countries, regions, and localities are eager to transform themselves into digital societies. Better than any other configuration, the Internet represents the three main points of reference that show quite clearly the specificity and enormous potential of the information society:

1. The electronic inter-connectivity of almost any place of the globe.
2. An interactive electronic communication allowing almost anybody to contact anybody else.
3. Devices for integrated access, processing and display of different types of data and media such as audio, video, images, graphics and texts.

These three properties provide communicative opportunities that have never existed before in the history of mankind. Not surprisingly, advocates of the information society are enthusiastically drawing a picture of a Utopian digital future which for the first time could mean the end of inequalities and imbalances in social life, and of unequal opportunity for economic, political and social participation. Literature in this tradition contains an impressive collection of ideas, concepts, dreams and visions, along with some useful information. In most cases, however, such books consist of questionable forecasts and normative descriptions of how the world would or should look, if developments take the direction the authors favour. However, as long as the story of the future is presented in the light of what is technically possible, or might be possible the next time around, it will never be an adequate representation of events to come.

Leaving aside what might happen in a more or less distant future, the present volume, in its core, focuses on empirical observations of the most recent evolution of an important segment of a global information society. This segment, whose contours admittedly cannot yet be sharply drawn, is termed multimedia. Irrespective of the definition provided (see below), multimedia comprises both an opulent bundle of wishes, expectations and hopes with respect to a range of advantages claimed for the information society and measurable relations with respect to the interconnectivity, interactivity and integration of different media.

The chapters of this book highlight fifteen urban centres, regions and countries in the USA, Canada, South East Asia, and Europe. They analyse, describe and critically assess the very recent emergence of a multimedia industry in the areas under investigation. Before we unfold the book’s concept it is necessary to reflect on the phenomenon of globalization. This is strongly associated with the idea of an information society. It is also the victim of some unnecessarily misleading interpretations about what is going on in the world we are living in.

The economic structure, the technological capabilities and the political shape of modern industrialized countries have been exposed, it is said, to the regime of a process which spans the globe, blurring the boundaries of nations and continents, and penetrating institutional limitations. There is rivalry among obviously distinct types of capitalism. Scholars and intellectuals distinguish between a shareholder-value economy and a consensus-driven economy attributing the former to the USA and the United Kingdom, the latter to Japan, Germany and most of the other Western European countries. The latter are faced with continuing or even increasing discrepancies between their labour market figures and those of the former, with the USA taking the lead with an impressive job growth and an equally impressive low rate of unemployment during the recent decade. The consensus-oriented countries thus continue to face considerable pressure to change and are undergoing a more or less far-reaching transition of their economies as well as of several of their most basic societal institutions.

At first glance, this process of transition could be characterized as a process of mutual adaptation which might well result in one single pattern of capitalist economy predominating worldwide. The dynamics towards global interdependence and integration of each national economy have become considerably stronger. This seems in fact to justify the view that economic globalization will induce a process that will make the institutional patterns of each country more uniform.

However, normative and analytical concepts of a world society have now been under discussion for a couple of years. Irrespective of different meanings implied by the debaters involved, the idea of a world society appears partly to describe and partly to anticipate one single society on a global level. This consists of several ‘sub-societies’ which are progressively losing first their national economic integrity and then political sovereignty in favour of one world administration. The recent formation of supranational economic and political—or at least regulatory—entities through and within the triad may illustrate that such an evolution is no mere fantasy.

In academic and political debate this putative development is associated with globalization. Irrespective of its ambivalent meaning, ‘globalization’ often appears in such debates to indicate exactly this growing uniformity.

If we subscribe to the idea of a growing uniformity, a question arises for actors in a given local constellation. They may perceive their own institutions to be tightly bound up with global trends in economy, technology and social affairs, but also as in some ways defective. What kinds of action, then, should they take to adjust to globalization? The actors concerned are most likely to imitate what they observe in the most advanced regions in the world and try to speed up local adjustment.

At the same time, however, from a different perspective—the current confrontation of seemingly different institutional shapes of modern capitalism— uniformity does not appear as an opportunity but as a risk. Uniformity in this sense does not mean equality but a reduction in structural and institutional differences among and between different localities, regions and countries and an increase in shared structural and institutional properties. It predominantly refers to the needs of the free flow of capital, free trade, jurisdictional and tax regulation. Diversity, however, is connected with specifically endowed national, regional and local infrastructures, knowledge bases, labour forces and, not least, production structures. In this latter respect the deeper implications of globalization lie in a tighter interconnection of regions, which implies growing uniformity as well as exploitation of regional diversity by distant actors (see Giddens 1990:64). Thus, from the point of view of a certain locale, if the actors concerned are aware of this ambiguity of globalization, they are likely not only to be aware of, but even to advance, the specificity of their endowments as compared to other locales and thus treat diversity as a valuable asset.

What kind of role do the information and communication technologies (ICT) play in the process of globalization? Several advances in economic and technological globalization could not have happened without a dramatic development in and diffusion of information and communication technologies. This has given rise to the widespread idea that globalization came into existence only with the help of such technologies or that globalization has been caused by the information and communication technologies. This would be a gross oversimplification. There are manifold interdependencies, however, between globalization and ICT. Some interesting similarities must be taken into consideration. Obviously, there is the global reach as such, the growing interaction due to network arrangements (electronic or organizational), the implicit tendency towards uniformity, and, perhaps surprising, the necessity for local specificity which means at least articulating diversity.

Whether and how the emergence of multimedia clusters in the selected regions contributes to global uniformity and at the same time enhances the range of diversity is of particular interest for the following discussion. From the point of view of regional actors, we argue that diversity is a decisive factor. It allows regional actors to create the most suitable conditions for cultivating the formation of a multimedia industry by thorough deployment of their locale’s resources, generated by entrepreneurial enterprises, public and private educational and service institutions, and, especially, the labour force.

The more regional actors believe they must adapt their economic infrastructure, technology base, and institutional settings to the dictates of an overarching global information society, the less their influence on the process of shaping their own emerging multimedia industry, and vice versa. With that hypothesis in mind, we see that a perceived requirement for uniformity greatly restricts the policy space for innovative local programmes. Conversely, a perception that diversity is the key to multimedia sector development opens up the policy space and innovative focus. It is not, however, an either/or situation. Globalization will be a factor promoting both uniformity and diversity. The process of the formation of a multimedia industry will be examined in the following dimensions:

Economic sector/industrial branch Because of its typically hybrid origins, the multimedia industry cannot be attributed to one or even a few identifiable branches. As we know from Scott’s (1996, 1998) analysis of the Californian multimedia sector, this industry may consist of enterprises of very mixed background. Telecommunications, hardware and software, computer graphics and design, production of cultural products, database management, financial services and advertising agencies are just some of the industrial sectors contributing to today’s multimedia industry. This remarkable variety raises the question of whether the regions under investigation are going to form similar production structures or whether they are likely to create very specific ones tied to the specific location.

Spatial distribution The process of globalization and the ongoing expansion of an information society in advanced industrialized countries lead to an assumption that spatial considerations will become increasingly obsolete. The ‘death of distance’ (Cairncross 1997) and an increasing irrelevance of geography are widely postulated. In particular, the capability of ICTs to allow interconnectivity and interactivity will contribute, it is said, to bridging all parts of the globe. It is assumed that globalization based on ICT will replace the earlier driving forces towards industrial agglomerations. If this is true, a more balanced spatial distribution of multimedia production structures is to be expected. It is possible, however, that a further concentration and cluster formation perhaps even in urban agglomerations may occur. In that case, the expectation of a more equal spatial distribution in favour of areas that have until now benefited less from globalization and from the advantages of ICT is obviously misleading.

Education and professional skills The concept of the information society overlaps those of a knowledge society and knowledge-based industries. Obviously, knowledge and knowledge acquisition assume a growing weight as far as the preconditions for a dynamic and vivid information society are concerned. In this respect multimedia obtains a strategic importance. On the one hand, a wide range and a high level of knowledge and skills are needed to bring multimedia production into existence, and to operate and maintain that industry. On the other hand, multimedia configurations and products represent an effective instrument with almost unlimited potential for flexible, cheap and rapid access to a growing extent of different knowledge sources. The importance of educational institutions as well as of digital knowledge bases in an emerging information society can hardly be overestimated. The following chapters will look at the regions under investigation and discuss the role of education systems in the operation of multimedia firms and of knowledge bases for the tailoring of multimedia products.

Professional expertise Professional expertise is built upon the foundation of education and training and also develops through occupational experience. A region’s wealth and variety of different professional and occupational groups thus reflect its structure in terms of the internal differentiation of its industries and is, to a certain extent, an expression of the regional educational system. In the context of the axis of uniformity and diversity, it is interesting to consider specific regional professional expertise and its strategic role within the multimedia industry. Are there places of excellence and expertise in multimedia which cannot simply be copied by others?

Product/content For several reasons, content is the key variable determining success within the multimedia business. Compared to the entire range of elements, components and processes involved with multimedia production, it is the actual content of the product that most determines quality and price. Apart from simple replications of content that is already otherwise available in such forms as film, texts or audio files, multimedia products can be specifically tailored to particular production processes as well as to the characteristics of integrated processing, mediating and displaying its elements. Further, content is in a variety of ways interwoven with cultural and social contexts. Think, first of all, of language. English already represents a sine qua non in the world of the information society—as it does in a knowledge society—and in particular with respect to worldwide communication via Internet, e-mail or the World Wide Web. But it is often the regional language, part of its habit, custom and knowledge base, which is inextricably connected with content. Given this situation, content seems to be the kind of asset which regions could best shield against competitors and imitators from outside. Presumably, from the point of view of content, the multimedia product allows the largest space to accentuate regional specificity. It still remains to be seen which regions can make best use of this potential.

Industrial organization Will the information society, with multimedia as a Trojan horse, introduce entirely new forms of industrial organization? There is already extensive literature on network phenomena and virtual organizations connected with multimedia and associated industries. It indicates that the actors in this field apparently prefer very flexible, loosely coupled and temporary relations with their contractors, partners, and employees. Furthermore, at least until now, there has been hardly any organizational integration of the various professional ‘species’ that participate in the multimedia production. The well known example of the entertainment and film industry suggests what is likely to occur in the multimedia industry. A constellation of a few dominating, large corporations on the one hand and, on the other, a large number of highly specialized firms, individual experts and free-lancers on the other hand is very likely to come into existence. Project organization seems to prevail. Bearing in mind this kind of industrial organization, the authors of this volume explore how the actors involved apply the electronic and distance-bridging network potential of multimedia to their own organizations. The experience and preferences of multimedia producers will reveal whether they can really forgo face-to-face communication and fully rely on electronic interaction.

Labour market Almost all industrialized countries are suffering to a greater or lesser degree from a considerable loss of jobs in their well-established, so-called ‘mature’ industries. With these uncomfortable but often unavoidable consequences of economic structural change in mind, politicians, unions and participants in the labour market tend to expect compensation from an incubating information society and in particular from an emerging multimedia industry. To provide proper empirical evidence, the impact of multimedia production on the labour market should be assessed with respect to quality and quantity. What is the extent of job creation in multimedia production? What kind of skills are required to find employment in that industry? Are new jobs and job descriptions being developed that require a special education?

Organic versus artificial embedding From the viewpoint of regional actors, one of the most interesting as well as challenging issues is the range of driving forces that are spurring the development of multimedia sectors. It is important to learn from empirical evidence precisely which kinds of local action are likely to succeed. Confronted with the consequences of economic change and faced with the requirements of globalization, political and economic actors are eager to promote, or even to create, new economic sectors and production structures including multimedia.

The fact is that the emergence of multimedia production is of very recent origin. At the moment this is sometimes paralleled by enormous efforts by politicians, administration-related agencies and intermediaries, to establish such an industry in their jurisdiction. However, this coincidence cannot be considered as constituting a causal relationship between political action and the emergence of the new industry. It is necessary to study more thoroughly the factors that generate multimedia operations. Only thorough analysis can reveal whether and to what extent further preconditions and driving forces have to be taken into account, particularly in the very premature and incubating period of development. In the light of empirical results from different regions of the world, the profile of truly influential local action will become clearer. Is it possible for regional (predominantly political) actors deliberately to create new production structures? What are the areas in which regional actions seem to be feasible and what instruments should be applied?

What is multimedia?

At the moment multimedia is a widely used catchword. It is difficult to assign it a precise definition or a concept on which there is agreement across disciplinary boundaries. The technical artifact ‘multimedia’ is usually described as a combination of several digital media, which are partly time-sensitive (e.g. sound or moving pictures) and partly time-insensitive (e.g. graphics or text) and which can be used interactively and in an integrative manner. Multimedia products can be used locally (off-line, e.g. CD-ROM)...

Table of contents

• COVER PAGE
• TITLE PAGE
• COPYRIGHT PAGE
• FIGURES
• MAPS
• TABLES
• CONTRIBUTORS
• ACKNOWLEDGEMENTS
• ACRONYMS
• 1: INTRODUCTION
• 2: BECOMING DIGITAL
• 3: PATTERNS OF EMPLOYMENT IN SOUTHERN CALIFORNIA’S MULTIMEDIA AND DIGITAL VISUAL–EFFECTS INDUSTRY
• 4: MULTIMEDIA NETWORKS, GLOBALIZATION AND STRATEGIES OF INNOVATION
• 5: CONTENT AND ECONOMICS IN THE MULTIMEDIA INDUSTRY
• 6: THE DIGITAL REGIONAL ECONOMY
• 7: BETWEEN REGIONAL NETWORKING AND LONESOME RIDING
• 8: MULTIMEDIA
• 9: MULTIMEDIA AND UNEVEN URBAN AND REGIONAL DEVELOPMENT
• 10: THE SOUTH-EAST ENGLAND HIGH-TECH CORRIDOR
• 11: THE MULTIMEDIA INDUSTRY IN SWEDEN AND THE EMERGING STOCKHOLM CLUSTER
• 12: CREATING A MULTIMEDIA CLUSTER IN CARDIFF BAY
• 13: FROM PURPOSIVENESS TO SUSTAINABILITY IN THE FORMATION OF MULTIMEDIA CLUSTERS
• 14: STUTTGART
• 15: FROM SMOKE-STACK INDUSTRIES TO INFORMATION SOCIETY
• 16: NEW MEDIA POLICIES AND REGIONAL DEVELOPMENT IN JAPAN
• 17: MULTIMEDIA AND INDUSTRIAL RESTRUCTURING IN SINGAPORE
• 18: CONCLUSION