Creative Industries in ArgentinaCulture + Reputation for an avid global market

INVESTMENT OPPORTUNITIES

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Highlights

>> A RISING GLOBAL MARKET Creative industries have rapidly become a central part of the global economy.

Driven by globalization and increased connectivity, the sector has grown exponentially and global trade of creative products has flourished both in developed and developing countries.

>> A KEY SECTOR Creative industries are the pillars of the ongoing Argentine economic

transformation towards a production pattern centered on the creation and diffusion of knowledge and professional services oriented towards the global market.

>> REMARKABLE POTENTIAL Argentina counts with a unique combination of highly skilled human resources,

a creative and sophisticated design culture and a truly active and committed public sector. The sector shows an important potential for growth as well as an extraordinary ability to foster innovation and design capabilities across other sectors within the economy.

>> PROFITABLE OPPORTUNITIES Argentina has already established a competitive advantage in some segments

within creative industries –notably screen production and post production– and enjoys a growing recognition across a number of other areas including fashion and design.

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I. Why Invest in Creative Industries in Argentina?

•THE SERIOUS BUSINESS OF CREATIVITY.Thediverse

creativeindustriessectorincludesmusic,advertising,

cinema,television,audiovisualproduction,publishing,

designandfashion.Thisthrivingglobalsectoris

expectedtobecomeoneofthepillarsoftheknowledge-

basedeconomy.

•STRONG MARKET GROWTH.Thesectorhasbeen

growingexponentiallyandisincreasinglybecomingone

ofthemostdynamicsegmentsintheglobaleconomy.

AccordingtoUNESCO,creativeindustriesaccounted

for7%ofworldGDPin2005andareexpectedtoriseto

10%in2010.Inthefirsthalfofthecurrentdecade,global

tradeincreativegoodsandserviceshasincreasedat

approximately9%peryear.

•AN INCREASINGLY GLOBAL MARKET.Globalizationand

increasedconnectivityhasdriventhesector’srevenues,

bothindevelopedanddevelopingcountries.Although

mostoftheactivityisconcentratedindeveloped

countries,developingcountries’exportsincreasedover

40%inthelastdecade.

•ARGENTINA’S TALENT-DRIVEN INDUSTRY.Argentina

isarisingproducerandexporterofcreativeindustries’

productsandhasthepotentialtobecomeacreative

playerintheinternationalscene.Acombinationof

highly-skilledhumanresources,renownedprofessionals,

state-of-the-arttechnologies,awiderangeofstriking

scenesandavibrantandcreativecultureendows

Argentinawithremarkableperspectivesforfurther

developitsgloballycompetitivecreativeindustries.

•ATTRACTIVE SEGMENTS.Well-knownsuccessstories

andacriticalmassofentrepreneurialfirmsandtalented

professionalsconfirmthegreatopportunityforrising

segmentssuchasvisualindustries,advertisingand

fashiondesign.

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II. Sector Structure and Performance

INDUSTRY STRUCTURE

A diverse array of interrelated activities.

Argentinaisacountryendowedwithanenormouslyrich

andvariedculture.Frommusic,danceandtheatreto

cinema,literature,designandplasticarts,thecountry’s

intenseculturallifemakesforagrowingcreative

industriessector,whichrepresentsslightlyover3%ofGDP

(alevelabovetheregion’saverage).Thediversecreative

industriessectorincludesadvertising,music,cinema,

television,audiovisualproduction,printing,designand

fashion.Thesesegmentsarecloselyinterrelatedand

exhibitimportantcomplementaritieswithothereconomic

sectors,suchastourism,softwareandprofessional

services.Infact,creativeindustriesnotonlyshowan

importantpotentialforgrowthbutalsoanextraordinary

abilitytofosterinnovationanddesigncapabilitiesacross

othersectorswithintheeconomy.

Diverse firm profiles in urban settings.

Mostsegmentswithincreativeindustriesare

characterisedbyacombinationofleadingcompanies

-nationalandinternational-andanumberofsmaller

creativefirmstakingadvantageofuniqueopportunities

inthemarket.Byandlarge,creativeindustriesare

largelyconcentratedinthecityofBuenosAires,where

theyrepresent7.5%ofthedistrict’sGDPand8%oftotal

employment.Otherbigcities,suchasCórdoba,Mendoza

andRosario,arealsodevelopinganincreasinglylarge

creativeindustriessector.

SECTOR PERFORMANCE

Growth.Creativeindustriesaregrowingatafasterrate

thantheeconomyasawhole–ata14.5%accumulated

annualgrowthratebetween2002and2007—and

contributeswithover2%oftotalemployment.The

sectorhasflourishedinrecentyears,increasingitsglobal

presenceandreputationforqualityandsophistication.

Argentinaisunleashingitsuniquepotentialresultingfrom

thecombinationofabundantandwell-trainedhuman

resourcesandavibrantcultureorientedtowardscreativity

andinnovation.

Exports.Sincethemid1990sArgentinahasexperienced

aboomincreativeexports.In2007,ahistoricalpeakof

overUS$500millionwasreached,morethandoublingthe

figurefor2002.Audiovisualandrelatedservicesstand

outasthemostrelevantcreativeexports(US$214million),

followedbyadvertisingandmarketresearchservices

(US$194million).Infact,almost50%oftotaladvertising

productionsandcommercialsareforexport.Publishing

andprintingexports(includingbooks,newspapers,

periodicpublications,printingandrelatedservices)

reachedUS$80millionin2007,whilecopyrightsexports

borderedUS$20million.

Advertising and Market Research services

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Books, brochuresand related

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Creative Industries Growth Creative Industries Exports

Source: National Institute of Statistics and Census and Argentine Cultural Information System (SINCA)Source: National Institute of Statistics and Census and Argentine Cultural Information System (SINCA)

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III. Main Industry Segments

PUBLISHING

Market. Argentinaisaprominentplayerintheediting

ofpublicationsfortheSpanishspeakingcommunity.

Publishingisawellestablishedsectorinthecountry

(comprisingUS$2,000millioninsalesandover42,000

employees),andisthecreativeindustrysegmentwith

thehighestcontributiontoGDP.Withmorethan300

publishersacrossArgentina(69%inthecityofBuenos

Aires),thesectorisgrowingfastandcurrentlyreleases

around25,000titlesayear(atleast15,000newtitles),and

isresponsibleforprintingover92.7millioncopiesannually

Growth. Salesandexportsinthepublishingsectorare

risingsteadily.Productionexpanded74%between2002

and2007.Bookexportsdoubledbetween2002and2006

beingMexico(25%),Chile(13%),Brazil(13%)andSpain

(10%)themainexportdestinations.Anincreasingdemand

hasalsodrivenariseinbookimports.The20most

importantpublishers(mostofthemofforeigncapital)are

responsiblefor50%ofproductionand75%ofmarketsales.

Inaddition,anumberofsmallandmediumenterprises

(SMEs)operateinthesector,withalong-standing

traditioninthepublishingmarket.

Policies.ThecityofBuenosAireshasestablished

relevantincentivesfortheindustry.Amongthese,the

program“LivingBooks”aimsatpromotingindependent

publishinghouses(suchasInterzona,LaMarca,Leviatán,

andMarea,amongothers)withincreasingvisibilityin

bookstoresandstrongeradvertising.Atthesametime,

throughitsMetropolitanDesignCenter,thecityis

offeringseverallinesofsubsidiesorientedtopromoting

theattendancetobusinessfairs,theacquisitionofediting

andtranslationrights,andtheexpansionofproduction

capacity.Between2006and2007,morethanUS$220,000

weregrantedtoover63publishinghousesinthecityof

BuenosAires.

MUSIC INDUSTRY

Growth.Argentina’srecordingindustryisalsobooming.

Theamountofunitssoldin2007surpassed18million

CDsandDVDs.Atthesametime,digitaldownloadsof

musicthreefoldedinthelastyear,drivinganincrease

intotalmusicmarketof9.6%.Exportsofdigitalmusic

alsoexpandedandreachedUS$15millionin2007,asa

growingnumberoflocallabelsarebecomingincreasingly

international.Digitalmarketsareexpectedtocontinue

thisgrowingtrend,propelledbythearrivalof3Gmobile

phonesandtheconsolidationofmusicconsumptionvia

portabledevices.

Market. AllfourmajorrecordlabelsoperateinArgentina

(Universal,EMI,SonyandWarner),accountingfor77%

ofthemarket.Moregenerally,thelargest33recordlabels

explain90%ofthemarketandarerepresentedinthe

recordingindustrychamber(CAPIF).Argentinaalsohas

morethan120independentrecordlabels(mainlylocated

inBuenosAiresandLaPlata),whichareincreasingboth

theirmarketparticipationandproductoffering:they

editedapproximately4millionrecordsandreachedsales

ofalmostUS$30millionin2007.

Policies.Argentinahasinplaceapackageofincentives

topromotethemusicindustry.ThePublicMediaSystem

togetherwithCAPIFinitiatedthe“ArgentinaDiscs”

programaimedatpromotingtheproductionsoflocal

Music Industry: Units Sold (in millions)Publishing Industry Growth

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Source: Argentine Chamber of Phonograph and Video Producers (CAPIF)

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Source: Argentine Book Chamber (CAL) and Cultural Industries Observatory (OIC)

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independentlabels.Atthesametime,thecityofBuenos

Airesispromotingtheinternationalizationofmusiclabels

throughitsrecentlycreatedMusicExportDepartment.

Resources.OtherinitiativesincludetheBuenos

AiresInternationalMusicFair(BAFIM),theworld-

renownedTangoandJazzFestivals,andMUSICNET

–aninternationalnetworkforthemusicbusiness,witha

numberofexclusiveservicesformembers.Additionally,

thecountryispositioningitselfasaninterestinglocation

formusicproduction,duetoitsavailabilityofwelltrained

humanresources.Infact,differentuniversitiesand

specializedschoolsoffertraininginmusicproductionand

edition.TheUniversityofBuenosAires(withover1,200

newenrollmentsandover250graduateseveryyear)and

ORTtechnicalschoolsstandoutasthemaininstitutions.

AUDIOVISUAL INDUSTRIES

Growing reputation.TheArgentinevisualindustriesare

gainingastrongreputationworldwide.Argentinefeature

films,TVshowsandseries,contentsandadvertisinghave

receivedseveralinternationalawardsaswellasincreasing

recognitionfortheirquality.Anewgenerationoftalented

youngfilmdirectorsisattractinginternationalinterest,as

wellastheskilledcountry’sauthors,actorsandproducers.

Argentinefilmsarewinningcriticalacclaimatinternational

festivals,andoncinemaandtelevisionscreensaroundthe

world.Thetelevisioncontentandadvertisingindustriesare

alsodevelopingatfastpace,increasinglysupplyingregional

andglobalmarkets.

Cinema.Thenationalfilmindustryacquiredanew

significanceduringthelastdecadewiththearrivalon

thesceneofyoungdirectors(suchasDanielBurman,

AdriánCaetano,AlbertinaCarri,MarianoLlinás,Lucrecia

Martel,CelinaMurga,MartínRejtman,PabloTrapero,

andJuanVillegas,amongothers),whomakeupthe“new

Argentinecinema”.Manyoftheseoutstandingartistsand

professionalswereeducatedinspecializedfilmschools

foundedbyapreviousgenerationofArgentinefilm

makers.In2007,Argentinaexperiencedanextraordinary

growthinthedomesticmovieindustry,when80national

filmswerereleased.Locally,thisnewwaveofproductions

accountsfor10%ofthetotalboxoffice(atotalofUS$90

millionwith32millionticketssold).Thefivemost

importantdistributioncompanies(BuenaVistaDisney,

ColumbiaTri-Star,MGM,UIPandWarner/Fox)represent

45%oftotalfilmsexhibited,75%ofdistributedcopies

and85%ofscreen-time.Localdistributioncompanies—of

whichAlfaFilms,DistributionCompany,LíderFilmsand

PrimerPlanoarethemostrelevant—completethemarket.

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CASE STUDY

TELEFE INTERNATIONAL: TV contents and production for the world

Production and post production.Productionand

postproductionaretwogrowingsegmentswithinvisual

industriesinArgentina.Themainproductionandpost

productioncompaniesareconcentratedinBuenosAires.

Amongthosethatprovidecinematographicservices,the

mostrelevantareCinecolor,MetrovisionandR-T.Local

filmfestivals,suchasBAFICI(BuenosAiresInternational

IndependentFilmFestival)andtheMardelPlata

InternationalFilmFestivalarefosteringtheindustry’s

development.Forindustryfirms,festivalsservebothas

anopportunitytoraisefundsfrominvestors,andreacha

wideraudienceandglobalindustryplayers(infact,BAFICI

attendancefiguresareincreasingeveryyear,reachingover

200,000spectatorsinits10theditionin2007).

markets but also new platforms were explored, as the

company operates today TV, IPTV, VoD, Home Video and

mobile TV.

A few examples illustrate the company’s export success.

“Wild Angel” (Muñeca Brava), originally produced in

199�/1999, was sold to �0 different countries and

adapted to local versions in countries as different as

India and Portugal. “Montecristo”, originally produced in

�00�, was sold to more than �� countries in its original

format and adapted to local versions in five other. “Tiny

Angels” (Chiquititas), originally produced between 199�

and �000, was sold to �0 countries and “Love’s Guard”

(Amor en Custodia), originally produced in �00�, has

been exported to more than �0 countries. The local

success “Forever Julia” (Resistiré), originally produced

in �00�, was sold to �0 countries and locally adapted

in three, including the U.S. (FOX). This performance in

highly demanding markets is not new: Telefe was the

first Latin American TV network to license a fiction

format—“Pretenders” (Los Simuladores)—to a Hollywood

company (SONY).

Telefe has continuously embarked in new markets

and segments. In relation to production services, the

company has successfully produced programs such

as “Frijolito” (Telemundo, México), “Tango para dos”

(Russia), as well as many others exhibited in different

Latin American countries. The production services are

being increasingly exported worldwide.

Telefe International is part of Telefe, a leading TV network

in Argentina, with a catalogue of over �,000 hours of TV

productions and an international satellite signal present

in Latin America, the U.S., Europe, Australia and New

Zealand. The company has highly trained professionals

and outstanding equipment and infrastructure (11,�00

m� of facilities distributed along 1� studios).

Telefe International, established in 199�, has gone a

long way to become the first distributor of TV contents

in Latin America with products currently present in more

than �0 countries, in �� different languages and with a

total of more than ��0 programming slots worldwide.

This expansion process was led from the area in charge

of international sales for the productions of their own

TV network, Telefe. Nowadays, Telefe International’s

activities include the distribution of contents from other

production companies, the commercialization of their

own network contents and formats, the production of

specific adaptations of their own conceived content and

production for others. What initially began as a marginal

business mainly focused on Latin America (originally

representing ��% of total sales), has diversified

tremendously reaching avid markets in Eastern and

Mediterranean Europe, Israel and Asia. Not only new

Cinema: Argentine Releases & Total Spectators

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Cinema spectators (in millions)New Releases

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Source: National Institute for Cinematography and Audiovisual Arts (INCAA) and Cinenacional.com

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Filming locally.Argentinaisincreasinglyattracting

audiovisualproductionsandpost-productions.The

combinationofabundanthumanresources,competitive

costsandstrikingscenariosmakesthecountryanideal

locationfortheaudiovisualsector,beitinadvertising,

cinemaortelevision.Everyyearatleast15foreign

featurefilms(includingco-productions)andmorethan

400commercialsand600productionsareshotinthe

countryforexternalmarkets.Thistrend,togetherwith

theboominglocalproduction,fosteredanincrease

inemployment(17%)lastyear.Thecombinationof

localindustryexpertiseandworld-classtechnological

infrastructuremakesthecountryanexcellentlocation

forpostproductionandotherservicesrelatedto

audiovisualindustries.Atthesametime,localcostsare

trulycompetitiveinternationally.Forinstance,theagreed

weeklysalaryforanassistantdirectorisUS$830,US$930

foraphotographyorartdirectorandUS$820foranHD

technician.

Policies.Domesticvisualproductionisapublicly

promotedactivity.Differentgovernmentbodies—such

astheNationalInstituteforCinematographyand

AudiovisualArts(INCAA),thecityofBuenosAiresviaits

MetropolitanFundsforArtsandSciences,andSanLuis

Cine—providefundingaimedatpartiallycoveringthe

expensesoftheproductionprocess.

INCAAgivesprioritytoqualityculturalprojects,fostering

co-productionasameansofenhancingthediffusionand

distributionoflocalproductionsabroad.Argentinahas

signedbilateralagreementswithseveralAmericanand

Europeancountries,andmultilateralagreementswith

anumberofIbero-Americancountries.Co-production

agreementssignedwithothercountriesallowproducers

tojointlymakefilmswiththeaimofgettingthemcertified

as“nationalproduction”intheirrespectivecountries,

gainingaccesstoindustry-specificlegalbenefits.When

thereisnoco-productionagreement,theprojectmayenjoy

thebenefitsofa“nationalproduction”ifitisinaccordance

withthegeneralco-productionrules.

Withthegoalofpromotingthecountry’sattractiveness

ineverystageoftheproductionprocess,INCAAcreated

theArgentineFilmingCommission(CAF)topromotethe

useofnaturalstages,historicalsitesandeye-catching

citieswithinArgentinathatmaybeusedaslocations

foraudiovisualproductions.CAFalsofosterscommon

actionsbetweenthepublicsectorandtheparticipants

intheaudiovisualproductionfield,promotestheuseof

localresourcesandoffersafreeservicetohelpproducers

obtainthepermitsrequiredforshooting.CAFprovides

assistanceandinformationabouttheextensiveavailable

infrastructure,acompletedatabankforsearching

locationsandextensivelegalandfiscalassistance.Along

CASE STUDY

CINECOLOR: Post production world-class services

productions. Recent international projects include the

mastering for Playboy Productions, high-resolution

reproduction for Disney’s High School Musical and

movie transfers (with an average of three movies a

month). Many of these projects are transferred using

the ‘smartjog’ system –a satellite transmission system

designed for the worldwide distribution of encrypted

files and automatic verification of shipping. Cinecolor

is heavily involved in the development and growth of

the local cinema scene, presenting its own awards and

grants in BAFICI (Buenos Aires Independent Cinema

Festival) and supporting the emerging film festival

“Pantalla Pinamar”.

Cinecolor Argentina, owned by a Chilean company, is

a pioneer post-production company and audiovisual

laboratory with strong leadership in Latin America. With

more than �� years of history, it offers comprehensive

services to cinema and advertising industries. The

outstanding level of its more than �0 professionals

and the international quality of its technological

infrastructure are the company’s main differentials.

Offering the complete range of processes involved in

post-production, Cinecolor has built a strong reputation

in the region given its involvement in international

feature films (such as Speed Racer, Indiana Jones and

Sex and the City) as well as in national and regional

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CASE STUDY

MTVN LATIN AMERICA: investing in Argentine creativity

In �00�, MTV Networks decided to establish its

creative and administrative center for Latin America

in Argentina. With a total committed investment

of US$�� million for the next five years, MTV is

relocating in Buenos Aires some of the operations

previously performed in Miami (U.S.). The combination

of innovation capabilities, technological readiness

and first-class creative local talent, in addition to

competitive costs, were crucial to successfully

relocating such operations. The new center plans

to serve as both creative and administrative

headquarters. A wide range of activities will be carried

out: programming, production and art; subtitling

and dubbing; and development of digital media and

communications. It is expected that the location will

generate a total of ��0 jobs (�00 of which will be direct

positions in production, programming, art, technology

and communications). This recent relocation confirms

Argentina’s potential to become a creative player in the

international scene.

thesameline,thecityofBuenosAiresestablishedBuenos

AiresSet(BASET)asthespecializedplatformtoassist

audiovisualproductioninthecity.Infact,morethanhalf

offeaturefilmsandthreequartersofcommercialsmadein

thecountrywereshotinthecityofBuenosAires.During

2007,BASETissued611shootingpermitsforcommercials

and27forfilms.

Television and Entertainment.RegardingTV,

Argentinaiscurrentlytheworld’sfourthlargest

producerandexporteroftelevisioncontent.Mainexport

destinationsareEurope,MexicoandIsrael.Theleading

domesticproductioncompaniesare4-Cabezas,CMG

(specializedincontentsforteens),IdeasdelSur,Pol-Ka,

Underground,andtheTVnetworkTelefe.Themain

playersintheinternationaldistributionofTVcontentare

TelefeInternational(distributingitsownproductionsand

othersdevelopedbyindependentproductioncompanies)

andDoriMediaGroup(anIsraelicompanyestablished

inthecountryin2006).Nowadays,manyproduction

companiesarenotonlyexportingtheirformatsbutalso

offeringtoentirelyproduceinArgentinaneweditions

ofacclaimedseriestosellworldwide.Atthesametime,

differentcablesignals(likeMTVNetworks)arechoosing

thecountryasalocationforproductionbecauseofits

competitiveadvantages.Inaddition,localproduction

companiesareincreasinglyattractinginternational

investmentsfortheearlystagesofproduction,in

exchangeofexclusiverightsforworlddistributionand

commercialization.

Animation.Ananimationindustryisboominginthe

countrywithgrowinganimationproductioncompanies

enteringthemarket.Someofthesefirmsaresubsidiaries

ofdomesticfilmproducingcompanies(asPatagonik

Animation,asubsidiaryofPatagonikfilms)whileothers

areindependentstart-ups,asinthecaseofHookup

animationandEncuadre.Despiteitsyouth,thesefirms

aregaininginternationalreputationforitsproducts

quality,andclientportfoliosthatincludeCartoonNetwork

andWaltDisneyTelevision,amongothers.Someofthe

domesticproductionsattractedabigdealofattentionand

audience,eitherincableTV(as“MercanoElMarciano”)

orintheboxoffices,asinthecaseof“RatónPerez”,

“Dibu”and“Patoruzito”.Severalawardsobtainedin

theAnimationFestivalatAnnecy(France)provethe

qualityoftheindustry.TheArgentineAssociationof

AnimationCinema(AACA)agglutinatestheindustryand

advocatesforrisinglevelsoftechnologicaldevelopment

andknowledge.Establishedasthelocalchapterofthe

AssociationInternationaleduFilmD’Animation(ASIFA),

AACAco-organizesExpotoons,anannualfairand

businessroundwhichhasbecomeafundamentaldatein

theanimationcalendarworldwide.

ADVERTISING

Market.Theadvertisingindustryhasalongtradition

inArgentina,basedondomesticcreativityandtalent.

Infact,theadvertisingindustrytraditionallyservedas

themaintraininggroundformanygiftedyoungmovie

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directors.Thishighlyartisticandcreativelegacyis

reflectedintherelevanceofthecountryintheindustry’s

internationalfestivals.TheArgentineadvertisingindustry

ischaracterizedbyacombinationofleadingcompanies—

nationalandinternational-andanumberofsmaller

creativefirms.Themainplayersintheinternationalscene

(asDentsu,Havas,Interpublic,Omnicom,PublicisGroupe

andWPP)arewellestablishedinArgentina.Duringthe

lasttwodecades,manyyoungdomesticagenciesgrew

stronglyandrevolutionizedthelocalindustry—being,

eventually,acquiredbyinternationalfirms.Todate,almost

800advertisingagenciesoperateinArgentina,though

lessthan50practicallycontrolthemarket.Themain

agenciesarerepresentedintheArgentineAssociationof

AdvertisingAgencies(AAAP).

Growth.AdvertisingexpenditurerisestooverUS$2

billioninArgentina,andisexpandingataccelerated

rates(figuresfor2007were19%higherthanthoseof

2006).Themostrelevantchannelforadvertisingis

TV,whichtogetherwithgraphicmediaexplains75%

oftotalinvestment.On-lineadvertisingstandsoutasa

particularlydynamicsegment(growing43.7%inthe

lastyear),fosteredbynewcommunicationstrategies

andthearrivalofinternationalfirmslikeGoogleand

MSN.Advertisingexportsalsoboomedinthelastyears,

atanaveragerateof105%from2002to2006,reaching

aroundUS$200million.Everyyearmorethan13,000

peopleareemployedinmorethan600commercialsbeing

producedforexternalmarkets.Argentinahaswell-trained

professionalsataffordableprices:aphotographydirector

andcamera-personreceiveUS$700andUS$250for12

hours,respectively.

DESIGN

Market.Rangingfromarchitecture,decoration,

urbanism,andindustrialdesigntopackaging,stagedesign,

publicity,graphicdesignandcorporatemarketing,the

localdesignindustryisthriving.Designisincreasingly

enteringhighervaluemarketsegmentsinArgentina

throughtheintroductionofdesign-ledprocessesand

innovativetechnologies.Anewgenerationofyoungand

creativedesignershasgivenfreereigntotheirimagination

andtalentandisincreasinglysellingtheircreations

toboththenationalmarketandtheworld.Different

designersanddesignstudiesstandoutglobally,suchas

BKF(Bonet,Kurchan,FerrariHardoy)andManifesto

(officefurniture),amongothers.Morethan60design

studioswerepresentinthelocalDesignFestivalin2006.

Indeed,theUnitedNationsEducational,Scientificand

CulturalOrganization(UNESCO)distinguishedBuenos

AiresasthefirstCityofDesigninAugust2005

Tradition.Thisboomisnotentirelynew:Argentine

designershaveheldimportantpositionsinthedesign

departmentsoflargecompaniesaroundtheworld(suchas

Ferrari,Honda,Lancôme,NokiaandRenault,tonamebut

afew)forquitesometime.Goingbackseveraldecades,we

findoneoftheiconsofArgentinedesign,theBKEchairor

butterflychair.TheBKEchairconqueredtheworldinthe

1950sandbecamepartofthecollectionoftheMuseumof

ModernArtinNewYork.ManyArgentineprofessionals

shineintheglobaldesignscene.Amongthem,Tomás

Maldonadoisknownasoneofthetopdesigntheoristsin

theworld,founderoftheÜlmSchool—themostimportant

designschoolinEuropeaftertheBauhaus

Policies.Differentpublicinitiativesaresupportingthis

fastgrowingdesignindustry.Specifically,theSecretariat

ofIndustryisimplementingaNationalDesignPlan,whose

mainobjectivesaretohighlightdesignasakeyfactorfor

competitivenessandhelpfirmsintheexecutionoftheir

designinitiatives,providingthemwithassistanceand

linkingthemwithavailablefunding.ThePlancomprises

severalprograms,including:PromotingDesigninthe

ProductiveSector;DevelopmentofaNationalDesign

Network;andTrainingandInternationalcooperation.At

thesametime,theprogramdevelopedanindustry-specific

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directory,nationalworkshopsandfairsanddifferent

designawards(Marca,DesignandProductiveintegration

inFurniture,Innovar).

TheMetropolitanCenterforDesign(CMD)isapublic

initiativecreatedbythecityofBuenosAireswhichassists

firms,designersandentrepreneurstoimprovetheir

competitivenessviatheuseofdesignandinnovation.

TheCMDimplementsdifferentprogramsaimedat

creatingandtransferringknow-howthatenablesproduct

differentiation.Additionally,theCMDisresponsiblefor

thecity’sdesignfair(ElDorrego)andforINCUBA(an

incubatorforcreativeindustries´firms).

Thevitalityanddriveofthedesignindustryisevident

bythemanycontestsorganizedorsponsoredbyfirmsor

chambersofcommerce:Ternium(orientedtodesignin

steel);Alpargatas(fortextiles);Grimoldi(forshoes);FACIF-

ParaTi(forleathersandalternativetextures);FEDEMA

andPVCAssociation(orientedtothedesignofspecific

materials);and,Unilever,CODEARandHipercasa(aimed

atspecificfunctionalities).

FASHION

Not just a fad.Thenationalapparelindustryis

positioningitselfasaleaderinSouthAmericanhaute-

couturewithBuenosAiresasthefashioncapital

ofMercosur.Withinthelastcoupleofyears,an

extraordinarynumberoffashionshowshavetakenplace

inBuenosAires,establishingtheBuenosAiresFashion

week(BAF)asanimportanteventintheworldwide

fashioncalendarandasaspecialmomentwhereeverybody

inthecityisevenmoreconcernedaboutlooksandfashion.

Animportantfactorinthesector’ssuccessisthebattery

ofactionsundertakenbytheArgentineApparelIndustry

ChamberandotherassociationsalongwiththeFederal

andBuenosAiresgovernments.

Anever-risingnumberofyoungstersarebeingattractedto

theworldoffashiondesigneveryyear.Infact,thefashion

designprogramattheUniversityofBuenosAiresattracts

over2,000newenrollmentseveryyear,havingbecomethe

careerwiththehighestincreaseinuniversityenrollment

intherecentyears

Fashion designers.Successfulfashiondesignersand

trend-setterssuchasCoraGroppo,EstebecorenaBrothers,

JessicaTrosman(Trosman),LucíaSanchez,Mariano

Toledo,MartínChurba(Tramando),PabloRamírezand

VeroIvaldi,amongmanyothers,arepavingthewayfor

newcomers.Manyparallelsarebeingdrawnbetweenthe

successfultextileindustryinNewYorkandBuenosAires’

potential.Thecapitalcityhasthehighestconcentration

oftextileproductioninArgentina.Inthiscontext,new

designsandtexturesarecombinedinthemostinnovative

ways,goingbeyondconventionalstandards.

An evolving industry.Keyindustrystakeholders—

firms,tradeassociationsandgovernments—are

encouraginglocalmanufacturerstotakefulladvantage

Buenos Aires, first City of Design

In August �00�, UNESCO declared Buenos Aires as “City

of Design”, under the umbrella of the Creative Cities

Network. This network aims at establishing new ways

of association between the public sphere, the private

sector and civil society to free the creative, social

and economic potential of creative industries. The

Creative Cities Network—created in �00�—connects

cities which desire to share experiences, ideas and

best practices aiming at cultural, social and economic

development. Cities may apply to be endorsed by the

Network and join the program to ensure their continued

role as centers for excellence and to support other

cities, particularly those in developing countries, in

nurturing their own creative economy.

Buenos Aires was selected as City of Design because of

the combined public-private impulse to the discipline,

making the city a fertile ground for the production

of differentiated and design-intensive goods. Buenos

Aires stands out for the quantity and quality of its

design professionals as well as study, research and

development centers, generating optimal opportunities

to map consumption trends that inspire firms to produce

novel products. Buenos Aires was followed by Montreal

(May �00�) and Berlin (November �00�).

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INNOVAR Promoting originality and innovation

The Ministry of Science, Technology and Productive

Innovation, assisted by the National Technological

University (UTN) and the Ministry of Economy, organize

the contest INNOVAR, which serves as a launching pad for

products and processes that present remarkable features

in their design, technology and originality. INNOVAR offers

several prizes for a total of US$1�0,000 in different

categories, including Innovative Product, Industrial

Design, Graphic Design, and Software design applied to

Videogames. Some of the awards are jointly offered with

the National Institute for Technological Education (INET),

the National Institute for Agricultural Technology (INTA),

the National Institute for Industrial Technology (INTI), and

the World Intellectual Property Organization (WIPO). In its

fourth edition, INNOVAR �00�, the contest had a record

number of accepted presentations (1,�1� projects),

totalizing �,�9� projects accepted since �00�. In the

current edition, projects from all over the country have

been presented, being the most frequent those from the

province of Buenos Aires (��%), the city of Buenos Aires

(1�%), Córdoba (�%), Santa Fe (�%) and Mendoza (�%).

oftheextensivedomesticresourcesavailable.Onlyabout

16%ofleather,30%ofcottonand13%ofnationalwool

productioniscurrentlyconsumedbytheArgentine

apparelsector,withaheftyremainderleavingthecountry

asrawmaterial.Fromabusinessperspective,thegarment

industryhaschangedwiththeaimofconqueringdifferent

domesticandregionalsegments.Thegreatachievements

have,inturn,attractedforeigncapitalstosupportthe

industry.Moreover,theindustry’sgrowthhasgivenrise

toserviceactivitiessuchasmodelingschools,tertiaryand

universityfabricandfashion-relatedstudies.

VIDEOGAMES

Attractive Segments.Thisrisingsegmentemerges

fromtheintersectionoftwohighlydynamicsectorsin

Argentina:creativeindustriesandsoftware.Videogames

areundergoingastrongdevelopmentworldwide,

distributedinfourdifferenttypesofsegments:games

forconsoles(homeorportable);gamesforpersonal

computers;on-linegames;andgamesforwirelessdevices.

Argentinahasalreadyaccomplisheddifferentlevelsof

progressinallsegments.

Market.Inthedomesticvideogamesmarket,brand

newlocalfirmsco-existwithforeigncompanies.More

than50firms(employingover500people)areexclusively

designinganddevelopingvideogames,mostlyoriented

towardsexportmarkets.Someofthesefirmsworkfor

internationalcompanies—likeDigitalBuildersthat

developsproductsforCartoonNetworks—whileothers

workindependentlyontheirownproducts—suchas

ImmuneGames,specializedinthedevelopmentofgames

formobilephones.Growingintegrationtoglobalmarkets

isobservedinsomesegments,suchasinadvergamingand

gamesformobilephones.However,somedevelopments

orientedtothedomesticmarketexhibitedinteresting

performancesrecently(suchas“YoMatías”and“Malvinas

2032”).Anoverwhelmingmajorityofthesefirms(84%)

areinvolvedindevelopinggamesforuseonpersonal

computers.Otherrisingsegmentsincludevideogamesfor

theweb(48%)andformobilephones(39%).

Abundant skills.Intermsoflocation,twothirdsof

thefirmsarelocatedinthecityofBuenosAires,while

another16%islocatedinthecityoutskirts.Thesector

impetusisdrivenbythequalificationsoftheyounglocal

population.Amajorityofthedomesticentrepreneurshave

aformaleducationinprogrammingandsoftware:58%of

theownersachieveduniversityeducationand12.5%have

completedtechnicalstudies.

Sector initiatives.Thissector’sexpansionhasledto

thecreationoftheArgentineAssociationofVideogames

Developers(ADVA)intheyear2000,anassociationwhich

representsthefirmsinthesectorandisalsoresponsible

fortheArgentineVideogamesExhibition(EVA)anda

seriesofchampionshipsandawardsforamateursand

independentdevelopers.

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IV. Foundation for Success

dynamicanddiverseculturalactivitiesinclude740

museums,2,807theatresand498cinemas.

LOCAL SKILLS AND TALENT

Training the creative impulse.Argentina’s

educationallevelissimilartothatofdevelopedcountries

andiswellabovetheeducationalstandardsofotherLatin

Americancountries.Morespecifically,Argentinahasan

abundantpoolofhumanresourcesindesign,fashion,

andaudiovisualproductionandpostproduction.Many

universities,aswellasawiderangeoftertiaryeducation

institutions,offerdegreesindesign,fashiondesign

andcinema.TheMetropolitanInstituteforDesignand

Innovation(IMDI)inthecityofBuenosAiresstandsout

asaspecialinitiativeestablishedbyalocalgovernment.

Inrecentyears,audiovisualartsexperiencedanoutburst

ofspecializededucationalinstitutionswhichwent

beyondtraditionalschools.Manyofthenewgenerationof

filmmakersandtechniciansweretrainedintheCinema

University;theNationalSchoolofExperimentationand

Filmmaking(ENERC),belongingtotheINCAA;the

CinemaResearchCenter(CIC),aspin-offofacinema

reviewmagazine;andORTtechnicalschools..

Acombinationofhighly-skilledhumanresources,

renownedprofessionals,naturalrichness,world-class

technologicalinfrastructureandavibrantandcreative

culturepositionArgentinaasanengineofcreative

industriesworldwide.

CREATIVITY

A vibrant culture.Argentinaisacountryendowed

withanenormouslyrichandvariedculture.Tangomusic

anddanceareworldrenownedandtodaystandsasBuenos

Aires’mainculturalicon,asshownbythegrowingsale

ofrecords,ticketsforconcerts,danceshows,dancing

classes,shoes,trinketsandspecializedmagazines.But

noteverythingboilsdowntoTangoinArgentina.Folk

dancesarepopularandanewgenerationofballetdancers

offersmarvelousperformancesatthesplendidBuenos

AiresOperaHouse(TeatroColón)anddiverseopen-air

scenarios.Argentinaisalsoknownforitstheaterindustry

thatcanbecomparedtothatofveryfewcountriesinthe

world;withover200playsshownregularlyonSaturdays:

10showsperhour.TheArgentinepeople’sgrowing

interestinreadingcanbemeasuredbyattendancerecords

attheBuenosAiresInternationalBookFair,which

wasvisitedby1.2millionpeoplethisyear.Meanwhile,

Argentineworksofartareexperiencinganunprecedented

growthinsales.ThevibrantartisticlifeinArgentina’s

mainurbancentersisalsoknownacrosstheglobe,where

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INTERNATIONAL REPUTATION

Awarded talent.AdmirationforArgentineartistsand

authorsgoeswellbeyondthecountry’snationalborders.

ThemostfamousofArgentineliteratureexponentsis

JorgeLuisBorges,butthesealsoincludethreeother

MigueldeCervantesPrizewinners(ErnestoSábato,

AdolfoBioyCasaresandJuanGelman)andanew

generationofgiftedyoungwriters.Argentineartists

receivedfiveOscarPrizes,severalGoyaandSanSebastian

movieawardsandrecognitionsattheCannesandBerlin

FilmFestivals.Thevividcreativityinadvertisingis

annuallyevidentattheClioawardsandattheCannes

LionsAwards,whereArgentinetalentisincreasingly

recognized.SevenLatinGrammyAwards(2006)and

eighteenMTVawards(2002-2007)alsocontributetoa

growinginternationalprestige.

TECHNOLOGICAL INFRASTRUCTURE

Wired.Thecountryoffersawelldevelopedtechnological

infrastructure,includingamodernandextensive

telecommunicationsnetworkandhigh-speedconnectivity

incontinuousexpansion.ArgentinapresentsaTV

penetrationhigherthantherestoftheLatinAmerican

countries(201TVsets/1,000people)andanimportant

diffusionofcableTV(5.7millionsubscribers).

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V. Main Challenges

Industryplayersandgovernmentagenciesfacekey

challengestosustaingrowthandconsolidatethesector’s

competitiveness.Inthemselves,thesechallengespresent

attractiveopportunitiesfortheindustryandArgentina.

•Support the generation of new firms:facilitatethe

conversionofrawcreativetalentintoprofitablebusiness

opportunities;supportthegrowthandconsolidationof

promisingfirms.

•Capitalize on a remarkable reputation:leverage

thereputationofsuccessfulArgentineprofessionals,

productsandservicestoincreasetheexternalpresence

ofhigh-quality,uniquecreationsandsolutionsin

creativeindustries.

•Strengthen the Argentine Design brand-name:

consolidateindividualsuccessesintoarecognized

brand-name,boostingthevisibilityofArgentinecreative

industries.

•Grow the pool of talents:asustainedeffortwill

havetobemadetofurthersupporttheemergenceof

highlyskilledhumanresourcesincreativeareas,suchas

audiovisualarts,designandfashion.

OUR CHALLENGES ARE YOUR OPPORTUNITIES.

SOURCES: The trends, data and figures included in this material were elaborated by ProsperAr on the basis of: National Institute of Statistics and Census; UNESCO; AAAP; ADVA; Argentine Book Chamber (CAL); CAPIF; Center of Studies for Production (CEP); Cinenacional.com; CMD; INCAA; INTI; Cultural Industries Observatory (city of Buenos Aires); Argentine Cinematographic Industry Workers’ Union (SICA); Argentine Cultural Information System (SINCA) (Ministry of Culture); Getino, O., “El Capital de la Cultura. Las industrias culturales en la Argentina”, CICCUS, �00�; Perelman, P. and Seivach, P., “La Importancia Económica del Sector de Videojuegos. Situación actual y potencialidades en Argentina”, CEDEM, �00�; and Aguilar, G., “Otros Mundos. Un ensayo sobre el Nuevo cine argentino”, Santiago Arcos, �00�.

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The information provided through this brochure does not constitute legal or professional advice whatsoever. ProsperAr (Agencia Nacional de Desarrollo de Inversiones) reserves the right to revise, amend, alter or delete the information provided herein at any time, but shall not be responsible for or liable in respect of any such revisions, amendments, alterations or deletions.Photos: courtesy of Coordinación Area de Cine y Artes Audiovisuales Instituto Cultural Provincia de Buenos Aires, Juan Pablo Cambariere, Furia, nadine Zlotogora, Stock Exchange and Flickr under Creative Commons license.

1�

Argentina at a glance

Country profile

Official name República Argentina

Capital city Buenos Aires

Main cities Córdoba, La Plata, Mar del Plata, Mendoza, Rosario

Surface area �.� million square kilometers

Population �0.� million inhabitants

Population growth 1.0% per year

Adult literacy rate 9�%

Life expectancy at birth �� years

GDP per capita (PPP) US$ 1�,�1�

Currency Argentine peso ($)

Form of government Federal Presidential Republic

Political division �� autonomous provinces and the Autonomous City of Buenos Aires

Time zone GMT-0�:00

Official language Spanish

�00� �00� �00� �00� �00� �00�

GDP growth rate (annual %) �.�% 9.0% 9.�% �.�% �.�% �.0%

GDP (PPP) (millions of US$) ���,�99 ���,0�1 �19,��� ��9,��0 ���,1�0 ���,��0

GDP (millions of US$) 1��,0�� 1��,1�� 1�1,9�� �1�,��� ��0,��� ���,�0�

Exports of goods and services (millions of US$) ��,��9 �9,��� ��,0�� ��,��� ��,0�� ��,�0�

Imports of goods and services (millions of US$) 1�,��� ��,9�0 ��,9�9 �1,1�0 ��,��� ��,�9�

Balance of trade of goods and services (millions of US$) 1�,�1� 11,9�� 1�,0�� 1�,��� 1�,��� 1�,11�

Trade surplus (% of GDP) 1�.�% �.�% �.�% �.�% �.9% �.�%

Current account surplus (% of GDP) �.�% �.1% �.9% �.�% �.�% �.�%

Primary fiscal surplus (% of GDP) �.�% �.9% �.�% �.�% �.�% �.1%

Gross capital formation (% of GDP, constant prices) 1�.�% 1�.�% 19.�% �1.�% ��.�% ��.0%

Gross national savings (% of GDP, current prices) 19.�% �0.�% ��.�% ��.�% ��.�% ��.�%E

Foreign direct investment (millions of US$) 1,��� �,1�� �,��� �,��� �,��� �,9�9

Exchange rate ($/US$) �.9� �.9� �.9� �.0� �.1� �.1�

Foreign reserves (millions of US$) 1�,119 19,��� ��,0�� ��,0�� ��,1�� ��,���

Unemployment rate (% of EAP) 1�.�% 1�.�% 11.�% 10.�% �.�% �.9%

Source: ProsperAr based on data provided by the Argentine National Institute of Statistics and Census, the Central Bank’s Market Expectations Survey (REM), the International Monetary Fund and the United Nations Conference on Trade and Development (as of April �0, �009).

Main Economic Indicators

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ProsperAr is Argentina’s National Investment Development Agency

Our mission is to develop direct foreign and domestic investment to contribute to Argentina’s competitiveness and sustainable development.

ProsperAr’s four main objectives are:

Provide services to investors ProsperArprovidesinvestorswithpersonalizedprofessionalservicesthroughouttheinvestment

process,frominitialadvisoryservicestoinvestmentfacilitationandaftercare.TheAgency’steam

assessesoninvestmentprojects,respondstoqueriesfrominvestorsandprovideskeybusiness

information.LeveragingtheAgency’scooperativerelationshipswithdifferentgovernmentbodies,

ProsperAr’sintegralservicesofferinvestorsaunifiedone-stopsupportsystem.

Attract and generate investment ProsperArworksinthepromotion,attractionandexpansionofbothdomesticandforeigninvestment.

Weidentifyinvestmentandinnovationopportunitiesinhighgrowthsectors,communicating

themtonationalandoverseasinvestorsthroughinternationalmissions,conferences,meetingsand

publications.Weworktobuildrelationshipsthatenablemultinationalcompaniestotakeadvantageof

local,regionalandglobalopportunities.Wealsoencouragedomesticfirmstoexpandanddeveloptheir

businesses.

Boost the Investment EnvironmentProsperArworkstostrengthenArgentina’sinvestmentenvironment.Weinteractwithlocaland

multinationalcompanies,aswellaspotentialinvestors,identifyingandremovingpossibleobstaclesto

doingbusinessinArgentina.Throughactivedialoguewiththeprivatesector,andincoordinationwith

othergovernmentdepartments,weadvocatefortheformulationofpoliciesandprogramstooptimize

theinvestmentandinnovationenvironment.

Promote the internationalization of local companies ProsperArpromotesthegrowthandinternationalizationofArgentinefirms.Fosteringlocalvocation

forinnovationandentrepreneurshipandpromotingoverallcompetitivenessarekeyaspectsof

theAgency’sstrategy.Twoprograms“EntreprenuerDevelopment”and“Pioneers”areinplaceto

strengthenlocalcompanies’criticalcapacitiesindifferentgrowthphases.ProsperAralsoassists

internationalcompaniestoinvestinand/orworkwiththeirlocalcounterpartstoformglobaljoint

ventures.

ProsperAr is your strategic partner to invest and prosper in Argentina.

What ProsperAr can do for you:

>> Provide timely and relevant information on business sectors and geographical locations in Argentina.

>> Help identify investment and innovation opportunities in strategic sectors.>> Troubleshoot red tape and obstacles; facilitate the investment process and doing

business in Argentina.>> Assist in building partnerships between foreign investors and local companies.

To learn more about how investing in CREATIVE INDUSTRIES in Argentina can benefit you, please contact us:

www.prosperar.gov.arinfo@prosperar.gov.ar+54 11 4328 9510