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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

Monika Petraitė, Raimonda Laužikienė, Klaipeda Economic Development Agency, www.kepa.lt

12/14/2011

Study on the status quo of cultural and creative industries in Klaipeda

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Co-financed by EU INTERREG IVC Program Chair of Urban Management Baltic Sea Region (BSR)

SWOT ANALYSIS OF CULTURAL AND CREATIVE

INDUSTRIES IN KLAIPEDA

Klaipeda Economic Development Agency

In cooperation with:


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Context of Klaipeda SWOT analysis

0. Background of the study 4

A. Presentation of framework conditions

1. Framework conditions at national level 4

2. Framework conditions of the city of Klaipeda 14

B. Cultural and creative industries in Klaipeda

1. Description of statistic data gathering 19

2. Portrait of the cultural and creative industries in Klaipeda 26

3. Build up of institution for coaching and platform for network 28

4. Map representation of Klaipeda CCI sub-sectors 29

C. Presentation of public and intermediate cultural sectors 33

D. Presentation of polls, expert interviews and workshops 33

1. Implementation and procedure 34

E. SWOT analysis 35

1. SWOT analysis for CCI sub-sectors 35

2. SWOT evaluations 41

F. Conclusions and recommendations for action

1. Conclusions 51

2. Recommendations from a business and management perspective 51

3. Recommendations for action by framework-setting stakeholders 52

4. Recommendation for developing of incubation infrastructure 54

References 56

Background of the study


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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

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


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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

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


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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

CCI companies‘income in gross Vilnius region income increased twofold from 4.7% to

7.9% in the same time.


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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

economic strives still best in Vilnius – here close to 13% of the companies record to be

active in the CCI sector.


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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

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


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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

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


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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

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


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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

innovative activities based on intellectual activity that creates a further higher added value


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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

infrastructure are supported: construction of buildings, reconstruction of existing spaces


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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.

2. Description of the framework conditions of Klaipeda city


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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

and in Lithuania as well. In 2006 internal migration saldo for 1000 Inhabitants in Klaipeda


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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.

2.4. Description of the economy


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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.

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


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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)

http://www.stat.gov.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)

http://db1.stat.gov.lt/



19 |

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:


20 |

- 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.


21 |

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,


22 |

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


23 |

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


24 |

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/sectors

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


25 |

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 47.78.10 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

Broadcasting 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

Architectural 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/Software 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

47.79.10


26 |

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



27 |

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

Architectural

Advertising 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)


28 |

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.


29 |

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


30 |

Klaipeda city centre CCI map


31 |

Klaipeda North part CCI map


32 |

Klaipeda South part CCI map


33 |

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.


34 |

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.


35 |

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;


36 |

- 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.


- 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,


37 |

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.


- 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.


38 |


- 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.


- 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.


39 |

- 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.


- 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.


- 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.


- 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.


- 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.


54 |

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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References

“Creative Industries Mapping Document”, Department of Culture, Media and Sport, UK, 2001 Florida R L, 2002 The rise of the creative class: and how it's transforming work, leisure, community and everyday life (Basic Books, New York, NY) The Economy of Culture in Europe, Study prepared for the European Commision, KEA European Affairs, 2006. (http://ec.europa.eu/culture/)

United Nations. Creative Economy Report 2008 (http://www.unctad.org/) Hiden innovation in the creative industries, NESTA, 2008 (www.nesta.org.uk) European Commission. European Competitiveness Report 2010. (http://ec.europa.eu/enterprise/newsroom/cf/_getdocument.cfm?doc_id=6222)

Creative industries in Estonia, Latvia and Lithuania, 2010 Hagoort G., Kooyman R. Study on the entrepreneurial dimension of cultural and creative industries, 2010 Integruotos meno, mokslo, studijų ir verslo NKP „Lietuvos kūrybinės ir kultūrinės industrijos“ galimybių studija, 2008 „The strategy of creative industries stimulation and development“ (Kūrybinių industrijų skatinimo ir plėtros strategija), 2007 (http://www3.lrs.lt) Makselis R., “Management of Lithuanian Cultural Institutions on the basis of Development of Creative Industries”, Vilnius, 2007 “Evaluation of Creative Economic Activities into the Lithuanian Economy” carried out by Dr. Margarita Starkevičiūtė , Vilnius, 2003 „The strategy of Lithuania inovation development“ ( Lietuvos inovacijų plėtros strategija), 2010 – 2020 Study on the possibilities of stimulation economy by CCI projects of National Complex Program, 2010 Vilnius J.Černevičiūtė, Ž.Jančoras, R.Strazdas . Study on the Creative industries map of Vilnius“, 2010 Lietuvos kultūros politikos nuostatos. (www.lrkm.lt) Lietuvos mokslo taryba (http://www.lmt.lt/)

http://www.unctad.org/

http://www3.lrs.lt/

http://www.lrkm.lt/

http://www.lmt.lt/


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Lietuvos pažangos strategija 2030. (http://www.lietuva2030.lt/)

2007 – 2013 m. Žmogiškųjų išteklių plėtros veiksmų programa. (http://www.esparama.lt/)

Exporting Lithuania, http://www.verslolietuva.lt/lt/ApieEksportuojanciojiLietuva.html)

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