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Governance of creative industries: A comparison of the characteristics and challenges in the software/games industry in Munich and Leipzig

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Abstract

The increasing acceptance of creative industries as a sphere of socio-economic activity gives rise to the question how this sector can be promoted appropriately. This paper comprises a theoretical discussion and an empirical analysis of different modes of governance at two contrasting locations in Germany, taking the example of the software/games industry sector. Specifically, we shall look both at formal and informal mechanisms of coordination. We explore to what extent the existing political-administrative support structures at the two selected locations are adapted appropriately to the internal organisation and the special characteristics of these sectors. Our results point to the difficulties in designing market-specific and location-specific strategies aimed at different environments. Finally, this paper aims to contribute to the understanding of how traditional political institutions can further adapt to the demand for more flexible governance, such as is needed by the creative industries.

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... This is somewhat surprising since knowledge, innovation, network or creative industry are omnipresent buzzwords in current debates within regional development contexts or industry-specific case studies. The shortcoming applies even more to the digital play sector, though a few exceptions can be found in economic geography literature dealing with this industry (Cohendet & Simon, 2007;Izushi & Aoyama, 2006;Johns, 2006;Lange & von Streit, 2013;Oh, 2007;Storz, 2008;Tschang & Vang, 2008;Venkatraman & Lee, 2004). ...
... Thus, firms relying on the synthetic mode facilitate their innovation processes by shortening the spatial distances especially to those of their major knowledge network partners with whom they exchange particularly highly tacit knowledge. Besides on-the-job-training, professional as well as polytechnic schools are important education channels facilitating concrete know-how, craft, and practical skills (Asheim & Coenen, 2005;Asheim, Coenen, Moodysson, & Vang, 2007;Lange & von Streit, 2013). ...
... This is due to the higher degree of codification which simplifies the exchange of knowledge across distances. The core of the workforce needs specific university qualifications, such as analytical skills, the ability to abstract, theory building and testing, and documentation (Asheim & Coenen, 2005;Asheim et al., 2007;Lange & von Streit, 2013). So far there is hardly empirical evidence in the literature for expecting the video game development sector to rely on the analytical knowledge base (an exception is the Organisation for Economic Co-operation and Development (OECD), 2005, study highlighting the research and development (R&D) intensity of the video game sector) In addition to these three knowledge bases often discussed in the literature, procedural knowledge might be particularly relevant in relation to creative industries (Cacciatori et al., 2011;Newell & Simon, 1972). ...
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This paper verifies Munich's first-rate performance among all German regions based on numerous indicators of R and D intensity, discusses the causes for Munich's rise to become a high technology region and analyses the role of Siemens as a large firm within the innovative environment of the region particularly concerning its connections to R and D-intensive small and medium sized enterprises (SMEs). A survey of Munich's R and D-intensive SMEs shows that Siemens positively influences the innovative milieu. Siemens does not dominate the SMEs so strongly that a one-sided dependency threatens them; rather; they enjoy diverse and intraregional co-operation in innovation.
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