Incentives and Support Policies for the Video Game Industry and Clusters in selected Countries

Ulrich Harmes-Liedtke & Nadine Barthel

Parallel Session 1.3: Shaping Creative Economy through Clusters

Incentives and Support Policies for the Video Game Industry and Clusters in selected Countries

November 4th, 2015Daegu, Corea

Introduction and Background

Successful Games Clusters around the world: Case Canada – Quebec

Global Games Industry

Recommended Instruments for Successful Games Clusters’ Development

Your Questions!

Agenda

Incentives and Support Policies for the Video Game Industry and Clusters in selected Countries

Emerging Games Clusters around the world: Spain - Catalonia

Introduction and Background

Global Benchmark Study commissioned by GIZ (German International Development Agency) Analysis of selected countriesStrategic approach on incentives and promotion policies for the Digital Animation and Video Games industries in Costa Rica and Guatemala, elaborated recommendations in line with the situation of both countries

Mesopartner is a knowledge firm specialised in territorial development, competitiveness and innovation. Our strategic intent is to be globally acknowledged as an innovator in territorial development, partnering with strategic customers and associates through capacity building and coaching, as well as programme design, method and tool development and capture, knowledge management, and problem solving.

Incentives and Support Policies for the Video Game Industry and Clusters in selected Countries

Introduction and Background

Incentives and Support Policies for the Video Game Industry and Clusters in selected Countries

Global Games Industry

2014 Globally 81,5 Billion US Dollar Revenues, 27 percent are generated by Mobile Games Asian Pacific Region has strongest revenues

Incentives and Support Policies for the Video Game Industry and Clusters in selected Countries

2015 Prognosis – Revenues by Global RegionsSource: Newzoo

2015 Prognosis – Revenues by ScreenSource: Newzoo

Virtual Reality

Incentives and Support Policies for the Video Game Industry and Clusters in selected Countries

Gamification and Cross innovation

E-Sports

Gaming Platforms

Mobile GamesAAA titleincl. various in-game services

Global Games Industry Current Developments and Trends

Statistics• 1,8 Billion Dollars revenues estimated for sales in 2015 the Canadian games market ranks number 8 in the world. 329 video

games companies directly employed 16.500 people.• Quebec is now home to almost 100 games businesses the majority of them (91) comprises SMEs with less than 500

employees, almost two third work with even less than 5 team members. Yearly spendings for Video Games in Quebec comprise 741 Million Dollar

Major Incentives• Tax credit scheme since 1996 and now hosting the largest games companies in Canada. • Attracted the French Ubisoft to the region and thus leveraged a long term growth• The Ubisoft targeting incentive was soon redesigned and implemented for the overall entertainment software industry and

supported the growth of the local industry enormously.

Vivid Games Cluster• Mixture of SMEs and Big Corporates• Strong presence and collaboration / spill over effects with digital visual media sectors - film, CGI and VFX • Technological conversion between film and games boosted innovation vice versa caused further economic growth• Strong university landscape and interlinkages and highly skilled and creative workforce through long term governmental

engagement and support for post-secondary education• Suitable basis for new high tech concepts such as VR - as talents and infrastructure already exist on a high quality level• Large investments – mainly by international players – stimulate job market

Incentives and Support Policies for the Video Game Industry and Clusters in selected Countries

Successful Games Clusters around the world: Case Canada – Quebec

Statistics• 400 Spanish games businesses generated sales revenues of 1,55 Billion Dollar in 2014 and employed about 3500 people.

Experts estimate a growth of 2% in 2015 Spain represents the 4th biggest sales market in Europe with about 19,5 million gamers in the country in 2014.

• Catalonia is now home to almost 100 games businesses Yearly Revenues (2010) for Video Games in Catalonia comprise 136 Million Euro.

Major Incentives• 2015: programme for refundable grants targeting the development, production, editing, distribution, marketing or distributing

video games • Games BCN is the videogame incubator in Barcelona created to support developer teams mainly coming from university to

successfully establish a games business

New Coalitions • Need for talents and investments enabled strong collaboration between local government and promotion agencies and

sectors: • Reduce gap between the training results and skills demand by videogames companies by promoting a debate between

industry and university and the development of suitable training programmes. • Supportive investor readiness programmes and providing public guarantees enhanced region’s attractiveness for

international investments.

Incentives and Support Policies for the Video Game Industry and Clusters in selected Countries

Successful Games Clusters around the world: Case Spain – Catalonia

Establish and support co-working spaces, accelerators and incubators -> e.g. Gameslab BCN-> Promote local innovation communities and collaborative creative development > Accelerate for growth and enable investments

Gain greater visibility of companies and products in the domestic and international markets -> e.g. Eye on Canada -> Promote internationalisations and research partnerships to enhance innovation capacity

> Support access to markets and improve competiveness

Understand and visualise the sector with reliable statistical data -> supports profound and strategic development of industry promotion policies that meets the sectors

demands and requirements. -> sector is enabled to market the companies to local and international partners – for trading, cooperation, distribution etc. -> evaluates the different promotion opportunities for businesses critically and provides advisory concerning design of effective funding policies.

Incentives and Support Policies for the Video Game Industry and Clusters in selected Countries

Recommended Instruments for Successful Games Clusters’ Development

Best Fit – interactive process, has to be designed as mutual learning reflexive process, feedback loops Align recommendations with local players and contexts Learnings need to be transferred into regional local context

Establish tax credit scheme for labour costs -> Quebec Production of Multimedia Titles Tax Credit -> Lower employment costs support employers in scaling their workforce -> Enhances the job market by stronger competition -> Attracts international companies to establish businesses

Provide specific financial instruments that meet sector’s requirements -> - Repayable grants ICEC Catalonia, Experimental Stream Canada Media Fund

-> Encourages the development of innovative, interactive digital media content and software applications -> Enables innovation and growth during finance gaps

Establish university degrees and training programmes in close alignment with sector -> LaSall University in BCN -> Enhance employment especially amongst youth -> i#Improve knowledge transfer and enhance innovation capacity -> Meet industry’s demand for talents

Incentives and Support Policies for the Video Game Industry and Clusters in selected Countries

Recommended Instruments for Successful Games Clusters’ Development

THANK YOU!

Dr Ulrich Harmes-Liedtkeuhl@mesopartner.comGSM (+54 9 11) 5174 1652Skype : cheulricohttp://cheulrico.wordpress.comhttps://twitter.com/cheulrico www.mesopartner.com

Nadine Barthel Berlin | Germany nadine.barthel@gmx.netT + 49178 899 23 93 Skype : nadine_bunt

Incentives and Support Policies for the Video Game Industry and Clusters in selected Countries