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Models of ICT Innovation a Focus on The Models of ICT Innovation A Focus on the Cinema Sector Authors: Pierre-Jean Benghozi, Elisa Salvador, and Jean Paul Simon. Editor: Marc Bogdanowicz 2015 Report EUR 27234 EN European Commission Joint Research Centre Institute for Prospective Technological Studies Contact information Address: Edificio Expo. c/ Inca Garcilaso, 3. E-41092 Seville (Spain) E-mail: [email protected] Tel.: +34 954488318 Fax: +34 954488300 https://ec.europa.eu/jrc https://ec.europa.eu/jrc/en/institutes/ipts Legal Notice This publication is a Science and Policy Report by the Joint Research Centre, the European Commission’s in-house science service. It aims to provide evidence-based scientific support to the European policy-making process. The scientific output expressed does not imply a policy position of the European Commission. Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use which might be made of this publication. All images © European Union 2015 JRC95536 EUR 27234 EN ISBN 978-92-79-48170-3 (PDF) ISSN 1831-9424 (online) doi:10.2791/041301 Luxembourg: Publications Office of the European Union, 2015 © European Union, 2015 Reproduction is authorised provided the source is acknowledged. Abstract The report starts by looking at the competing and overlapping definitions of creative industries, media and content industries. Chapter 1 investigates the fate of R&D and innovation in the creative industries and in the broader Telecom Media and Technology sectors. Chapter 2 summarizes past studies on innovation in distinct media and content industries (videogames, music recording and newspapers publishing) and draws some lessons from them. Chapter 3 delves more deeply into the specific case of cinema. This chapter investigates the film industry's complex and evolving relationship with technologies and technological inventions. Chapter 4 offers a short cross-comparison with R&D in the book publishing industry. Chapter 5 deals with policy issues triggered by the observed digital changes. Chapter 6 concludes with a brief assessment of EU strengths and weaknesses, and offers some recommendations. Preface In order to reinforce understanding of innovation in the ICT sector and of ICT-enabled innovation in the rest of the economy, IPTS and DG CONNECT launched a 3-year research programme on European Innovation Policies for the Digital Shift (EURIPIDIS) in 2013. The purpose of the EURIPIDIS project is to provide evidence-based support to the policies, instruments and measurement needs of DG CONNECT for enhancing ICT Innovation in Europe, as part of the Digital Agenda for Europe and of the ICT priority of Horizon 2020, paying particular attention to the improvement of the transfer of best research ideas to the market. EURIPIDIS aims to: Better understand how ICT innovation works, both at the level of actors such as firms, and at the level of the ICT “innovation system” in the EU, Assess the EU's current ICT innovation performance, by attempting to measure ICT innovation in Europe and measuring the impact of existing policies and instruments (such as FP7 and Horizon 2020). Explore and suggest how policy makers could make ICT innovation in the EU work better. Within this overall context, the IPTS commissioned Professor P J Benghozi, Research Director at the National Centre for Scientific Research (CNRS) and Head of the Research Unit in Economics and Management (CRG) at the Ecole Polytechnique (Paris, France) to carry out a study. This study aims to document the models of ICT innovation selected by stakeholders in the cinema industry, tracking specific case studies worth investigating and the emergence of renewed practices of innovation. The report aims provides information about where R&D takes place in this cultural sector, which economic actors are taking charge and are implementing ICT innovations, where these players are located in the value chain, and how they are articulated with other stakeholders. The report reveals that numerous specialized technological companies have introduced a different model of innovation in the production stage of the content and media industry, as compared to the disruptive model of innovation usually observed in the distribution stage. The report suggests that these divergent models interact and complement one another in a broadening ecosystem where there are strong trends towards vertical and horizontal integration. The technological dynamics are also encouraging these specialized technological companies' market to grow towards other sectors (automotive, domotics and health could be candidates) with an offering of innovative solutions including facial and landscape recognition, sound solutions, visual effects, 3D, etc. Altogether, these transformations are affecting the very nature of the cinema industry and its industrial structure, possibly favouring the emergence of creative enterprises. The report concludes with some policy recommendations inviting a review of current policies that may not be suitable for the contemporary conditions of the industry. 1 Table of Contents PREFACE ............................................................................................................................................................................................ 1 EXECUTIVE SUMMARY ................................................................................................................................................................ 5 1. CHASING INNOVATION IN THE CREATIVE INDUSTRIES ............................................................................ 10 1.1 What are the creative industries? .......................................................................................................... 10 1.2 Mingling R&D, innovation and creation in the creative industries ...................................... 12 1.3 The economic public policy perspective on creative Industries ............................................ 14 1.4 Looking for R&D in the creative industries ...................................................................................... 16 1.5 Research questions ........................................................................................................................................ 25 1.6 Conclusions ........................................................................................................................................................ 28 2. LESSONS FROM PAST STUDIES ON INNOVATION IN THE MEDIA AND CONTENT INDUSTRIES ...................................................................................................................................................................... 29 2.1 Video games ...................................................................................................................................................... 29 2.2 Music recording industry ............................................................................................................................ 34 2.3 Newspaper publishing industry ............................................................................................................... 37 2.4 Conclusions: The surge of new intermediaries as a common trend? ................................ 42 3. CASE STUDY: THE CINEMA INDUSTRY ................................................................................................................ 46 3.1 Introduction ........................................................................................................................................................ 46 3.2 Technological innovation in the cinema production .................................................................... 53 3.3 Cinema distribution and exhibition ....................................................................................................... 72 3.4 Conclusion: The ever-shifting balance between technological innovation and artistic creation ................................................................................................................................................ 82 4. ENTR'ACTE: A CROSS-COMPARISON WITH THE BOOK PUBLISHING INDUSTRY .......................... 84 4.1 A global transformation of the publishing industry .................................................................... 84 4.2 Conflicting pace of change ........................................................................................................................ 85 4.3 The various loci of R&D .............................................................................................................................. 86 4.4 New competitors ............................................................................................................................................. 88 5. INNOVATION POLICIES FOR THE DIGITAL AGE.............................................................................................. 90 5.1 Issue 1: How to deal with powerful new intermediaries? ........................................................ 90 5.2 Issue 2: Competition issues and platforms ..................................................................................... 91 5.3 Issue 3: Net neutrality and investments strategies .................................................................... 92 5.4 Issue 4: Financing content: treating like as like? ........................................................................... 94 6. CONCLUSION: NEW RELATIONS WITHIN AN EXTENDED ECOSYSTEM ............................................
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