View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Research Papers in Economics DRUID Working Paper No. 07-06 Breakout from Bollywood? Internationalization of Indian Film Industry By Mark Lorenzen and Florian Arun Taeube www.druid.dk Breakout from Bollywood? Internationalization of Indian Film Industry Mark Lorenzen (Corresponding author) Department of Industrial Economics and Strategy Copenhagen Business School Kilevej 14A, 3rd floor DK-2000 Frederiksberg, Denmark Tel.: +45 38152928 E-mail:
[email protected] Florian Arun Taeube Innovation Studies Centre Tanaka Business School Imperial College London London SW7 2AZ, UK Tel.: +44 207 594 5918 E-mail:
[email protected] Abstract: In the context of an emerging economy, the paper analyzes indigenous growth and internationalization. Using novel and original data, the paper studies the Indian film cluster in Mumbai, Bollywood. It argues that as the world’s biggest commercial film cluster and a conspicuous growth phenomenon in an emerging economy context, Bollywood can be seen as a paradigmatic case for adding to our understanding of the development of film clusters outside the USA, as well as suggesting more general insights into the growth and internationalization of industries in emerging economies. The empirical analysis of the paper points to the importance of home market, government regulation, and industry structure for Bollywood’s recent export growth. The paper discusses how the existence of a well-defined and geographically centered social network among producers, directors and other key roles in filmmaking in Mumbai supports the development of a ‘Bollywood model’ of filmmaking with a industry structure remarkably different from Hollywood’s.