Tartu Centre for Ccis : Growing Local Ccis Through an Export-Driven Incubation Programme © Ahto Sooaru

Tartu Centre for CCIs : Growing local CCIs through an export-driven incubation programme © Ahto Sooaru

• Economic growth • Entrepreneurship • Attractiveness of territory • New business models • Skills • City branding

Context Tartu is the second largest city in Estonia. It has 100,000 inhabitants, with a very young population (more than 50% of the population is under 30). This medium-sized city is often considered the intellectual and cultural centre of the country, embodied in a leading research and training institution, the University of Tartu, and a strong concentration of students (around 18,000 in 2011). Spearheading the country’s reputation in research and providers of higher education, the University of Tartu is ranked in the top 3% of the world’s universities. Tartu also has a strong cultural offer and a tradition of singing, folk music tradition and craftsmanship (in the St. Antoine area). Amongst small and medium-sized cities, Tartu is an early adopter of CCI support. It launched its creative industry policy in 2004 with a view to offering a new perspective to young talents, nurturing and encouraging creativity and local expression, and retaining the city’s young graduates by offering them business opportunities. Tartu was chosen as the location for the first Centre for Creative Industries in Estonia, as a result of a selection process that began in 2005 and drawing on the results of a national mapping of CCIs (completed by the Estonian Institute of Economics in 2003). The local CCI strategy revolves around three key principles: • Preservation and promotion of cultural resources to valorise local heritage including crafts. • Cross sectorial cooperation especially with technology industries. • Local policies should empower CCIs to help formulate relevant local policies. Tartu’s objective is to expand its cultural production and create new products and services for the community and the world. The city wants to encourage creative people to take the risk of entrepreneurship and provide adequate assistance. The city is convinced that culture can contribute to transforming societies, supporting youth and developing creativity in traditional industries and sectors, but is aware that changing the traditional vision of a “subsidised culture” takes time. The Tartu Centre for Creative Industries

The Tartu Centre for Creative Industries (TCCI) Local Artist for Regional Development is a cross- opened its doors in 2009 and became the first border project that aims at developing the cities business incubator for creative industries in the of Tartu, Cesis (LV) and NGO Trīs krāsas (LV) by country. It is composed of five buildings (initially integrating artistic activities in community life. three) hosting a business incubator, office space, a The project is running under the Estonia - Latvia seminar room, a multi-functional hall, galleries and cooperation programme. TCCI works with its two a catering area. A number of events are held on the partners to strengthen the role of artists in community premises, including lectures, art exhibitions, concerts life. Estonian and Latvian actors of various creative and fairs, and are organised with a view to involving fields are engaged in a cultural exchange, as well as the local community. jointly trained to get more actively involved in social and economic local dynamics (cooperation with TCCI supports CCIs through a four-year residence businesses, participation in regional development programme for young entrepreneurs in the creative initiatives and addressing various local social issues). sector. The first year is dedicated to project development. During the second year, young entrepreneurs should be able to make a living from their project, while the third and fourth years are dedicated to achieving success in foreign markets. In addition to its regular missions, TCCI is constantly setting up new projects to further stimulate local development of CCIs. Since 2012, TCCI has been organising the Antonius Fashion Performance Event. It is a fashion/ accessories show where young designers show their own work to professionals. International experts and representatives of creative bodies in Tartu compose the jury and select the best fashion collection designer. The winner has the opportunity to present his own collection at the Estonian Fashion Exhibition and in Milan. TCCI also acts as a think tank and welcomes international conferences, such as “BALT/NORD 3D and Visual Effect”. Seminars and workshops are scheduled with the participation of international stakeholders from film, videogames and digital industries. The first pilot networking forum was a success (in 2013), and a second edition was scheduled in 2014. The third edition is in preparation and it could become a yearly event.

© Tartu Loomemajanduskeskus Budget and financing Impact TCCI has already achieved measurable results: more Mainly supported by the European Regional Devel- than 100 companies have been incubated since the opment Fund, the budget has enabled the launch of project was launched. Around 20% of them have a creative strategy and CCI-related initiatives. ERDF designed a business model that can be exported funding for the TCCI totals about €1.2 million with a to foreign markets. Over the last two years, the mix of funding for activities, training and construc- incubated companies have increased their average tion. Its total budget of €2 million is complemented annual turnover from €20,000 to €50,000. TCCI has by city funding, rents from tenants, catering and also managed to cement a strong local community, cultural events. and alumni companies provide useful assistance to newly incubated businesses. TCCI also contributed to improving the image of Tartu and raising its profile at European level, which enabled TCCI to take part in international projects (those mentioned above, as well as Urban Creative Poles, a European project developing a transnational network of creative clusters).

Challenges At the beginning of this initiative, the key challenges were clearly about capacity building at local level and expanding creative industries in this area to attain a critical mass. Another local concern was to create a business-friendly environment for young talents to stay after their studies. Due to the high concentration of students and young graduates in the city, a practical structure to guide them towards successful entrepreneurship was in high demand.

© Tartu Loomemajanduskeskus © Tartu Loomemajanduskeskus Transferability The model developed by TCCI can be transferred Tips to other contexts as the methods developed for incubated businesses can be applied in other Support the internationalisation of local CCIs clusters. They are mostly based on strong support even for newly created businesses, with a in creating corporate identity, developing sales and view to developing business opportunities marketing skills and finding where the added value of and accessing other European markets. the creative products and services lies. Pay close attention to how newly created CCIs to articulate their business model Sustainability so they can formulate adequate value propositions and eventually achieve growth. TCCI has received strong financial support and is part of a sustained local and national policy. Funding is now Strong political support (primarily at local secured under the Creative Estonia national strategy level, but also at regional and national as well as under the 2014-20 smart specialisation levels) is instrumental in the successful strategy. The success of the first years of the project, achievement of the project, as in many especially in terms of growth of creative companies, other cities and regions. Here, the availability ensures the short-term sustainability of TCCI. The of EU funding (structural funds) was also key challenge now lies in converting international important to leverage adequate financing. networking into real business opportunities to further develop the services offered by the incubator.

Management level and partners In 2009, TCCI was led by a small (three-person) management team with strong culture credentials at its core. There is strong support and cooperation with many local institutions, including Tartu city, Tartu Science Park, Tartu Science Centre AHHAA, Tartu Art College, University of Tartu, Tallinn University and Tallinn University of Baltic Film and Media School.

Links : Contact : www.loovtartu.ee/en Reigo Kuivjõgi, Board Member of the Tartu Centre for Creative Industries [email protected]