Cultural Industries in Slovakia Report on the AS-IS situation Analysis and recommendations to boost growth in Cultural Industries in Slovakia N° SRSS/SC2018/097 23 January 2020 Funded by the Structural Reform Support Programme of the European Union and implemented by KEA European Affairs in cooperation with the European Commission's Structural Reform Support Service (SRSS) This document has been produced under a contract with the Union and the opinions expressed are those of KEA European Affairs and do not represent the official position of the European Commission. Table of Content LIST OF TABLES .................................................................................................................. 3 LIST OF FIGURES ................................................................................................................ 3 TERMS AND ABBREVIATIONS ........................................................................................... 4 1. INTRODUCTION ............................................................................................................... 5 1.1 Policy context ....................................................................................................... 5 1.2 Objectives and scope .......................................................................................... 7 1.2.1 Objectives .................................................................................................................................... 7 1.2.2 Scope ........................................................................................................................................... 7 1.3 Structure ............................................................................................................... 8 2. APPROACH AND METHODOLOGY .............................................................................. 10 2.1 Desk research .................................................................................................... 10 2.1.1 Desk research on statistical data ............................................................................................... 10 2.1.2 Desk research on policy measures for CCIs .............................................................................. 12 2.1.3 Desk research on CIs policies from other countries ................................................................... 13 2.2 Stakeholder consultations ................................................................................ 14 2.2.1 Interviews and meetings ............................................................................................................ 14 2.2.2 Focus groups ............................................................................................................................. 15 2.2.3 Online surveys ........................................................................................................................... 15 2.2.4 Restitution workshop (AS-IS workshop) ..................................................................................... 16 2.3 Limitations .......................................................................................................... 16 2.3.1 Data gaps and limitations for the data analysis .......................................................................... 16 2.3.2 Data limitation for impact assessment ....................................................................................... 19 2.3.3 Data limitation on investment potential in CIs ............................................................................ 19 3. KEY DATA ON SLOVAK CULTURAL INDUSTRIES ...................................................... 21 3.1 General overview ............................................................................................... 21 3.2 Detailed analysis ................................................................................................ 22 3.2.1 Revenues ................................................................................................................................... 22 3.2.2 Expenditures .............................................................................................................................. 24 3.2.3 Structure of the sector and employment .................................................................................... 25 3.2.4 Key Trends in cultural consumption and audience development ............................................... 28 3.2.5 Financial performance................................................................................................................ 29 3.2.5.1 Equity indicators and sales profitability ................................................................................... 29 3.2.5.2 Altman-Z score ....................................................................................................................... 30 4. REVIEW OF POLICY ACTIONS TO SUPPORT CULTURAL INDUSTRIES IN SLOVAKIA ............................................................................................................................. 31 4.1 Overview of cultural policy objectives and management ............................... 31 4.1.1 Cultural policy objectives ............................................................................................................ 31 1 4.1.2 Cultural policy management ....................................................................................................... 33 4.1.2.2 National level ......................................................................................................................... 33 4.1.2.2 Regional and local level ........................................................................................................ 34 4.2 Process evaluation and impact assessment of the Strategy of CCIs Development 2014-2020 and related Action Plan ............................................ 35 4.2.1 Preliminary observations ............................................................................................................ 35 4.2.2 Detailed considerations on the measures for CIs ...................................................................... 44 4.3 Comparative analysis on CIs strategy and action plan with comparable countries ............................................................................................................. 52 4.4 Conclusions ....................................................................................................... 53 4.4.1 Conclusions of process evaluation on the formulation of the Strategy and Action Plan ............. 53 4.4.2 Conclusions on the Impact Assessment of the Strategy and Action Plan .................................. 55 5. BARRIERS TO GROWTH, ACCESS TO FINANCE AND INVESTMENT IN CIS ............ 56 5.1 Current sources of financing, prospects and needs ....................................... 56 5.2 Main challenges and barriers for Slovak CIs ................................................... 58 5.3 Potential Investors and barriers to invest in CIs .............................................. 61 6. CONCLUSION AND WAY FORWARD ........................................................................... 64 6.1 Main findings ...................................................................................................... 66 6.2 Key issues to be addressed .............................................................................. 66 6.2.1 Capacity of the Ministry to formulate and implement the Strategy and Action Plan ................... 67 6.2.2 Competitiveness of CI industry taking into consideration technological changes and support through the entire CI value chain ............................................................................................... 68 6.2.3 Access to finance and investment for CIs .................................................................................. 69 BIBLIOGRAPHY ..................................................................................................................... 71 ANNEX I – SCOPE OF THE STUDY ........................................................................................ 75 ANNEX II – CULTURAL ACTIVITIES EXCLUDED FROM THE SCOPE OF THE STUDY ............... 76 ANNEX III – DETAILS ON DATA ANALYSIS ACCORDING TO THE TORS .................................. 77 ANNEX IV – DESCRIPTION OF DATA SOURCES .................................................................... 78 ANNEX V – SWOT ANALYSIS ................................................................................................. 81 ANNEX VI – LIST OF STAKEHOLDERS FOR INTERVIEWS ...................................................... 87 ANNEX VII - LIST OF STAKEHOLDERS MET DURING THE FIELD MISSION .............................. 88 ANNEX VIII – SURVEYS ......................................................................................................... 90 ANNEX IX – LIST OF PARTICIPANTS TO THE AS-IS WORKSHOP .......................................... 104 ANNEX X - APPROACH TO THE IMPACT ASSESSMENT ....................................................... 106 ANNEX XI – OVERVIEW OF THE ACTION PLAN .................................................................... 108 ANNEX XII - OVERVIEW OF CIS POLICY IN CZECH REPUBLIC, POLAND AND HUNGARY ...... 112 ANNEX XIII - OVERVIEW OF EXISTING INCENTIVES TO STIMULATE INVESTMENT ACROSS THE EU ......................................................................................................................... 1124 2 List