A Perspective on Domestic SMEs in the Television International Production Chain in Colombia: the case of 3D-Animation
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1 TRADE AND DEVELOPMENT BOARD COMMISSSION ON ENTERPRISE, BUSINESS FACILITATION AND DEVELOPMENT Expert Meeting on "ENHANCING THE PARTICIPATION OF SMALL AND MEDIUM- SIZED ENTERPRISES IN GLOBAL VALUE CHAINS" Geneva, October 2007 PAPER SUBMITTED TO THE EXPERT MEETING* A Perspective on Domestic SMEs in the Television International Production Chain in Colombia: the case of 3D-Animation by Mr. Sascha Furst Department Head International Business Universidad EAFIT Medellin, Colombia *The views expressed are those of the author and do not necessarily reflect the views of the UNCTAD
2 Expert Meeting on "ENHANCING THE PARTICIPATION OF SMALL AND MEDIUM-SIZED ENTERPRISES IN GLOBAL VALUE CHAINS" Geneva, 19 October 2007 A Perspective on Domestic SMEs in the Television International Production Chain in Colombia: the case of 3D-Animation - Cluster Development, Linkage Advantages and Policy Measures - by Sascha Furst Department Head International Business Universidad EAFIT Medellin, Colombia 1 Sascha Furst (sfuerst@eafit.edu.co) The views expressed are those of the author and do not necessarily reflect the views of the UNCTAD
3 Context of 3D-Animations in Colombia 3D-Animation as one of the fastest growing industries world-wide. 3D-Animations used for TV commercials, TV show/serial promotions and identity packages, TV channel branding (all in our cases). Colombia as world's third largest producer of TV serials Telenovelas. Colombian TV market dominated by two national private channels RCN, Caracol (owned by major Colombian business groups). RCN, Caracol increasingly engaged in international strategic alliances for production and distribution. Increasing Hispanic population in the US. Penetration of major US-based TV channels and networks into Latin America. Source: 2 Sascha Furst (sfuerst@eafit.edu.co)
4 Research Methodology Research design Sources of evidence Sample construction Participating firms Multiple case study Secondary information (published documents) Primary research (in-depth surveys accompanied by a semistructured questionnaire) National industry directory for cinema and television Willingness to make a senior manager available for interview(s) 3D-animation producers (5) Postproduction firms for TV commercials (4) Advertising agencies (3) Film producers (2) TV channels (2) 3 Sascha Furst (sfuerst@eafit.edu.co)
5 Value Mapping for 3D-Animations in Colombia China/Brazil Colombia USA/Canada/Caribbean/ Central-/South America Postproduction Firm TV Commercials Advertising Agency 3D- Animation Producer 3D- Animation Producer Advertising Agency Audio Producer TV Channel/ Network Graphic- Design Producer 3D- Animation Producer Film Producer TV Channel 4 Sascha Furst (sfuerst@eafit.edu.co)
6 Characteristics of 3D-Animation Firms in Colombia Established over the last three years. Turnover still below 1 million US$. Average number of employees: 15. Fragmented market with a view established firms complemented by a scattered market of freelancers. Talented labour as most important asset, followed by technological equipment. Increased importance of R&D expenditures. Mainly located in the country's capital Bogota, and international presence in some cases in USA and Canada (Canada as a global cluster for 3D- Animations). Software capabilities for 3D animated design still mainly acquired through self-education. Source: 5 Sascha Furst (sfuerst@eafit.edu.co)
7 Research Results: Awareness and understanding of the GVC 6 Sascha Furst (sfuerst@eafit.edu.co)
8 Research Results: Cooperation within the GVC 7 Sascha Furst (sfuerst@eafit.edu.co)
9 Research Results: Dynamics of the cooperation, assets and competencies (I) 8 Sascha Furst (sfuerst@eafit.edu.co)
10 Research Results: Dynamics of the cooperation, assets and competencies (II) 9 Sascha Furst (sfuerst@eafit.edu.co)
11 Research Results: Needed governmental support to enhance the role of 3D-animation firms in GVCs (I) 10 Sascha Furst
12 Research Results: Needed governmental support to enhance the role of 3D-animation firms in GVCs (II) 11 Sascha Furst
13 Importance of Participation in GVCs 12 Sascha Furst
14 Cluster Evidence Dynamic diamond as a potential for cluster growth and innovation! 13 Sascha Furst (sfuerst@eafit.edu.co)
15 Policy Measures Strengthening the linkage of cluster firms with related/supporting institutions (Porter's diamond) 14 Sascha Furst
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