Role of Industry Associations in the Vancouver New Media Cluster

1. Role of Industry Associations in the Vancouver New Media Cluster May 6, 2005 Paper written by by Michelle Petrusevich, MA, School of Communication, SFU Senior Supervisor: Dr. Richard Smith Supervisors: Prof. Adam Holbrook and Dr. Andrew Feenberg

2. Agenda • Introduction and Definitions • Methodology and Industry Description • Findings • Conclusions

3. Definitions • Industry Associations - are assumed to be non-profit organizations whose activities are designed to support and promote their industry. • Cluster - Geographic concentrations of interconnected companies and institutions in a particular field.

4. Definitions • New Media - the use of new and emerging interactive digital media for the purposes of entertaining, educating and informing. • Social Capital – the value of the relationships that individual or an entity derives from a network or a combination of values, networks and norms that enable a group of people to work together

5. Research Question • What role industry associations play in the formation and maintenance of a cluster?

6. Site of Research – the Vancouver New Media Industry • Located in the Lower Mainland • Latest studies (according to VPL and New Media BC) that there are over 550 companies in the Greater Vancouver Area and over 700 in the province of BC, provides employment to over 14,000 people. • Four sub-clusters – e-learning, games, web-services and animation. • Young cluster – average company is about 6 years old and has 6 people.

7. Methodology • ISRN data - over 70 ISRN interviews • Summer 2003 NMBC survey • Member surveys– over 50 new media companies • Follow up interviews (modified Delphi technique) with experts – 15 people

8. Findings • The research revealed a number of ways that shows how industry associations support the new media industry which makes them a key ingredient for cluster presence. • Activities organized by associations provide industry members with opportunities to build trust and relationships with each other and promote collaboration. • Associations help to hold new media industry and its community together. • Ten Characteristics were revealed through field research - niche and focus; voice of the industry; mentoring; volunteering; learning ground; collaboration or co-opetition ; gender differences; champions; ambassadors and enlightened self-interest.

9. Findings - Ten Characteristics • Niche and Focus (see figure on next slide) – sub-groups: umbrella organizations for the whole industry vs. associations that cater to a specific audience of a particular sub-sector. They cut across the industry and bring together companies and individuals from all sub-clusters. • Voice of the Industry - due to nature of associations, they provide a neutral place for people to discuss common issues and communicate it to government who likes to hear one voice • Role of Mentoring – associations’ staff members are mentored by prominent members of the new media community and associations, in turn, provide mentoring services to their members

10. Niche and Focus

11. Findings - Ten Characteristics • Role of Champions – they inspire and support the industry • Role of Ambassadors – they build networks outside of new media community • Enlightened Self-interest – from the employer’s point of view (looking for talent) and vice versa • Role of Volunteers – volunteers and associations have mutually beneficial relationships. There are two types – apprentices and experienced seniors who lend their brain

12. Findings - Ten Characteristics • Collaboration or Co-opetitions – while there is a high degree of collaboration among associations, sometimes they compete for resources and members which creates politics among organizations • Learning Ground – when associations’ staff leave, they furtherknowledgetransfer within the industry. • Gender Difference – with some exceptions, most associations’ staff are women – are they better social capital builders than men or are there other factors at play?

13. Interviews Highlights “We are the safety net for the industry to make sure their [members’] needs are driven forward and they are met in some way. It can something as simple as someone coming to the event and saying – I am looking for XYZ, and I say I know exactly who you should talk to, to that person over there…” Comment from an Interviewee, November 2004

14. Challenges and Tensions • There are challenges that cause tensions and may harm social capital in new media industry, like • Politics – internal and external • Lack of human and financial resources • Different needs of members – smaller vs. bigger companies

15. Conclusions While associations encounter hurdles their overall influence on formation and maintenance of a cluster is positive because: • 10 characteristics make positive contributions to generation of social capital in the new media industry, • Industry associations provide a “safety net” for the industry

16. Conclusions • The presence of associations defines the presence of the industrial cluster, • They facilitate internal and external communication for the cluster – “Every company is like an island and associations are putting the bridge between them and provide communication.”

17. The End • Thank you!