Contrasts in Clustering: The Example of Canadian New Media

Abstract

New media is part of the new information economy, and its roots lie in computer graphics and in creative specialized services used in motion picture production, advertising, and other programming especially for television. This paper examines the similarities and differences between Canada's three new media concentrations in the metropolitan centres of Vancouver, Toronto, and Montreal. It investigates whether the industry emerged from similar activities and whether differences in the pattern of development in each region explain contemporary new media activities. It evaluates differences in local market opportunities and whether local specializations have emerged. The third focus is on the predominance of small firms in new media and whether there are differences in the social foundations of production.

Notes

New media (formerly known as multimedia or interactive digital media) encompasses services and products that make use of video, audio, graphics and alpha-numeric text, and involves, along with other more traditional means of distribution, digital delivery over networks interconnected on a local or global scale (CRTC Website 1998). According to New Media BC (2002) the use of new and emerging interactive digital media for the purposes of entertaining, educating or informing is one distinguishing characteristic of new media; the other is that new media bridges culture and technology.

The most common application of cluster theory in contemporary research is at the scale of the metropolitan region (Egan & ICF Consulting, 2000).

Hansen, Vang and Asheim (2005) point to the association of this characteristic with the production of symbolic knowledge.

The main discrepancies are likely to be in the inclusion of ultra-small firms.

In a study of 260 companies, 152 ranked lifestyle as extremely important compared with 107 that ranked the large talent pool as extremely important (New Media BC, 2003).

Canadian R&D assistance programmes provide grants for individual projects or firms may claim tax credits for R&D expenditures. Survey data indicate that few (15% or fewer) new media firms benefit.

Rockstar (owned by Take-Two, New York), a competitor of EA, is the best example.

The importance of protecting IP in the design of new games is linked to the need for non-compete clauses in labour contracts, which have been invoked.

These include Alias and SideEffects in Toronto and Discreet (formerly Discreet Logic), SoftImage and Kaydara (part of Alias) in Montreal.

Two or three companies commonly work on different segments of a project.

In all instances a difference of means test was used; in this case local revenues are significantly different (p = 0.0019).

These include the Centre for Computer Research and the Institute for Research/Creation in Media Arts and Technologies (Hexagram), which coordinates research in local universities.

These include the Ontario Telepresence Project (1992–1995) and current webcasting software research (ePresence) conducted in the Knowledge Media Design Institute, University of Toronto.

The sponsors are Federal Government agencies (Industry Canada, the Western Economic Diversification Fund, National Research Council), the Province (British Columbia Film), and a telecommunications services company (Telus).

Chapters of the International Game Developers Association are active in each centre but are weak forces in shaping the conditions of production or the direction of policy.

Manuals of advice on how to develop a cluster require belief in the direct and relatively short-term causality of recommended investments (UK, DTI 2003; US, EDA 1997).

These include Discreet, Cognicase and Tecsys.

Typically, these were 60% of wages in the first year and 40% per year per employee to 2008.

Interactive Digital Media Tax Credit supports 20% of eligible labour expenses.