Barcelona innovation case study

Strategies for creative spaces

Barcelona Case Study November 2006

“Barcelona Culture on the Move – City as Cultural Project” (Oriol Balaguer, 2005)

Introduction

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1. Economic, political and demographic profile 5 1.1. Governance and political system

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1.2. Economy

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1.3. Demographics and population

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1.4. Higher Education

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2. Regional development

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2.1 Strategic plan

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3. Cultural economy

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3.1 Cultural strategy: ‘Barcelona Culture on the Move’

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3.2 Cultural tourism and conventions

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3.3 Audiences and participation

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4. Delivery and strategy

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4.1 Barcelona Culture Institute

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4.2 Strategic Plan for Culture 2000–2010

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5. Creative Industries

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5.1 Regional creative and cultural industries

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5.2 Knowledge sectors

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5.3 Creative industry clusters

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6. Success factors

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6.1 Lessons from Barcelona

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References

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Appendix A – Projects and initiatives

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Barcelona Case Study

Introduction

This case study is one of a series of city reports produced as part of the Creative Spaces research project. Strategies for creative spaces is a collaborative initiative between the cities of London and Toronto – a joint venture between the London Development Agency (Creative London and the Evidence & Evaluation Team), the City of Toronto Economic Development and Culture divisions and the Ontario Ministries of Economic Development & Trade and Culture.

Creative spaces is developing strategies, specific to London and Toronto, to enhance the growth and development of creative industries in both cities.

Drawing on international best practices identified through a combination of desk and field research, the project will identify optimal strategies for building the necessary infrastructure and environment in which creativity can flourish. The strategies for creative spaces project is centered on three principal objectives.

In order to meet these objectives, the project is framed around answering two key research questions.

• What ‘levers’ can be employed to nurture and grow the creative economy and a city’s creative assets and/or to make a city a creative/cultural centre?

• How can the value of a city’s creative/cultural assets be maximised for the purposes of regional economic development?

The Creative Spaces project is being carried out in three phases between early 2005 and mid-2006, followed by a programme of dissemination.

1) The identification and evaluation of international best practice in the development of the creative city and in particular the creative cluster and the Phase I – Literature review and global scan of leverage of creative assets for broader local and creative city and cluster strategies, regional economic regeneration and development. policies and interventions. Identification 2) The delivery of a practical learning experience for and evaluation of the key success factors creative cluster, economic development, public and ‘levers’ that are used internationally policy and academic professionals that provides to pursue and sustain the development a stimulus to the development or refinement of of the creative cluster. The Phase I Report creative cluster interventions. is available to download at: www.creativelondon.org. An online 3) Developing a deep network of ongoing bi-lateral searchable database of policies and relationships between creative cluster, economic publication abstracts is also available at development, and public policy practitioners in www.citiesinstitute.org/creativespaces.

London, Toronto, and other major global creative centres around the world.

Barcelona Case Study/introduction

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Phase 2 – Drawing on the findings from Phase I, a comprehensive analysis and evaluation of the approaches taken by selected case study cities, including study tours of Barcelona, Berlin and New York, as well as London and Toronto, and how they might be transferred and applied to both cities. Follow-up with key city and cultural agencies has provided up to date economic data and project exemplars. This case study report on Barcelona is therefore published alongside reports on Berlin, London, New York, San Francisco and Toronto.

Phase 3 – The development and refinement of city specific strategies for developing and sustaining creative spaces and stimulating creative industry clusters in London and Toronto. The findings will be published in the form of a Final Report distilling policy implications arising from the whole project and outlining ‘Lessons learned’ and transferable good practice across key themes developed from the Phase I global scan and city fieldwork tours.

A programme of dissemination will then make the evidence and material available to a wider user audience at city, as well as national and international levels.

This City-Regional Case Study therefore documents the approach to development of creative spaces and the stimulation of cultural and creative industries taken by Barcelona, drawing out the success factors and lessons learnt as well as pinpointing areas of weakness.

Firstly, an overview of the political and economic context and background to the city is provided, followed by a summary of population demographics and strategic planning for the city-region. The cultural economy is then reported in terms of funding, participation and cultural programming including tourism and related city promotion. The cultural plan and current strategy is then outlined, followed by a detailed analysis of the creative industries, profiling employment growth, sectoral trends and cluster effects at local and regional levels.

The report concludes with a summary of strengths and weaknesses, highlighting Barcelona’s key comparative advantages and USP. A selection of projects and initiatives are then detailed in Appendix A, as indicators of how policy is implemented in practice, and which might provide good examples for other cities.

This report has been researched and written by the Cities Institute, LondonMet University, with acknowledgements to the Interarts Foundation and Greg Richards; Oriol Balauguer and Esteve Carames, Institute for Culture; and Vincente Lopez, University Pompeu Fabra, Barcelona.

1. Economic, political and demographic profile

District map 1.1 Governance and political system

Spain’s new post-Franco Constitution came into effect in 1978. In recognition of Spain’s cultural and national diversity, Statutes of Autonomy were also established, with the Catalan Statute verified by referendum in 1979 bearing the historic title ‘Generalitat de Catalunya’, consisting of a Parliament, an Executive Council or Cabinet.

Parliament is elected for 4 year terms and comprises 135 members with a wide range of legislative and executive jurisdiction – civil law, culture, historic, artistic, architectural heritage, libraries, museums, city planning, tourism – many of which are shared under a policy of subsidiarity with other tiers of government. In Catalonia these include ajuntaments (boroughs), consells comarcals (regional councils) and diputacions or provincial authorities.

Barcelona is one of four Catalonian provinces, together with Tarragona, Girona and Lleida.

It is governed by three tiers – the Ajuntament de Barcelona (City of Barcelona) made up of 10 districts (see City Districts map opposite); the Provincial diputacion de Barcelona or metropolitan regional council concerned with coordination of 310 municipalities, and the Catalan Regional government (Generalitat). At a local level, neighbourhoods associations (FAVB) act as fora for planning and local governance issues. In a further move towards cultural autonomy and political devolution, Spanish legislation is under consideration which would grant Catalonia as a ‘nation’ (of Spain), taxation and legal rights, e.g. its own Supreme Court.

1.2 Economy Table 1. Key economic indicators Indicator

Value

GDP (2003)

€35,782 million

Growth rate

2% p.a.

Registered unemployment rate/Real rate (12/2005)

7.4%

Economically active

67.5%

RPI inflation

3.7% (2.5% in 2003)

Arts & Cultural Industries Sector/ GDP (2002–4)

6.5 – 8%

Arts & Cultural + Tourism (2004)/GDP

17%

Cultural Sector Employment (2001)

City 52,500/Metro Region 111,000

Sources: City of Barcelona (2005), Barcelona Activa (2006)

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Barcelona Case Study/introduction

Barcelona Case Study/part one

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In the 1980s Spain was still an emerging market and following membership of the EU in 1986, the two largest cities of Madrid and Barcelona experienced rapid economic and urban development. Eligibility for European Regional Structural Funding (ERDF) leveraged significant EU funding for infrastructure investment (Spain was the highest recipient country of EU aid in 2001 – 20% of total funding), however this will decline rapidly from 2007/2008 as demands on the EU budget move to the relatively poorer East European members and regions.

Spain had one of the fastest growing economies with annual growth of 4.1% versus the EU average of 3%.

Foreign trade grew from $53bn in 1980 to $143bn in 1990. In the early 1990s Barcelona’s per capita GDP was some 40% higher than in the Catalonian region, today it is only 20% higher.1 Like other post-industrial West European regions, Barcelona and Catalonia have experienced, structural change in industry away from manufacturing to the domination of services and new technology, including short stay tourism – business/trade and leisure – where the latter now exceeds the former by 50%. The build-up and construction of the 1992 Olympic facilities and associated hotel and transport infrastructure have facilitated this growth, fed by low-cost airlines, predominantly from the UK. Primary industry/manufacturing now makes up only 17% of the city’s economy, nearly half of which is in construction. Textile production, which was a prime domestic and export sector centred on mills along the River Besos, has also continued to decline, but there are still over 2,000 textile-based firms and a large clothing retail sector. Car industry and metal engineering have also declined with relocation to Eastern Europe (e.g. 3M) and other lower cost production areas.

The metropolitan region exports 23% of Spain’s industrial and non-industrial goods, two thirds of exports are high or top-end high tech based products.

Table 2. Main industrial sectors, City of Barcelona, 2002 Sectors

No. of firms

%

Industry

14,000

9%

Construction

11,500

8%

Commerce

54,000

35%

Services

73,000

48%

152,500

100%

Total Firms Source: City of Barcelona, Estadis 2002

The services sector, including education, health and advanced producer services, have shown the highest growth over the past 5 years, with electronics the only new ‘production’ sector which has also grown in the number of firms. Over 80% of the city’s workforce are employed in services. Barcelona is rated in several top 10 industrial sectors, e.g. tourism, distribution, and in the top 6 leading areas for economic growth potential in Europe.

The knowledge economy, including cultural, communication and professional and design services, has been the driver for considerable employment growth in the city and particularly in the wider metropolitan area. Unemployment is below the national average, especially amongst women. The job market has, until recently been ‘closed’, with strong cultural barriers to non-Catalan speakers.

During the economic recovery emerging in 2003, Spain and the UK were the only major European economies maintaining growth rates of above 2% p.a. (EU average 0.7%).

Economic growth is evident in the city, with construction, tourism (including cruise passenger traffic up 25% to 1 million in 2003), transport and visitor-based services activity, fuelled by the build up to the Culture Forum in 2004.

1 Kriznik, B. (2004) Forms of Local Resistance: No Al 22%, University of Llubljana and Institute of Advanced Architecture of Catalonia, Barcelona

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Barcelona Case Study/part one

The manufacturing sector, however, continues to lose employment. The shift from industrial/ manufacturing to services and the over-reliance on construction and consumer spending are potential problems for the regional economy.

A diversified creative industry and knowledge sector base is therefore important for the city-region’s future economic growth.

1.3 Demographics and population • The City of Barcelona has a population of 1.58 million, from a peak of 1.9 million in 1979.

• The population of the Barcelona Metropolitan Region including the City is 4.4 million; and is part of the Catalonian Province of 6 million people.

The migrant population increased fourfold in the last six years, from 2% to 7.6% of the population.

This has stabilised at what had been a declining, but high density city – over 50% of the population of Catalonia. A policy of reducing density/overcrowding (by 20%) has seen the outer region expand in population and housing settlements, with economic growth evident in the city-region rather than city centre. Most people do not work in the district in which they live. Public transport investment and regulation in the city centre has seen car traffic reduce, but motorcycle use increase (bike accidents and theft also) – Barcelona has the second highest number of mopeds in a European city, after Rome, with parking for over 237,000 motorbikes (one for every 3 cars). There is however greater car usage in the outer areas (9% growth in new cars). The Barcelona metro had 305 million journeys in 2001 compared with 269 million in 1996, with the bus lane network growing by 37% (second only to Paris) and a bicycle lane network of 166 km. 2 Following domestic inward migration from the 1950s–1960s, from poorer regions of Spain (e.g.

Andalusia, Galicia, Aragon), and settling in working class districts of the city (PobleNou, Raval) today the main migrant groups are from Latin America (Argentina, Dominica, Peru, Colombia, Ecuador, Chile etc. – 37,000), Asia (Pakistan, Phillipines – 3,480), and

Morocco (7,400) with higher population growth and under-10 year olds than Catalans/Spanish. Other residents include those from EU member countries (14,000) and other Europeans (5,689). 58% of the city were born there, 7% elsewhere in Catalonia.

It is estimated that one in three of Barcelona families own a second home – 40% on the coast and 30% in the metropolitan region. Lower income Spanish families (migrants from the 1960s/1970s) also increasingly have second properties, largely located in their town/village of origin (through inheritance).

Middle class families are also moving their primary residence to their outlying ‘second home’3. This phenomenon is creating a divided inner-outer city along ethnic/income lines, with the old town/inner city a combination of ethnic quarters (‘ghettos’), touristic, ‘downtown’ and gentrified areas (including transient communities – students, pied-à-terre residencies) and a more suburban (city fringe estates, residential/edge city) and commuter population. A similar pattern is evident in Berlin (cf. Berlin Creative Spaces Case Study Report, 2006) and in ‘sprawl cities’ of North America.

The city region also has a rapidly ageing population, with 100,000 more women than men. Over 30% of new migrants are resident in the old town (Ciutat Vella), and make up 36% of the inner city population.

Table 3. Age profile (2003) Age

%

Under–15 year olds

14%

16–24

11%

25–44

34%

45–64

24%

65+

17%

Source: Generalitat de Catalunya (2003)

2 www.geographyfieldwork.com/BarcelonaXRay.htm 3 www.geographyfieldwork.com

Barcelona Case Study/part one

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1.4 Higher Education The total number of students in higher education is 196,000 (2005), with 8 universities (public and private), including Pompeu Fabra (UPF) and the associate Elisava Design Institute (10,000), in addition to a Bella Artes Conservatory, 60 music schools and theatre school. The participation rate in higher education is 17% (2002). Higher education was reorganised from a largely private system in the 1990s, now most specialist colleges are validated by a university. Barcelona is the second most popular city for university students (after Madrid), but first for architecture students.

Barcelona is an attractive city in which to study art, architecture and design, with high internal and external demand, including from international students. Summer schools, observatories and international exchange is enhanced by links with venue organisations such as the CCCB and professional associations, notably FAD (design association) and Barcelona Activa (incubator and career development resources) – see Projects (Appendix A).

2. Regional development

Occupying an area of 101 km2 this is the sixth largest metropolitan region in the EU. Key high-tech/creative industries development zones include Poblenou with 30% of land under construction/conversion; Universal Forum of Cultures 2004 ‘EXPO’ site; a ‘hyper-community’ (low density office, hotel, residential and Spain’s largest retail centre, built over fifteen blocks) at Diagional Mar, and a new container port and logistics park.

The development of a major retail, hotel, offices (and new hospital) complex in the ‘Forum’ zone (built by US developer R. Stern) boasts the largest underground car park in Europe. This seeks to expand the city’s overheating accommodation and consumption cluster from the old city centre to the new site which is connected by coast road and extension to the metro system.

Between 1981 and 1997 over 140 urban space projects were completed, mostly in the form of plaza dura: small, hard-surfaced squares and piazzas and the use of dramatic public art. These new squares were designed to be outdoor living rooms, rather than gardens, involving a public architecture that brings people together in confidence and trust. Crime rates dropped significantly during this period – between 1996 and 2001 burglaries dropped by 20%, but reported thefts increased sharply by over 50%, in part due to crime against tourists and other street/ transport theft. The city has invested substantially in public art and ‘outdoor museums’ with over 1,000 sculptures created in city spaces, including installations by Miro and Calatrava.

House prices have increased by over 60% since 1996 (15% p.a.); offices/commercial premises by 20–40%. The average cost per m2 for a new home has more than doubled in five years. Construction has slowed down since 1999 (following pre and post-Olympics boom and house building in the

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Barcelona Case Study/part one

city and outer fringe/suburbs), but office and hotel demand remains strong, including from overseas investors. Gentrification of city centre areas as a result of clearance and renovation was evident in the early 1990s in the Raval and El Born neighbourhoods and old town, a pattern following in Barcelonetta and underway in PobleNou regeneration areas.

Between 1988 and 1998 118,000m ptas were invested in urban renewal of the old town, financed 51 : 40/public : private sector (Eastway, 2005). Over 4,000 residential dwellings were destroyed (8% of the housing stock), replaced by 2,500 new dwellings and the development new cultural facilities – MACBA modern art museum, the CCCB cultural centre, a rebuilt lyric theatre (post-1994 fire), public open spaces and the relocation of several university faculties: Pobra Fabra, Barcelona and Ramon Lull (private) together creating an ‘urban campus’.

2.1 Strategic Plan Started in 1988 the Barcelona 2000 Economic and Strategic Plan brought together a broad spectrum of agencies in the city, with more than 500 individuals involved in the plan preparation.

The three key Plan objectives were: 1. to connect Barcelona to a network of European cities and improving internal accessibility

Barcelona Case Study/part two

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2. to improve the quality of life in the city 3. to make industrial and service sectors more competitive while supporting new, emerging ones.

The 1992 Olympics were the major catalyst and opportunity to accelerate the Plan objectives and put the city on the international map, whilst stimulating public support.

The Games therefore had a strong impact on confidence and governance, including social cohesion and through investment in design-led urban infrastructure and improved quality of life for the city’s inhabitants. The base for economic renewal and development was also laid.

In 1994, the 2000 Plan was updated and sought to internationalise economic enterprise in the city, improve competitiveness in key knowledge sectors, and further improve quality of life by adopting a sustainable development approach. One indication of this achievement is in Barcelona’s ranking amongst European cities, rated as the best city for quality of life (London was ranked 10th), and third highest as the most desired HQ location (after London and Paris) and sixth best city for creating business (European Investment Monitor – EIF, 2004).

Another indicator is its status as an exemplar city by the UK’s Sustainable Transport Commission and the award (normally given to an individual architect/firm) to the City and its then administration, of the UK RIBA’s Gold Medal for architecture in 1999.4 The Metropolitan Masterplan amended in July 2000 included the regeneration of the Poblenou industrial area. This changed the land-use classification (from industrial to knowledge based) and set the conditions for the development in terms of land/buildings use, density and infrastructure support. Over 15–20 years, 3.2million m2 of new and refurbished floor space, 3,500–4,000 new homes (under a social housing regime), 220,000 m2 of land

for public facilities and open space will be developed at a cost of €12billion, forecasted to generate 100,000–130,000 new jobs in the area.

Post the ‘dot.com’ crash in 2000, growth of the area had slowed and it will initially be seen by the development sector as a tertiary office and commerce zone (as with London Docklands in the 1980s/early 1990s). New buildings under development have been rented or sold before completion with major Spanish and multinationals locating there (Agbar Gas Natural, Deutsche telecom, GE), but new technology development may not follow as quickly. Barcelona in some respects is arriving late in this sector, particularly in attracting major companies and HQs. This will require specialisation and clusters focusing on endogenous strengths in design. Rents have been stable at €15m2 /month, but higher in the more concentrated and desirable/connected office areas.5 The priorities for the next decade as envisioned by the current mayor, Joan Clos are: i) an economy based on the development of a value added and innovative culture depending on the growth of new industries such as audio-visual, design ii) new uses of transport based on the improvement of mobility iii) an education system that guarantees proper training for our human resources From the city promotion perspective, the strategy centres on networking internationally and politically to develop leadership – to both define citizen-based strategies and put them into practice. This includes not only accessible governance systems but quality cityscape and public spaces and a capacity for dialogue, absorbing migrants and cosmopolitanism.

In conclusion, the main challenge is to deal successfully with the transition from an industrial economy to a new model of urban development based on the knowledge economy (Mayor Clos, in Cities of the Future: global competition, local leadership, PWC 2005).

4 “Both the process and results of Barcelona’s rebirth are exemplary. Though with city-wide goals in mind, initial interventions were local and low budget, yet big in impact, not least because their design flair drew international plaudits. From creating parks and plazas wherever opportunities arose, this strategy snowballed, gathering enthusiasm and finance, adding schools, health care and cultural facilities and attracting all sorts of public/private partnership all the way up to realising very major infrastructural projects.

Hosting the Olympics was only part of this larger, still continuing strategy of up-grading the whole city’’ (RIBA press release, 1999) 5 www.bcn.es/22@bcn/pdf/p-renovacio-urbana22@engl.pdf

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Barcelona Case Study/part two

3. Cultural economy

In 1975 the Congress of Catalonian Culture was formed and autonomous provincial status granted. A Department of Culture and Media was formed in 1980, with devolution of much cultural governance from Madrid by 1986.

Cultural facility development followed with Modern Arts Museum (MACBA), Centre for Contemporary Culture in Barcelona (CCCB), National Arts Museum of Catalonia, National Archive, History Museum, and the reconstruction of Opera (Auditoria) and Theatre (Liceu) houses.

Public cultural funding in Barcelona is only 10–15% funded by the Spanish Cultural Ministry (versus 80% in Madrid). This has led to active private and community sectors, with trade associations, community, housing and bank/building society foundations (Caixas) modelled on a strong notion of a civil society.6 There are over 5,000 cultural organisations in the region, and over 600 in the city, supported by foundations, city and district councils.

The Arts and Creative Industries combined represent 6% to 8% of the City’s GDP, and when combined with Tourism (‘Cultural Tourism’) this rises to 17% of GDP, i.e. €17,250 GDP per capita. Of the City’s budget for culture – €34m (34%) was spent on major subsidised organisations/venues: Grand Theatre Liceu €7.5m, Auditorium €6.7m, Public Libraries €5.9m, Theatre Lliure €2.6m, MACBA €2.5m, MNAC €2.2m, and CCCB €1.7m.

Table 4. Cultural budget as a % of total public spending (€000s), 2004 % Change 2003–4

Total

Culture

% Culture

City of Barcelona

2,104,159

101,463

4.8%

9%

Barcelona Metro Region

512,000

72,335

14.1%

4%

18,710,818

194,865

1.1%

-20%

Source

Catalan Province

Source: ICB (2004)

3.1 Cultural Strategy: ‘Barcelona Culture on the Move’ The City’s cultural vision is to promote the City as a Cultural Project, bringing together the civic, creative and territorial realms for the benefit of Arts, Community and Scientific development.

The objective is to manage all of the city’s cultural projects globally, for example through a Global Cities Network (100 cities/LAs) and a Local

6 Spanish savings banks (Caixas or Cajas) allocated over €526m to social and cultural causes in 2003, with the primary aim of bringing art and culture closer to citizens. Caixa de Catalunya one of the largest in the region, operates a cultural foundation and in their branches offer a wide range of services such as ticket-booking in addition banking. The Caixa Foundation organizes activities at la Pedreda and in other cities, including exhibitions, music festivals, cinema and heritage preservation and promotion (e.g. Gaudi). Caixas reflect the cooperative and community development tradition in Spain and elsewhere (e.g. Portugal, Latin America) as providers of social welfare and local cultural development.

Barcelona Case Study/part three

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Authorities Forum which came together during the UNESCO Culture Forum 2004. Barcelona also chairs the ‘Culture’ group for the Organisation of Cities of Europe (made up of 40 large cities, but excluding London).

A key element of the city’s cultural plan is thematic event/festival branding following a tradition (e.g. EXPO 1929) of staging events to promote major developments and expansion of the city.

Starting with the 1992 Olympics: Major Festival ‘Years’ • 1992 Global position in Sport (Summer Olympic Games) • 2000 Year of Music • 2001 Art Triennial • 2002 Year of Gaudi (150th anniversary) €14m economic impact, 55m tourist visitors • 2003 Year of Design & Sport (100th anniversary of FAD, 628 institutions and 1.5m participated) • 2004 Universal Forum of Cultures (UNESCO Cultural Forum) • 2005 Year of Book & Reading (400th anniversary of Don Quixote, Literacy, Migrants), national capital of publishing, Congress on publishing • 2005/2006 Year of Food, Cuisine & Gastronomy • 2006 Year of Picasso (new museum) • 2007 Year of Science The twin goals of economic development and social cohesion, and the promotion of creative freedom and the ‘democratisation of knowledge’ underpin this cultural plan (see below). Local authority spending on culture shows the highest increase with 60% of budgets spent on cultural activity and facilities (2002).

3.2 Cultural tourism and conventions The city is a major and growing visitor destination for cultural tourism, including conference/ conventions, again building on its exhibition and heritage attractions, and night-life. The 3GMS world congress will be held in Barcelona transferring from Cannes, to improve both the capacity and profile of the event. This tradition of staging and hosting international events has been facilitated by centrally located convention and exhibition centres, adjoining key heritage sites and hotel accommodation. This capacity has been extended with the Forum site linked to the city centre by light rail and metro services, and again, with new hotel and retail provision and underground car parking.

Barcelona Case Study/part three

In order to improve access to cultural information La Virreina Information centre is due to open in summer 2006. As the existing cultural information and exhibition centre it received 140,000 visitors in 2004. This refurbished facility will provide a digital and walk-in centre to promote access to culture in the city for the general public and for promoters and producers. Facilities, which will be housed symbolically in the heritage building occupied by the Institute of Culture, include event ticketing, conference room hire, events and publication outlets.

Visitors to major cultural facilities have increased overall, with new and upgraded venues developing regularly, widening the range and capacity of the city’s cultural offer. ‘Event’ years and blockbuster exhibitions produce exceptionally high attendance, which are not always maintained in subsequent years (Table 5), however, street festivals attract over 1 million people; the Book Day festival in 2005 half a million alone.

• 10th largest convention city in Europe/14th in World (1,345 congresses in 2003)

Participation by city residents has also increased year on year, particularly library usage, with increasing spend per head on culture. Catalonians spend 3.2% of their budget on cultural goods and services (vs 2.8% in Spain). Gross income from cultural events in the city reached 5,500 million in 2000, with substantial growth of 103% between 1996 and 2003 and over 50,000 jobs supported in the City’s arts and culture sector.

• Ranked 1st city for international meetings (105 association meetings in 2004)

Table 5. Attendance at major cultural venues

• 9.1 million overnight visitors in 2004 – 16% p.a. growth (6.3m in 1996)

Major Venues (year established)

In the Born district, a new cultural centre is being completed around an archaeological heritage site of CXVIIth remains and CXIXth market industrial architecture. This will include a mixed-use development (residential, retail/consumption, heritage), a centre for education/interpretation of city history and transformation, in 8,000 sq2 of space.

District

Visitors

Visitors

2001

2004

• 10 million airport users, 7% growth p.a. (both international and domestic)

MACBA (1995)

Raval

192,000

327,000

• 203 hotels/34,300 beds – growth of 85% since 1990

CCCB (1994)

Raval

425,607

196,470

• 46 museums; 27 music festivals; host to five world heritage sites

MNAC (1995)

Raval

505,304

366,000

Montjuic

453,000 (2003)

422,577

Various

n/a

360,335

29,276,000

31,471,663 (2003)

• Over 12 million visits (2004) to museums and historic sites (e.g. Sagrada Familia 2.2m) Sources: City of Barcelona (2005); Balaguer (ICB, 2005)

Tourism spendintg generates 65,000 jobs annually, 75% in hotel and catering activity – with over 3,000 restaurants, 7,800 bars and cafes – 50% of which are located in Eixample, Ciutat Vella and Sant Marti – and 9% in cultural and visitor attractions. Spending by foreign tourists on food and drink represents 30% of total spending. The busiest months for tourism are July (29%), December (20%) and August (19%).

Of overseas visitors, 52% are leisure/holiday, 33% business and 15% VFR. 30% were Spanish domestic tourists, and the highest groups from overseas were from the USA, UK, Italy and Germany.

The city provides a one-stop shop for film and video clips from the city for tour operators, media and prospective visitors. It ranks as 5th most ‘attractive city’, from 11th place in 1991 (Barcelona Activa, 2006).

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3.3 Audiences and participation

Lyceum (1999) Congresses & Conventions All museums, concerts, festivals, libraries, cinema

Source: ICB (2004) www.bcnes/estadistica/angles/dades/anuari/cap06/

Table 6. Participation in public cultural activities Participation (000s)

1999

2000

2001

2002

Museum Visits

3,482

3,650

3,695

3,740

1,575/904

1,749/1,057

2,327/1,409

2,996/1,856

178

119

122

133

482

566

563

556

31

34

37

43

Library – users/loans Summer Festival Civic cultural activities, events Cultural Spend per Inhabitant Source: ICB (2004)

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This former working class district with a low wage economy and artists community, has experienced gentrification from the late-1980s and transformation into a tourist/heritage district around café culture, speciality retail, drawn by the area’s attractive buildings, squares, as well as the archaeological sites. Over €40 million in ERDF funding has been invested to date. However, few artists reside in the area today, highlighting the problem of gentrification forcing creative workers out of the city centre and from these so-called cultural quarters.

The 1992 Barcelona Olympics and Paralympic Games and the far-reaching urban transformations catalysed by the Games fundamentally changed the city. Rental and purchase prices of living and working spaces soared. In line with a widespread trend in post-industrial cities, where former industrial buildings were being used for cultural purposes, the movement for opening up disused buildings to artists gained force. In 1994 the artists’ association (AAVC) raised the issue and achieved some success when The Hangar arts centre was opened in Poblenou in June 1997 (see Appendix A).

From the perspective of the Barcelona Culture Institute (Balaguer, 2005), future challenges for the City’s Culture programme include: • increased resources for culture • more active participation by residents and creative enterprises in shaping cultural policies (See 4.2 Strategic Plan for Culture 2000–2010)

4. Delivery and strategy

The promotion of the City’s arts and cultural facilities and programmes, as well as the development of the creative economy, are effectively combined in terms of organizational management and delivery, and the funding and strategic policy direction.

This is facilitated by the Barcelona Culture Institute, guided by a ten year (2000–2010) Strategic Cultural Plan.

of the City Council. This figure includes both the expenditure of the Institute itself and expenditure on culture at the local district level.

4.1 Barcelona Culture Institute

The Culture Institute is a public entity subject to civil law with the objective of managing what is seen as a ‘new model of culture’.

The Culture Institute (ICB) was created in 1996

by Barcelona City Council, with the objective of situating culture as one of the principal elements in the development and projection of the city, through the running of municipal facilities and cultural services and by promoting and facilitating the emergence and consolidation of the numerous private-sector cultural projects in the city. A key platform for cultural development in the city has been the preparation and implementation of a 10-year Strategic Plan (overleaf).

Financial resources The funding of cultural activities underwent a major transformation in the 1990s as a result of modernization and the adoption of new methods of public administration such as, the increased presence of culture in people’s daily lives and the capacity to generate income from cultural projects.

The budget of the ICB increased from €58 million in 1996 to €76 million in 2002 (c. 5% p.a.), a reflection of the political and corporate consensus and importance attached to cultural development and investment for the city’s economy. Direct income has doubled in the last five years (1996–2000), and amounted to €12.5 million in 2000. Expenditure on culture represents 4.8% of the overall budget

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(a) The provision of specific services deriving from the traditional functions of local authorities.

The Institute organises and administers the city’s public cultural services, oversees Barcelona’s historic, artistic and scientific cultural heritage, promotes cultural and leisure activities, and supports cultural initiatives, both public and private. (b) A more strategic and relational function, with actions aimed at reinforcing the various cultural sectors, supporting the producers of culture and working from a global vision of the city in which culture is one of the principal strategies of development. In this sense, Culture means the capacity to innovate, to encourage talent and creativity, to generate jobs and wealth, to contribute to the city’s international prestige, to set up spaces and processes of socialization that are the basis of social cohesion and consolidate democratic values (ICB, 1998).

These objectives can be summed up as the capacity to integrate the actions of various different agents.

This function, which applies equally to those projects and facilities run by Barcelona City Council and those that receive the financial support

Barcelona Case Study/part four

15

of the Institute, is articulated on the basis of three interdependent concepts: contract, autonomy and evaluation. The contract defines mutually agreed objectives and marks out the terms of the action.

Once this contract is established, operational autonomy is fundamental in guaranteeing the levels of flexibility necessary to adapt to increasingly changing environments. After defining objectives and operational autonomy, evaluation is carried out on the basis of specific indicators for each project that allow a full and objective evaluation of the project’s progress.

The Plan also concluded that Barcelona should strengthen its leadership in cultural production and the culture industry.

• Performance: indicators evaluating the development of the projects

A range of cultural policy and provision targets included expanded library and museum services and participation, activities for children and arts education, access to arts, heritage and digital activity and skills, urban design quality and integrated cultural tourism programming. The context of the Plan was both city, regional and international in scope, positioning Barcelona as co-cultural capital and a European and world city of culture.

• Impact: indicators of the effect of the projects on the objectives • Impact: indicators of the progress of the sector and the city towards the objectives of the Strategic Plan The Institute thus monitors the cultural pulse of the city on the basis of a series of indicators, which reflect the evolution of cultural practices, the economic dimension of cultural activity, the analysis of the impact of culture in the economic and social context, the analysis of creative activity, etc. These indicators are published annually in the Report of the Culture Institute, in the Barcelona Statistical Yearbook, and in specific publications.

4.2 Strategic Plan for Culture 2000–2010 The city undertook a major and ambitious cultural planning exercise, which was completed in 1999, and based on a diagnostic and contextual assessment of the city’s cultural strengths and weaknesses and current and future development needs. This looked to the transformation required to move from a services city to a knowledge city. Barcelona considers creation and innovation to be central elements of its development. Central to this are the spaces, conditions and facilities for the creators of the city – a city that is a node of artistic and cultural networks and that has high-level training resources.

Specific targets of the plan were the doubling of the number of people employed in the culture sector and increasing culture’s contribution to GDP.

Six strategic objectives formed the basis of the 10 year Plan, with specific actions as noted: 1. To strengthen Barcelona as a factory that produces cultural contents • Creation of a Venture Fund for cultural projects (see below) • Support for the transfer of creativity from the training to the production centres • “No empty seats” programme 2. To make culture a key element of social cohesion • World Cultures Centre • Implementation of the Libraries Plan 1999–2010 (18–40 library facilities) 3. To incorporate Barcelona into the flows of digital culture • To simplify the process of digitisation of the cultural sector • To interconnect the cultural community of the city • To situate Barcelona in the global flows of the new culture • To simplify the intelligent access of citizens to the new technologies

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Barcelona Case Study/part four

4. To dynamise the ensemble of the heritage of Barcelona • A renovated network of facilities and services in the sphere of the city’s heritage • Stimulation of the production and dissemination of knowledge contained in the museums, libraries and archives of the city • Improvement of the management of the city museums, libraries and archives • Enlargement of the collections; the city as a changing museum ensemble 5. To position and strengthen Barcelona as a singular metropolitan cultural space • Beyond its administrative limits, Barcelona is defined as a metropolitan region that embraces what has been called the real city – a polycentric metropolis.

• The cultural plan must reconcile the various towns, city-periphery, as well as the development of the cultural centralities that already exist or those that should be generated to guarantee a cultural balance of the territory.

6. To project Barcelona as a platform of international promotion: • The world as an audience. To promote cultural exchanges and co-productions in addition to exploiting cultural products and contents, by the use of the existing economic promotion mechanisms • Intelligent fairs. To consolidate Barcelona as a site of intelligent fairs of cultural products, especially those related to new forms of expression or new technologies • The world on stage. The promotion of Barcelona also involves the opening of the city’s cultural space to the world. The import, co-production and exchange of cultural productions forms an important part of the internationalisation of the city and of its consolidation in the world network • Culture à la carte. To unfold a broad cultural offering that would take into consideration all the city’s resources in order to promote and diversify cultural tourism

The original plan and its implementation involved a wide range of participants and stakeholders – chaired by the Mayor with a Steering Committee of over 40 representatives and 15 working groups for specific art forms and thematic areas, addressing the Plan objectives. Sub-offices were established for music, film and publishing, acting as a forum to attract private funding in the sector, subsidising training events and representing businesses at international trade fairs.

The Plan underwent an interim ‘mid-term’ review in 2004 as part of the UNESCO Culture Forum and emerging Agenda 21 for Culture. This Agenda was agreed by participating cities and local authorities, as a guiding document for public cultural policies and cultural development. A range of principles and undertakings covering social/access, cultural, environmental, as well as economic considerations included the promotion of forms of cultural impact assessment to measure changes to the cultural life of cities and establishing cultural parameters in urban and regional planning. The strategic role of the cultural industries and local media in contributing to local identity, creative heritage and job creation, also required boosting.

A commitment to a system of cultural indicators including methods to facilitate monitoring and comparison were also agreed to be in place by 2006.

Barcelona Activa Barcelona Activa is the Local Development Agency of Barcelona City Council. It provides incubator facilities and enterprise support to SMEs including creative industry firms. Services include enterprise start-up/creation, business development and growth support, training/mentoring and incubator workspace provision.

Business networks and communication are different from the ‘Anglo-Saxon’ model – there is a cultural issue/sensitivity about talking ‘business’. Networking of new firms is therefore important.

An Entrepreneur’s Attention Service provides advice to develop a business idea, turning the idea into a viable and quality business proposition.

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17

Cibernàrium is a multipurpose space dedicated to the world of Internet where professionals, companies and students can identify the opportunities offered by new technologies, as well as getting to know them and learning how to use them.

5. Creative industries

BarcelonaNetactiva is a virtual business incubator that offers online services and contents for the creation of companies, a virtual school for entrepreneurs, and an area for business cooperation.

InfoPime is a telematic service of economic information, connections and procedures for companies and professionals in the city that allows them the company directory, to carry out small market research as well as doing different administrative procedures.

Porta 22 is a new space located in Llacuna, with 2,000m2 dedicated to information and training about future occupations and the new cultures of work. Resources include 500 professional profiles, information on emerging sectors, multimedia and interactive contents and activities related to the changing culture of work and trends.

Incubator Incubator premises provide space for 55 SMEs based in an old converted factory. This does not have a sectoral focus, but encourages complementary work/activities. 20% incubatees are from the creative and media industries.

Rental rates are €9.5m2 in Year 1; €13 m2 in Years 2 and three, i.e. ‘near-market’ rates. An Urban Technology Park located in north Barcelona also provides technology enterprise start-up incubator space for firms in the ICT and related fields.

Tenants sign a three year space usage agreement supported by a skills development and mentoring scheme. After three years, firms have to leave the premises (allowing a short transition extension only).

A four year follow-up survey of tenant firms found a 84% survival rate.

(See Appendix A – Projects and initiatives).

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Prior to and immediately after the Franco regime, major film and music recording industry activity relocated to the national capital city, Madrid, where key cultural, financial and headquarter organisations were concentrated.

At that time, Barcelona’s cultural renaissance and infrastructure was not established. The key creative industry sectors therefore build on the city’s comparative advantage and cultural and heritage infrastructure, and also on clusters and related activity targeted for intervention, and include the following.

• Live arts (music, theatre, dance) – 50% are subsidised; 80% of the regional arts budget is on ‘Music’

• Publishing and Multimedia – Spain’s publishing capital with 2,000 enterprises in book and magazine publishing; and graphic design with over 1,000 firms

Production-based publishing and printing is the largest sector, including newspaper/magazines, followed by TV & Radio, Film/Video (less emphasis on production) and Music.

• Audio-Visual & Film – 50% of Spanish production, post-liberalisation over 90 local TV stations; 350 registered radio stations, 50% municipally owned.

A decline in film-going until the mid-1990s, but with growth via small independent and multiplexes

Barcelona dominates in Publishing/Press and the region accounts for over 60% of the Spanish market.

A few large firms dominate with 5% accounting for two thirds of sales. Planeta is one of the largest ten publishing companies in the world and international firms also have interests (Bertelsmann, Orbis). Bookshops are still the preferred distribution channel with a third of sales, and 13% from street markets.

• International Contemporary Art – exhibition circuit with over 100 galleries, 50% are ‘small’; 1,475 professional artists/firms – a 50% increase between 1998–2003 • Architecture and Industrial Design with over 3,000 firms, a 33% increase in the last five years; industrial and textile engineers – 600

• 52 general and specialist libraries including six museum archives; 49 theatres and 205 cinemas.

Sources: (Balaguer, 2005; ICB, 1998/2004)

Although the city has a vibrant film production scene (800 A-V productions annually), with locations managed by a Film Commission, live theatre has been restricted in some respects by the regional government’s use of quotas of Catalan language production as a condition of arts funding. The number of theatres in the city has in fact declined in part due to this funding preference, but at the same time, dance, mime and musical theatre have become more established (and less subject to the limitations of the Catalan language and quota system). Theatre audiences topped 2m in 2002/2003.

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5.1 Regional creative and cultural industries

Film/TV and video have produced the highest growth in GVA and production, as have the visual arts – albeit from a smaller economic base.

Catalonia accounts for 28% of cultural industries activity in Spain (CI employment represents only 2% nationally – third lowest of the EU 15), whilst the cultural industries account for 1% of all industry in Catalonia and 1.2% of Gross Value Added (GVA, 2001). The distribution of GVA and employment in the region confirms the importance of publishing and audio-visual sectors. The GVA of the cultural industries in Catalonia increased by 20% between 1998 and 2001 (Table 7.)

Table 7. Distribution of GVA and employment, 2001 Sector

GVA

Employment

Audio-Visual

34

31

Publishing

31

25

News/Press

28

34

Records

3

4

Visual Arts

4

6

100

100

Total

The increase in A-V firms is highest in TV and Radio which have undergone an expansion in demand and restructuring as a result of liberalization.

Between 1999 and 2004, TV and Radio enterprises in Catalonia have increased by 67%, Film and Video firms by 24%, compared with 3.5% for other creative industry sectors. The A-V sector employs over 7,500 people in Catalonia, representing over 12% of national (Spanish) employment in this sector.

The majority of these work in TV, production and exhibition sub-sectors.

5.2 Knowledge sectors A more comprehensive assessment of the cultural and creative industries is captured in the knowledge economy.

This confirms the city of Barcelona’s high concentration of creative employment, when compared with the metropolitan and provincial regions.

Employment change during the decade 1991–2001 reveals highest growth in the Barcelona Metropolitan region, an indication of expansion outside of the city, with high growth also in employment elsewhere in Catalonia. Residential housing development in the outer city, high property and rents in the inner city, and the loss of workspace as a result of lower density developments and de-industrialisation, have contributed to this spatial shift.

Creative Knowledge Sectors

City of Barcelona

Rest of Metropolitan Barcelona

Rest of Catalonian Region

179

94

50

1.5%

11%

-2.3%

Professional Services

164

88

71

Change 1991–2001

-7%

11%

2%

Arts & Entertainment

132

91

91

-16%

9%

8%

Total Knowledge Sectors

148

89

82

Change 1991–2001

-5%

8%

3%

Information and Cultural Industries (ICI) Change 1991–2001

Table 8. GVA and Production Value, 2001 (€ millions) GVA € millions

% Change 1998–2001

Production Value € millions

% Change 1998–2001

Books

315.2

5%

1,313,000

10.6%

News/Press

356.8

17%

804,113

18.6%

39.3

15%

264,897

35.8%

Cinema & Video

269.5

57%

Public TV

121.5

30%

29

17%

Private radio

10.7

-18%

Art, galleries

48.6

41%

84,834

27.0%

1,267

21%

3,261,059

20.8%

Records

Public radio

Total

The number of enterprises in traditional cultural production has continued to decline in recent years, particularly in textiles, but also in publishing. On the other hand, electronics and particularly architecture/ planning and arts and entertainment have recorded substantial growth over the past five years. The growth of professional firms in design, ICT and arts and designer-making also reflects the growth in self-employment and micro-enterprises. Over 45,000 are estimated to work in the IT sector alone. 86% of firms employed less than 10 workers but accounted for only 20% of employment in the city.

Table 9. Index of Occupation Concentration (average = 100), 2001

Source: Cambra de Comerc de Barcelona (2005)

Sector

The city employs 175,000 and the rest of the metropolitan area 213,000 in the Information/ICT, professional design and arts and entertainment sectors – a total of 385,000 for the metropolitan region as a whole. This represents 75% of knowledge sector employment in Catalonia.

Change 1991–2001

Source: Lasuen, J. and Baro, E. (2005) Sectors:

734,201

40.8%

ICI – Publishing, film and video, recording, radio, TV, internet, telecoms.

Professional scientific and technical services – architects, engineers, information, marketing, human resources, public relations, public services.

Arts, Entertainment & Recreation – performing arts, artists, museums and historic and heritage institutions, amusements and gambling.

Source: Cambra de Comerc de Barcelona (2005)

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21

5.3 Creative industry clusters

Table 10. Employment in the Creative Industries, 2001 Creative Knowledge Sectors

City of Barcelona

Rest of Metropolitan Barcelona

Rest of Catalonian Region

Total Catalonia

44,618

47,435

16,792

108,845

15,484/53%

26,527/127%

7,441/80%

49,452

Professional Services

22,896

24,708

13,150

60,754

Change 1991–2001/%

420/2%

8,779/55%

3,074/31%

11,433/23%

Arts & Entertainment

7,904

10,966

7,256

26,126

Change 1991–2001/%

1,520/24%

5,592/104%

3,411/89%

10,523/67%

All Knowledge Sectors

174,880

213,003

129,338

517,221

Change 1991–2001/%

43,372/33%

106,478/100%

55,709/76%

200,559/66%

Information & Cultural (ICI) Change 1991–2001/%

Source: Lasuen and Baro (2005)

Table 11. Barcelona firms – selected sectors, 1998–2003 Firms in Sector

1998

2003

% change

Textiles & Clothing

2498

2070

-17%

Textiles Retail

7032

6750

-4%

Textiles Production

1493

1412

-5%

Books & Periodicals

2257

1975

-12%

Photography

1221

1212

-0.7%

Graphic Design

1122

1058

-6%

Architects

2425

3063

26%

Arts & Entertainment

1060

1795

69%

Painters, Ceramics, Sculptors

911

1163

28%

Information/ICT

641

712

11%

Design Engineers/Textiles

512

608

19%

12181

12496

3%

Hotels

Sources: City of Barcelona (2004), Barcelona Economia (2004)

Regional employment and enterprise data is limited in terms of specific creative industries sub-sectors and employment profiles/creative occupations, and the city-region has yet to develop a cultural production chain statistical analysis at the level to make comparison with the UK or North America.

Responsibility for economic data and analysis is divided between city and regional authorities and the Chamber of Commerce.

half the creative enterprises in Barcelona are found in these two districts. Other notable concentrations are found in Les Corts, Ciutat Vella and Gracia. This underlines the tendency for creative enterprises to be located relatively close to the city centre with good transport access, and access to customers, including institutional clients (public – government, higher education, cultural).

A recent study of the creative industries in the city of Barcelona has however sought to provide more detailed sectoral and spatial analysis (Interarts, 2004). The previous lack of attention for this sector had led to a shortage of robust data, which can only be fully rectified by extensive primary research. In the absence of such data, this report used published data sources to compile a profile of the sectoral and geographic location of creative enterprises in Barcelona.

On the basis of a review of previous studies of the creative industries, particularly the DCMS Mapping study in the UK (2001), the creative industries were defined for the purposes of this study as: a sector including the arts, the management and application of creativity, talent and intellectual property to produce and distribute products and services with social and cultural significance.

Based on this definition, the sectors covered are advertising, architecture, visual arts, design, film and video, software and multimedia, music, performing arts, publishing and TV and Radio.

An analysis of enterprises was made using business listings for the City of Barcelona (2004). This is comparable with the TBR creative industries dataset produced for London (TBR, 2004) which took various trade and business listings and as in the USA, Dun & Bradstreet firm data.

Nearly 9,000 enterprises were identified in the creative sectors defined above. This represents about 5.5% of the total. Like similar evaluations this understates self-employed/sole traders, dual employment and informal economic activity.

Creative enterprises are also concentrated in relatively few geographic clusters in Barcelona, notably in the Eixample and Sarrià-Sant Gervasi districts. The Eixample accounts for almost a third of all creative enterprises in the city and Sarrià-St. Gervasi for a further 17%, which means that almost

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23

Table 12. Creative industry enterprises in the City of Barcelona by district Total No. of enterprises

No. of creative enterprises

% of District

% of total creative enterprises

% of city population

7601

868

11.4%

9.9

6.8

16580

1,453

8.8%

16.6

20.1

9465

790

8.3%

9.0

4.2

Eixample

34796

2,668

7.7%

30.4

8.8

Ciutat Vella, Barrio Gotico, Ribera-Born, Barcelonetta, Raval

11234

841

7.5%

9.6

4.5

Sant Martí inc. PobleNou

15127

762

5.0%

8.7

10.8

Horta Guinardó

8122

391

4.8%

4.5

12.0

Sant Andreu

7923

323

4.1%

3.7

6.6

12886

450

3.5%

5.1

21.3

7573

225

3.0%

2.6

8.0

159,920

8,771

5.5%

100%

100%

District Les Corts Sarrià-St Gervasi Gràcia

Sants Montjuïc Nou Barris Total Barcelona City Source: Interarts (2004)

The highest number of creative enterprises are in design and architecture, sectors in which Barcelona also has a significant international reputation and education and training strength. These two sectors alone account for over half the creative enterprises identified. However the large number of enterprises in these sectors is also related to the relatively small firm size. For example, the design sector where many enterprises are run by single freelance designers.

Table 13. Creative Industry firms by sector Sector

No. of firms

%

Design

2,775

32

Architecture

1,930

22

Advertising

946

11

Publishing

880

10

Film and video

821

9

Visual arts

728

8

Software and multimedia

223

3

TV and radio

199

2

Music

170

2

99

1

8,771

100%

Performing arts Total

Each district of the city has developed its own creative specialisation and identity. Ciutat Vella and Sants-Montjuïc have a particular concentration of “cultural” enterprises, whereas in Sarrià-Sant Gervasi and Les Corts are more specialized in “creativity or applied arts”.

Different areas tend to feature particular clusters in different districts of the city. For example, the proportion of architectural practices is particularly high in Les Corts and Sarrià-St. Gervasi, whereas the Ciutat Vella has a particularly high portion of visual arts and publishing firms. The geographic centres of the clusters in each district also tend to be relatively close to each other, i.e. multi-clusters. For example the architectural and advertising clusters in Sarrià-St. Gervasi are actually quite close to the music and TV and radio clusters in neighbouring Gràcia. The map below indicates the way in which almost all of the major creative clusters are located relatively close to each other and within easy reach of the city centre.

The survival rate among small firms is also reputedly still very low, although incubator tenants have a high survival rate (84% – see Barcelona Activa). Many entrepreneurs begin their businesses in the informal economy (e.g. live-work) in order to keep costs down, and then face problems when they decide to become legitimate. Largely self taught and basically with creative rather than entrepreneurial skills – there is a good level of design education in the city, but because of the lack of management knowledge, management functions tend to be externalized.

The high tax burden also makes it difficult for new enterprises to establish themselves, and these uncertainties lead to an unwillingness to invest or to plan long term (Interarts, 2004).

The enterprises in the Barcelona design sector therefore value clustering. This particularly provides added value for the large number of freelance designers and proximity to art and design colleges (e.g. UPF, Elisava; EIN, UAB). But this study also concluded that there was a lack of intermediary organisations which could help to solve collective problems and develop cluster activity and development in the respective sectors. An exception would be the FAD design organization (below), and expanding incubator provision, including a Virtual Incubator (web-based) for enterprises not willing or able to relocate. The City subsidises a number of other creative trade and professional bodies and foundations (ICB, 2005), including design (FAD) (€30,000 grant), professional actors and directors (€60,000 grant), graphics (€18,000), theatres (€450,000) and music (€165,000).

Source: Interarts (2004)

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25

Creative Industry Clusters

• Case studies in the design sector indicate that the creative industries are largely unstable and unstructured. There is also a feeling that a gap exists between the creative sector and the municipal administration. There is a need for intermediaries and recognised spokespeople for each major sector

5

7

8

4 9

6 2 3

1

10

Source: Interarts (2004)

Many business-owners in his field are self-taught and tend to have creative rather than entrepreneurial skills. There is a good level of design education in the city, for example Pompeu Fabra, Elisava Design Institute and EINA Arts & Design School (Autonomous University of Barcelona), but because of the lack of business skills, management functions tend to be externalised.

The high tax burden makes it difficult for new enterprises to establish themselves, and these uncertainties lead to an unwillingness to invest or to plan long term. There is a reported reluctance for creative firms to ‘grow’ (Balaguer, 2005).

The Interarts report (2004) made the following conclusions on creative industries development in the city.

• Barcelona has the necessary preconditions for the development of a healthy creative sector, with a young and increasingly culturally diverse population and a strong tradition in design and architecture • Based on the sectoral analysis, the proportion of creative enterprises can be estimated at around 5.5% of GDP. However, there is no accurate data on the contribution of the creative industries to GDP or the proportion of the workforce employed in the creative sectors

• There is a need to address the problem of instability in the sector, particularly in terms of the fluctuations in income and high start-up costs In its case study of creative industries clusters (2004)7, Interarts highlighted lessons that could be transferred to other employment and enterprise development initiatives in the region: the importance of collaboration between public, private and third sector actors; the importance of creating spaces in which creative activities can be developed in an indigenous way; and the importance of creating wider networks for the cluster to become sustainable.

Several of these issues have been taken up by the City in the development of workspace/incubator facilities and training (Barcelona Activa), as well as grant-aid and venture capital, and longer term in the development of the @22 Media City and associated creative industry, HEI and innovation projects in the Poblenou district. This major development will inevitably affect the profile and distribution of creative industry and related knowledge sector activities in the city.

The evaluation of the city’s cultural plan, including both cultural development and creative industries, looks – as in most cities – on growth in employment, productivity (GDP, GVA) and activity levels (audiences/usage, participation, tourists).

Data on employment and economic change, particularly in creative production and value chains and the distribution of economic benefits socially and geographically, is too general and subsumed into broader but unhelpful ‘knowledge sectors’.

This, as in other ‘creative cities’, exaggerates the creative economy by including generic software and computing activity and advanced producer services.

Reconciling creative industry economic data at city, metropolitan and regional levels is problematic – the Comerc (Chamber) and academic studies do complement city and regional economic data, however detailed trend analysis is not feasible.

The city has committed to establishing a system of cultural indicators including methods to facilitate monitoring and comparison to be in place by 2006. The need for appropriate cultural indicators (economic, cultural, social/quality of life) is a recurrent theme worldwide, evidence of both convergence but also of the lack of such indicators and reliable measurement systems, despite the progress made internationally (e.g. UNESCO8) and in national reporting, e.g. DCMS Evidence Toolkit (DET, 2004).

In the short term, property and site redevelopment will have a negative effect on residual crafts and production activity, for example the loss of manufacturing activity – one casualty is the Can Ricart textile factory in Poblenou demolished to make way for new offices, with no prospect for relocation in the area. Can Ricart contains 30 small firms employing 250 people in metal and wood carpentry workshops, in an area once known as ‘Catalan Manchester’.

The role of key intermediary agencies. e.g. FAD, CCCB has also evolved in response to the changing nature and demands of the creative sector in the city.

See summary of selected project initiatives in Appedix A.

7 http://www.ecotec.com/idele/themes/oldindustrial/studies/barcelona_creative_clusters.pdf 8 www.unesco.org/culture/worldreport/html_eng/stat2/indicators.pdf

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27

The link between arts and cultural provision and promotion and the development of the creative economy is closer politically and in terms of organizational delivery. This is not the case in most creative and cultural cities where arts amenity, cultural facilities, cultural tourism and economic development and regeneration are separate, often competing for policy priority and resources.

6. Success factors

Barcelona’s exemplar status as a culture-led regeneration city draws from its priority given to urban design and the public realm, combining built heritage with modern architecture and contemporary design and public art.

This has also contributed to its position as a sustainable city, with high density, compact living, investment in public transport and open spaces.

Its success as a visitor destination and population growth, including new migrants, has presented challenges to which the extension of the old city/city centre and the development of the city-region has responded. A 25-year political consensus has underpinned this growth and quality of life strategy, with clear leadership provided from successive City Mayors and industry. This continuity has facilitated managed growth, including in cultural development and the creative industries and related knowledge sectors. This is in contrast to cities which have been typified by shorter-term initiatives, property-based regeneration (e.g. USA) and time-limited projects and funding regimes.

Key strengths lie in design, architecture and related urban design. The importance of design to the city and to the citizens of Barcelona is evident at a political level – candidates for 2004 city elections had architects as their ‘right hand men’ in their campaigns. Barcelona is one of the world design capitals, typified by being firmly linked to the city, thus presenting its own identity so noticeable to the visitor. The expertise of design product services companies includes sectors such as automotive, transport, electronics, lighting and furniture. The

design culture and environment has attracted foreign investment, mainly in the automotive sector, but also in other industrial sectors. Companies such as Seat, Renault, Volvo and Volkswagen-Audi have located design offices in Catalonia, due to the presence of a network of suppliers, design and engineering services, technological centres and design schools (BCD, 2006).

Post the 1992 Olympics, the city has also capitalised on its success in event and branding around themes which draw on cultural priorities and both social as well as economic objectives and benefits (e.g. libraries/reading, food/gastronomy). Its success can be measured in terms of cultural tourism growth (arrivals, stays, spending) and in increased participation by residents in cultural activity and programmes. The impact of the 1992 Olympics cannot be understated, the extent of this was not anticipated by the city. A reminder of the afterglow literally was the Olympic torch whose flame was kept alight in a city square for 6 months afterwards.

A Commission for the Olympic legacy convened the day after the Games ended.

In policy and strategic terms, adopting 10-year planning horizons and engaging a wide range of stakeholders in the creative and cultural sectors, has enabled both incremental development and the flexibility to adapt and review plans over time.

Barcelona is outward facing, despite its role as the cultural heart of the Catalonia project. It has an explicit European regional (Southern Med.) and city-regional positioning. The City is active in European and global city networks, leading on ‘culture’ and with strong bilateral relationships with cities such as Dublin, Manchester, Montreal and Glasgow. The features of the ‘Barcelona Experience’ and the urban transformation process have been summarized in ten key points.9

8. The inclusion of large sections of the citizenry in the project of urban transformation as exemplified by the number and enthusiasm of the volunteers (organized groups of young people doing voluntary work related to the Olympic Games) 9. The dynamic role of the network of surrounding medium-sized cities which help to balance polarities within the metropolitan area of Barcelona 10. The positioning of Barcelona within the world context of large cities, thanks to promotional strategies of urban marketing

6.1 Lessons from Barcelona

The foregoing case study describes and reports on the state of the creative industries in Barcelona and the social, economic and political contexts.

1. The basic role of public spaces in the newly Key growth and sectoral trends, and strengths transformed areas as a means to generate and weaknesses, have also been noted. Established identity and to foster social and cultural strategies and emerging support structures have integration been highlighted, and examples of projects, 2. Public leadership and initiative (by Barcelona City initiatives and interventions have been Council) in the design and management of urban summarised in Appendix A. transformation projects These, together with a thematic grouping of good/best practice, will be used as the basis for the 3. Compliance with the pre-established Town ‘Lessons Learned’ report arising from the Creative Planning Regulations in order to maintain Spaces study. coherence, credibility, and legitimacy 4. Integration of partial interventions within an overall project for the whole of the city, even in the case of projects linked to exceptional events such as the Olympic Games 5. Concern for the connection and continuity of the newly built areas with pre-existing neighbourhoods in order to avoid excessive zoning or functional specialization; 6. Urban renovation and rehabilitation of the Old Town aimed at avoiding gentrification and maintaining social coherence in the affected neighbourhoods 7. Upgrading of peripheral areas by different strategies, for example, by means of a public sculpture programme linked to the restoration of squares, arcades, open spaces, and gardens, and by the introduction of cultural values and symbols in the landscape

Key lessons emerging from Barcelona can therefore be summarised as follows.

1. Political leadership, consensus and continuity – successive mayors, industry, community (local and international), 10 year plan/reviews and consultation 2. Culture-led regeneration – re-investment and post-Olympic event re-branding/strategy 3. Cultural tourism growth – local, national and international visitors, conventions 4. Integrated Arts, Culture and Creative Industries strategies – e.g. libraries/literacy, museums, arts events/festivals participation, urban campus (Raval, Poblenou) 5. Profile and accessibility – e.g. public location of Culture Institute, La Virreina centre

9 Garcia-Ramon, M-D and Albet, A. (2000) ‘Pre-Olympic and post-Olympic Barcelona, a ‘model’ for urban regeneration today?’, Commentary in Environment and Planning A, 32: 1331–1334

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6. Urban design – a priority (not just ‘public art’) – e.g. housing/public realm, heritage, transport (air, rail, seafront, cycle paths, coastal routes), debate – e.g. CCCB, Forum 7. City-region expansion and inter-city growth – Valencia, Tarragona, Knowledge Sector Euro-S.Med hub 8. International networks – Global and Euro-cities, cultural leadership, bilaterals e.g. Montreal, Glasgow Weaknesses are evident in terms of the creative economy which is not well-diversified and is over-concentrated in architecture, art and design, although film/TV and radio and live theatre are re-emerging. A high risk investment strategy (Poblenou@22) is being pursued (albeit with a private sector majority partner), in a highly competitive sector in which the city does not have established strengths or as yet, critical mass.

The strain on the old and inner city is also evident in terms of housing/gentrification, street crime, overcrowding (parking, bikes) and displacement effects. Growth is in the metropolitan region, leaving new migrant areas potentially isolated and ghettoized. The city does not have a multicultural approach or strategy, and the transition from a culturally autonomous to a cosmopolitan city is a challenge politically (i.e. dominant elite/hegemony).

The UNESCO Culture Forum and the new city expansion and Poblenou developments have not received universal support and resistance from incumbent communities has been evident (Kriznik 2004, Gdaniec 2000, Marshall 2004).

There is a lack of professional creative intermediaries and support networks, with the city taking a municipal rather than enabling role, although recent initiatives recognise the need for arms length intervention and greater industry-led activity and cluster development.

Despite an impressive long-term plan and strategy – policy evaluation, statistical data collection and measurement methodologies are not integrated or established across the tiers of government, or identified with a measurable creative production chain. However, the publication of cultural indicators in the annual report of the Cultural Institute and the Barcelona Statistical Yearbook and in specific economic publications, is beginning to provide a level of longitudinal analysis. The development of cultural indicators as part of the adoption of the Agenda 21 for Culture (ICB, 2004) will also enable a more robust review of the Strategic Plan objectives and progress.

References

Balaguer, O. (2005) “Barcelona Culture on the Move”, presentation, June, Barcelona Institute of Culture (ICB). Barcelona Barcelona Activa (2006) The Role of Entrepreneurship and Innovation. www.barcelonactiva.es Barcelona Economia (2004) Economic Indicators for Barcelona and the Metropolitan Region, No.54, March Barcelona Field Studies Centre SL www.geographyfieldwork.com BCD (2006) Barcelona Design Centre www.bcn.es Cambra de Comerc de Barcelona (2005) El Sector Cultural A Catalunya, Barcelona City of Barcelona (2003/2005) Economy Activity Statistics of Barcelona, Barcelona City of Barcelona (2004) Informes Estadistics, les Activitats Economiques a Barcelona 2003, Ajuntament de Barcelona, October CoPEC (1998) Culture in Catalonia, Cubeles, X. and Fina, X. (eds). Barcelona DET (2004) DCMS Evidence Toolkit. Technical Report, London, August Eastway, M. et al. (2005) Large Housing Estates in Madrid and Barcelona, Spain. Opinions of residents on recent developments. RESTATE report 4h, Utrecht University EIF (2005) European Investment Monitor. London, Ernst & Young

Gdaniec, C. (2000) ‘Cultural Industries, information technology and the regeneration of post-industrial urban landscapes. Poblenou in Barcelona – a virtual city?’ GeoJournal 50: 379–387 Generalitat de Catalunya (1998) Economy and Culture in Catalonia: Basic Statistics, Barcelona Generalitat de Catalunya (2003) Anuari estadistic de Catalunya 2003, Barcelona. www.idescat.enet ICB (1998) Strategic Plan of the Cultural Sector in Barcelona 1999–2010, Barcelona Institute of Culture (ICB) ICB (2004) Agenda 21 for Culture. An undertaking by cities and local governments for cultural development, Barcelona Institute of Culture (ICB)/City of Barcelona, July ICB (2005) Barcelona Cultura Review 23, Barcelona Institute of Culture, September–October Interarts Foundation (2004) The Creative Industries in Barcelona, Barcelona Institute of Culture Kriznik, B. (2004) Forms of Local Resistance: No Al 22%, University of Llubljana and Institute of Advanced Architecture of Catalonia, Barcelona. www2.arnes. si/~uljfarh5/kriznik_noal22@.pdf Lasuen, J. and Baro, E. (2005) Knowledge Sectors – Sectors quinaris. Motor de desenvolupament de l’Area Metropolitana de Barcelona. Pla Estrategic Metropolita de Barcelona

Lopez, V. (2005) Barcelona Media Innovation Centre (CIBM): An initiative for the communication sector.

Garcia-Ramon, M-D and Albet, A. (2000) ‘Pre-Olympic Presentation on behalf of UPF at the Hangar Arts and post-Olympic Barcelona, a ‘model’ for urban Centre, Barcelona, June regeneration today?’, Commentary in Environment and Planning A, 32: 1331–1334 Marshall, T. (ed) (2004) Transforming Barcelona. Routledge

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Mascarell, F. (2004) Creative Policies in Barcelona, Town Councillor-Chair of the Culture, Education and Social Welfare Commission, Barcelona City Council/ Institute of Culture

Appendix A – Projects and initiatives

Miro, A.A. (ed) (2005) Design in Barcelona and Catalonia. Il Giornale dell’archiettura, Turin Monclus, F-J. (2003) ‘The Barcelona model: an original formula? From ‘reconstruction’ to strategic urban projects’, Planning Perspectives 18: 399–421 PWC (2005) Cities of the Future: global competition, local leadership. Price Waterhouse Coopers. www.pwcglobal.com/extweb/pwcpublications.nsf/ UPF (2004) Survey of UPF Graduates, Universitat Pompeu Fabra, Barcelona

Financing: Venture capital

Finance: Venture capital

• Barcelona BCN EMPREN

Barcelona BCN EMPREN

• Institute for Catalonian Culture (ICIC)

www.bcnempren.com/

Business networking • Barcelona Cultural Foundation Incubators and enterprise support • Barcelona Media Park – District 22@bcn • Barcelona Activa Higher education and R&D • UPF and Elisava School of Design Architecture and cultural regeneration • Centre for Contemporary Culture of Barcelona (CCCB) Arts resource centre • The Hangar Arts and Resource Centre

Constituted in 1999 with €6.5 million capital, BCN Empren was created by the City of Barcelona with public and private investors – the CREWA Network of Venture Capital companies.

BCN Ventures was set up in June 2005 to manage venture capital companies with the same management team and shareholders as EMPREN. These include the City, Catalonian Finance (ICF) – with 23% each, and two universities, several Banks, Caixas savings banks, Gas and Water utility companies, Planeta Publishing, Telefonica, Airtel, La Salle and Habitat group.

Investment in creative enterprises is justified in terms of their value added and employment potential and as part of the strategy towards a city of knowledge. Priority sectors include audio-visual, publishing (50% of the city’s cultural GDP), digital media, design, scenic and visual arts, and cultural tourism.

Design promotion

BCN Ventures promotes BCN Cultura, the first investment fund for the creative and culture sector.

• FAD (adg-fad) Design Association

• Current fund size €5m

• Barcelona Design Centre (BCD)

• 10 year duration • Range of investment €200,000–€500,000 • Management commission 2.75%, Commercialisation 1% • Commission by success 20% • Expected Return on Investment (ROI) 10%

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Examples of companies supported include Orbita cinema IMAX film producer (Mysteries of the Nile), Barcelona Theatre Musical (Gaudi), with the majority of firms in the ICT, telecoms fields. To date 14 companies have received finance creating 270 jobs with an average investment of €350,000. Venture capital leveraged = €40 million with latent capital gain of 33%. The first exits/spin outs from the fund were expected in 2005 (ICB, 2005).

Venture Capital Funds are also being developed via the new Barcelona Culture Foundation (below), with funding from Caixas/savings banks, sponsorship and tax rebate incentives (as in Montreal). A €2.5m ‘risk’ budget has been funded initially from 25:75 Public: Private sources.

Lessons learned in the first five years: • ‘Good science but bad managers’ – there is a need to create a complementary team from the outset • Total financial/budget control is need • Establish the focus of the business – this is not evident from start • Successive rounds of funding, assessment and milestone/incentive-based phasing • The market is always international • Attend international forums of contacts and exchange • The role of the investor at this stage is ‘total’

Financing: Venture Capital Institute for Catalonian Culture (ICIC) http://cultura.gencat.net/mapa/map.htm The ICIC is a department of the Provincial Government Cultural Ministry and provides a range of subsidy and support for Catalan audio-visual productions and exhibition. Catalan language content also receives ‘preferred status’ for funding.

Schemes include: • ‘Credit Cultura’ – soft loans, repayable grants, with a 25% ‘success’ rate to date • €40,000 for feature films/documentaries, +€20,000 if original in Catalan.

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• Promotion grants up to €80,000, 25% max. general subsidy €50,000 with bonus of between €15,000–30,000 where this is more than 20–30% of the project cost.

• International Film Festival participation (including national Goya and EFA awards) The ICIC also offer an Exhibition subsidy of 10% to 17% of producer’s investment up to a maximum of €140,000, based on minimum admissions in Catalonia (€65,000 up to €135,000); Documentaries can attract a minimum €20,000 and new directors a minimum of €40,000. Co-productions are limited to €25,000 subsidy.

TV film subsidies are a maximum of €170,000 (17% of production costs up to a max. of €120,000), with quality bonuses up to €35,000 if selected at three national or international Festivals, and with agreed sales with two or more overseas TV channels.

These need to obtain a share of the TV audience in Catalonia of at least 1% more than the channel’s average during the broadcast slot for the past three months. TV documentaries can attract 17% production subsidy of up to €24,000. Production/ post-production expenditure attracting funding must be undertaken at least 50% in Catalonia.

Animation series attract 50% subsidy up to €50,000.

New (first or second production) and established directors can attract 12% of total project costs up to €120,000, and for documentaries 18% up to €90,000.

Short films to be showed in cinemas can receive 40% subsidy up to €10,000, with 55% to the production company, and 15% to writers, director, screen writer, composer. The creation of new works involving other art forms can apply to a New Sights fund up to €80,000 per project, provided an agreement has been signed with a TV channel for open broadcasting throughout Catalonia.

Centre for Audio-Visual Development (CDA) The ICIC has also established a Centre for Audio-Visual Development (CDA) . Set up in 2005, the CDA offers a free consultancy service to AV companies in the initial project stage – providing professional advice on editorial content, viability, training, market/trends and management. The main target beneficiary are independent producers who present fictional films for cinema, feature films for TV, documentaries and animation projects for the large screen.

The CDA organise events to keep producers updated on current cultural and market trends and produce detailed statistical and financial data. Networking events bring together projects/productions and clients. Advanced training and professional expertise (CDA staff and external consultants, e.g. script editor) is provided depending on the stage of project development. The ICIC also coordinates funding and support programmes for Theatre, Music and Visual Arts, Publishing sectors and general promotion through trade fairs and markets.

Business networking Barcelona Cultural Foundation Barcelona City Council created the Fundació Barcelona Cultura with the aim of promoting and encouraging culture in the city. The Foundation is coordinated and promoted by the Barcelona Institute of Culture. The Foundation aims to facilitate good relations between the business world and culture, with the goal of increasing private sponsorship for cultural activities. The establishment of the Cultural Foundation, a pioneering initiative in Spain, is the result of the interest shown by the municipal administration in improving the already existing relationship with the financial sector in order to promote and support the numerous cultural activities in the city.

The Foundation has been created at a time when culture is growing in importance in the economy of the city. The Board of the Foundation was formally constituted in July 2005. Its priorities are the support initiatives aimed at the conservation, exhibition and dissemination of cultural and artistic heritage, as well as the international projection of the city through culture. The cultural action that the Foundation has in the pipeline includes the updating of the 10-year Strategic Plan (1998), adopting commitments arising from the Agenda 21 for Culture (UNESCO Forum 2004), the strengthening of the publishing sector (e.g. Books and Reading Year, 2005/2006), giving a boost to the audio-visual sector, offering easy access to culture through a physical and virtual portal of Culture in Barcelona, ten new libraries, a new Museum of Music integrated in the Auditori, and a rejuvenated Born heritage district.

direction of cultural policy in the city. This seeks to facilitate financial collaboration between public and private initiatives and serve as a channel for any ideas and suggestions that might improve Barcelona City Council’s cultural policy and especially its relations with business.

The collaboration between business and cultural events will also be promoted by the Board. This is made up of larger companies in the city and the country linked to the world of culture and innovation. It is presided over by the Mayor, who has appointed vice-presidents, the Councillor for Culture and President of the Barcelona Institute of Culture, and the President of Gas Natural.

The 19 companies represented by their CEOs/MDs are as follows: T-Systems; El Periódico; Repsol YPF; Derby Hotels; Cobega; Habitat Grup Empresarial; BBVA Catalynya; Caixa de Pensions; Fundació Gas Natural; La Vanguardia; Sellbytel Singular; Grup Planeta; Layetana; Zas Two; Banc de Sabadell; Codorniu; Fundació Abertis; Caixa de Catalynya; Pilar Solans – City Manager Ajuntament de Barcelona; Telefónica.

The Foundation manages the sponsorship programme and other patronage, areas in which it foresees significantly increasing private contributions. The companies on the Board will be able achieve more effective cultural sponsorship activities as a result. The Sponsors’ Social Council has also been established. It is a consultative body for which a financial contribution has to be made and allocated to cultural activities supported by the Foundation. The Circle of Friends, is made up of a group of business people that support a specific project, e.g. the Circle of Friends of the Museu d’História de la Ciutat has been established, presided over by the president of Fundació Gas Natural, with the Caja de Ahorros del Mediterráneo, El Periódico de Catalunya and the Sociedad Económica Barcelonesa d’Amics del País participating, among others.

Making the debate on Barcelona, culture and the economy possible is at the heart of the Foundation’s interests. It is for this reason that one objective is to create a space that permits the exchange of information with companies about the strategic

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Incubators & Enterprise support Barcelona Media Park – District 22@bcn Parc Barcelona Media “@22” is a major joint venture between MediaComplex (developer), the University Pompeu Fabra (see below) and the City of Barcelona.

The Park complex will draw together dissemination, production and education initiatives within the digital/audiovisual industry. It will occupy the site of the former textile factory Ca l’Aranyó, on the block between Avinguda Diagonal, Carrer Llacuna, Carrer Roc Boronat and Carrer Tànger. Based in the former industrial/manufacturing district of PobleNou, the project objectives are to: • build a state of the art facility for digital media industries • create an international centre of excellence for digital media start-ups and enterprise support • strengthen production, creative and research/R&D activity • establish Barcelona as Media Centre for southern Europe The development covers over 22 hectares of industrial land, and aims to provide 100,000 new and relocated jobs located in over 220,000m2 of new facilities and office space. This will include: • UPF Campus: 23,000m2 of Communication, CIBM, enterprise and start-up workspace •

Centre of A-V Production (MediaPro) 36,000m2 (24k workspace, 12k office space)

• rentable incubator and Public space 175,000 m2 (115,000m2 technical production, 60,000m2 equipment) Barcelona Media Park is being launched to improve the international standing of the audiovisual industry of Barcelona and Catalonia as a whole, and to give it extra weight in terms of production, culture and research. It is intended as a catalyst for the dispersed elements that make up the industry, and seeks to generate sufficient critical mass to attract major projects that will exceed the domestic market and reach the international export market.

The development entails a capital investment of €80 million. The Park is planned to be a place for production and creation, and is open to all enterprises: those that are regarded as “cutting edge”; smaller firms interested in being in close proximity with leading education centres and high-quality technical facilities; firms specialising in audiovisual genres, and professionals attracted by the economies of scale resulting from the concentration of production facilities, support infrastructures and highly qualified people.

In 2004 Activa assisted 126,000 firms, participants and employees, including:

The @22 development has looked to other models of convergence centres. On an international level, examples of centres that combine research, production and exhibition facilities and that exert a great deal of influence on the industrial activity of their surrounding area include: the Zentrum fur Kunst und Medientechnologie in Karlsruhe, the Ars Electronica Center in Linz, the Institut National de l’Audiovisuel in Paris, the Sony Center in Berlin, the Sundance Institute in Salt Lake City, the Media City Adlershof, Berlin, and others.

• 49,774 technology difussion Activa’s programmes have been recognised as good practice in local economic development, such as world best practice by the UN Habitat programme, EuroCities award for the best local initiative for business start-up, and several EU awards for excellence in innovation and start-ups. It has collaborated with 29 cities internationally in IT and innovation transfer projects, and receives over 100 delegations from abroad annually.

Barcelona Activa www.barcelonactiva.es Barcelona Activa is the Local Economic Development Agency for Barcelona City Council. Its role is to help ‘build the city of knowledge and creativity, in a city to work and live’. Its programme of activities target the following: • Boosting Entrepreneurship • Consolidating existing businesses • Promoting access, inclusion and good employment practice • Professional training • Technology transfer • Innovation

• 1,065 entrepreneurs/start-ups • 250 business development • 17,678 employee beneficiaries • 2,576 trainees • 26,152 new employment

It provides over 25 programmes for business start-up, consolidation and growth, from its office/training headquarters ‘7@’and incubator facilities at Glories and Urban Technological Park Barcelona Nord.

The profile of enterprise programme beneficiaries is: • 50.2% female participation • 70% are aged between 25 and 40 years, 9% under-25 and 21% are 40 and above • 52% of participants have a university degree, 35% secondary and 13% primary level • 15% of participants are from outside of the EU • 48% are currently economically active/employed The main business sectors are: • 51% ‘Services’ (19% commerce, 16% producer services, 16% service to people) • 12% food services • 12% ICT • 7% distribution • 7% leisure

InfoPime is a telematic service providing economic information, connections and procedures for companies and professionals in the city. It allows access to company directories and databases, carries out small market research studies, as well as administrative support to users.

Porta 22 is a new space and headquarters of Barcelona Activa located in Llacuna, occupying 2000 m2 and providing a service to individuals and firms, dedicated to providing information about changes in the world of employment, and guiding and equipping people with all they need in relation to future occupations, emerging economic sectors and new professional skills and new work cultures. Resources include 500 professional sector profiles, including media and creative industries, and information on emerging sectors, multimedia and interactive content and activities related to the changing culture of work and employment trends.

Incubators The Glories business incubator provides workspace from 18m2 to 100m2 – all internet/ broadband/ADSL connected. Shared services include reception, fax, mail/delivery, copying, wi-fi in common areas, meeting rooms, presentation media facilities, video-conferencing, 200 seat auditorium, car and bike parking, onsite restaurant and catering. Access to the incubator is 24/7 with permanent security.

Support services include mentoring, professional and specialist advice, customised training, and weekly B2B coffee mornings.

Enterprises are selected based on demonstrated innovation and growth potential, special need groups (e.g. disabled, older ages/40+, women businesses), synergy (IT, complementary sectors) and overall commitment to the objectives of Barcelona Activa.

Over 110 enterprises are located in the incubator units: 50 in the Glories managed workspace. Overall they employ 780 employees. A further 186 companies are members of the Xarxactiva network (started 10/2004) and 469 business members of the virtual community Barcelonanetactiva, with 9,000 online users. Participation is 47% women, 66% aged between 25 and 40, 3% under-25 and 31% over 40.

Over 75% have a university education, with 18% secondary and 6% primary level.

• 6% construction and environment services • 4% manufacturing

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In terms of impact: • 60% of business start-ups coached are transformed into companies in one year • Each creates on average 2.3 jobs • After a year, 92% are still operating with average employment increasing to 2.6 • In 2003 1,414 jobs were created through the Activa programme • 84% of incubated companies are still active in their 4th year (incubator tenants leave by the third year).

Creative enterprises which have been created or assisted to grow by Activa include: • Anima computer applications for 3D visualisation • Tasmania films, A-V productions • Y Dreams, Video, mobile systems and games • Red Room Studio, Video games • Factotum, TV film production • TMT factory, Computer engineering of interactive TV • Inphart, Interactive multimedia projects and video editing • Magma 3, Interactive multimedia projects

Higher Education and R&D University of the ‘Arts & Design’ – Pompeu Fabra www.upf.edu/english/web/ Pobra Fabra (UPF) is the University of ‘Arts & Design’, a confederate college/university which plans to relocate in one campus as part of the @22 Media City development in Poblenou.

Currently, UPF has 4,000 students with nine undergraduate, six post-graduate and 6 PhD programmes.

In total the campus will occupy around 25,000m2.

The new facility design involves rehabilitating two buildings of the old textile factory and constructing three new ones, with space for a total of 3,000 people. To this end, UPF is due to transfer to the new site all of its faculties, schools, studies, departments, institutes and research centres (currently four separate sites) that are linked to the areas of

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journalism, audiovisual communication, translation and interpretation, computer science and telecommunications. The building work on the new campus is scheduled for completion in September 2005.

A biannual survey (2004) found that 85% of UPF graduates over the past 10 years were in employment and most (87%) were in jobs related to their degree. 71% of these found work within three months of graduating, 86% within six months. Over 90% were in salaried employment, with only 10% self-employed. Graduate income stood at €1,230 net per month (21% up on 2002). The number in director/senior manager positions was also higher at 13%, with 42% in middle management and 40% in admin. roles. The proportion working in industry rose from 11% to 17%, whilst service (80%) and building sector (3%) work had decreased.

The latest study also found that 16% of graduates were not employed, a 3% decrease on 2002. Of these 6% were undertaking further study/training – 42% of UPF undergraduates opt to continue study (UPF, 2004). This is a source of creative industry start-ups, however according to the design association (FAD – see below) there is a potential over supply of design education in relation to employment in the city.

The new Ca l’Aranyó campus will concentrate all of University Pompeu Fabra’s facilities (excluding the associated Elisava Design Institute which will remain located off of Las Ramblas), including teaching, research and production in communication and technology: studies in audio-visual communication, journalism and translation and interpretation; the engineering degrees in computer science & telecommunications; the audio-visual University institute (IUA) and the linguistic applied university institute (IULA).

Mediacomplex will have a total of 24,000m2 at its disposal, which will include a 2,000m2 film set, other smaller sets, production and postproduction rooms, and a teleport for satellite transmission and reception. There will also be an area of 5,000m2 for research and production facilities intended for collaboration work between companies in the audiovisual industry and educational institutions.

The planning that regulates the urban transformation of District 22@bcn not only sets aside areas for traditional facilities, but also includes a special kind of ‘@ facility’. These are conceived as places specifically intended for training and the dissemination of @ activities, and can include the following uses: • Ongoing training activities, carried out in the facility itself and accredited by an authorised training centre • Activities aimed at disseminating new technologies.

• Private production activities related to training in the field of ICT, using up to one-third of the total floor space of the facility. The space will be allocated to each company as a leasehold, the facility remaining under public ownership.

Barcelona Media Innovation Centre (CIBM) A key creative industry-UPF joint venture is the Barcelona Media Innovation Centre (CIBM). The centre is the promoter of ‘Knowledge Transfer’ activities and serves as a technological centre to foster competitiveness among companies in the A-V and communication sectors. The CIBM will integrate the industrial sector with areas of innovation, experimental production and research.

It is supported by CIDEM (Department of Industry) of the Catalonian Government with EU funding of 65%.

The centre has a turnover of €3.5m (2004), and employs 36 researchers, 14 in promotion and admin./management, with 46 ongoing projects (of which 14 are European/EU). Contracts are valued at €2m (2005).

Ownership of CIBM is 51% industry and 49% University (UPF) and the City. The centre takes 10–15% of new income (not via IPR), and plans to have a key brokerage role in industry–R&D collaboration (Lopez, 2005).

Arts Resource Centre The Hangar www.hangar.org/ The Hangar is a not-for profit organization created by the AAVC (Association of Visual Artists Visuals of Catalonia). The Hangar is an arts centre located in Barcelona’s Poblenou district, occupying a refurbished industrial building covering 1,800m2. Its function is to provide support for a new generations of artists, whatever the art form. The Hangar offers the following services to artists: • The rental of spaces (studios) at very affordable rates • Access to equipment, software and qualified technicians specialising in creation using digital technologies • Organisation of workshops, meeting and debates on aspects of the contemporary city and culture • International artist exchanges and residence schemes.

Hangar was created by and for the artistic community to cater for a number of needs stemming from the changes in the city, and those that have taken place in the field of international artistic creation and production. Its beginnings are found in the early 1980s, when the Federated Union of Plastic Artists of Catalonia (AAVC, as it was then known) asked Barcelona City Council for permission to use the old warehouses in the port for artists workshops.

These now house the Catalan History Museum.

There were numerous precedents from elsewhere in Europe to support the idea, such as Art Space (London), the Kunstler Bethanien (an old hospital, Berlin – see Berlin Creative Spaces Case Study), and the Cité des Arts (Paris). These experiences were used to attract the attention of public institutions and make them aware of the problems facing emerging artists in the city, and possible solutions to them.

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However, according to the Hangar staff, there continues to be a lack of planning, consultation and engagement with artists on the opportunities and threats from redevelopment. The Hangar Centre currently has a private landlord (former industrial premises) who has so far held out from the main Poblenou redevelopment, but the future security may be undermined as the @22 development (see above) takes place around the Centre. Meanwhile, there is still little affordable dedicated artists space in the city.

Hangar not only works with the artists who rent a space in the building, but with others that temporarily rent its services (video editing, multimedia work, the realisation of large format pieces, etc) or that participate in meetings and workshops. Hangar has started up a network of collaborations with companies, producers and professionals who support the productions of experimental and artistic video, offering their equipment and knowledge at a much reduced price.

Some of the services Hangar offers to artists include: aid in project management and organization; video recording and location facilities; technicians e.g. editors, camera operator, illuminator, post-production, special/sound effects; rent of material.

The objective of the centre is that all the artists (who need it) can use the services, subject to availability.

However, sometimes demand exceeds the capacity of the service. In this case it is necessary to select projects. For instance, there are only 14 individual studios for artists in residence: there are always many more applications and a selection process is necessary. Centres which collaborate in the international residencies programme include: MoMa, New York; Centrum Beeldende Kunst, Rotterdam; Fondazione Pistoletto in Biella; Triangle France and Astérides in Marseille.

Hangar Open Hangar has established an open system for selecting the artists who benefit from its services. Public selections are held, which are open to all artists.

The only requirement is that applicants submit an outline of the work to be carried out and a portfolio of their previous work. With this material, the Hangar Programmes Committee selects the best proposals from all applications received, based on their quality and artistic value. The Committee comprises three independent members, experts in contemporary art (art critics, lecturers and arts administrators) with close links to new generations of creative artists. The composition of the committee changes each year.

Institutions who make major contributions of resources to Hangar are also represented on the committee in a non-voting capacity. The administration can thus monitor the day-to-day progress of the centre and ensure the correct use of public funds.

Hangar Open Activities sponsor is the Foundation Bank of Sabadell; Epson sponsor the digital printing service; Entorno Digital sponsor web hosting and collaborators include the IDEP School of Video-Film-Television, Barcelona and CITEM (UPC) in Terrassa.

Hangar receives support from the Institut de Cultura de Barcelona in the form of annual grant aid (€150,000 in 2004), and from the Departament de Cultura de la Generalitat de Catalunya, the Àrea de Cultura de la Diputació de Barcelona, the Fundació Caixa de Catalunya, Fundación Arte y Derecho, and VEGAP.

Architecture and Cultural heritage Centre for Contemporary Culture of Barcelona (CCCB) www.cccb.org/eng/ The Centre for Contemporary Culture of Barcelona was established after the 1992 Olympics. It is based at the Casa de la Caritat where this old building opened its doors again in February 1994 as an ‘urban laboratory’. The CCCB works with a perspective of the ‘City as a Universal Phenomenon’ because they have become the ‘social, urbanistic and cultural catalyst of our time’ (http://www.cccb.org/eng/cccb.htm).

This development sought to lay to rest the ‘ghost’ of the Olympics hangover and to prove in the words of the director, Joseph Ramoneda that the people of Barcelona ‘were still good at something’. Urban culture was thus the theme by which to concentrate resources and skills. The CCCB was created to show that it was possible to produce culture without complexes, and to challenge the Pompidou (Paris) and Barbican (London), with a budget 15 or 20 times smaller.

The CCCB are thus one of the pieces in the cultural jigsaw puzzle of 1990s Barcelona, and part of the city’s new cultural quarter, together with the Museu d’Art Contemporani de Barcelona (MACBA), the Palau de la Virreina (exhibition centre), the Biblioteca de Catalunya (Library of Catalonia), the Universitat Ramon Llull, the Universitat Pompeu Fabra, the Gran Teatre del Liceu (Opera House), the Centre d’art Santa Mònica (arts centre) and the Museu Marítim (Maritime Museum).

The CCCB organises and hosts activities: exhibitions (e.g. ‘a city and a writer’), thematic festivals, music, dance, courses, debates, lectures, publications and city walks. The CCCB was established by a consortium of the Diputació de Barcelona (Barcelona County Council) and the Ajuntament de Barcelona (Barcelona Municipal Council).

Funding is split 75% city:25% other/income, with a budget in 2004 of €9m (€1.75m from the City Council), 80 staff and 120 collaborators, including a joint Urban Planning Project with London (Architecture Foundation), Helsinki, Paris and Rotterdam.

The CCCB hosts the European Prize for Urban Public Space. Now on its fourth round, the last time a total of 170 projects were submitted from 20 countries.

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Awards are made to architects and the institutional client, as an incentive for government investment in public spaces to improve city life.

The CCCB recently celebrated its 10th anniversary, during which time Barcelona’s cultural economy and status have grown. This has enabled the CCCB to reaffirm its role as a space for communication, linking the academic world, independent creation and the city’s people, and making it a public space.

This has moved beyond the traditional presentation of works of art or artefacts through to the question of meaning and forming a bridge between emerging and so-called traditional cultures. The CCCB has prioritized countries in the East, Africa and Latin America – key sources of migration to the city and an increasing feature of Barcelona’s cosmopolitan population.

Design promotion FAD (adg-fad) Design Association www.adg-fad.org/home FAD was established 1903 as an official expression of the Arts and Crafts movement. Coordinated by a governing board with seven autonomous associations (1,600 individual members) representing Graphic Design, Industrial Design, Craft, Young Designers, Architecture and AudioVisual (now wound-up as an ‘obsolete’ sector, post-digital media and design). Sectors require a minimum quota for membership.

The annual budget is €1m allocated 50% FAD : 50% Associations – funded 15% by government (€30,000 grant from City in 2004), 50% membership fees and 35% from industry.

FAD has been a catalyst for major cultural development and policy in the city, e.g. 1929 EXPO, and participating in other EXPOs and bi/triennials, and in the 1990s, the MACBA and School of Arts & Design (Elisava, Pompeu Fabra).

FAD was the hub for the ‘Year of Design’, 2003 organised to celebrate its 100th year foundation.

This initiative was promoted by the Ministry of Science & Technology, and the Catalonian, Metropolitan and City governments, which together contributed over €6million to the programme. Over 100 events included exhibitions, festivals, prizes (e.g. annual architectural award), contests, conferences, seminars and a new Design Spring event. Most of

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the events were held in the city but 200 separate events were held in centres and schools elsewhere in Spain.

Barcelona Design Centre (BCD) www.bcd.es BCD is a private non-profit foundation which was set up in 1973. The mission is to promote design as a key factor for company innovation and competitiveness, as well as a discipline improving quality of life. BCDs funding objectives include: • to emphasize the economical, social and cultural relevance of design

Other languages and formats: A summarised version of this document is also available in large print, braille, on disk, audio cassette and in the languages listed below.

For a copy, please email info@lda.gov.uk, telephone 020 7953 8000, or write to London Development Agency, Palestra, 197 Blackfriars Road, London, SE1A 8AA. Gujarati

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• international diffusion and promotion of Barcelona as a design capital • co-operation with central, autonomous and local administrations to encourage design attention BCD’s board trustees and main funders are the Barcelona Chamber of Commerce, the Catalan Department of Industry (CIDEM), the City Council and the Ministry of Industry, Commerce and Tourism.

BCD works in three fields: business advisory services, promotion and information.

Activities include: seminars and conferences on design in business; National Design Prizes and competitions in collaboration with the Ministry of Industry, Commerce & Tourism; contact with foreign companies wanting to set up a design office in Catalonia; partnership in European design and design management projects and providing information about designers, companies and events to the international design media. BCD is the first step for companies willing to improve their design management skills.

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London Development Agency Palestra 197 Blackfriars Road London SE1 8AA Tel: 020 7593 8000 www.lda.gov.uk