Shortcut Europe

Copenhagen 9.th of May 2007.

Kultur & Kommunikation Flemming Madsen

Musician school leader organiser National Music Council Danish Music Information Centre publishing company & travel agency - Musicon Valley Creative Cities.
Consultancy company since 1996 [www.kulkom.dk].
Experience Economy project development strategy & planning network.
Any use of this presentation, its models and displays, etc is only allowed by the explicit permission of the author.
www.kulkom.dk 2007

Presentation
A helicopter trip around the globe
The Experience Economy and how it influences us A trip to Bornholm Regional growth incentives and the municipal framework conditions The challenge for municipalities and cultural centres

My Aim:
to place culture and arts in another context than its self-occupied, narcissistic ego

To inspire you to take control of your destiny instead of living with cutbacks in shady defensive trenches
To help remove feeling of selling souls and loosing integrity when dealing with experience economy www.kulkom.dk 2007

Municipal development a puzzle.

Demographics of population
Business structure Tax base Services

Schools and institutions

Physical planning & logistics Nature and environment Social capital & quality of life Cultural and experience-based opportunities Identity and brand
www.kulkom.dk 2007

Globalization
Hunter and gatherer society Agricultural society From welfare state to competitive state Industrial society From developing human beeings to Service economy developing competent workforce Knowledge economy From cultural policy til part of growth strategy Experience economy
www.kulkom.dk 2007

What is the Experience Economy? New wine old bottles?

Something consultants have created to earn more money?
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When water becomes mineral water

Sourced from springs in the forest, health and well-being, unspoiled nature add a picture of an Italian mountain and the sense of the shade of an olive tree

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The King: Elvis Aaron Presley

Influence upon employment

1980: 500 people lived as full-time as Elvis impersonators 2000: 35.000 people 2020: 2/3 of the global workforce
Source: Discovery TV-channel 2002.
www.kulkom.dk 2007

To express oneself and seek experiences is a basic human need. Art and experience has always been around
What is new is that it plays such a big role in our everyday life and in the global economy of the 21st century. This is caused by:

Welfare (Maslows pyramid reversed) Individualism Loss of identity Technology and new opportunities Immateriality
www.kulkom.dk 2007

Manufacturing Workplaces
USA -11% (22 million workplaces) Brazil 20% Japan 16% China 15%
Source: Robert B. Reich, Newsweek December 2005.

Denmark: 58 automated machines per 1000 employees in the industry. Germany: 162 In 1950: 208.000 farms in DK. In 2005: 25.000. In 2015: 8.000. In 1980: approx. 650.000 industrial sector workplaces. In 2005: 350.000. In 1980: 1 billion in the global labour market. In 2006: 4 billion .
www.kulkom.dk 2007

Knowledge workplaces
The 450 most research-intensive entreprises in the EU:
2006: 81.6% of research budgets are used within the EU 2007: 68.5% Source. EU-Commission, RTD 2006.

Explicit and codified knowledge is copied and moves on Our hidden and cultural knowledge and ability to combine creatively
China, India & Pakistan: 800,000 engineers yearly. Denmark: 2.000. SAS, NOVO, B&O, Vestas, Skype: sourcing of research and development functions
www.kulkom.dk 2007

The service sector

The number of service jobs is increasing. They are just not the most valuable jobs for society: Service jobs are generally local, a haircut from our neighbour. Earning and value creation per employee is low We are getting older and there are less people to support and provide services. In 20 years all service will be either automated or themed
Rolf Jensen, researcher of future tendencies
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Scandinavian Design!!

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From Made in China to Designed in China

China wants to move up the value chain and earn more by producing 450 schools of design 20.000 industrial designers each year
When they first begin to understand the entire value chain and the relationship between the physical product, training, service, support, and the application and opportunity for combinations, then a whole new world will emerge
www.kulkom.dk 2007

The ill man of the world: Europe

Average age, all population

1950: 28,6 1990: 34,4 2005: 39,3 2020: 43,8 2040: 49,3 2050: 51,1

A demographic earthquake arriving CHINA 2024:

58% population: 40+ years

75% of all families: no kids.

What kind of cities, product and cultural experience will be needed in such an Europe?
Source: OECD 2005
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Is Armagedon near then.??

Jobs in production are disappearing
Knowledge-based jobs are disappearing Service sector jobs are local and earn too little

We are getting older and there are fewer to work

They will steal the physical design in a short time What will we make a living from?? Where and how will municipalities create growth?
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Where is peak growth and spenditure?

Culture and leisure Total consumption

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The original and unique.

The copyright businesses 11% of the jobs in the private sector 17% of the growth in value!
Source: Mapping of the Danish Copyright Sectors ImagineCBS, 2006

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The global work force

Local: Growth creation and tax base
Symbol analysts Manufacturing workers Service sector workers
Newsweek: 2006 Issues, Dec. 2005. Robert B. Reich Symbol analysts now comprises more than 20% of the workforce in the Western world. The USA controls 80% of all wealth and prosperity.

What is the composition of residents and businesses in your town? Who should one build and plan for?
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Technology & The Experience Economy

Which is hen and which is egg? VHS & BETA New technologies increase the exploitation of contents and change market structures
(MPEG3, Skype, Kazaa )

Integration of IT, media, content and devices (pervasive computing) 2007 www.kulkom.dk

Cars a piece of software on wheels

SAAB: Direct from the Experience Economy in Trollhttan Volvo: We sell dreams to the man Experiences and dreams move into the industry.
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..and return
From industry to experience and city identity

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The Factory has:

Development labratory Customer centre with tailor-made products Exhibition halls Car museum Garden and park Theme park for children Ritz-Carlton Hotel

It is a way to show the companys heart and soul. We want Autostadt to function as VWs platform for service and communication. Otto Ferdinand Sachs

2.5 million visitors each year!

Director in Autostadt

Volkswagen Autostadt, Wolfsburg (2000)

(Architect: Gunther Henn, Henn Architechturen Ingenieure)

What are consumer and citizen demands?

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Pampering Identity Escape & Fantasy Influence

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Luxury

Luxury items:
New Luxury: 25% of combined turnover today, and grows at a yearly rate of 15%.
Premium Priced Brands Line Extensions Prestige Mass Consumption Products
Source: Boston Consulting Group Living Large on 150$ a Day, 2005 www.kulkom.dk 2007

Paradox:

discount - and luxury.

TVs: Hotels: Retail:

medium range products 40%, luxury & brand name goods +33%, discount +7% medium range 15%, luxury & discount +15% supermarkets 25%, discount chains +30%
www.kulkom.dk 2007 Source: Boston Consulting Group 2005.

Differentiation and identity are key words

The products represent our dreams about being different from who we are.
www.kulkom.dk 2007

Identity: you are what you buy.

Young: brand clothing, shoes, mobile telephone, cafe, pub or club, music festivals, iPod, music, sushi, shawarma or McDonalds? Adults: boat, car, home: extensions, sun room, outdoor kitchen, spa. Travel and experiences, luxury goods.
Lifestyle Personal branding F-luxus Trophy-children

Why?
Seized time and space Outsourced social functions Reflexibility as principle
Anthony Giddens,Self-identity & Modernity.

We live in short-term, function-determined communities.

The Family The friends The work place The Internet
ProfessorJohannes Andersen, Aalborg Universitet

Mor og barn
Mother & Daughter. Age difference: 61 years.

www.kulkom.dk 2007

Fantasy and Identity: who am I?

12% of youth 12-20 years: have participated in role-play games (outdoors or in the forest) 16%: hard-core on-line gamers (World of Warcraft, etc.)

22% of all hard-core on-line gamers in cyberspace say that their virtual identity is more important than their real one.
The Burning Crusade: A global community of 7.6 million. Second Life: Linden dollars. Tax object. Kristian Juran.

The Virtual Economy: houses, weapons, ranks are traded into hard currency. Death and criminality.

Ordinary people have dreams too.

The Dream world Dream cities

In 1998 if one asked the English where they dreamed of living 84% answered: in a small (town) community with fresh air, good neighbours, close-knit and friendly.. Butonly 4% of English people lived like this.

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JAKRIBORG the dream of living in a 16.th century Hansa-town

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The Dream world Dream cities

People dream of small communities with good quality of life and a close-knit environment. But dont do anything about it.

Can your town or centre help fulfil the dream?

The big migrations

From rural to city
Industrialisation 1850-1950

From city to suburbs

Service and Information Society 1960-2000

From city and suburbs back to the country

Knowledge, Creative and Experience Society
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Micropolis, Agurbs and Exurbs

US Statistical Dept. new category:

Micropolis Areas
- Less than 50,000 citizens in the largest city. - Growth of min. 2% in population, work places and average income per year.
25% of all new jobs in USA (18 mill.) created between 2000-2004 were in Micropolis Areas.
Jack Schultz, Boomtown USA, 2005.
www.kulkom.dk 2007

New micro identities new possible strategies and futures for peripheral municipalities?
Micropolis the city, that builds upon its agrarian roots, values and sense of

community, but has embraced new technology, knowledge, and creativity in a modern life and work form. There arises creative or high-technological clusters in small cities.

Agurben instead of suburban there arises agurben, which feed on the city and have
multiple relations with it in terms of education, cooperation and work places, but holds its village identity and values.

The villages return the village as a lifestyle heading towards a renascence

because the big city is too expensive, and is losing its ability to connect and keep together? The technological developments make it possible to be separated by great distances without missing out because we are:

Always together beautiful pictures always updated.

www.kulkom.dk 2007

Why?

End of Mankinds Grand Narratives

The First Grand Narratives
Nature, creation, religion. Up until 1500s. Experienced in scale 1:1 and realtime. Narrators: Shamans and priests A detour to The Renaissance 1200-1500

Next generation of Mankinds Grand Narratives: The Grand Logics

The nature scientists, technologies, ideologies. From 1500 - approx. 2000. Experiences at distances, in scales and asynchronous.

Fortllere
Galilei, Darwin, Newton, Marx, Keynes, Smith, Einstein, Bohr, Hitler, Bill Gates, Gorbatjov, Fidel Castro.

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The third generation of narratives

Meta-narratives. Narratives that provide identity and can be created and changed by ourselves. Narrators: ourselves Signs: We design our houses, bodies, relations, experiences, and will have unique limited edition products and services Life has become a meta-narrative and each person is the scriptwriter, director, scenographer and main character.

All possible Scales, quante perspectives Asynchronous, polyrhythmic Secularised, Atomized Broadband

Web 2.0 A third generation narrative

Starts in the private sphere blogs Myspace, flickr, wikipedia, youtube up-loads closing in on down-loads

Wikinomics
Loss of control,

appearance of loyal consumers who have a say

Open source A scary thought for owners of rights?! And city planners??
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City narratives
Florence is The Renaissance city. Rome the antique. Wien has Mozart, Salzburg has a music and
drama festival and Wagner. H.C. Andersen was born in Odense. The Painters lived in Skagen. In Granada there is Alhambra. Sydney and the Opera House. We get steel from Sheffield, VW cars from Wolfsburg, watches from Switzerland and bacon from Denmark. Hirtshals is a fishing town. On Svalbard there are polar bears. The stork is from Ribe.

Jazz is played in New Orleans. There is a music festival in Roskilde. Kassel has Documenta, Venice the Biennale and a film festival. Bornholm is a handcrafts island. In Glasriket in Sweden there lives glass-blowers. Esbjerg smells of fish. Dinners come from Faaborg.
In Las Vegas you play poker. Near the town Skara, in Sweden, Jan Guillous The Knights Templar rode out. In Ystad solves Henning Mankells inspector Wallander crimes. The Winter Olympics were in Lillehammer. The train accident in Bramming. Tsunami in Aceh. R.E.M. come from Atlanta, Georgia. U2 from Dublin. Elvis lived in Memphis. In Slagelse they have Anja. Allan Olsen is from Frederikshavn. Amanda is from Kerteminde. New York has everything and everyone..
www.kulkom.dk 2007

Which narrative is your town or neighbourhood creating? Pixi book? A Grand Story? Third generation narrative.

The Experience Economys key words

Differentiation: Identity & values, individualisation Experiences: Content, dream, fantasy, variation

Influence: Self-determination & open codes

Social capital: Community & network, as well as virtual - and for the development of the city! And the region.
www.kulkom.dk 2007

Urban Development..
The challenge changes
The cities will

Create identity, give space for fantasy and dreams Invite relations and community. Increase the social capital Have a framework so that self-realisation can express itself Be experience-filled and instructive

This involves architecture and plans and many other things..

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Are developers:
Fantasy promoters & dream interpreters? Identity creators? Experience and expression designers? Network and relations creators? Innovation engines?

- Less can also do it.

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Island of flashing lights.

Population decreasing (50,000 to 43,000)

Aging population Low educational level of the work force Low income and low average wage level Loss of work places Fisheries are gone hits suppliers Accessibility ocean experienced as barrier What to do?? Blame it on the ferries!!

Bornholm 30 x 30 km 43.000 inhabitants 21.000 work places Tourism biggest private sector

www.kulkom.dk 2007

Bornholm is a amalgamated child

5 municipalities One county Amalgamated to one regional municipality in 2001. If the new, amalgamated municipalities dont adequately tackle identity and community, then theyll lose opportunities for growth of effectiveness.

2006:
Deficit in municipal budget of 150 million kr.
The public sector is bigger than in rest of Denmark

www.kulkom.dk 2007

The assignment:
To contribute to growth and employment To develop strategies and proposals as to how Bornholm can take advantage of culture and the Experience Economy To create networks and ownership

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3%

Primre erhverv Nrings/nydelsesmiddel Byggeri, Finans og forsikring og Industri mv. Engroshandel Detailhandel

Top 3:
1. Private service 2. Hotels, hostels, etc 3. Retail 4. Public service 5. Transport
24% 7% 6%

2% 4% 3% 15%

Overnatningssteder Restauranter Transport

6. Entertainment/ 7% 9% museums/sport Procentvisfordeling af vrditilvksten

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20%

Privat service Offentlig service Forlystelser/museer/sport

De kreative brancher Virksomhedsetableringer

100 80 98 53 67

Antal

60 40 20 0 5 18 14 26

41

Periode

Udviklingen i virksomhedsetableringer i de kreative brancher

Kunst Musik Radio/TV+Film/Video Forlagsvirksomhed Sport Arkitektur og design Reklame og fotografer Indholdsproduktion Kulturinstitutioner Fritid og sundhed Kunsthndvrk

70

75

80

85

90

95

00

19

-1 9

-1 9

-1 9

-1 9

-1 9

-2 0

<

70

76

81

86

91

96

19

19

19

19

19

19

30 25

Top 3:
2. Handicrafts 3. Sport

Antal

20 15 10 5 0

1. Leisure & health

70

75

80

20

01

85

-2 0

05

90

95

00

19

19

19

19

19

19

20

70 -

76 -

81 -

86 -

91 -

96 -

19

19

19

19

19

19

Periode

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20

01 -

<

20

05

Fordelingen af arbejdspladser i de kreative brancher

Kunst Musik

Top 3: 1. Radio/TV + Film/Video 2. Cultural institutions 3. Handicrafts

15% 16%

2% 1% 21%

580 total work places More than fishing and agriculture, approx. same as 1% metal.

Radio/TV+Film/Video Forlagsvirksomhed Sport Arkitektur, design og formgivning Reklame og fotografer Indholdsproduktion

12% 17% 7%

Kulturinstitutioner Fritid og sundhed Kunsthndvrk

0% 8%

www.kulkom.dk 2007

Which industry is the most important?

Big GROWING Growth in the industry STRONG

POTENTIAL

Small

Size of industry

Big

After HUR Experience Economy a growth area for the Capital Region.

www.kulkom.dk 2007

Bornholm and the Experience Economy

Share of private employment in Experience Economy is 24% on Bornholm versus 12% in rest of the country The creative businesses have a very high rate of entrepreneurship (leisure, sport and health are highest) Tourism displays highest growth increases in private service (largest indicator of Experience Economy)

Progress for food industrys growth in value largely in the smaller creative producers
Highest number of craftsmen per km2 on Bornholm
www.kulkom.dk 2007

Global Trend
(Da Vinci, the Knights Templar, Fantasy in general)

The reality
Film: The Lost Treasure of the Knights Templar, filmed on Bornholm

Local history
The Round Churches, local books and research

Institutions
Bornholms Middle Ages Centre, forest district, churches

Treasure hunt on the entire island exhibition and finals at Middle Ages Centre. Family and experience tourism www.kulkom.dk 2007

Business tourism

Low season
Meetings

Incentives
Congresses Experiences

Focus on content over framework.

Content creators & framework owners
www.kulkom.dk 2007

Metal & machinery industry on Bornholm

3 global businesses, 1 market leader
33 small and medium sized businesses, 2-20 employees Work force: 651 men, majority trained and educated as blacksmiths, mechanics, etc. Businesses: family-owned and owner managed
www.kulkom.dk 2007

Characteristics
Workshops that build individual solutions Educated work force, non-specialized

Industrialisation has partially circumvented Bornholm

Quality blacksmith craftsmanship survives on Bornholm

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New market
Individualisation Immaterial Welfare Altered consumer behaviour and demand The staged home and home office

The return of steel and polished surfaces for in the kitchen

From custom made to customer designed
www.kulkom.dk 2007

Blue Ocean Strategy, introduction to new thoughts and models

Flemming Madsen Kultur & Kommunikation

www.kulkom.dk 2007

It can also be said a little more simply

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Metal clusters
Cooperation with Danish designers
Technological Institute, Ris Product development own products and selection Last phase: shared marketing and branding Bornholm Blacksmiths individual solutions for your home. www.kulkom.dk 2007

The regions competitivenes

Growth sources and per4mance

Human resources Entrepreneurship Innovation ICT

Framework requirements & accomplishments

Educational institutions Attractiveness Accessibility Business service Entrepreneurial spirit Venture capital Interaction with knowledge institutions Risk capital Competences IT-competencies Residents IT-use Digital administration

The Regional competitivenes model. OECD/Business and Development Board 2005. www.kulkom.dk 2007

The regions competitivenes

Growth sources and per4mance

Human Entrepreneurship Innovation resources ICT Creativity Social Capital

Framework requirements & accomplishments

Educational institutions Attractiveness Accessibility

Business service Entrepreneurial spirit Venture capital

Interaction with research businesses Risk capital Competences

IT-competence Residents & businesses IT-use Digital administration

Institutions Symbol analysts Education Businesses Network, relations & confidence

Addition: Creativity , Kultur & Kommunikation. www.kulkom.dk 2007

The municipality's
creative and social framework
Institutions. Library, Music school, Community centre, Sports facilities, Museum People. Artists, innovators and engaged. Symbol analysis's and experts. The Social capital. Clubs and associations. Voluntary work. Networks Businesses. Innovative & knowledge-intensive industries + national
www.kulkom.dk 2007

The Municipal Creative Framework

Necessary in order to drive innovation in the experience society

Necessary so that the region can reach its strategic goals

Settlement and population Business development Tourism
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Challenge of the municipalityI

To build upon its roots and renew its identity To embrace globalisation, new cultures, values and opportunities To seize its spot within the region(s) To develop knowledge, arts, culture and Experience Economy
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Challenge of the municipality II

To place its creative framework requirements in a growth perspective To involve residents, businesses and grass root organisations

Network city with a good narrative? Micropolis or Agurb? A bridged municipality?

www.kulkom.dk 2007

Challenge of the cultural centrers

Take control
Numbers, key figures, growth strategies

Documentate and re-position

Go outside yourself Create new pictures Create new alliances

Position yourself in the growth strategies as centre Take responsibility

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Museum, Music school, Community Centre & library Local Institutional Creative Framework Requirements

The cultural institutions role are changing. Content and experience provider. Generator of Social Capital and processes. Centre of aesthetic expertise and cultural knowledge. (which is needed by Corporate Sectors) www.kulkom.dk 2007

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If
you accept the logic of the Experience Economy
- The free arts and culture are basic research.

- Research is a precondition to create something unique & valuable - you must invest more in research (Lissabon agreement)
Municipalities have the key to some of the creative www.kulkom.dk 2007 framework requirements.

May the innovation find you all Thank you for your time Flemming Madsen www.kulkom.dk

The municipal sports facility Creative framework conditions

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In the Capital Region

Helsingr Gribskov Frederiksvrk-Hundested Hillerd Ballerup Herlev Frederiksberg Albertslund Roskilde - Bornholm

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Working with
Employee training

I Hovedstadsomrdet

Focus Areas: Sports Facilities, Culture-Business, Identity, Children & Youth

Knowledge partners:
CBS AKF Roskilde Universitetscenter [Rosilde University] Danmarks Biblioteksskole [Denmarks Library School] Center for Regional og Turismeforskning [Centre for Regional and Tourism Research] Rambll Management Mercuri Urval Holstein Knowledge partners pay to participate. Why? Agenda and participant groups.
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