By Ulrich Harmes-Liedtke & Nadine Barthel, presented at the 18th TCI Global Conference, Daegu, 2015.

1. Incentives and Support Policies for
the Video Game Industry and
Clusters in selected Countries
Ulrich Harmes-Liedtke & Nadine Barthel
Parallel Session 1.3: Shaping Creative Economy through Clusters

2. Incentives and Support Policies for the Video Game Industry and
Clusters in selected Countries
November 4th, 2015
Daegu, Corea

3. Introduction and Background
Successful Games Clusters around the world: Case Canada – Quebec
Global Games Industry
Recommended Instruments for Successful Games Clusters’ Development
Your Questions!
Agenda
Incentives and Support Policies for the Video Game Industry and Clusters in selected Countries
Emerging Games Clusters around the world: Spain - Catalonia

4. Introduction and Background
Global Benchmark Study commissioned by GIZ (German International
Development Agency)
Analysis of selected countries
Strategic approach on incentives and promotion policies for the Digital
Animation and Video Games industries in Costa Rica and Guatemala,
elaborated recommendations in line with the situation of both countries
Mesopartner is a knowledge firm specialised in territorial development,
competitiveness and innovation. Our strategic intent is to be globally
acknowledged as an innovator in territorial development, partnering with
strategic customers and associates through capacity building and
coaching, as well as programme design, method and tool development
and capture, knowledge management, and problem solving.
Incentives and Support Policies for the Video Game Industry and Clusters in selected Countries

5. Introduction and Background
Incentives and Support Policies for the Video Game Industry and Clusters in selected Countries

6. Global Games Industry
2014 Globally 81,5 Billion US Dollar Revenues,
27 percent are generated by Mobile Games
Asian Pacific Region has strongest revenues
Incentives and Support Policies for the Video Game Industry and Clusters in selected Countries
2015 Prognosis – Revenues by Global Regions
Source: Newzoo
2015 Prognosis – Revenues by Screen
Source: Newzoo

7. Virtual Reality
Incentives and Support Policies for the Video Game Industry and Clusters in selected Countries
Gamification and Cross innovation
E-Sports
Gaming Platforms
Mobile Games
AAA title
incl. various in-game services
Global Games Industry
Current Developments and Trends

8. Statistics
• 1,8 Billion Dollars revenues estimated for sales in 2015 the Canadian games market ranks number 8 in the world. 329 video
games companies directly employed 16.500 people.
• Quebec is now home to almost 100 games businesses the majority of them (91) comprises SMEs with less than 500
employees, almost two third work with even less than 5 team members. Yearly spendings for Video Games in Quebec
comprise 741 Million Dollar
Major Incentives
• Tax credit scheme since 1996 and now hosting the largest games companies in Canada.
• Attracted the French Ubisoft to the region and thus leveraged a long term growth
• The Ubisoft targeting incentive was soon redesigned and implemented for the overall entertainment software industry and
supported the growth of the local industry enormously.
Vivid Games Cluster
• Mixture of SMEs and Big Corporates
• Strong presence and collaboration / spill over effects with digital visual media sectors - film, CGI and VFX
• Technological conversion between film and games boosted innovation vice versa caused further economic growth
• Strong university landscape and interlinkages and highly skilled and creative workforce through long term governmental
engagement and support for post-secondary education
• Suitable basis for new high tech concepts such as VR - as talents and infrastructure already exist on a high quality level
• Large investments – mainly by international players – stimulate job market
Incentives and Support Policies for the Video Game Industry and Clusters in selected Countries
Successful Games Clusters around the world:
Case Canada – Quebec

9. Statistics
• 400 Spanish games businesses generated sales revenues of 1,55 Billion Dollar in 2014 and employed about 3500 people.
Experts estimate a growth of 2% in 2015 Spain represents the 4th biggest sales market in Europe with about 19,5 million
gamers in the country in 2014.
• Catalonia is now home to almost 100 games businesses Yearly Revenues (2010) for Video Games in Catalonia comprise 136
Million Euro.
Major Incentives
• 2015: programme for refundable grants targeting the development, production, editing, distribution, marketing or distributing
video games
• Games BCN is the videogame incubator in Barcelona created to support developer teams mainly coming from university to
successfully establish a games business
New Coalitions
• Need for talents and investments enabled strong collaboration between local government and promotion agencies and
sectors:
• Reduce gap between the training results and skills demand by videogames companies by promoting a debate between
industry and university and the development of suitable training programmes.
• Supportive investor readiness programmes and providing public guarantees enhanced region’s attractiveness for
international investments.
Incentives and Support Policies for the Video Game Industry and Clusters in selected Countries
Successful Games Clusters around the world:
Case Spain – Catalonia

10. Establish and support co-working spaces, accelerators and incubators -> e.g. Gameslab BCN
-> Promote local innovation communities and collaborative creative development
> Accelerate for growth and enable investments
Gain greater visibility of companies and products in the domestic and international markets -> e.g. Eye on Canada
-> Promote internationalisations and research partnerships to enhance innovation capacity
> Support access to markets and improve competiveness
Understand and visualise the sector with reliable statistical data
-> supports profound and strategic development of industry promotion policies that meets the sectors
demands and requirements.
-> sector is enabled to market the companies to local and international partners – for trading, cooperation,
distribution etc.
-> evaluates the different promotion opportunities for businesses critically and provides advisory concerning
design of effective funding policies.
Incentives and Support Policies for the Video Game Industry and Clusters in selected Countries
Recommended Instruments for Successful
Games Clusters’ Development
Best Fit – interactive process, has to be designed as mutual learning reflexive process, feedback loops
Align recommendations with local players and contexts
Learnings need to be transferred into regional local context

11. Establish tax credit scheme for labour costs -> Quebec Production of Multimedia Titles Tax Credit
-> Lower employment costs support employers in scaling their workforce
-> Enhances the job market by stronger competition
-> Attracts international companies to establish businesses
Provide specific financial instruments that meet sector’s requirements -> - Repayable grants ICEC Catalonia, Experimental
Stream Canada Media Fund
-> Encourages the development of innovative, interactive digital media content and software applications
-> Enables innovation and growth during finance gaps
Establish university degrees and training programmes in close alignment with sector -> LaSall University in BCN
-> Enhance employment especially amongst youth
-> i#Improve knowledge transfer and enhance innovation capacity
-> Meet industry’s demand for talents
Incentives and Support Policies for the Video Game Industry and Clusters in selected Countries
Recommended Instruments for Successful
Games Clusters’ Development

12. THANK YOU!
Dr Ulrich Harmes-Liedtke
uhl@mesopartner.com
GSM (+54 9 11) 5174 1652
Skype : cheulrico
http://cheulrico.wordpress.com
https://twitter.com/cheulrico
www.mesopartner.com
Nadine Barthel
Berlin | Germany
nadine.barthel@gmx.net
T + 49178 899 23 93
Skype : nadine_bunt
Incentives and Support Policies for the Video Game Industry and Clusters in selected Countries