Industrial policy in the global media economy

Japan and Singapore are examples of nations that have had highly interventionist industrial policies and industry support through the second half of the twentieth century, with great success. However once economies become developed, the key issues are far less about manufacturing prowess. Today the buzzwords in national economic development are knowledge, creativity, media, content, entertainment, design, and the like. All of these flow easily across boundaries. Moreover, the educational and social structures required to support them are dramatically different to those that support the creation of an industrial and manufacturing powerhouse.

When I was in Singapore this Monday I met with the Media Development Authority, a government agency devoted to building Singapore’s capabilities in the media and content space. Among other activities, it actively encourages interactive media companies, gaming ventures, and content development. Initiatives include media education, supporting PC games, and developing a research ecosystem .

Part of the question for any nation is the degree to which value created is likely to stay within the country. Talented people will come and go as they find better opportunities. As the configuration of value creation shifts across the media and content industries, some positions rapidly become commoditized. For example, the computer generated animation market has significantly shifted out of LA to low cost centers in Asia, and could move on to other locations. There are major risks to trying to keep activity such as content creation within national boundaries, as this stymies the collaboration that the best work originates from.

The issue of how countries can support productive media activity is something I will spend considerably more time on over the next years, as this is one of the fundamental drivers of national economic success.