1. Rationale & Overview 31 March 2010

2.  Development of the Digital Derry Strategy was funded through Promoting Innovation in the Knowledge Economy (PIKE).  The PIKE project is co-financed by:

3.  Introduction  The Creative Digital Content Sector  The Sector in Derry~Londonderry  The Digital Derry Strategy ◦ 4 Key Aims  Raising Awareness of the Sector  Local Initiatives to Support Business Growth  Animating Digital Content Networks  Raising the Profile of the Sector in the City ◦ Governance of the Digital Derry Strategy ◦ Action Plan

4.  Derry is a City with an international reputation for creativity, as evidenced by the fame of its poets, musicians, writers and performers  Nowadays most creative content is delivered by digital media, making it available to a global audience  In addition, new digital media open up new forms of creative expression, such as games, multimedia & e-learning  Londonderry Chamber of Commerce identified the as a priority area for development  The Digital Derry Strategy was developed by a Steering Group consisting of Derry City Council, Ilex, the Chamber of Commerce, Seagate, the University of Ulster, the North West Regional College, NORIBIC, the Nerve Centre and Digital Circle

5.  Creative Industries in Northern Ireland employ 34,600 people – 4% of our workforce  The creative industries can be broken down as follows ◦ Creative service providers - advertising, architecture and design ◦ Creative experience providers - such as theatre, opera and dance and live music promoters ◦ Creative originals producers craft- makers, visual artists, & ◦ Creative content producers - film and television companies, computer and video games development, publishers  Our interest is in the creative content products, where they are delivered by digital means  Invest NI has produced a Digital Content Strategy for Northern Ireland which gives priority to development in ◦ Digital Animation ◦ Mobile and Web Content ◦ E-Learning & Serious Gaming ◦ Film & Television, and ◦ Music  The Digital Derry Strategy can complement the work of the Northern Ireland Digital Content Strategy

7.  The ICT Sector ◦ much wider in scope but shares many of the generic and specific skills required by the digital and creative digital content sectors.  Knowledge Based Businesses ◦ The Digital Sector, including the Creative Digital Content Sector, is part of a wider category, that of Knowledge Based Businesses  The Digital Sector ◦ concerned with products and services delivered in a digital format.  The Creative Digital Content Sector ◦ most closely aligned with digital media and producing products and services such as games, multi-media and broadcasting and e-learning

8.  ICT Sector  Digital Sector  Creative Digital Sector  ICT Sector ◦ Group of local and inward investment companies  Digital Sector ◦ More specialised ◦ £30 – 35 million turnover ◦ Mainly younger local companies, some serving a world market  Creative Digital Sector ◦ Small number of leading companies serving world markets ◦ Larger ‘tail’ of small companies serving mainly local markets but with potential to grow

9.  The firms in the City have major opportunities to grow and to tackle international markets  However, they also expressed a number of concerns ◦ Recruitment  This is a consistent difficulty for the businesses  Firms find that recent graduates lack both depth of knowledge and usable skills  Recruitment difficulties have led some locally owned firms to set up satellite operations in other countries  There is a perceived loss of local talent to larger cities  There was interest in using Derry’s Diaspora networks to recruit experienced staff ◦ Business Support  Businesses lacked awareness of the range of business support available in the City  Or regarded it as not relevant to their needs  The various business support initiatives were seen as being in competition with each other, rather than working together to create a coherent structure of support  Businesses wanted to see ◦ Animation of local networks in the digital sector ◦ Making connections both between local businesses and between local businesses and the support network, and ◦ A confident presentation of the City’s offering and competence in this sector in wider markets.

10.  Wide range of InvestNI and other regional supports available to all appropriate firms in Northern Ireland  Support to sector in the City Includes ◦ UU Magee  Intelligent Systems Research Centre  School of Creative Arts  Office of Innovation ◦ NWRC  Over 750 music, media, performing arts & gaming students  Record of Innovation  Active outreach to local businesses ◦ NORIBIC  Wide range of programme provision over many years  Digital Media Works Incubator  Launching Creative Arc seminars ◦ Nerve Centre  Award winning multimedia and broadcast arts venue  Range of NVQ courses in film, music, web design & production  Over 150 students in training courses  Associated flexible work units at Magazine Studios  Taking account of provision at Letterkenny Institute of Technology over 1000 students are being trained in subjects relevant to the creative and digital industries in the North West

11.  Additional Support Opportunities ◦ PIKE – Promoting Innovation in the Knowledge Economy - In the course of 2010 Derry City Council and its partners in Ireland, Spain, the Czech Republic, Bulgaria, Greece, Italy and Sweden will be developing their proposals for the future of the PIKE Network and one possibility is that it will be possible to move it from cooperation principally between civic partners to a cooperation initiative which also opens up the opportunity for digital content businesses in each region to network and cooperate with each other ◦ Ilex’s proposed Innovation Hub, to be located at the Fort George site, will provide a flagship for innovation in the North West, linked also to Letterkenny, and will demonstrate the commitment of Derry and the wider North West to investment in innovation and business growth ◦ Project Kelvin will become the centrepiece of a major promotional campaign for inward investment to Derry and the North West and this will, in turn, widen the business opportunities available to digital and creative businesses in the region.  No other part of Northern Ireland has this volume and range of business support services on offer to the digital and creative industries, to complement the range of regional services offered by Invest NI.  However, despite this range of supports most of the businesses felt disconnected from the local support structures which they found confusing, un-coordinated and which most of them perceived to be not relevant to their particular needs.  The businesses also felt that they had little in common with other local businesses in the sector and were seeking their own solutions to the problems they were experiencing, instead of acting in concert with other local businesses and with the support structures in the area.

12.  A great deal has been written about the role of business clusters in embedding growth processes in a region.  One recent treatment of the subject was provided by the Matrix ICT Report to DETI  Currently the digital and creative content sectors in Derry are at Step 1 in the process of cluster development, with some firms beginning to move towards Step 2.  The aim of the Digital Derry Strategy is to move to Steps 3 and 4

14.  A digital city strategy must fit in with regional and national strategies ◦ Complementing, not competing with  Northern Ireland Digital Content Strategy  Digital Circle  NISP Connect etc.  A digital city strategy must address those issues which can be addressed at local levels ◦ Much of the debate about digital creative industries occurs at the level of national government and inter-governmental action,  Enforcement of intellectual property rights, broadcasting regimes  A digital city strategy must address those businesses in the City (& region) which don’t (yet) qualify for Invest NI and other regional supports ◦ Primary focus will, therefore, be on young, nascent businesses with growth potential  But these businesses need to be addressed in the context of the wider sector in the North West  A digital city strategy must also find roles for traditional businesses, public sector etc. which are essential in growing a local market and presenting a consistent image ◦ E.g., Derry City Council and Ilex, DVCB, Chamber of Commerce etc.

15.  Raise awareness of & the visibility of the digital content sector in the North West  Develop local initiatives to support business growth  Animate digital content networks in the North West  Raise the profile of the digital content sector in the North West

16.  Create a Digital Action Team, to provide private and public sector leadership for the Strategy  Appoint a Digital Champion for the City, and  Appoint an international Digital Ambassador for the City  Run the Digital Derry Action Plan for a two year period and evaluate the results  Consider in the longer term the provision of a creative industries shop window in the City

17.  We will raise awareness of the digital content sector in the City by ◦ Developing an on-line information source about the sector in the City ◦ Profiling digital businesses in the City, both on-line and in traditional media ◦ Monitoring and reporting on the growth of the sector ◦ Working with schools and colleges to spread awareness of employment and other opportunities in the digital sector in the City

18.  We will support growth of local digital businesses by ◦ Running an annual £15,000 business plan competition for the best plans for digital businesses from a University or College in the North West or from those from the North West who are attending a University or College elsewhere ◦ Running a peer mentoring initiative under which those who have already started a successful digital business will provide informal business advice and support to those who are just starting up their businesses or who are in the early trading period ◦ Running a schools competition for the best digital business ideas coming from schools or school pupils in the North West

19.  Develop digital business networks in the City and the North West by ◦ Organizing a range of business networking events ◦ Promoting more widely the events which others hold in the North West ◦ Filling gaps in the existing provision of information and networking

20.  We will raise the profile of Derry’s digital sector by ◦ Taking Derry’s offering to regional, national and international markets ◦ Hosting Northern Ireland wide and Ireland wide events in Derry ◦ Working to create a deal flow for business angels, venture capitalists and professional advisers to digital businesses ◦ Providing a source of information on Derry’s digital sector, and ◦ Working with others to promote and realize the potential of Project Kelvin.

21.  Digital Action Team will lead the strategy’s implementation ◦ Private sector leadership, strong public sector support ◦ Londonderry Chamber of Commerce will act as employer of Digital Champion and Digital Ambassador  As a distinctive part of the Chamber’s wider work  The Digital Champion will be recruited beginning in April & the Strategy will be fully operational by June  Derry City Council will consider an application to fund the Digital Derry Strategy ◦ Two year costs are estimated to be of the order of £140 – 150,000 ◦ The Council has sought EU support towards these costs