rfcd 2011: andrew crawford: cluster development costa rica

COSTA RICACluster DevelopmentCluster Development

Topics

• Cluster Development Background

Trade & Economics• Trade & Economics

• Costa Rica Animation Holding

•Questions & Answers

Background-1990´s

Increase Foreign Trade Participation

FDI Incentives

Linking MultinationalsLinking Multinationalswith Small & Medium

Enterprises

Background

• Latin American Industriesstarted to source ICT solutionsamong different countriesamong different countries

• Y2K panic demanded a greatY2K panic demanded a greatamount of new applications of software and technologies

• The internet and .comapplications derived a new set of products and solutions in crossindustriesindustries

Consensus

The right equation…g q

PROCOMER ICT Private Academia& CAMTIC Sector Academia

Multinationals

Source: BCCR

FDI Evolution

FDI Evolution (millions of US$)

20161885

2500

1411

2016

1450

1885

1500

2000

US$

794

1323

861

5751000

1500

llone

s de

659 575

500

Mil

02002 2003 2004 2005 2006 2007 2008 2009 2010

Source: BCCRSource: PROCOMER and BCCR.

An opened and diversified economyMain Exports Activities (2008) Goods and Servicesdiversified economy

GDP by industry

Tourism16% Software and IT

Other products19%

Services5%

Business ServicesServices

5%

Other Services4%

Agriculture products

4%

Electrical and electronic products

Foodstuff

15%

products22%

Medical devices7%

7%

Source: PROCOMER and BCCR.

Costa RicaAnimation Holding

C t Ri E t f S i

Animation Holding

4.096 4.1804.500

Costa Rica: Exports of Services

2 621

2.972

3.551 3.593

3.000

3.500

4.000

$

1.868 2.0212.242

2.621

2.000

2.500

3.000

llion

s of

US

$

500

1.000

1.500mi

0

500

2002 2003 2004 2005 2006 2007 2008 2009 2010

Costa RicaAnimation HoldingAnimation Holding

WHY?WHY?

• Government Assesment

• Sharing of human resources, equipment, expertise and backgrounds

• Animation Studios had a different set of capabilities

•Positive past experiences (synergies) and no issues with intellectual property

Costa RicaAnimation HoldingAnimation Holding

Costa RicaAnimation HoldingAnimation Holding

AchievementsAchievements

• International Business Plan

• Scoutings & Trade Shows

• Consolidated Catalogs (all in )

• Recent deliveries for Canada surpassedRecent deliveries for Canada surpassed local production capacity in 4 times (measured by number of scenes)

•US, Portugal, Canada, Japan & Finland

Costa RicaAnimation HoldingAnimation Holding

Costa RicaAnimation HoldingAnimation Holding

ChallengesChallenges

• Consolidate international positioning

• Existence of a comprehensive Venture Capital structure

• Availability of international pre-production projects if 20% of capital is obtained in Costa RicaRica

• Accelerate the number of grads from arts & design universitiesdesign universities.

•Expand the network of Public Adiovisual Technical CentersTechnical Centers

Costa RicaAnimation HoldingAnimation Holding

Costa RicaAnimation HoldingAnimation Holding

ThreatsThreats

• Broadband availability & government policies to address the issuepolicies to address the issue

• A Digital Animation national policy related to incentives & benefitsto incentives & benefits

• New taxation discussions

THANK YOU!THANK YOU!

Andrew Crawfordacrawford@procomer.comacrawford@procomer.com

www.procomer.comTel:809.566.6390