The Re-emergence of a Media Industry Cluster in Leipzig

Harald Bathelt

European Planning Studies, 2002, vol. 10, issue 5, 583-611

Abstract: This paper begins with the proposition that an analysis of the potentialities of industrial networks has to consider the wider context of the social organization of production. Recent work on industrial clustering has shown that successful clusters are embedded in tight networks of social relations between suppliers, producers, customers and institutions. Localized capabilities, such as specialized resources and skills, conventions and other local institutional structures, provide the basis for inter-firm cooperation. Based on Malmberg and Maskell's (2001) conceptualization of localized industrial clusters, I discuss the horizontal, vertical and institutional cluster dimensions as a basis for empirical analysis. In addition, attention will be drawn to the external dimension and power relations of a cluster which have a strong impact on its growth trajectory. This conceptualization is used as a basis for studying the new Leipzig media industry cluster. Leipzig, which is located in the Neue Länder (States of the former German Democratic Republic), has traditionally been a major centre of industrial production in Germany. After the German unification, a significant proportion of Leipzig's manufacturing activities were terminated or downsized. Interestingly, a new media cluster has developed during the 1990s, driven by the activities of the MDR (Middle German Television and Broadcasting Service). This has stimulated substantial start-up activities in branches of the media industry, such as film/TV production, new electronic services/interactive media, graphics/design, PR/marketing and media-related hardware/software. Being virtually the only sector which has grown in recent years, the media sector has stabilized the local economy. In this paper, I investigate those forces which have supported start-up and location decisions of media firms and the role of local institutions and policy programmes in the clustering process.

Date: 2002
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DOI: 10.1080/09654310220145341

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