Internal and external dynamics of the Munich film and TV industry cluster, and limitations to future growth

This analysis uses the case of a seemingly successful industry cluster (ie the film and TV industry in Munich) to demonstrate that deficits in the structure of social relations can impact a cluster's growth potential. In the period after World War II, Munich grew into a national centre of media industries in Germany due to the introduction of private/commercial TV, national entry barriers, and a supportive institutional infrastructure. The recent advertising crisis and the dissolution of the Kirch Group have, however, reinforced already existing internal dilemmas and contradictions. We suggest that the growth prospects of this industry are limited due to a lack of reflexive, interconnected communication and interaction patterns. In conceptual terms, we apply a model which emphasizes that local interaction or 'buzz' in clusters and interaction with external firms and markets through translocal or global 'pipelines' create reflexive dynamics. Based on this conception, participatory observation and semistructured interviews were conducted with sixty-five Munich firms, as well as with planners and media experts from the region. The results indicate that the regional, national, and occasional international project networks have had a smaller impact on the Munich film and TV industry than expected. Our investigation provides evidence that the cluster's structure of social relations is relatively weak. Internal networks which could drive creative recombination and innovation are underdeveloped, and linkages with external markets which could provide substantial growth impulses to the region are lacking. We argue that this structural weakness limits the potential for future growth.