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Entrepreneurship, Entrepreneurship, “Experience Economy” “Experience Economy”

and Economic Developmentand Economic Development of Frederikshavn of Frederikshavn

First Year PresentationL. Carlos Freire

Dept. of Development and PlanningJune 3rd 2009

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Final Goals

For Frederikshavn

1.Analyze the entrepreneurial dynamics in the Experience Economy

2.Suggest effective economic policies

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Geographical area:

2007 Kommunalreformen merged

Frederikshavn, Skagen and Sæby 

Inhabitants 62.525 (2009)

.

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Problems of the Municipality

• Periphery

• Frederikshavn city “boomed” when the train arrived there in 1871. The industrial era is bygone.

• Population decreasing since the 1980’s

• 1999 shipyards closed• Duty-free ferries were banned (tourism decreased)

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Transformation of Frederikshavn

Tordenjskyold Festival

Bangsbo Fort Museum, Arena Nord, Musikhus, others…

Palmstranden since 2004Lysfestival 2004, 2006, 2008, 2010?

Palm City (Private) under construction Next dates, 26-28 Juni!!

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Bill Clinton, 2006

Al Gore, 2007

Concert of Bryan Adams, 2006

Unique Visits

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What’s going on in Frederikshavn?

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The municipality embraces the Experience Economy Side 8

The term “oplevelsesøkonomi” is used 6 times, and the term oplevelse other 7 times

Latter motto: “Fra værfstby til værstby”

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Problem formulation1. Does the “experience economy” bring new entrepreneurial

dynamics that could affect Frederikshavn’s development? • Who are the entrepreneurs in the experience economy? • How are they different from other industries (or places)? • How do they work? Networks and resources • How can the experience economy be measured? • What is the outcome of applying the experience economy?

2. How can the municipality of Frederikshavn implement/adapt the “experience economy” in its economic policy making?

• In case it is beneficial, how can a municipal government support the experience economy? If the experience economy has mixed or negative results, how could they reorient their strategy?

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Methodology

Case Study (Yin, 1972; Flyvbjerg, 2006)

My project is in an interdisciplinary field, with multifaceted problems.

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Methodology

Qualitative research50 informants

– People in projects related to the exp. econ.– People involved in creating economic/business policy– Meetings with Reference Group– Direct observation

Quantitative research– Danmark Statistiks. – Danish IDA (Integrated Database for Labour Market

Research, 1980-2004) 3.259 persons -wage earners (38%) & entrepreneurs (31.5%)-

– Survey conducted on Danish entrepreneurs & wage earners (2008)

22Aprox. 40% on literature review, 35% of qualitative research and 25% of quantitative

activity dates

more related to

quantitative qualitative

Literature review April-Oct. 2008    

Statistics (Fr.Havn and DK) Nov. 2008-Feb. 2009 X  

Lysfestival Oct. 2008, March 2009   X

Literature review April-July 2009    

Tordenskjiold Festival June-july 2009   X

Statistics on entrepreneurship Sept.-Dec. 2009 X  

Interviews in another research enviroment January-April 2010   X

New Bangsbo Museum May-June 2010   X

follow up Tordenskjold Fest. June 2010   X

To be determined Summer 2010    

follow up Lysfestival Oct. 2010   X

Deliver PhD Thesis Spring 2011

Research Time

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Theory

1. ”Experience Economy” background and state-of-the-art

2. Entrepreneurship Theory

3. Local Development

4. Innovation System Theory

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• experience  – 1377, from Old French experience, from

Latin experientia "knowledge gained by repeated trials," from experientem (nom. experiens), prp. of experiri "to try, test," from ex- "out of" + peritus"experienced, tested." The verb (1533) first meant "to test, try;" sense of "feel, undergo" first recorded 1588.

• (From latin experientĭa )

Source: experience. (n.d.). Dictionary.com Unabridged (v 1.1). Retrieved from Dictionary.com website: http://dictionary.classic.reference.com/browse/experience

Etymology

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Perhaps the Romans, were the first planners to introduce “experiences” for

their citizens on a great scale.

Roman Coliseum. Inaugurated by Titus 80 a.d.

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Alvin Toffler (1971): “experiential industry”

• He criticized how “economists have great difficulty imaging alternatives to communism and capitalism”, and how they could only envision the economy in the terms of scarcity of resources.

• People in the future will want more than products, they will want: “psychic gratification”

First one to define “the experience economy”

Alvin Toffler

USA (1928- )

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Related ”fields” to the idea of the experience economy

Marketing: “Emotional experiences linked to products and services” (Holbrook & Hirschman, 1982)

Society: The Experience Society (C. Köck, 1990; G. Schulze, 1992) Die

Erlebnisgesellschaft

The Dream Society (R. Jensen, 1999)

Economic Geography: “Urban entrepreneurialism” (D. Harvey, 1989); The Cultural Economy (A. Scott 1997); The Creative Class (R. Florida 2004)

Planning: Fantasy city (1998), The city as an entertainment machine (2004), Experiencescapes (O’Dell, 2005), The event city (Metz, 2007),

Fun city (Marling & Zerlang, 2007)

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• Pine & Gilmore, 1998. article “Welcome to the Experience Economy”

• Book published in 1999 by Harvard Business Review

• Chosen in “The 100 Best Business Books” (section of marketing)

• Published in 12 languages

1999-2009 A decade of “The Experience Economy”

33I designated the fields by looking at aprox. 140 articles/books. These are the ones quoted more than twice.

Based on

341 = one article quoted more than twice. If one article is co-authored by one German and one Italian, then 0,5 goes to each country.

Based on

35Please consider that this is not a scientific method, just an idea that Google Trends can give about people ”googling”.

http://www.google.com/trends?q="experience+economy"

NN

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Etymological relation?

LatinItalian /

Spanish English Danish German Dutch Chinese

experientĭaesperienza

/ experiencia

experienceoplevelse erlebnis beleving 体验

erfaring erfahrung ervaring 经历

Countries where the word only has one meaning tends to be more focused on business/tourism, while when it has two meaning it tends to have other areas too (society, ICT, leisure, planning, education, etc.)

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Therefore, the “experience economy” concept could help:

• Business: – Realize there are marketable experiences – Experiences can be combined with products and

services

• Local/Regional Goverment:– Retain population– Attract new citizens – Draw tourism income– Attract investment

Source: Freire, 2008. Presented at RSA Conference

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Entrepreneurship for this project

  for profit non-for profit

entrepreneurs

common firms, informal economy, illegal businesses, etc.

foundations, social entrepreneurs, creators of ngo's, etc.

intrapreneurs

corporate entrepreneurship,

corporate venture, new businesses units, etc.

Corporate Social Responsibility (CSR), NGO’s continous projects,

institutional entrepreneurs, community entrepreneurs, etc.

Source: Freire, 2008. Presented at RSA Conference

Theories on EntrepreneurshipTheories on Entrepreneurship

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3 traditions of entrepreneurship research

(Stevenson & Jarillo, 1990)

• Economic - What

• Psychological – Why • Management - How

S. Sørensen, 2007

Two Historical Traditions

&Five Images of Entrepreneuring1. Mechanized2. Evolutionary3. Contingency4. Behavioural/Cognitive5. Social Construction

Theories on EntrepreneurshipTheories on Entrepreneurship

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System of InnovationOpen style

Institutions • Informal (trust, respect the law, attitude to work, entrepreneurial atmosphere,

etc.) • Formal: private one (banks, research centers, etc.) public sector (government

agencies, laws, education, infrastructure, etc.) (Cooke, 1992)

Actors• Customers• Producers constitute “a variety of actors reaching from small service

producing firms, networks of firms, multinational corporations, urban planning authorities, civic organizations and fiery souls” (Lorentzen 2007, referring to place bound experiences)

• University: antenna & “innovation hub” (Youtie & Shapira, 2006)• Others…

Networks• Håkansson & Snehota (2006)• Coe, N. M., Dicken, P., & Hess, M. (2008)

Theories on Innovation SystemsTheories on Innovation Systems

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NSI

RSI

LSI

IT SERVICES

CONSTRUCTION

EXPERIENTIAL INDUSTRY

- National System of Innovation (Lundvall, 1992)- Regional System of Innovation (Cooke, 1998) - Local System of Innovation (various)- Sectoral System of Innovation (Malerba, 2002)

Theories about Innovation SystemsTheories about Innovation Systems

ETC..

Theories on Innovation SystemsTheories on Innovation Systems

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Local Entrepreneurship Policy: The case of the Festival of Lights of

Frederikshavn

L. Carlos Freire, PhD CandidateDept. of Planning & DevelopmentAalborg University, Denmark

American Association of Geographers Conference. Las Vegas, March 22-27 2009Strand: Entrepreneurship and Geography

Slides with black background were part of the presentation I gave at the AAG Conference

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Festival of Lights. Sources I

WRITTEN:1. Website of the Light Vision Innovation Center (organization) http://

www.lightvisions.dk/ 2. Kommune 25 page report about the 2006 Report. (English)

3. 10 page report, evaluating the 2008 Lysfestival, from the Managing Director (English)

4. A powerpoint presentation made by the 2008 Managing Director. (English)

5. Articles from Anne Lorentzen (English and Danish) 6. Students: Master Thesis, and bachelor projects of I20. (Danish)

7. 5 articles from Nordjyske.dk about the 2006 and 2008 festival (Danish)

8. Critical report from a citizen in his website about the festival http://www.gydum.com/side14.html

9. Other smaller texts in websites

This slide was not shown at the AAG conference

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Festival of Lights. Sources II

VISITS AND INTERVIEWSOctober 2008• Light Festival. During the night. Talked to Business people, some

artists, Danes and foreign citizens. • International Conference. Informal interviews with I. Cronhammer

(local artist) and light designers: K. Mende (Japan) and M. Ridler (UK).

January 2009• Meeting of Light Vision Innovation Center. 8 participants March 2009 – Interviews with:• Jesse Lilley - Managing Director of the 2008 festival. • Bente Jochumsen and Tove Varmløse – Originators of idea.

Actively involved in all the festivals. Employees at Fr.Havn Kommune.

• Søren Tjønneland – Managing director of Roblon. Light factory.• Keld Gyldem – Active citizen critical of the 2008 festival. Run a

small photographic exhibition about the lysfestival at the local library.

• Heide Burghermeters – Electrical teacher at EUC Nord. Participant. This slide was not shown at the AAG conference

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Entrepreneurship Policy (Local level)

Limited maneuver on taxation, regulation, etc.

Main Possibilities:1. Provide info / advice2. Incubators, tech parks (effective?: S&G 1999, Florida 2003)

3. Develop rich networks (incl. public, private, education)

4. Help local products to stand out.5. Local annual festivals.

Sources: Hart et al 2004, Holtz-Eakin et al. 2004, Mourdoukuotas & Papadimitriou, 2002 and Julien 2007

For For FrederikshavnFrederikshavn

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A festival can improve

the private and the public

Harvey, 1989 gave as an importan warning about Festivals. However, this one is not a top-down approach as he described.

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Paper plan

This slide has been deleted for

the internet version.

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Teaching

• In Autumn 2008 co-teaching: – Demography – 3r. Sem. students of geography. – Economic Geography. - 3rd. Sem. students of geography – Location & Development. - 7th Sem. – Msc. Industrial

GeographyI taught a total of 96 hours. • In Spring 2009:

– Industry, Local and Regional Development – 8th. Sem. Msc. Industrial Geography. I taught 24 hours.

Similar load in next semesters. Besides supervising, censoring and other activities (such as study tour 70 hours)

By end of PhD I will have over 450 hours.

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Courses21 ECTS completed

Plus ECTS from conferences I’ll complete the required ECTS

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External collaboration Spring 2010?

This slide has been deleted for

the internet version.

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Final remarks

• The concept of the experience economy has evolved from business strategy to economic development

• It has flourished in Denmark, for three reasons: income per capita of the citizens, for the timing 1999 (destruction of old industry/political changes and bold publications), and perhaps because of the word experience/“oplevelses”.

• Lack of research on the effect of the experience economy in the real economy.

• I aim to explore the entrepreneurial dynamics and find potential effective policy.