System innovation approach in Lithuanian film industry

Abstract

The products of creative industries are not R&D intensive, attributed to “Low-tech“ industry, yet their rate of growth and profitability ratios may exceed the indicators of “High-tech“ industry (EC Green Paper, 2010; Cooke & De Propris, 2011). The companies of creative industries usually use a new paradigm in innovation development. They invest more willingly into the development of a new system based on the existing knowledge, rather than in the development of R&D-based innovation. In this paper this new paradigm is perceived as the system innovation. Further we look at the new skills and approach which could be used for the system innovation development in Lithuanian film industry. System innovation approach focuses on the novelty of the context of the entire system instead of an individual element of the system. The article examines the Lithuanian film industry from the point of view of system innovation. Two main areas, i.e. the production and marketing/sales of film development are explored. The analysis of strengths and weaknesses of the Lithuanian film industry is based on the interpretation of the statistical data and expert interviews.