Viktor Merker, Advisor & Manager of Budapest Cultural Cluster

I’d like to change the idea that Hungarians are pessimistic, so I’m going to change the topic of my talk today.

Budapest Cultural Cluster is based on the collaboration of different sectors and parts of society working together. The aim is urban renewal. In our context “cluster” means cooperation of different organisations working towards the same goals. It doesn’t mean that legally they are connected. We first used clustering in the automotive industry to align different suppliers into a network. Typical of the cluster it involves educational and research cooperation. The main aim of our cluster is urban renewal and to famililarise people with culture. Our cluster aims to create social capital as a benefit.

It’s based in District 6 of Budapest, where there is already a large amount of cultural activity (e.g. Opera House, Theatres etc.). The cluster came into being via a dialogue with local cultural practitioners and organisations to explore what the municipality could do to help these organisations. During this dialogue, the idea emerged for greater cooperation. The municipality created this dialogue and development strategy; a state institution took part in creating this strategy; This consultation was carried out by a non-profit company owned by the municipality, that sits both inside and outside the municipality.

Before this intervention there was no strategic support from the municipality. It was seen as a “business to business” matter. The change came when the National Music Academy won a development grant from the EU to reconstruct its building and infrastructure. They wanted to create a musical “silicon valley”. This initiated a discussion about use of public space and clustering which influenced the creation and shape of our cluster.

Our cultural and creative industries cluster aims to better use public spaces. It is not concentrated in one location, but is an approach, or strategy for development across Budapest.

Members include cultural, higher education, advisory companies, tourism, communication agencies, restaurants, the cafe agency, local government and municipalities and individuals involved in the cultural sector. It is a pressure group for the cultural and creative sector. Thesecretariat is financed by the municipality. In autumn 2010, thecluster will apply for its first national funds. We outsource taskslargely to our member organisations - e.g. applying for funds orcreating special interest projects (e.g. greening member organisations’buildings or old industrial spacesOrganisationally it’s a loose affiliation. Members apply for support grants (set up with predetermined developmental goals). e.g. the 2 2009 campaigns were:

• Culture on the Underground train system during Annual Museum Night. It took place on 28 station stops simultaneously. It covered high culture, popular culture and folk/rural culture with music, photographic exhibitions, theatrical performances etc.
• A Creative & Cultural Economy conference. Organised in member museum (Budapest Ludwig Museum of Contemporary art ) aimed at examining the long term impact of creative/cultural sector on urban development.

Budapest makes up over 50% to 80% of the whole creative industries of Hungary. This is the only industrial sector where our output is higher than the EU average (therefore cannot apply for EU supporting funds!). Creative Industries in Budapest, as proportion of GVA is around 13%, can be compared with Munich or Milan. Most of creative industries of Budapest are internationally focussed - not aimed at the local market. For instance: International research companies, Pharmaceutical companies, Media agencies and the Film industry - with 2 studios in Budapest area (3rd one currently being built). We attract talent to our film industry from all over Europe.

After a long period of decline Budapest’s inner city is starting to grow. This is due to immigration from overseas. The University is attractive to overseas students, especially the medical disciplines.

This is the only cultural/creative cluster that still exists, despite attempts to create more. It has succeeded because its development was “bottom up”. It’s driven by its members.

The ministerial system is changing in Hungary since the election. We currently don’t know where the cultural and creative industries will sit in the new structure, and whether these industries will be better supported. Noises coming from the new government would suggest that they are more interested in culture as a driving force for national identity that can transform into economic force too. This government has also indicated that it believes that good quality art is an excellent way of fostering this development.

Historically Hungarian high culture has been seen as below the Austrian tradition (within the Austrian-Hungarian Empire), so Hungarian art has traditionally been seen through folk art. This means that our “high culture” and our national attitude to it, has suffered.