R&D To Help Independent Production Stand Out In “Competitive” Industry

Independent production companies have to stay “ahead of the game” by investing in research and development (R&D) to compete in the film and advertising industries, reveals Mike McGee, the chief creative officer (CCO) of Oscar winning visual effects house Framestore.

This comment follows a difficult period for many independent production companies as they fight for their survival. The UK's creative industries contributed an estimated £123.03 billion to the UK economy, representing 5.37% of the total UK Gross Value Added (GVA). At the same time, 72% of indies said they felt at risk of closure if the current commissioning slowdown in the UK persists, according to the Indie Voice survey.

An R&D department can help, Mike thinks. Through research, Framestore can estimate trends and calculate “where the technology will be in 12 months.” In that way, the company knows “where to invest our research and where to invest in new tools.”

​Nesta, the innovation agency for social good, advocates for R&D to be used more rigorously in arts and humanities, highlighting that the practice “can lead to the creation of cultural and social value as well as economic value.”

Mike discussed these issues on LBB & Friends Beach alongside experts from independent production houses – executive producer of Finch,Nick Simkins; executive producer of The Sweetshop, Lucy Powell; and president of Furlined Diane McCarter. The panel was moderated by LBB’s managing editor EMEA, Alex Reeves.

Lucy supported Mike’s statement, adding there is a “clear business need to make exceptional work that doesn't exist in the same way in holding companies.” She said: “It has never been harder and it has never been more competitive to be an independent production company, and therefore, making exceptional work… is imperative to the survival of your business.”

Research can assist this process. This is because independent production companies are under a lot of pressure due to creative risks they take. Lucy said that network agencies have more “red tape” and “monetary reasons”. Independent production companies can take a big “risk” on new creatives or ideas which makes independent production companies more competitive.

The Policy and Evidence Centre has found that companies with R&D budgets are significantly more likely, all things being equal, to generate a higher share of their turnover from innovative products.

The UK government stated an R&D report that there is a “a positive and causal relationship between R&D and expenditure.” But, there is evidence that creative businesses perceive R&D differently from those in other sectors, making the definition and purpose of R&D crucial.

For Mike it is a tool for independent production companies for “directors to realise their visions.” The key is strategically "playing with the new technology and demonstrating what it's capable of.”