Vilnius Film Cluster (VFC) is one of the oldest and highly active clusters in Lithuania, which has been operating for more than 10 years, uniting 21 organisations. The members of this cluster are proud to have received a partial EU funding back in 2011 under Inoklaster LT measure for equipment of a pavilion with the largest “green screen” in the Baltic States. The membership in the Lithuanian Confederation of Industrialists consolidated prominence of the film industry in Lithuania.

In March of this year, VFC has undergone certain changes: the management of this promising cluster was taken over by Romanas Matulis. We have approached him with questions about the future VFC plans, objectives, innovations and success in attracting foreign partners.

What brought you to VFC and what do you find the most attractive in your new job?

I have discovered film industry, film distribution to be more exact, in 2010 while working in a music and film production business. The foundation of this business is copyright and neighbouring rights, thus it was not a complete terra incognita to me.

Film and music business does not only have similarities, but also a number of differences, unique features and unwritten rules. It is no secret that film producers are the ones suffering the most from internet piracy. I had set up a cycle of conferences on this topic. This is where I met Kęstutis Drazdauskas, one of the founders of VFC, who later offered me cooperation.

VFC formed naturally and has been in operation for over 10 years. The film clusters are very active all around the world. How unpredictable are film industry and clusters?

I use a really simplified description of clusters. A cluster means enterprises, organisations and people together solving a problem, which they could not have solved individually. An even simpler way to describe it is: one’s as good as none.

The film industry is an ideal medium for illustration of the best and most valuable qualities of clustering. Production of one film involves participation of tens or even hundreds of specialists in various fields, depending on the size of the project. The team consists not only of producers, directors, operators and actors, but also hair stylists, make-up artists, costume designers, lighting technicians, set designers, etc. The majority of them are highly talented and skilled freelancers with experience adapted specifically to film industry. Working together they create products (films) that are unique by nature and are displayed and sold around the world. The essence and goal of most clusters is production and distribution on a global or regional scale of innovative and competitive products or services.

You had a couple of months to adjust to your new position. What objectives of the cluster have you defined for this and coming years?

The cluster is currently implementing several projects funded by the EU and the Republic of Lithuania. It participates actively in shaping of the Lithuanian film industry policy and in public activities. The world of film-making thrives in a dynamic environment with the ongoing technological revolution, which poses many challenges and raises the quality and content competitiveness requirements. We strive to keep technical level abreast of the global trends and are planning creation of a unique filming technology, which we hope will attract the attention of the famous film producers.

Moreover, we continue implementation of the project for restoration and establishment of cinema theatres in the Lithuanian regions, and maintain close cooperation with the municipalities and representatives of cultural centres. We believe that it is not normal that small town residents do not have an opportunity to see the films, which have been fully or partially funded by the state.

You have mentioned a new technology. Clusters are believed to be the driving force of innovations. Does Vilnius Film Cluster experience it the same way?

Those who have ever faced it know that innovation and R&D (research and development) is an expensive treat, which does not necessarily yield profit or any breakthrough in business. Only large enterprises have separate R&D departments. Their discoveries are immediately patented and hidden behind seven doors. Clustering is the best solution for small- and medium-sized enterprises which seek creation of innovative products and remaining competitive on the market. Clusters are able to allocate relatively few resources for development of innovations, however success will be shared with other members in equal parts.

Each film-making process involves creation of many innovative solutions making many wonder “how they did it”? The R&D regulations currently in force in Lithuania are narrowly focused only on technological innovation and entail really complex bureaucratic procedures. Film creators avoid these procedures and simply continue making films in an innovative and creative manner. Those who are interested will notice the unique solutions designed or used in a film and will find their creators.

It seems that foreign partners have no problem finding contact information of their Lithuanian colleagues. What makes Vilnius Film Cluster interesting and attractive abroad?

First of all, nothing simply falls into your lap. Foreign partners want more than amazing nature and historic buildings alone. Summed up in a single word: competition. Our price and quality ratio is one of the best in the region. This is partially due to a tax exemption for film production. By invoking it, the Lithuanian and foreign film-makers spent nearly 32.5 million euro in Lithuania in a period of three years. However, it must be noted that our neighbours (Poland and Estonia) do not stand still either and are already able to offer better solutions for film production on their territory. Therefore, continued intensives and attractiveness thereof to Lithuanian and foreign investors are key priorities in cluster operations.

The members of the cluster often attend film festivals and exhibitions, present their products and services and look for opportunities for participation in international projects. One of the most remarkable projects of this kind was the mini-series Tokyo Trial created by the order of VOD platform Netflix, which was filmed by joint efforts of the Japanese, Canadian, Dutch and Lithuanian makers, while the scene of Tokyo destroyed by the war of 1946 was authentically recreated in Vilnius. It goes without saying that project like this have additional challenges and demand utmost coordination, however they offer valuable experience and a good chance to demonstrate the skills and potential of VFC and its members, increase its visibility on the international level and ensure a stable flow of new projects and orders in the future.

Objectives pursued always bring challenges. What challenges are you facing in development of the cluster?

I think that the challenges the heads and coordinators of clusters are facing are very similar. Vilnius Film Cluster has twenty companies with different specialisations. Each of them has its own history, needs, microclimate, business strategy and respective resources. It is not easy to accommodate everyone’s interests and abilities and to engage in new ideas or projects. This, however, is not essential. This is what makes a cluster stand out among other economic models. Based on specific interests, a number of individual mini-clusters may be created inside any cluster. In turn, this brings more coordination and administration work, but most importantly it helps the cluster stay viable and move forward.

VFC is one of the 14 clusters reared by the Promotion and Development of Innovation Networking (InoLink) project. InoLink is the project under the EU measure Inogeb LT coordinated by the Agency for Science, Innovation and Technology (MITA) implemented in cooperation with the Lithuanian Innovation Centre and financed by the European Regional Development Fund. The project was launched in 2016 with the aim to stimulate integration of enterprises into clusters, to increase maturity of clusters, and to promote growth and international cooperation.