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How Demand Sophistication (De-)limits Economic Upgrading: Comparing the Film Industries of South Africa and Nigeria (Nollywood)

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  • Helena Barnard
  • Krista Tuomi

Abstract

More sophisticated demand is typically seen as an enabler of economic upgrading. This study questions this linearity and extends demand theory through a case analysis of the film industry in two developing countries. When unsophisticated local demand results in well-matched supply- and demand-side elements, benefits do accrue. Low exposure to technically superior products in Nigeria allowed a fully fledged film value chain to develop, as consumers were willing to support lower quality output. Although the industry is too weak to seriously threaten incumbents from the developed world on the global stage, it has substantial impact in its home country. In contrast, if demand is far more sophisticated than supply, local industry will struggle to respond to broad-based demand signals and will achieve accelerated learning only in niche areas. South Africa has become a niche producer in the global film industry rather than film producer in its own right partly because the widespread demand for Hollywood-quality products could not be met by local supply capabilities.

Suggested Citation

  • Helena Barnard & Krista Tuomi, 2008. "How Demand Sophistication (De-)limits Economic Upgrading: Comparing the Film Industries of South Africa and Nigeria (Nollywood)," Industry and Innovation, Taylor & Francis Journals, vol. 15(6), pages 647-668.
    • Handle: RePEc:taf:indinn:v:15:y:2008:i:6:p:647-668
    DOI: 10.1080/13662710802568986
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    References listed on IDEAS

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    1. Michael Hobday, 1995. "Innovation In East Asia," Books, Edward Elgar Publishing, number 226.
    2. Kerrigan, F. & Culking, N., 1999. "A Reflection on the American Domination of the Film Industry: an Historical and Industrial Perspective," Papers 1999:15, University of Hertfordshire - Business Schoool.
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    Cited by:

    1. De Marchi, Valentina & Giuliani, Elisa & Rabellotti, Roberta, 2015. "Local innovation and global value chains in developing countries," MERIT Working Papers 2015-022, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Andrew Phiri, 2020. "Creative industries and economic performance: Should South Africa go to the movies?," Working Papers 2002, Department of Economics, Nelson Mandela University, revised Jan 2020.
    3. Valentina De Marchi & Elisa Giuliani & Roberta Rabellotti, 2018. "Do Global Value Chains Offer Developing Countries Learning and Innovation Opportunities?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 389-407, July.

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