Internationalization of the Production Process in the US Film Industry: The Case of the United Kingdom

Galina Gornostaeva, Johanne Brunet

Galina Gornostaeva, PhD (Economic Geography, Moscow State University), is a research associate at the London School of Economics. She is currently studying production chains in the film and television industry (funded by the Economic and Social Research Council in the United Kingdom). Her interests lie in the economics, management and geography of media industries, particularly cultural policy and governance. Previously she worked at IFRESI CNRS in France and at Moscow State University.
Johanne Brunet, PhD (Industrial and Business Studies, University of Warwick), is an associate professor of marketing at HEC Montréal. Her research interests lie in innovation, creativity and internationalization of the cultural industries. Previously she was a senior manager in the film and television industry. She serves on several boards and has just completed a term as a member of the Canadian Broadcasting Corporation board of directors.

ABSTRACT 
There is a complex relationship between US “runaway” productions and the British film economy. The attraction of the United Kingdom for runaways lies not only in the generous government incentives but also in the high-quality studios and the production and post-production services offered by British subsidiaries. Although history and statistics indicate that an indigenous film industry depends heavily on the Hollywood studios, interviews conducted by the authors reveal that US studios and US independent film companies are themselves rooted in the industrial, institutional and personal networks in London where they distribute and produce film.
KEYWORDS
Film industry, runaway productions, international marketing
RÉSUMÉ
La relation entre les productions américaines extérieures et l’économie de l’industrie britannique du film est complexe. L’attrait qu’exerce la Grande-Bretagne s’explique non seulement par de généreux incitatifs, mais aussi par l’excellente qualité des studios et des services de production et de post-production des sociétés britanniques. Même si l’histoire et les statistiques indiquent que l’industrie cinématographique locale dépend fortement de Hollywood, des entrevues révèlent que des studios et des producteurs américains indépendants sont profondément ancrés dans les réseaux industriels, institutionnels et personnels de Londres, où ils distribuent ou produisent leurs films.
MOTS CLÉS 
Industrie cinématographique, productions extérieures, marketing international
RESUMEN 
Existe una relación compleja entre las producciones “expatriadas” estadounidenses y la economía cinematográfica británica. La atracción del Reino Unido para los que producen fuera de EE.UU. reside no solamente en los generosos incentivos gubernamentales, sino también en los estudios de alta calidad y los servicios de producción y posproducción que ofrecen las sucursales británicas. Aunque la historia y las estadísticas indican que la industria cinematográfica nativa depende en gran medida de los estudios de Hollywood, las entrevistas realizadas por las autoras revelan que los talleres cinematográficos y las compañías cinematográficas independientes estadounidenses se encuentran arraigadas en las redes industriales, institucionales y personales de Londres, donde distribuyen y producen sus películas. 
PALABRAS CLAVE 
Industria cinematográfica, producciones “expatriadas”, mercadotecnia internacional