EUROPEAN PUBLISHING TRAINING NEEDS IN THE INFORMATION SOCIETY

LEONARDO DA VINCI (STRAND III.2.A)

LATVIA REPORT

PROJECT PARTNERS:

CENTER FOR PUBLISHING DEVELOPMENT, OPEN SOCIETY INSTITUTE, BUDAPEST, HUNGARY

SCHOOL OF ART, PUBLISHING AND MUSIC, OXFORD BROOKES UNIVERSITY, OXFORD, UNITED KINGDOM

STRATEGY RESEARCH AND ACTION, LONDON, UNITED KINGDOM

AUSSTELLUNGS UND MESSE DES BORSENVEREINS DES DEUTSCHEN BUCHHANDELS, FRANKFURT, GERMANY

PUBLISHING TRAINING CENTRE, LONDON, UNITED KINGDOM

MAY 2000

1. INTRODUCTION

Leonardo da Vinci project III.2.A has been commissioned by the European Commission to identify the extent and nature of the need for publishing training in Central and Eastern European Countries (CEEC). The project is entitled European Publishing Training Needs in the Information Society II (EPTNIS II).

The project was commissioned following the success of EPTNIS I, a project conducted in 1998 in western European countries.

The project assesses the training needs of the publishing industry in 9 CEEC countries.

In January 1999 the project members met in Budapest to draft a research plan and to discuss the agenda for the project. As a result of this planning meeting a two-stage research project was agreed on and completed. The initial stage involved qualitative research in 4 countries followed by quantitative research in all 9 countries.

1.1 PROJECT PARTNERS

The project benefits from experienced partners, and each partner complements the skills of the other partners.

The project partners include:

Paul Richardson, professor of publishing at the School of Music and Publishing at Oxford Brookes University;

Frances Pinter and Jerzy Celichowski, from the Center for Publishing Development, Open Society Institute, Budapest;

Dag Smith, from Publishing Training Centre, London;

Barbel Becker, Ausstellungs und Messe des Borsenvereins des Deutschen Buchhandels, Frankfurt;

Robin Birn and Simon Whitehead, Strategy Research and Action in London.

However the data collection stage of the project could not have been successfully completed without the contribution of the staff of the Open Society Institutes in the countries involved, who worked to coordinate the translation and mailing of the quantitative questionnaire.

It is for this reason that the research results have proved so robust, and the success of the project ensured. It is also of value to mention the high response rates achieved during the research, and to appreciate that many of the publishers have been forthcoming in information, some of which could be considered to be sensitive.

1.2 METHODOLOGY

The research has been completed using a two-stage approach.

The first stage, the qualitative stage, consisted of in depth interviews with publishers. It was designed to provide guidance to help shape the quantitative research and identify the key issues related with training in Eastern and Central Europe. There were 10 interviews conducted in each of the 2 larger countries of Poland and Romania, and 6 in Hungary and Latvia.

The quantitative research was completed in the 10 countries of Central and Eastern Europe that have applied to join, and are being considered for membership of, the European Union in the future.

These countries are: Latvia, Lithuania, Poland, Czech Republic, Slovakia, Hungary, Slovenia, Romania, Bulgaria and Estonia. All responded with sufficient questionnaires except Estonia.

The research has been designed to be fully comparative across countries and to identify the comparisons and contrasts between the countries in the study. As such the methodology reflects these needs.

The quantitative research sought to interview a statistically significant number of publishers in all 9 countries and access them by means of a postal self-completion questionnaire. The samples were decided using a sample frame from established data prepared by the Open Society Institute on publisher numbers in each of the countries.

In each country different sources were required to build a postal address list of publishers, and the Open Society Institutes in each country were able to provide substantial assistance in this regard.

A total of 2,306 questionnaires were mailed out.

The response rates in each of the countries obviously differed, but a total response of 780 returned for analysis was achieved.

When compared to typical research projects the response rates are all very high for a number of reasons, and this project has a response rate of 34%. This is in itself an encouraging sign from publishers in the region.

It is believed the good response rates are due to the specific nature of the study, the interest from the respondents, and the Open Society Institutes following up each questionnaire they posted out with a telephone call. The data can therefore be used to define training needs and to assess future training activities in each country.

1.3 RESEARCH OBJECTIVES

The main objectives for completing the research were as follows:

• Establish the attitudes towards training of publishers in the region
• Establish the extent to which electronic publishing is undertaken by publishers in the region
• Define the extent to which publishers feel publishing training is needed, and in which business disciplines it is most required
• Define the extent to which electronic publishing training is a priority in the region
• Produce data on the publishing industry which is internationally comparable, and which will provide a benchmark of the state of the publishing sector in the region

Users of the data should therefore be able to define better the segments in the publishing industry in the region, and position themselves better to grow the market with this knowledge.

1.4 USE OF RESULTS

The European Commission who have provided funding for the project, will be using the data, report and recommendations to assess the possibilities of providing financial assistance to publishers in Central and Eastern Europe in order to enhance the building of an Information Society within the Union.

It is assumed that the countries involved in the project will join the EU in the medium or long term. Consequently the results can be used to enhance knowledge about the new countries in order to coordinate transnational projects.

A further use of the data is by publishers themselves and by the Open Society Institute as a tool for decision-making. This is the first definitive survey of publishers' activities in Central and Eastern Europe and is data which can be interpreted to define transnational publishing and subsequent training needed.

1.5 EXECUTIVE SUMMARY

There are a significant number of results that have come out of the research. Those that are most significant are likely to refer to individual countries or to come about as a result of comparison between data sets. As such this executive summary is limited to findings relating to Latvia only.

The key findings of the research are:

• Criteria used to measure the extent to which an Information Society exists points to an infant stage of development of the Information Society in Eastern Europe.
• Local control over key industries necessary for the Information Society is being reconfigured through privatisation, and it is possible control of some sectors of the economy will pass into foreign hands.
• There is evidence that the publishing sector in the region has restructured during the last decade, and such prioritisation of electronic publishing that exists is taking place within a wider context of change.
• There is also some evidence to suggest that moves by publishers towards involvement in electronic publishing are contingent upon wider restructuring within their markets. Factors such as lack of market and piracy affect the demand for electronic products, and exacerbating the difficulty are supply side issues such as low spending on training, skills shortages amongst staff, and lack of access to finance.
• The most significant sector for publishing in Central and Eastern Europe is the education sector (History/Social Science/Academic/STM/Textbooks). This is measured by the number of publishers involved in publishing each genre.

  This being the case, it is likely that institutional buying, through education ministries, libraries, universities, etc, remains an important element of the publishing market in the region. This has implications on how publishers market books, as well as how the booktrade is organised generally.

• Electronic publishing (Internet and CD-Rom) is primarily confined to the Educational market, again implying institutional buying.

  In general the vast majority of publishers in other countries in the region are not currently involved in electronic publishing in any way, and although a substantial number have plans to become involved, it remains to be seen whether this intention will be implemented in the future. 12% of those interviewed say that electronic publishing is a priority to a great extent, a proportion relatively similar to the number now involved in multimedia production. Indeed, 43% say the focus of their electronic publishing is the educational market, by far the biggest segment.

• Expenditure on training is very low. Indeed, almost three quarters of publishers spent under Euro1000 on training in the last year, representing (assuming they employ on average 6 people) around Euro150 each. Again, there is considerable difference between different countries.
• Such training that there is appears to be fairly evenly distributed between non-EU and EU training providers, as well as between trainers in the booktrade and trainers external to it. However, when asked, most publishers feel that it is important that their company has access to training in another country.
• The detailed research analysis shows that it becomes evident that publishers feel that a number of specific fields would benefit from transnational training, whereas a number of others would benefit more from training in their own country.

  Generally, the outfacing fields such as management and sales and marketing were felt to be likely to benefit from transnational training, whereas in-facing fields such as Editorial and Production would benefit from own country training.

• The publishers believe the biggest problem experienced in becoming involved in electronic publishing is lack of resources, followed by lack of business partners.
• Supporting this, publishers feel that the biggest threats to electronic publishing are lack of access to finance, and piracy of original copy and texts.
• The lack of current training expenditure is put into further context when publishers say that they feel strongly that their staff will have to change their working methods and roles. Interestingly it is sales and marketing and editorial, techniques which the majority of publishers feel will need to change the most as EU integration develops.
• The fact that publishers would spend any additional funds on new products reveals a belief that essentially they are operating correctly and efficiently, and that growth would best be achieved by expanding output.

  This is to an extent supported by the data showing that publishers feel that joining the EU would be an advantage to them.

• Publishers agree with the statement that they would grow faster if they were to publish through new media.
• Although English enjoys dominance in terms of foreign languages, the majority of electronic publishers publish in their own language revealing a strong degree of cultural diversity in the electronic publishing sector.
• Finally, a significant proportion of publishers' express and interest in electronic publishing, either by saying it is a priority, or by or by saying that they would be plan to publish electronically relatively soon. However this is to be contrasted with the low proportions of publishers currently involved in electronic publishing. This gap is best explained with reference to the publishers saying that lack of access to finance and lack of resources are a problematic.

1.6 QUALITATIVE FINDINGS

Publishers in the region were initially researched through the Qualitative research about the issues involved in publishing training, as well as their experiences with, and attitudes towards, transnational training and electronic publishing.

The findings of this stage of the research assisted further development of the questionnaire for the Quantitative research, and the bulk of the findings do indeed support the findings of the Quantitative stage.

It was for instance evident that the degree to which a publisher perceived multimedia training as important was a reflection on their abilities to present themselves in the market. Caution was the key word within the multimedia publishing industry, and the inability to deal with piracy a major concern.

Overall, the Qualitative research was used to assess methods to ensure that the quantitative research would be successful, and addressed the perceptions of the publishers in Eastern and Central Europe.

1.7 QUANTITATIVE FINDINGS

The Quantitative findings of EPTNIS II are substantial and in depth. They have been presented as tabulations, and several cross tabulations of questions were specified.

It should be noted that this survey, with 780 completed responses, represents the most extensive survey into the publishing sector ever completed in the CEEC. As such, the data in this report are highly significant statistically. So too, in Latvia, the data represents the most comprehensive picture of the industry yet produced to assess training, even though the data set includes only 20 samples.

The following are the results of the research.

1.7.1 CURRENT MATERIAL PUBLISHED

Of the total sample of 780 publishers, 621 (80%) are currently publishing only in print. 18% are publishing both print and electronically, and just over 1% are publishing only electronically.

In Latvia 85% of publishers publish material in print, 15% both electronically and in print, and none electronically.

1.7.2 GENRE CURRENTLY PUBLISHED

In terms of the most commonly published genre in Latvia, History and Social Science , and Academic titles are the most commonly published.

Fiction, Biography and STM titles are also frequently published.

Other titles are less frequently published by Latvian publishers.

1.8 PLAN TO PUBLISH

For the majority of genres, respondents as a whole do not plan to increase the range of their output. Generally publishers say they plan to publish similar genres to those they currently publish.

1.9 CURRENTLY INVOLVED IN PUBLISHING CD-ROMS

Generally Latvian publishers are less likely to be involved in publishing on CD-ROM and Disks than publishers the CEEC average, and very few are currently involved.

9.10 CURRENTLY INVOLVED IN INTERNET PUBLISHING

Again the data indicates a very small proportion of publishers in Latvia are involved in Internet publishing.

1.11 PLANS TO PUBLISH MULTIMEDIA

Most of the publishers say that they are currently unable to get involved in multimedia publishing in the future.

A number of publishers plan to publish electronically within one year.

Currently few publishers have no plans to get involved in multimedia publishing.

1.12 EU TRAINING PROVIDER

Most publishers did not mention a training provider in the European Union.

The others use a variety of different EU training providers.

1.13 NON EU TRAINING PROVIDER

Most publishers did mention a training provider outside the European Union, indicating a high level of non EU training. In house experts are popular training providers.

1.14 LIKELIHOOD OF CHANGING THESE RESOURCES IN NEXT 2 YEARS

Publishers in Latvia say either that they are possibly likely to change their training resources in the next 2 years, or that they don't know.

1.15 IMPORTANCE OF ACCESS TO TRAINING RESOURCES ABROAD

Respondents were asked to state, on a scale of one to three, the extent to which they feel that it is important that their company has access to training resources in another country.

The mean score is 2.30 in Lithuania, (same as average of CEEC countries 2.30) indicating that overall publishers do agree that it is important to have access to training resources in another country.

1.16 FIELDS TRANSNATIONAL TRAINING OF MOST BENEFIT

The fields in which transnational publishing training could be most beneficial to the publishers are:

• Sales and Marketing
• Management
• Customer service/distribution
• Legal/Contractual, and
• Editor Creative

What is striking in the results is the extent to which Sales and Marketing is revealed as a field in which transnational training would be beneficial to publishers (80%).

1.17 WHERE TRAINING WOULD BE MOST BENEFICIAL

Publishers were asked to state where they believed training would be most beneficial to their companies.

For Management training, publishers are divided as to where best to conduct management training.

For Editor/Creative training, publishers feel that it would most effectively be carried out in Latvia. For Design training, publishers feel that it would most effectively be carried out transnationally.

For Production training, publishers are divided.

For Sales and Marketing training, publishers are also divided.

For Legal/Contractual training, again publishers are divided.

For Financial training most believe that training would most effectively be carried out in Latvia.

For Customer Service and Distribution training respondents feel that training transnationally would be most effective. This is the opposite to Lithuania.

1.18 SPEED OF GROWTH THROUGH NEW MEDIA

Publishers were asked whether they felt that their company would grow faster if it were to publish through the new media.

On a scale of 1-5, the mean score is 4.21, suggesting strong agreement with the statement that a publisher would grow faster if it were to publish through new media.

1.19 EXTENT TO WHICH FACTORS ARE A THREAT TO PUBLISHING

The extent to which different factors are a threat to electronic publishers is measured and Latvian publishers are most concerned about piracy, lack of a market and lack of access to finance.

1.20 EXTENT OF STAFF CHANGE REQUIRED

Publishers were asked to rate the extent to which they will have to change their working methods to meet the challenges of multimedia in the future.

Overall on a score of 1-3, where 1 is not at all, and 3 is a great extent, Latvian respondents gave an average of 2.28, showing that they feel to some extent that they would have to change to meet the challenges of multimedia.

Publishers in most of the different countries generally believe their staff will have to change to some extent, however the mean in Latvia is lower than the average across the countries.

1.21 WAYS IN WHICH STAFF WILL HAVE TO CHANGE TO PUBLISH ELECTRONICALLY

Most publishers state that their staff would have to develop more experience with multimedia in the future to publish electronically in the future. Publishers also feel that they need better working methods between IT and Editorial, which is higher than the average.

1.22 LEVEL OF PERSONNEL AT WHICH THERE IS A NEED TO CHANGE OR IMPROVE SKILLS TO PUBLISH ELECTRONICALLY

In Latvia Sales and Marketing and Editorial Creative personnel are the ones that most need to change, according to publishers.

Management also need to change.

Some publishers also feel that Customer Service and Distribution staff also need to change, as well as Production and Legal staff.

1.23 WAYS IN WHICH STAFF ARE CURRENTLY INCORPORATING NEW SKILLS

Currently most publishers are incorporating new skills by training staff internally. A small proportion recruit staff with skills, or provide on the job training.

1.24 LIKELIHOOD OF THIS CHANGING

A high proportion are unsure whether this will change over the next 2 years, although many think it will. Few believe it will not change.

1.25 COMPANY OWNERSHIP

When asked whether they felt that the ownership of their company would remain the same over the next 2 years 70% say that they do expect it to remain the same.

1.26 SPENDING PRIORITIES

Respondents were given a hypothetical question, and asked to say how they would spend Euro25,000 if they were given it to spend. Their answers are ranked according to the mean score of their answers on a scale of 1-3.

In first place, most say that they would spend additional resources on new products (mean 2.67). Then the priority for spending is on capital goods (2.53), followed by spending on marketing (mean 2.29), and advertising (mean 2.24).

This is followed by staff training (mean 2.21), market research (2.06), and finally management consultancy (1.81) and acquisitions (1.36).

This differs from publishers in other countries, in that Latvian publishers attach the most importance to new products.

1.27 MEMBERSHIP OF THE EUROPEAN UNION

Most Latvian publishers do not know whether membership of the European Union will be an advantage or disadvantage to their company, however more view it an advantage than as a disadvantage.

1.28 CURRENT STRENGTHS IN PUBLISHING

When asked to state what they perceived their strengths to be in their current publishing, publishers state two particular strengths.

An established company reputation is mentioned by 65%. Specialist lists are mentioned by 50%.

Other strengths are considered important are: higher quality than competitors, translations and publishing in different languages and a wide choice of publications.

1.29 EXTENT TO WHICH ELECTRONIC PUBLISHING IS A PRIORITY

With a mean of 1.53 on a scale of 1-3, Latvian publishers do not perceive electronic publishing to be a particular priority.

It is worth remembering that the survey has focused on general publishers, and has not sought out electronic publishers, nor does it include software houses who may have an electronic publishing agenda.

Latvian publishers are somewhat less likely to prioritise electronic publishing than publishers in other countries.

1.30 ATTITUDES OF PUBLISHERS

It was important for the project to assess the extent to which publishers in the region perceived their businesses in the light of change. To this end publishers were asked to state their opinions towards various statements.

1.31 ATTITUDES OF PUBLISHERS - KEY PLAYER

When asked if they are a key player in their market, Latvian publishers tend to say that they are not to a considerable extent. Overall the mean score on a scale of 1-3 was 1.93, indicating very mild agreement.

1.32 ATTITUDES OF PUBLISHERS - VULNERABILITY

When asked whether they are vulnerable to foreign involvement in their market, the mean score is 1.62, indicating that most Latvian publishers are confident that they are not very vulnerable. This reinforces the strong positive sentiment in the publishing sector in CEEC as a whole.

However, Latvian publishers are somewhat more likely to be vulnerable than publishers in other countries.

1.33 ATTITUDES OF PUBLISHERS - NEED TRAINING

When asked whether publishers need training for some skills, the mean is 2.75, indicating agreement that training is needed for some skills.

1.34 ATTITUDES OF PUBLISHERS - GROWTH

Publishers are mildly confident to some extent that they will grow next year. The mean in Latvia is 1.93, compared to a CEEC average of 2.13.

1.35 ATTITUDES OF PUBLISHERS - REFLECTOR OF COUNTRY'S ECONOMY

When asked whether they are an accurate reflector of their countries economy the mean is 2.53, indicating general agreement that publishers are an accurate reflection of the countries economy.

1.36 CLASSIFICATION

1.37 LENGTH OF TIME IN PUBLISHING

Most publishers have worked in publishing for between 5 and 10 years. Roughly an equal proportion have worked for publishing for fewer than 5 years as have worked for over 5 years.

On the whole, the decision makers in the publishing industry in Latvia are relatively less experienced than the average in the region.

1.38 NUMBER OF EMPLOYEES

Most Latvian publishers have fewer than 30 staff, and 45% have fewer than 10 staff.

1.39 NUMBER OF COMPUTERS

Most publishers have fewer than 10 computers.

1.40 OWNERSHIP

65% of publishers are independent. 20% are state owned but 'independent.'

1.41 GENDER OF RESPONDENT

50% of the respondents are male, and 50% female.

1.42 AGE OF RESPONDENTS

Latvian respondents tend to be of varying ages than publishers in some other countries who are more likely to be grouped, either older or younger.

1.43 EXPENDITURE ON TRAINING

Few Latvian publishers spent no money on training, and the majority spent over Euro250. Very few publishers spent over Euro1000.

1.44 LOCATION OF EXPENDITURE

65% of publishers say that none of this expenditure was spent outside their country, although this includes those publishers that spend nothing on training.

Over the remaining publishers, most spent less that 25% of their training expenditure abroad.

Lithuanian publishers are less likely to spend money outside their own country.

1.45 ANNUAL TURNOVER

There was a wide distribution of turnover for publishers in the last year.

Latvian publishers have a higher turnover than those of other countries, and are more likely to have a turnover of between Euro300000 and Euro500000.

1.46 LOCATION OF PUBLISHER

Publishers are located in 9 countries of Central and Eastern Europe. They are slightly more likely to come from either Hungary, Czech or Poland, reflecting the larger publishing industry in these countries.

1.47 PROPORTION FOREIGN OWNED

Most Latvian publishers did not answer this question. This may reflect lack of knowledge about the financial ownership of the company, and this may be exacerbated by the difficulties caused by transition to the free market, or it may simply be due to the sensitivity of the information that publishers are reluctant to divulge it.

The majority of those that did answer it said that none of their company was foreign owned.

1.48 NUMBER OF TITLES PUBLISHED A YEAR

35% of publishers publish less than 10 titles a year.

40% between and 10 and 30 titles, and most of the others publish between 31 and 60 titles a year.

Latvian publishers tend to produce marginally fewer titles a year.

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