The creative industries refers to a range of economic activities which are concerned with the generation or exploitation of knowledge and information. They may variously also be referred to as the cultural industries (especially in Europe)[1] or the creative economy,[2] and most recently they have been denominated as the Orange Economy in Latin America and the Caribbean.[3]
The creative industries have been seen to become increasingly important to economic well-being, proponents suggesting that "human creativity is the ultimate economic resource",[7] and that "the industries of the twenty-first century will depend increasingly on the generation of knowledge through creativity and innovation".[8]
Definitions
Various commentators have provided varying suggestions on what activities to include in the concept of "creative industries",[9] and the name itself has become a contested issue – with significant differences and overlap between the terms "creative industries", "cultural industries" and "creative economy" l.[10]
Lash and Urry suggest that each of the creative industries has an "irreducible core" concerned with "the exchange of finance for rights in intellectual property".[11] This echoes the UK Government Department for Culture, Media and Sport (DCMS) definition which describes the creative industries as:
"those industries which have their origin in individual creativity, skill and talent and which have a potential for wealth and job creation through the generation and exploitation of intellectual property"[12]
As of 2015[update] the DCMS definition recognizes nine creative sectors, namely:[13]
The various fields of engineering do not appear on this list, that emerged from the DCMS reports. This was due, probably, to the fact that engineers occupy relevant positions in "non-cultural" corporations, performing activities of project, management, operation, maintenance, risk analysis and supervision, among others. However, historically and presently, several tasks of engineers can be regarded as highly creative, inventive and innovative. The contribution of engineering is represented by new products, processes and services.
Hesmondhalgh reduces the list to what he terms "the core cultural industries" of advertising and marketing, broadcasting, film, internet and music industries, print and electronic publishing, and video and computer games. His definition only includes those industries that create "texts"' or "cultural artefacts" and which engage in some form of industrial reproduction.[15]
The DCMS list has proven influential, and many other nations[which?] have formally adopted it. It has also been criticised. It has been argued[by whom?] that the division into sectors obscures a divide between lifestyle business, non-profits, and larger businesses, and between those who receive state subsidies (e.g., film) and those who do not (e.g., computer games). The inclusion of the antiques trade often comes into question, since it does not generally involve production (except of reproductions and fakes). The inclusion of all computer services has also been questioned.[16]
Some areas, such as Hong Kong, have preferred to shape their policy around a tighter focus on copyright ownership in the value chain. They adopt the WIPO's classifications, which divide up the creative industries according to who owns the copyrights at various stages during the production and distribution of creative content.
The Inter-American Development Bank (IDB) has denominated them for Latin America and the Caribbean as the Orange Economy[17] which is defined as the "group of linked activities through which ideas are transformed into cultural goods and services whose value is determined by intellectual property."
Others[who?] have suggested a distinction between those industries that are open to mass production and distribution (film and video; videogames; broadcasting; publishing), and those that are primarily craft-based and are meant to be consumed in a particular place and moment (visual arts; performing arts; cultural heritage).
How creative workers are counted
The DCMS classifies enterprises and occupations as creative according to what the enterprise primarily produces, and what the worker primarily does. Thus, a company which produces records would be classified as belonging to the music industrial sector, and a worker who plays piano would be classified as a musician.
The primary purpose of this is to quantify – for example it can be used to count the number of firms, and the number of workers, creatively employed in any given location, and hence to identify places with particularly high concentrations of creative activities.
It leads to some complications which are not immediately obvious. For example, a security guard working for a music company would be classified as a creative employee, although not as creatively occupied.
The total number of creative employees is then calculated as the sum of:
All workers employed in creative industries, whether or not creatively occupied (e.g. all musicians, security guards, cleaners, accountants, managers, etc. working for a record company)
All workers that are creatively occupied, and are not employed in creative industries (for example, a piano teacher in a school). This includes people whose second job is creative, for example somebody who does weekend gigs, writes books, or produces artwork in their spare time
Properties or characteristics
According to Richard E. Caves,[18] creative industries are characterized by seven economic properties:
Nobody knows principle: Demand uncertainty exists because the consumers' reaction to a product are neither known beforehand, nor easily understood afterward.
Art for art's sake: Workers care about originality, technical professional skill, harmony, etc. of creative goods and are willing to settle for lower wages than offered by 'humdrum' jobs.
Motley crew principle: For relatively complex creative products (e.g., films), the production requires diversely skilled inputs. Each skilled input must be present and perform at some minimum level to produce a valuable outcome.
Infinite variety: Products are differentiated by quality and uniqueness; each product is a distinct combination of inputs leading to infinite variety options (e.g., works of creative writing, whether poetry, novel, screenplays or otherwise).
A list/B list: Skills are vertically differentiated. Artists are ranked on their skills, originality, and proficiency in creative processes and/or products. Small differences in skills and talent may yield huge differences in (financial) success.
Time flies: When coordinating complex projects with diversely skilled inputs, time is of the essence.
Ars longa: Some creative products have durability aspects that invoke copyright protection, allowing a creator or performer to collect rents.
The properties described by Caves have been criticized for being too rigid (Towse, 2000). Not all creative workers are purely driven by 'art for art's sake'. The 'ars longa' property also holds for certain noncreative products (i.e., licensed products). The 'time flies' property also holds for large construction projects. Creative industries are therefore not unique, but they score generally higher on these properties relative to non-creative industries.
Difference from the 'cultural industries'
There is often a question about the boundaries between creative industries and the similar term of cultural industries. Cultural industries are best described as an adjunct-sector of the creative industries. Cultural industries include industries that focus on cultural tourism and heritage, museums and libraries, sports and outdoor activities, and a variety of 'way of life' activities that arguably range from local pet shows to a host of hobbyist concerns. Thus cultural industries are more concerned about delivering other kinds of value—including cultural wealth and social wealth—rather than primarily providing monetary value. (See also cultural institutions studies.)
The creative class
Some authors, such as the American urban studies theorist Richard Florida, argue for a wider focus on the products of knowledge workers, and judge the 'creative class' (his own term) to include nearly all those offering professional knowledge-based services.
The creative class and diversity
Florida's focus leads him to pay particular attention to the nature of the creative workforce. In a study of why particular US cities such as San Francisco seem to attract creative producers, Florida argues that a high proportion of workers from the 'creative class' provide a key input to creative production, which enterprises seek out. He seeks to quantitatively establish the importance of diversity and multiculturalism in the cities concerned, for example the existence of a significant public gay community, ethnic and religious variety, and tolerance.[19]
Economic contribution
Globally, Creative Industries excluding software and general scientific research and development are said to have accounted for around 4% of the world's economic output in 1999, which is the last year for which comprehensive collated figures are currently available. Estimates of the output corresponding to scientific Research and Development suggest that an additional 4-9% might be attributable to the sector if its definition is extended to include such activities, though the figures vary significantly between different countries.
In 2015, the World Intellectual Property Organization (WIPO) assisted in the preparation of national studies[20] that measured the size of over 50 copyright industries around the world. Findings from the recompilation of these studies[21] indicate that the GDP contribution to national economies vary between 2% and 11%.
Taking the UK as an example, in the context of other sectors, the creative industries make a far more significant contribution to output than hospitality or utilities and deliver four times the output due to agriculture, fisheries and forestry. In terms of employment and depending on the definition of activities included, the sector is a major employer of between 4-6% of the UK's working population, though this is still significantly less than employment due to traditional areas of work such as retail and manufacturing.
Within the creative industries sector, and again taking the UK as an example, the three largest sub-sectors are design, publishing, and television and radio. Together these account for around 75% of revenues and 50% of employment.
In economies like Brazil, for example, a 2021 study into the Intellectual Property intensive sectors in the Brazilian economy[22] found that 450 of Brazil's 673 economic classes could be classified as IP-intensive sectors which collectively employed 19,3 million people. The Brazilian creative industry's collective share of GDP between 2014 and 2016, when calculated across these 450 economic classes, totaled R$2,1 trillion Reais or 44,2% of Brazil's GDP.
The complex supply chains in the creative industries sometimes make it challenging to calculate accurate figures for the gross value added by each sub-sector. This is particularly the case for the service-focused sub-sectors such as advertising, whereas it is more straightforward in product-focused sub-sectors such as crafts.
There may be a tendency for publicly funded creative industries development services to inaccurately estimate the number of creative businesses during the mapping process. There is also imprecision in nearly all tax code systems that determine a person's profession, since many creative people operate simultaneously in multiple roles and jobs. Both these factors mean that official statistics relating to the Creative Industries should be treated with caution.
The creative industries in Europe make a significant contribution to the EU economy, creating about 3% of EU GDP – corresponding to an annual market value of billion – and employing about 6 million people. In addition, the sector plays a crucial role in fostering innovation, in particular for devices and networks. The EU records the second highest TV viewing figures globally, producing more films than any other region in the world. In that respect, the newly proposed 'Creative Europe' programme (July 2011)[23] will help preserve cultural heritage while increasing the circulation of creative works inside and outside the EU. The programme will play a consequential role in stimulating cross border co-operation, promoting peer learning and making these sectors more professional. The Commission will then propose a financial instrument run by the European Investment Bank to provide debt and equity finance for cultural and creative industries. The role of the non-state actors within the governance regarding Medias will not be neglected anymore. Therefore, building a new approach extolling the crucial importance of a European level playing field industry may boost the adoption of policies aimed at developing a conducive environment, enabling European companies as well as citizens to use their imagination and creativity – both sources of innovation -, and therefore of competitiveness and sustainability. It supposes to tailor the regulatory and institutional frameworks in supporting private-public collaboration, in particular in the Medias sector.[24] The EU therefore plans to develop clusters, financing instruments as well as foresight activities to support this sector. The European Commission wishes to assist European creators and audiovisual enterprises to develop new markets through the use of digital technology, and asks how policy-making can best help achieve this. A more entrepreneurial culture will have to take hold with a more positive attitude towards risk-taking, and a capacity to innovate anticipating future trends. Creativity plays an important role in human resource management as artists and creative professionals can think laterally. Moreover, new jobs requiring new skills created in the post-crisis economy should be supported by labour mobility to ensure that people are employed wherever their skills are needed.
In the US
In the introduction to a 2013 special issue of Work and Occupations on artists in the US workforce, the guest editors argue that by examining the work lives of artists, one can identify characteristics and actions that help both individual workers and policy makers adapt to changing economic conditions. Elizabeth Lingo and Steven Tepper cite multiple sources to suggest artists' skill sets allow them to "work beyond existing markets and create entirely new opportunities for themselves and others".[25] Specifically, Lingo and Tepper suggest artistic workers are "catalysts of change and innovation" because they "face special challenges managing ambiguity, developing and sustaining a relative identity, and forming community in the context of an individually based enterprise economy" (2013). Because of these adaptive skills, the suggestion is that "studying how artists cope with uncertainty and the factors that influence their success should be relevant for understanding these broader social and economic trends facing today's (and tomorrow's) workforce."[26]
This view of artist-as-change-agent changes the questions researchers ask of creative economies. Old research questions would focus on topics like "skills, work practices, contracts, wage differentials, employment incentives, formal credentials, employment pipelines, and labor flows of differentiated occupational categories". Examples of new questions include:
How do artists both create changes in the labor market itself and the way cultural work is done?
What is their process of innovation and enterprise?
What is the nature of their work and the resources they draw upon?
How do different network structures produce different opportunity spaces?
How do artistic workers create and manage planned serendipity—the spaces and exchanges that produce unexpected collaborations and opportunities?
How do creative workers broker and synthesize across occupational, genre, geographic, and industry boundaries to create new possibilities? (Tepper & Lingo, 2013)[25]
Wider role
As some first world countries struggle to compete in traditional markets such as manufacturing, many now see the creative industry as a key component in a new knowledge economy, capable perhaps of delivering urban regeneration, often through initiatives linked to exploitation of cultural heritage that leads to increased tourism. It is often argued that, in future, the ideas and imagination of countries like the United Kingdom will be their greatest asset; in support of this argument, a number of universities in the UK have started to offer creative entrepreneurship as a specific area for study and research. Indeed, UK government figures reveal that the UK's creative industries account for over a million jobs and brought in billion to the UK economy (DCMS Creative Industries Mapping Document 2001), although the data sets underlying these figures are open to question.
In recent years, creative industries have become 'increasingly attractive to governments outside the developed world'.[27] In 2005, the United Nations Conference on Trade and Development (UNCTAD) XI High Level Panel on Creative Industries and Development commissioned several studies to identify challenges and opportunities facing the growth and development of creative industries in developing industries. As Cunningham et al. (2009) put it, 'the harnessing of creativity brings with it the potential of new wealth creation, the cultivation of local talent and the generation of creative capital, the development of new export markets, significant multiplier effects throughout the broader economy, the utilisation of information communication technologies and enhanced competitiveness in an increasingly global economy'. A key driver of interest in creative industries and development is the acknowledgement that the value of creative production resides in ideas and individual creativity, and developing countries have rich cultural traditions and pools of creative talent which lay a basic foundation for creative enterprises. Reflecting the growing interest in the potential of creative industries in developing countries, in October 2011 a Ministry of Tourism and Creative Economy was created within the Indonesian government with well-known economist Mari Pangestu appointed as the first minister to hold the position.
Intellectual property (IP) is a category of property that includes intangible creations of the human intellect. There are many types of intellectual property, and some countries recognize more than others. The best-known types are patents, copyrights, trademarks, and trade secrets. The modern concept of intellectual property developed in England in the 17th and 18th centuries. The term "intellectual property" began to be used in the 19th century, though it was not until the late 20th century that intellectual property became commonplace in most of the world's legal systems.
The knowledge economy, or knowledge-based economy, is an economic system in which the production of goods and services is based principally on knowledge-intensive activities that contribute to advancement in technical and scientific innovation. The key element of value is the greater dependence on human capital and intellectual property as the source of innovative ideas, information and practices. Organisations are required to capitalise on this "knowledge" in their production to stimulate and deepen the business development process. There is less reliance on physical input and natural resources. A knowledge-based economy relies on the crucial role of intangible assets within the organisations' settings in facilitating modern economic growth.
Freelance, freelancer, or freelance worker, are terms commonly used for a person who is self-employed and not necessarily committed to a particular employer long-term. Freelance workers are sometimes represented by a company or a temporary agency that resells freelance labor to clients; others work independently or use professional associations or websites to get work.
Knowledge workers are workers whose main capital is knowledge. Examples include ICT Professionals, physicians, pharmacists, architects, engineers, scientists, design thinkers, public accountants, lawyers, editors, and academics, whose job is to "think for a living".
The creative class is the posit of American urban studies theorist Richard Florida for an ostensible socioeconomic class. Florida, a professor and head of the Martin Prosperity Institute at the Rotman School of Management at the University of Toronto, maintains that the creative class is a key driving force for economic development of post-industrial cities in the United States.
The Directorate-General for Communications Networks, Content and Technology is a Directorate-General of the European Commission and is responsible for EU investment in research, innovation and development of critical digital technologies.
The Adelphi Charter on Creativity, Innovation and Intellectual Property is the result of a project commissioned by the Royal Society for the encouragement of Arts, Manufactures & Commerce, London, England, and is intended as a positive statement of what good intellectual property policy is. The Charter was issued in 2004.
Mari Elka Pangestu, is an Indonesian economist who served as managing director of Development Policy and Partnerships in the World Bank from 2020 to 2023. The President of the World Bank, David Malpass, announced her appointment on 9 January 2020 saying that she would be responsible for development policy and partnerships in her role in the bank. Previously she served as Minister of Trade in Indonesia from October 2004 to October 2011.
Fan labor, also called fan works, are the creative activities engaged in by fans, primarily those of various media properties or musical groups. These activities can include creation of written works, visual or computer-assisted art, films and videos, animations, games, music, or applied arts and costuming.
Creative entrepreneurship is the practice of setting up a business – or becoming self-employed - in one of the creative industries. The focus of the creative entrepreneur differs from that of the typical business entrepreneur or, indeed, the social entrepreneur in that they are concerned first and foremost with the creation and exploitation of creative or intellectual capital. Essentially, creative entrepreneurs are investors in talent – their own or other people’s.
Innovation management is a combination of the management of innovation processes, and change management. It refers to product, business process, marketing and organizational innovation. Innovation management is the subject of ISO 56000 series standards being developed by ISO TC 279.
The creative city is a concept that argues creativity should be regarded as a strategic factor in urban development. In addition to cities being efficient and fair, a creative city provides places, experiences, favorites, attractions, and opportunities to foster creativity among its citizens.
Nick Ashton-Hart is the Geneva Representative of the Digital Trade Network (DTN) and represents the ICC United Kingdom on the UK delegation to the meetings of the International Telecommunication Union. He has served in various capacities as the representative of the technology sector to the UN and its member-state delegations in Geneva for more than a decade, including with the Computer & Communications Industry Association (CCIA). Prior to that he was senior director for participation and engagement and director for at-large at the Internet Corporation for Assigned Names and Numbers (ICANN).
John Anthony Howkins is a British author and speaker on Creative Industries, particularly the development of this economic sector in China. He is visiting professor, University of Lincoln, England, and vice dean and visiting professor, Shanghai School of Creativity, Shanghai Theater Academy, China.
Copyright for Creativity - A Declaration for Europe issued on 5 May 2010, is intended as a statement of how copyright policy could be constructed in the Internet Age. It comes against the background of political debate within Europe to rethink copyright in an era where the use of digital content without paying fees to the creators is part of the business model for some of the largest global internet platforms. Interests of content creators and online platform providers collide. The declaration has been written by a group from political party "European People's Party (EPP)" The Declaration focuses on both the exclusive rights and the limitations and exceptions to existing copyright rulings and standards.
Creative Cities is an international project designed and managed by the British Council. It shares experiences across Europe on the ways creativity, entrepreneurship and innovation can help improving people's lives – making cities better places to live, work and play.
Tenstar Community, often known simply as "TEN", is a Third Sector not-for-profit movemente and association established and registered in Italy, in the city of Verona.
A creative economy is based on people's use of their creative imagination to increase an idea's value. John Howkins developed the concept in 2001 to describe economic systems where value is based on novel imaginative qualities rather than the traditional resources of land, labour and capital.: Compared to creative industries, which are limited to specific sectors, the term is used to describe creativity throughout a whole economy.
The creative industry in Brazil refers to various economic sectors of Brazil that depend on the talents and creativity to develop. In other words, these economic sectors generate wealth for the region through knowledge, culture and creativity, and contribute to sustainable development. The term 'creative industries' was coined by the United Kingdom in 1990 and, in 2001, was augmented by two important additions: by researcher John Howkins, who applied an entrepreneurial vision when focusing on the transformation of creativity in product; and professor Richard Florida, whose research focused on the professionals involved in the creative processes of production, and addressed the social aspects and the "potential contribution to the development" of the "creative class".
↑ Santos, F. F. S.; Pinheiro, F. C.; Marques, V. (29 October 2021). "Trademark protection and geographical indication in the Cachaça industry". Revista Indicação Geográfica e Inovação. 5 (4): 1418–1432. doi:10.51722/ingi.v5.i4.175. S2CID240303360.
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