Transcript Creative industries

The dynamism of the cultural sector in favour of
innovation and economic growth
Dr. Marianne Paasi, European Commission
FP7 SSH Research Programme, Unit L2
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Innovations in the cultural sector and growth in Europe
– What are the issues
• Culture has a value as such for the society
• The types of innovations in the cultural sector, need for modified
(technology based) innovation theories
• How does the innovation in the cultural sector support
(endogenous) growth?
• We want to come up with policies and strategies which support
innovation in the cultural sector and in the economy
• What is the EU doing and the role of Member states and regions in
supporting innovation in the Cultural sector
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Cultural sector: publicly supported culture and
cultural industries
• Green Paper 2010: goods and services which include cultural expressions.
Cultural industries are those industries producing and distributing goods
or services which at the time they are developed are considered to have a
specific attribute, use or purpose which embodies or conveys cultural
expressions, irrespective of the commercial value they may have.
• Production and provision of cultural goods and services both by non-profit
sector/activities and profit-oriented cultural industries
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Cultural sector: Definitions
• Different definitions exist (European Commission Green Paper 2010,
OECD, UNESCO (incl. Sports, environment, UK))
• European Commission 2006
a) Core: Visual arts, performing arts, Heritage
b) Cultural industries: Film and video, Television and Radio, Video games,
Music, Books and Press
c) Creative industries: Design, Architecture, Advertising
d) Related industries: PC and MP3 player manufacturers, mobile industry
etc.
• Cultural sector a) Core (outputs are prototypes/ potentially copyright) and
b) Cultural industries (copyrights, industrial mass reproduction)
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Economic contribution of the cultural sector in
Europe
• The cultural&creative sector represented 2.6% of Europe’s GDP (Europe
30); Germany 3.4%, Finland 3.1%, Belgium 2.6%
• Growth 1999-2003 EU 25: 6.6%, Europe 30: 12.3%
• Cultural consumption: steady growth (high income elasticity of cultural
demand)/ structural changes from to modern
• Cultural employment: in 2004 2.5% of the active employed population in
the EU25; Higher educational level in the cultural sector employment
• Structure: micro-enterprises and self-employed; large firms
• Exports of cultural and creative products and services: EU has a surplus
(Cultural statistics 2007)
• The role played by public sector (investment); heritage sector: share of
public sector even 52-43%
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Cultural sector in the perspective of cities: great
importance
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CREATIVE CITIES: London, Berlin, New York
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London: Creative industries are the second largest business activity (after business
services/ financial services today?)
third largest sector of employment
Berlin: increase by 660% from 1998 to 2002; 2002 8% of the total Berlin
employment;
city tourism (cultural days, museums, opera theaters)
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• multiple data sources
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Culture in the economic and innovation theories
Economics of culture:
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Production of ideas/ arts: uncertain, semi-public good characteristics;
gatekeepers, contract theory
Incentives and IPRs for ideas/ artistic output and demand
Markets might reject ideas because seen as unprofitable
Public policy issues: IPRs, public sector investment/ subsidies
Innovation theories and measurement:
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technology based innovation theory and measurement (OSLO manual);
chain-link model;
innovation in the service sector; non technological innovations:
management, organisational innovations;
Innovation system concept
Open innovation
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Relationship between creativity and
innovation: what do we observe?
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Creativity and innovation: interactive
relationships
ECONOMIC
CREATIVITY
TECHNOLOGICAL
CREATIVITY
SCIENTIFIC
CREATIVITY
CULTURAL
CREATIVITY
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Relation between Creative climate, Creativity and
Innovation
Relationship between design and
competitiveness
• International competitiveness rankings data: WEF
• Design index:
- Degree of customer orientation
- Extent of marketing
- Extent of branding
- Capacity for innovation (technology)
- Production process sophistication (technology)
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Relation between design index and growth
competitiveness (P.Ylatalo 2007, ETLA)
6,5
Germany
Japan
6,0
Switzerland
France
UK
Netherlands
Denmark
Finland
Belgium Israel
Austria
5,5
Design
USA
Sweden
Taiwan
Hong Kong
Singapore
Canada
Luxembourg
Australia Island
Korea
New Zealand Norway
Ireland
5,0
Italy
Spain
Slovenia
4,5
Czech Republic
South Africa
India
4,0
United Arab Emirates
Estonia
China
Russia
3,5
3,5
4
4,5
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Growth Competitiveness
5,5
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6,5
Marketing component and growth
competitiveness (p. Ylatalo 2007, ETLA)
Marketing know-how component
6,5
USA
Japan
Germany
Switzerland
UK
Netherlands
Sweden
France
6,0
Denmark
Austria
Hong Kong
Israel
Singapore
Canada Australia
Taiwan
Korea
New ZealandIsland
Luxembourg
Belgium
5,5
Italy
5,0
Finland
Ireland Spain
South Africa Slovenia
Check Republic
4,5
Norway
United Arab Emirated
India
Estonia
China
4,0
Russia
3,5
3,5
4,0
4,5
5,0
Growth competitiveness
5,5
6,0
6,5
Cultural sector in the innovation perspective
• The cultural sector provides new ideas/ways/combinations, concepts, arts:
innovations. Technology based innovation misses most of the innovation
in the cultural sector
• Creativity or profit-oriented incentives? making culture is making money?
• CS provides inputs to the innovation activities of other entreprises/
organisations: chain link model of innovation (types of knowledge and
users)
• CS is a user/ demander for new technologies (ICT), adaptations: gives
innovation impulses, innovation models of KIS
• Soft innovations, i.e. asthetic anad content innovations or experience
innovations
• Open innovation model
• Innovations from novel combinations of existing technologies, content and
processes
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‘Hidden Innovations’ in the cultural sector
• The innovation processes are not formalised but involve often the
same activities (R&D, business models, novel combinations,
interactions)
=> they are not measured, recognised
• CIS4 data : measurement of innovation/ Intangible assets
(copyrights, industrial property rights/ design and goodwill)
• Investment of knowledge and creativity (intangibles) in relation to
turnover in cultural and creative sector (Economy of culture, p. 109
for 2003): LI, CR and IRE countries over 10% of turnover , UK and
Denmark 7.9% high; Finland 4.7%, Sweden 4.4%, Italy 3.6%
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Cultural sector in the growth perspective:
too small, just consumption?
• Cultural sector is itself about ideas, a sort of innovation but it
has a small size although the most dynamic sector
• Cultural sector creates cultural goods and services which
serve mainly consumption (with exceptions like design) and
demand is increasing due to increasing income.
• Arts and humanities research as a source of (R&D) knowledge
spillovers?
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Endogenious growth from cultural innovations:
in search for creativity spillovers
• Consumption of cultural goods and services: Creativity as attitude /Culture
as social capital creates spillovers through increased creativity in the
economy as a whole and attracts additional resources
• Creativity spillovers: New economic opportunities / inputs to the
innovations of other sectors as spillovers
• Human capital vs. Creative workers: new ideas induce (permanent,
endogenous) economic growth. Creative workers attracts additional
resources
• Variety and economic growth
• Economices of scale and Ideas (fixed costs, marginal costs are often zero)
once they are produced the size of the market determines the profit
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Local perspective: Creativity and cultural sector in
regional and urban innovation and development
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Fuel digital devices and networks
Experience economy; innovation friendly climate
Creative innovation services (CCI inputs)
Creative workers: new ideas/ Creative class (persons) are the
key drivers in urban and regional growth (Florida: 3T:
Technology, talent, tolerancy
• Cultural tourism: for example Berlin’s Museums insel – New
national musemum: international arcitect/team for the
concept; use of new possiblilities
Comment: or just the impact of the new economy?
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Cities and Agglomeration
Distance costs for routine, standardized and nonknowledge intensive activities have fallen
Distance costs for non-routine, non-standardized and
knowledge-intensive activities have risen
From: Prof. P.McCann; graph: L.Dijkstra DG Regio
Public policy for innovation in and from the cultural
sector – heterogenity of « market failures »
• Underinvestment in ideas/concepts (risk, appropriability etc): IPRs
to promote incentives and capacity to innovate
• Diffusion of new technologies (like digitalisation) creating new
economic opportunities and business model
• Cultural innovations in the supply chain of other (existing)
industries: renewal of existing activities/ industries
• Culture as attitude (social capital)
• Micro firms: acess to finance; promoting growth
• Support interdisciplinarity
• Stimulate employment of graduates (capacity to educate)
• Soft innovations: business models, demand for ideas
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EU policy for innovation in and from the
European cultural sector: motivations
• Legal basis: Lisbon Treaty (2009) about culture and innovation
• Barrosso’s political programme: Europe 2020 A strategy for
smart, sustainable and inclusive growth (COM 2020 final)
• Economic reasoning for EU level policies: Market/system
failures at the EU level? Culture is bound in regions and cities:
strong source of regional growth
• Creative performances of Member states differ: indicates
room for policy
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Creative climate differs accross the Member
states
from Hollanders et al 2008)
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EU and European policy: Political
orientations of the EU
• Barrosso’s political programme: Europe 2020
• Three priorities
- Smart growth: knowledge and innovation
- Sustainable growth: efficient, green, competitive economy
- Inclusive growth: high employment, social and territorial cohesion
• EU targets for 2020; 5 Flagships
• Flagship initiative « Innovation Union »:
re-focus research and
innovation policies on the challenges of the European society; includes for
example copyrights and trademarks
• Europe’s strengths in creativity and design
• Other flagships contain also for CS important issues like Digital
Agenda for Europe
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European cultural policy
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Green Paper 2010, Unlocking the potential of cultural and creative industries
(relying on Europe 2020)
2009 European year of Creativity and innovation
Agenda for Culture 2007: three common sets of objectives: cultural diversity and
intercultural dialogue; culture as a catalyst for creativity; and culture as a key
component in international relations.
EU culture programme 2007-2013: The aim of the multi-annual Programme is to
encourage and support cultural cooperation within Europe in order to bring the
European common cultural heritage to the fore. The Programme proposes funding
opportunities to all cultural sections and all categories of cultural operators
contributing to the development of cultural cooperation at European level, with a
view to encouraging the emergence of European citizenship.
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EU innovation policy: main features
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Flagship initiative « Innovation Union » (Communication)
Innovations to adress societal challenges
European Competitiveness Report 2010: creative industries
Broad based innovation policy (Finnish EU presidency 2006):
excellence in design, improvements of processes and
organisational change, business models, marketing, branding and
design; more focus on demand side and users
Financing; Venture capital (chronic underinvestment in cultural and
creative industries)
Creativity, innovation; culture as an attitude
SMEs
Public sector as driver of innovations
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Other EU policies with relevancy to the
innovation in the cultural sector
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The Digital Agenda
Strategy on Intellectual Property; TRIPs
Education (EIT), Research, labour market/ mobility
Single market: European creative single market; competition
SMEs/Micro firms/ persons: more flexible measures
Creativity to be in line with evolving markets, project funding, prizeawards (EU award?)
• In particular:
Culture is bound in regions and cities: strong source of regional
growth; EU cohesion policy (rural, urban); cluster policy; role of
Regional policy and Structural funds for implementation (allows to
adress the heterogenious activities of CS)
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Examples about proposals to support innovation in the
cultural sector
• Innovation vouchers, Design thinking in businesses (cultural
sector), Artists in residence etc. (KEA)
• individuals/ freelanchers
• Access to finance: creative industries bank, attract investment
• Access to markets: poor knowledge of consumer markets =>
market information, B2B partnerships across borders,
facilitating the translation of innovation and knowledge into
(marketable) products, processes and services
• Platform on the Potential of Cultural and Creative Industries
Heterogenity of the sector
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Future challenges and perspectives
 Better scientific knowledge for innovation models and policies in
the cultural sector: innovation/economic/interdiscplinary research;
economics of knowledge/ innovation economy (new ways)
 Governance in policies for creativity and innovation: create policy
synergies/ Support for interactions between actors
 Support for interdisciplinarity: EIT, Aalto university, Germany
 (regional) Opportunities from globalisation and digitalisation
 New ways for public sector as driver of innovations in the cultural
sector?
 Statistics: CIS4 has only firms with 10 or more employees; GDP:
Satellite accounts for cultural sector; difficult comparisons across
the Member states and with the USA
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