Transcript University of Witwatersrand - Avril Joffe

+The Gauteng
Economic
Indaba
8-9 June 2016
Cedarwoods,
Woodmead
New Industries and new
businesses: the Cultural
Economy in Gauteng
Avril Joffe, Head: Cultural Policy and
Management: School of Arts, Wits
+
The Cultural or Creative Economy – from
where does this concept originate?
Cultural origin of
goods/service
Creative origin of
goods/ service
Intellectual property and
copyright
Commercialisation of
products leading to wealth
and job creation
+
Intersection with Public Policy
Only in the mid 1990’s that
creativity as a broad based attribute became
common currency
Throsby, 2007:5 defined in 1998- 2001
Composition of the Creative Economy
The
Arts
Upstream
Cultural
Industries
Creative
Industries
Copyright
Industries
Creative
Economy
Distribution
Industries
Creative clusters, creative precincts,
creative sectors
Downstream
CAJ (2007) Adapted from Heng, Choo and Ho (2003)
+The South African cultural and creative
industries
Segment
Total
Limpopo
Mpumalanga
Gauteng
Western Cape
Eastern Cape
Northern Cape
North West
Free State
KwaZulu-Natal
The table below provides a summary of the total database obtained (i.e. the number of all of
the organisations within the creative industries sector in South Africa).
Cultural & Natural Heritage
1,958
132
86
451
518
214
50
66
56
385
Performance & Celebration
3,747
85
84
1,914
797
183
49
84
82
469
Visual Arts & Crafts
3,455
135
142
1,178
921
247
47
59
137
589
Information, Books & Press
2,077
70
62
947
544
99
26
32
41
256
Audio-Visual & Interactive
Media
1,242
24
43
682
318
50
4
11
16
94
Design & Creative Services
10,592
192
215
4,922
2,900
558
52
147
250
1,356
TOTAL
23,071
638
632
10,094
5,998
1,351
228
399
582
3,149
DAC National Mapping Study, 2014
+ CCI contribution to GDP,
Employment etc
•
In 2013/14:
•
•
•
•
•
•
The creative economy contributed R90,5 billion directly
to the country’s GDP
Relative to the total RSA GDP, the CCI sector
contributes 2.9% of GDP
The fiscus can expect to receive R24.84 billion per
annum as a result of the business economy generated
by the creative industries
The creative economy accounted for a total number of
562,726 jobs
Over 50% of enterprises in the sector are blackowned and over 30% are owned by young people
More than 70% of respondents in the study reported
their primary source of income is own revenue
+ GDP Impact by Sector
GDP impact the measurable contribution of the annual value
added to the South African economy directly and indirectly
attributable to the activities of the creative economy
+ Employment Impact by Sector
GDP impact the number of jobs in the South African economy
directly and indirectly attributable to the activities of the
creative economy
+ Provincial Contribution to National GDP
Impact
Province
Gross Domestic Product
Employment
(GDP)
R millions*
%
Number
%
Eastern Cape
8,674
10
42,553
8
Free State
11,380
13
17,796
3
Gauteng
31,928
35
197,450
35
KwaZulu-Natal
12,342
14
79,069
14
Limpopo
1,949
2
65,509
12
Mpumalanga
6,091
7
57,654
10
North West
3,601
4
12,877
2
Northern Cape
979
1
10,287
2
Western Cape
13,598
15
79,532
14
Total RSA
90,542
100
562,727
100
+ Gauteng detail
+Implication 1: Increasing
importance of evidence-based
research
Driving the Creative Industries in
the Western Cape

The Cultural Industries Growth
Strategy

The Economics of Culture and
Cultural Statistics in South Africa Future Foundations: An Integrated
National Skills and Resources
Audit 2003
Human Resource Development
Strategy

Measuring Culture –
developments globally to inform
what we do locally

Strategic
Investigation in the
Establishment of a South African interventions for
Cultural Observatory
Mzansi

Funding for the Creative
Industries

Cultural Diversity in Developing
Countries – the challenges of
globalisation
Golden
Economy
DAC National mapping Study
(2014)
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Implication 2: Creative inputs
(artists, creatives) are necessary for
innovation

An analysis of business-to-business links between the
creative industries and firms in other sectors of the
economy suggests that the creative industries may play a
greater role in the UK’s innovation system than has
previously been recognised by policymakers.

‘firms that spend twice the average amount on creative inputs
are 25% more likely to introduce product innovations’

A second study shows that creative workers are also more
integrated in the wider UK economy than previous
mapping studies have implied.

Together, these pieces of research stimulated the UK to
start to think in terms of a ‘creative economy’ rather than a
set of ‘creative industries’.
+
Implication 3: The digital
economy is changing how we
understand CCI value chains

The digital economy is transforming the value networks of arts and
cultural industries

Value networks: more fluid arrangements to reflect non-linear
base of value chains and map relationships between all the role
players from artist to consumer, government to industry

Three broad stages
 Creation/ production – primary creator + producers who organise
resources required to create the product
 Aggregation –product aggregators, eg record labels, book publishers,
tv stations, websites who assemble + sell a large number of cultural
products
 Distribution/ retail- the product distributors and the makers of media
receivers (radio signals) as well as the audience or consumer
+
Implication 4: Focus on the
cultural economy rather than
individual creative industries
An important finding from the UK …..
While individually the creative industry sectors (music,
film, performing arts, dance, fashion, etc) might not be of
STRATEGIC importance to the UK, there was no doubt
that COLLECTIVELY the creative industries are very
important.
Creative economy is deeply integrated into the rest of the economy
and has positive impacts on innovation and knowledge driven
sectors
+
Implication 5: The creative
economy is well represented in the
urban sphere and in GCR
possibilities should be fostered –
clusters of creative activity – that come from cities
where connectivity, community and culture intersect
 Agglomeration
 Prioritise
 Accept,
creative clusters
plan and accommodate the migration to cities
of artists (infrastructure for rehearsal, production,
performance and showcasing) and training
opportunities on management, finance, production
and finding new markets.
+
Implication 6: The rights of
creators need to be balanced
against the expectations of the
users and consumer rights
1. Changing
nature of the relationship between producer and
consumers – prosumers
1. Impact
of the digital revolution on products and services of
the creative industries in the production process
+
Implication 7: Investment needed
to stimulate innovation
Improve our understanding of the role of the arts in
the creative economy and the scope, scale and
impact of the creative economy
International research shows that it is capital
investment which gives rise to innovation and
experimentation
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Implication 8: Develop an arts
curriculum that fulfils diverse, wide
ranging aims for the creative economy
Multi-disciplinary skills and creative and artistic competencies are
key to the creative economy
 Developing artistic skills, knowledge and understanding
 Increasing cultural understanding (identity)
 Sharing arts experiences
 Become discriminating arts consumers and contributors
 Personal and socio/cultural outcomes (confidence, self esteem,
individual expression, teamwork, intercultural understanding and
cultural participation)
 Focus on creativity (importance in innovation)

+
Implication 9: Recognise the
contribution of creativity to
sustainable development
Creativity: the human capacity, through imagination or
invention, to produce something new and original in order to
solve problems. It is a unique and renewable resource.
There is transformative power in investing in Creativity, in that it

fosters entrepreneurship and resilience

builds capabilities and improves well being

develops freedom of expression and dialogue

provides for economic growth and jobs
Heritage is a nonrenewable resource –
protect it;
Creativity is a
renewable resource –
enable it.
Paraphrased from Charles Landry
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Implication 10: Focus the strategy
on local capacity building in the
cultural economy

Construct resilient and self-sustaining structures within which
cultural practitioners can operate.

The CCIs should have sufficient capacity to grow and sustain
failure in what is a risky environment.

Build economic, social and cultural strength so that such clusters
of cultural economy firms can potentially act as guarantors of local
cultural heritage and tradition.
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Implication 11: Develop
partnerships between government,
private sector and universities

Foster private capabilities

Develop public private ventures

Expand social and environmental corporate
responsibility
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Implication 12: Remove obstacles
to business start ups and growth

Reduce taxes and regulatory burdens on the CCIs (film, music,
fashion, craft etc).

Provide guarantees for loan and seed capital

Peer learning and network creation to support new businesses

Work with national government to

enact copyright laws that benefit local creators

Implement and enforce intellectual property laws effectively;

Privatise and enhance royalty collection;
With thanks,
Avril Joffe
[email protected]
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