The phrase creative industries (or sometimes creative economy) refers to a set of interlocking industry sectors The tertiary sector of economy is one of the three economic sectors, the others being the secondary sector (approximately manufacturing) and the primary sector (extraction such as mining, agriculture and fishing). The general definition of the Tertiary sector is producing a service instead of just a end product, in the case of the secondary sector that focus on creating unique property, content or design that previously did not exist. Economic contributions from creative industries have been increasing, particularly as manufacturing industries have become increasingly automated and process-driven. The economic contributions are often cited as being a growing part of the global economy Globalization or is the process by which the people of the world are unified into a single society and function together. Globalization is often used to refer to economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of.

Creative industries typically include industries that focus on: creating and exploiting intellectual property Intellectual property are legal property rights over creations of the mind, both artistic and commercial, and the corresponding fields of law. Under intellectual property law, owners are granted certain exclusive rights to a variety of intangible assets, such as musical, literary, and artistic works; ideas, discoveries and inventions; and words, products such as music Music is an art form whose medium is sound organized in time. Common elements of music are pitch , rhythm (and its associated concepts tempo, meter, and articulation), dynamics, and the sonic qualities of timbre and texture. The word derives from Greek μουσική (mousike), "(art) of the Muses", books A book is a set or collection of written, printed, illustrated, or blank sheets, made of paper, parchment, or other material, usually fastened together to hinge at one side. A single sheet within a book is called a leaf, and each side of a leaf is called a page. A book produced in electronic format is known as an e-book, film Film encompasses individual motion pictures, the field of film as an art form, and the motion picture industry. Films are produced by recording images from the world with cameras, or by creating images using animation techniques or special effects and games A video game is an electronic game that involves interaction with a user interface to generate visual feedback on a video device. The word video in video game traditionally referred to a raster display device. However, with the popular use of the term "video game", it now implies any type of display device. The electronic systems used to; or providing business-to-business creative services Creative services are a subsector of the creative industries, a part of the economy that creates wealth by offering creativity for hire to other businesses. Examples include: including advertising Advertising is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service. Modern advertising developed with the rise of mass production in the late 19th and early 20th centuries, public relations Public relations is the practice of managing the flow of information between an organization and its publics. Public relations gains an organization or individual exposure to their audiences using topics of public interest and news items that do not require direct payment. Because public relations places exposure in credible third-party outlets, and direct marketing Direct marketing is a sub-discipline and type of marketing. There are two main definitional characteristics which distinguish it from other types of marketing. The first is that it attempts to send its messages directly to consumers, without the use of intervening media. This involves commercial communication with consumers or businesses, usually. Aesthetic live-performance experiences are also generally included, which contributes to an overlap with definitions of art Art is the process or product of deliberately arranging elements in a way that appeals to the senses or emotions. It encompasses a diverse range of human activities, creations, and modes of expression, including music and literature. The meaning of art is explored in a branch of philosophy known as aesthetics and culture Culture is a term that has different meanings. For example, in 1952, Alfred Kroeber and Clyde Kluckhohn compiled a list of 164 definitions of "culture" in Culture: A Critical Review of Concepts and Definitions. However, the word "culture" is most commonly used in three basic senses:, and even aspects of tourism Tourism is travel for recreational, leisure or business purposes. The World Tourism Organization defines tourists as people who "travel to and stay in places outside their usual environment for more than twenty-four hours and not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity and sport Sport is an activity that is governed by a set of rules or customs and often engaged in competitively. Sports commonly refer to activities where the physical capabilities of the competitor are the sole or primary determinant of the outcome , but the term is also used to include activities such as mind sports (a common name for some card games and. Economic activities focussed on designing, making and selling objects or works of art such as jewellery Jewellery (pronounced /ˈdʒuːəlri/ or /ˈdʒuːələri/ ) or jewelry is an item of personal adornment, such as a necklace, ring, brooch or bracelet, that is worn by a person. It may be made from gemstones or precious metals, but may be from any other material, and may be appreciated because of geometric or other patterns, or meaningful symbols, haute couture Haute couture refers to the creation of exclusive custom-fitted clothing. Haute couture is made to order for a specific customer, and it is usually made from high-quality, expensive fabric and sewn with extreme attention to detail and finish, often using time-consuming, hand-executed techniques, books of poetry Poetry is a form of literary art in which language is used for its aesthetic and evocative qualities in addition to, or in lieu of, its apparent meaning. Poetry may be written independently, as discrete poems, or may occur in conjunction with other arts, as in poetic drama, hymns or lyrics and other creative writing Creative writing is considered to be any writing, fiction, poetry, or non-fiction, that goes outside the bounds of normal professional, journalistic, academic, and technical forms of literature. Works which fall into this category include novels, epics, short stories, and poems. Writing for the screen and stage, screenwriting and playwriting, and fine art Fine art describes any art form developed primarily for aesthetics and/or concept rather than utility. This type of art is often expressed in the production of art objects using visual and performing art forms, including painting, sculpture, music, dance, theatre, architecture, photography and printmaking. Schools, institutes, and other are often included in the sector because the value of such objects derives from a high degree of aesthetic originality.

Creative industries exclude, and contrast with, industries that derive value by transferring ownership of pre-existing property (such as retail, financial-services and real-estate industries), by making a commoditised product or service (such as auto-manufacturing and electric-utility industries), and by maintaining or enhancing what already exists (such as the auto-repair industry).

While the concept of the creative class and creative economy have been quite controversial since their begnings, currently even the UN is using it for some economic reports. See for example the UN Creative Economy Report 2008[1]

Contents

Demarcation of the sector

The UK The United Kingdom of Great Britain and Northern Ireland is a sovereign state located off the northwestern coast of continental Europe. It is an island country, spanning an archipelago including Great Britain, the northeastern part of Ireland, and many small islands. Northern Ireland is the only part of the UK with a land border, sharing it with Government Department for Culture, Media and Sport The Department for Culture, Media and Sport is a department of the United Kingdom government, with responsibility for culture and sport in England, and some aspects of the media throughout the whole UK, for example broadcasting. It also has responsibility for the creative industries (some joint with Department for Business, Enterprise and (DCMS) has produced a widely-quoted definition of 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.” (DCMS 2001, p. 04) - (for a definition see also Cultural Institutions Studies The cultural sector constitutes an interface between differing social spheres: social structures interact with cultural formations (forms of expression, styles, values, habits of reception ...) and simultaneously overlap with economic interests and political aspects. Cultural Institutions Studies adopted the aim of overcoming mono disciplinary).

The current DCMS definition recognises eleven creative sectors

The DCMS list has been influential, and many other nations have formally adopted it.[citation needed] It has also been criticised. It has been argued that the division into sectors obscures a divide between lifestyle business Lifestyle businesses are businesses that are set up and run by their founders primarily with the aim of sustaining a particular level of income and no more; or to provide a foundation from which to enjoy a particular lifestyle, 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 is often questioned, since it does not generally involve production except of reproductions and fakes. The inclusion of all computer services has also been questioned.

Some nations, such as Hong Kong Beginning as a trading port, Hong Kong became a crown colony of the United Kingdom in 1842, reclassified as a British dependent territory in 1983, and remained so until the transfer of its sovereignty to the People's Republic of China in 1997. Under the "one country, two systems" policy, Hong Kong enjoys a high degree of autonomy in all, have preferred to shape their policy around a tighter focus on copyright ownership in the value chain The value chain, also known as value chain analysis, is a concept from business management that was first described and popularized by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance. They adopt the WIPO The World Intellectual Property Organization is one of the 16 specialized agencies of the United Nations. WIPO was created in 1967 "to encourage creative activity, to promote the protection of intellectual property throughout the world"'s classifications, which divide the Creative Industries up according to who owns the copyrights at various stages during the production & distribution of creative content.

Others 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 The visual arts are art forms that focus on the creation of works which are primarily visual in nature, such as traditional plastic arts - drawing, painting,sculpture, architecture, printmaking-, modern visual arts -photography, video and filmmaking-, design and crafts. Many artistic disciplines involve aspects of the visual arts as well as other; performing arts The performing arts are those forms of art which differ from the plastic arts insofar as the former uses the artist's own body, face and presence as a medium, and the latter uses materials such as clay, metal or paint which can be molded or transformed to create some physical art object. The term "performing arts" first appeared in the; cultural heritage).

Predecessors and comparators of the DCMS method

The DCMS approach has antecedents in earlier, international, attempts to measure creative activity, notably

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 This sector generally takes the output of the primary sector and manufactures finished goods or where they are suitable for use by other businesses, for export, or sale to domestic consumers. This sector is often divided into light industry and heavy industry. Many of these industries consume large quantities of energy and require factories and, and a worker who plays piano would be classified as a musician Composer · Songwriter · Arranger · Orchestrator.

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:

Properties or characteristics of creative industries

A toy cat produced in a South-African township, made from used plastic bags and old wire

According to Caves (2000), creative industries are characterized by seven economic properties:

  1. Nobody knows principle: Demand uncertainty exists because the consumers' reaction to a product are neither known beforehand, nor easily understood afterward.
  2. 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.
  3. 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.
  4. 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).
  5. 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.
  6. Time flies: When coordinating complex projects with diversely skilled inputs, time is of the essence.
  7. 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 economist 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.

Difference from the 'knowledge industries'

The term creative industries begins to elide with knowledge economy and questions of intellectual property ownership in general.

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. (Florida 2002)

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 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.

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.

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. Not surprisingly, perhaps, competition in product-focused areas tends to be more intense with a tendency to drive the production end of the supply chain to become a commodity business.

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.

Wider role

As some first world countries struggle to compete in traditional markets such as manufacturing, many now see the creative industries 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 £112.5 billion to the UK economy (DCMS Creative Industries Mapping Document 2001), although the data sets underlying these figures are open to question.

Alternative definitions

A wide variety of definitions of the creative industries have been adopted as a growing number of national and international agencies have become aware of their economic significance.

Evolution of the DCMS framework

An earlier DCMS definition[citation needed] provides for:

The 2001 definition recognised fourteen creative sectors

More recent publications, for example the DCMS Creative Industries Statistical Estimates Statistical Bulletin (DCMS 2006) reduced this to eleven sectors:

References

  1. ^ www.unctad.org/en/docs/ditc20082cer_en.pdf

External links

Queensland University of Technology - Brisbane, Australia:

National Institute for Excellence in the Creative Industries (NIECI), UK:

Department of Culture, Media and Sport, UK: http://www.culture.gov.uk

Categories: Creativity | Finance | Cultural economics

 

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