6 1. Cultural EconomyThose products and services whose primary economic value derives from their cultural value.Need economic interventions and innovations (markets, production, entrepreneurship)Need Public and Private SectorsNeed protection, development and transmission of all aspects of cultural life: heritage and contemporary
7 2. Cultural Economy as Complex Acknowledge the complex links between sectorsOne size does not fit allNeed to address specific needs but keep connections to wider cultural economyCultural and creative industry products and services asExperiencesServicesOriginalsContent
9 Cultural and creative industries Next step up the value chain?Replace manufacture?Generate IPR through direct creative inputIncreased symbolic value of goods and services
10 Local cultural identity Globalisation EconomicSignificanceDistinctivenessEmploymentWealthIncome & TurnoverForeign exchangeLocal cultural identityGlobalisationSocial ImpactWhy areCultural IndustriesImportant?IdentityPersonal developmentCommon CultureHeritageNation buildingImageValuesThe “creation of meaning”MarketingTourismInnovation& CreativityCommunicationNon-conventionalityIdeas & informationProblem solvingForum for debateCreativityIdeology
11 Financial and Other Services Emerging Knowledge Economy Economic History – eg Gauteng, South AfricaFinancial and Other ServicesManufacturingMiningEmerging Knowledge Economy18862003TIME
12 3. Policy DimensionsSustainable and competitive creative and cultural economy needs effective policy-makingGovernment interventions help shape the structure around which the creative and cultural economy developsIP regulationsLocal of Cultural infrastructure and cultural facilitiesTechnology, internet and other telecommunications quality and accessTax regimesEducation policies from school to tertiaryLocal and regional government involvementRights and status of artistsFinancial and administrative supportCreative and cultural economy is both a global and local phenomenon
13 Cultural Economy Policy areas TourismLifestyle/wellnessAgriculture and AgribusinessCultural Economy Policy areasConsumer ProductTechnologyAdapted from NGA Centre for Best Practice, Arts and the Economy,
14 Cultural Economy Tourism Lifestyle/ wellness Agriculture and AgribusinessNiche Products, spiritual artCultural tourismCultural EconomyCuisine, landscaping,Consumer ProductTechnologyDesign & ManufacturingAnimation, graphic, web designAdapted from NGA Centre for Best Practice, Arts and the Economy,
15 Elements of technical assistance in supporting and strengthening cultural and creative industries
17 Africa wide Concept of culture Making of culture Governance of culture How it intersects with cultural economy
18 Africa wide Concept of culture not uniform, diverse, ethnic-religious, heritage based, ways of life,not about arts, contemporary cultureLeads to distortions - e.g. cultural tourism is only about heritage or traditional culture, museums, galleries, traditional dance and music, traditional foodCultural tourism in this construct is not about contemporary artists, theatre, popular music
19 Outline Conceptual framework: History of definition from cultural industriesDefinition of creative industriesWhat do we mean by creative economyDrivers of the creative economyDEVELOPING CLEAR ADVOCACY BASED ON COMMON, CLEAR, AFRICA-RELEVANT DEFINITION
20 1. Conceptual framework for Creative Industries Definitions: number of diverse and differing definitions: EmphasiseIntellectual property/ copyrightCreative or cultural origin of goods/servicesCommercialisation or wealth and job creationEGUNESCO: ‘Those industries that combine the creation, production and commercialization of products which are intangible and cultural in nature. These contents are typically protected by copyright and they can take the form of goods or services’UK: ‘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)
21 Definitions continued Creativity as a focus of activities includingGeneration of creative content (products or services)Value chain associated with this activityEg DACST, South Africa (1998), Bogota creative mapping (2002), Singapore (2003), UK (2001 -)
22 Short history1980’s: culture, the arts, cultural planning, cultural resources, cultural industriesMid 1990’s: creativity as a broad based attribute became common currencyAustralia’s Creative Nation 1992 – cultural policyUK, Ken Robinson’s national commission on creativity, education and economy ‘All our Futures: Creativity, Culture and Education” – CREATIVITY on the mapCultural industries creative industries -----creative economy creative class (2002 Florida ‘The Rise of the Creative Class’
23 Review of models & classification systems Concentric circles (Throsby, 1998/2001)Cultural value of cultural goods is distinguishing characteristic of creative industriesCreative ideas originate in the core creative arts in the form of sound, text and image and these ideas and influences diffuse outwards through a series of layers, or ‘concentric circles’.As one moves outwards from the centre, the proportion of commercial content to cultural content rises
25 Models: Stylised typology: Work Foundation from EU (Throsby) 2006 Report to UK’s DCMS, Work Foundation developed a stylised typology of this model of the creative industries borrowed from EU’s ‘The Economy of Culture’ (2006) originating with Throsby.Bulls-eye of core expressive value creation at centre of concentric circles: the home of artists – musicians, lyricist, dancer, choreographer, composer, writer, painter, sculptor, scriptwriter, designerExpressive value – enlarging cultural meaning & understanding to include aesthetic, spiritual, social, historical, symbolic & authenticity value of cultural goods & servicesThis stylised typology introduces relationship between core creative fields, cultural industries, creative industries and the rest of the economy plus notion of expressive value and outputs (not included in original model)
27 Models: WIPO copyright model (2003) All industries involved in the creation, manufacture, production, broadcast and distribution & consumption of copyrighted works are includedIndustries that PRODUCE the intellectual property – the embodiment of the creativity that is needed to produce the goods and services of the CI – are DISTINCT from those that are needed to CONVEY the goods and services to the consumer
28 Models: DCMS, Symbolic Texts, Concentric Circles, WIPO: 1. DCMS Model2. Symbolic Texts Model3. Concentric Circles Model4. WIPO Copyright ModelAdvertisingArchitectureArt and Antiques marketCraftsDesignFashionFilm and VideoMusicPerforming artsPublishingSoftwareTelevision and radioVideo and Computer gamesCore Cultural IndustriesFilmInternetVideo and computer gamesPeripheral cultural industriesCreative artsBorderline cultural industriesConsumer electronicsSportCore Creative ArtsLiteratureVisual artsOther core cultural industriesMuseums and librariesWider cultural industriesHeritage servicesSound recordingRelated industriesCore copyright industriesAdvertising servicesCopyright collection management societiesMotion picture and videoTheatre and operaPress and literatureSoftware and databasesPhotography,Visual and graphic artInterdependent copyright industriesBlank recording materialMusician instrumentsPaperPhotocopiers, photographic equipmentManufacture, wholesale and retail of TV setsRadioCD recordersComputers and equipmentCinematographic instrumentsPartial Copyright IndustriesClothing, footwearHousehold goodsToys
29 Model: Creative Economy: Singapore (2003), Unctad (2006), Nesta (2008) Increasing use of the term ‘Creative Economy’What is the relationship between core cultural fields, cultural industries, creative industries and the broader creative economy?Highlight the upstream (traditional art form: performing , literary & visual arts – may have commercial value in themselves) and downstream activities (applied arts: advertising, design, publishing and media-related activity – derive commercial value principally from their application in other activitiesBecause there is a symbiotic relationship between all the sectors (commercial and non-commercial as well) a growth or decline in one area will have an effect on another area.
31 Concept: Creative Economy Evolving concept based on creative assets embracingCulturalEconomicSocialTechnological aspectsCentral application: seen as a feasible policy option to diversify economies and improve trade and development gains in countries around the world (Brandford, 2004)Characteristics includeKnowledge-based economic activitiesIntensive use of creativity to add value to products + servicesAbility to generate income from trade and property rights
33 What are The products & services of the Creative economy? Its a vast field dealing with the interplay of various sub-sectors from traditional art crafts to technology-oriented multi-media servicesTraditional knowledgeVisual ArtsMusicArt crafts, festivals and cultural activitiesPaintings, sculptures and photograpyConcerts, CDs, tapes, digitalized musicLiterature and PublishingCreative IndustriesPerforming ArtsBooks, newspapers and periodicalsTheatre, dance, opera, puppetry, circusDesignAudio-VisualsDigital Animation and Multi-mediaArchitecture, interior objects, fashion and jewelleryBroadcasting, cinema, television, radioSoftware, videogames and advertising(UNCTAD)
34 Creative economy - Innovation Recent studies (Nesta) – creative industries play significant role in UK innovation system ‘firms that spend twice the average amount on creative inputs are 25% more likely to introduce product innovations’ARC/ Queensland: creative workers are more integrated in the wider UK economy than previous mapping studies showed. More creative specialists working OUTSIDE the creative industries than within them (Higgs, Cunningham and Bahkshi, 2008)
35 Creative Trident – ARC centre of Excellence for Creative Industries, Queensland University of TechnologySector specific focus to full economic contribution of creativity to the wider economyTrack creative occupations in traditional creative industries as well as in manufacturing & the wider service industries (health, education, business services, government)Design occupations particularly are embedded (ie employed in creative occupations) in other industries resulting in an undercounting of the design sector by 36%.
36 Creative TridentDiagramme illustrating significant contribution of creative occupations.55% of creative occupations are located in other industriesCreative occupations in other industries account for 35% of total employmentCreative occupations account for 64% of total employment (in CIs and rest of economy)
37 Creative Trident – making CREATIVE ECONOMY apparent! Figure 8: The number of people employed in Specialist, Embedded and Support roles within the Australian Creative Workforce (2006)Source: Australian Research Council Linkage Project, 2008 quoted in Ameru and CAJ, 2008: 77
38 Developing an advocacy position in your country: How will you define the creative industries/ creative economy to your authoritiesWhat will they includeWhat will they excludeWhat will be the defining characteristic(s) of this creative sectorDo we need a phased approach when working with a definition? i.e. from cultural industries to get agreement through over time to creative economy?OrDo we abandon the term creative economy and refer to the cultural economy to make culture the dominant characteristic?
40 2. Economic analysis of Creative Industries Industrial organisation analysisMeasuring standard economic variables (gross value added, levels of employment, labour, investment) – core of mapping studiesEconomic Impact analysisCultural events in local areas (museums, festivals heritage sites): effect on local community + economy and benefits that flow to both
41 Economic analysis of Creative Industries Economy wide contribution4 distinct levels of contribution:primary (direct and quantifiable)secondary (indirect and quantifiable: multipliers;tertiary (direct and non-quantifiable: invention, innovation and diffusion andquaternary impact (indirect and non quantifiable: quality of life, motivation and productivity, cultural identify, preservation of tradition and culture, creative new cultural identities
42 Value chain analysisCultural production chain – describes the full range of activities that are required to bring a product or service from conception (creation) , through the intermediary phases of production (pre and post production) delivery to final consumers including activities such as design, production, marketing, distribution and support services up to the final consumerAdapted from Charles Landry for ILO study on the Impact of the Cultural Sector in SADC countries (2003) by Joffe, CAJ.
44 Value chains for policy development/ entrepreneurial analysis, designers Can be used by policy makers to determine the needs of the cultural and creative industriesCan be used to inform policies and measures, support project design and to address entrepreneurial needsCan be used to assess the regulatory and legislative framework at each phase of the value chain as well as the associated training and educational requirementsCultural entrepreneurs can use the VC to understand the reasons for market failure, to assess blockages and gaps in the phases, to offer insight into weaknesses of a specific sector, identify challenges and opportunities
45 Simple value chainsEg Craft value chain as presented by CCDI, SA
46 Music Value Chain1.BEGINNINGS: musician; lawyer; financier, songwriterthe idea (lyric, melody), the context, the rich heritage, the project funds and finance for development, promotion, recording and exhibition5. AUDIENCE RECEPTION: critic, groupie, journalist, trade journals, festival commentary, awards, academies2. PRODUCTION: - sound engineer, business manager, the people, the processes, the sites of productions, the facilities, the equipment and suppliers, the designers, IPRTraining &DevelopmentSMESupportThe value chain4. DELIVERY MECHANISMS: Performer, roadie, session musician, DJExhibitors, broadcasters, retail outlets, live venues, performance spaces, gallery/ exhibition spacesRegulation& Policy3. CIRCULATION/ DISTRIBUTION: Personal manager, agents, artist management (for band, DJ, solo artist or instrumentalist) Distributors, agents, marketers & intermediariesCore Entrepreneurial Problem: Lack of understanding where wealth is created in the value chain; that entrepreneurship occurs throughout the value chain, the absence of business savvy or appropriate training; poor organization, lack of clustering and inadequate networking
48 Assessment of your cultural and creative industries Who are the key players in each ‘moment’ ?Where are the work places ?How supportive is the regulatory framework for each moment and the entire value chain?Does the education and training environment support and align to the respective cultural and creative industry ?Can the different value chain moments Access mainstream business support?Is the business and trading environment conducive to the cultural creative industries?
49 Create your own value chains STEP 1 Step 2 Step 3 Step 4Name the creative List the players list the people, players Brainstorm Originator of the idea in the production and institution who the consumersProduct or service of the product or play a role in the or people whoservice. Marketing, PR, retail will enjoy yourand distribution of the good or bad product or service service
50 New Developments on value chains: Value Networks (Canada) The digital economy is transforming the value networks of Canadian arts and cultural industriesValue 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 industryHighlight functions which do and don’t add value or create new rightsThree broad stagesCreation/ production – primary creator + producers who organise resources required to create the productAggregation –product aggregators, eg record labels, book publishers, tv stations, websites who assemble + sell a large number of cultural productsDistribution/ retail- the product distributors and the makers of media receivers (radio signals) as well as the audience or consumer
52 Disconnects in value chain Product flows to consumer but revenue does not reach primary creators – a ‘disconnect’Eg Music industry: Music and video distributed to consumer on internet through distribution platforms (eg Limewire) – used as a marketing tool for internet service providers who sell connections while ‘value perceived by consumers includes the content they receive” (Connectus Consulting Inc, 2007: 19)“In that sense, electronic download of music is generating revenue, but no review currently passes from the ISP to any of the producers of music in respect of this use. Since many music rights holders have not authorised the distribution of their content and this ‘free’ music is nonetheless distributed and its value perceived without being monetized through any revenue model, a disconnect is clearly present”
53 Economic analysis: Urban & regional growth Creative clustersCreative citiesCultural quartersCreative regionsThe Creative Industries have the potential to encourage regional economic growth and employment creation and, in particular to regenerate depressed urban areas and enhance the liveability of cities thereby contributing to urban development and creating the conditions for inward investment.
54 The Creative CityImportant player Comedia, Charles Landry: One of 1st Studies: ‘Glasgow: the creative city and its cultural economy’ (1990) – The creative city in Britain & Germany 1994 –The Creative City: A Toolkit for Urban Innovators (2000)At same time, ‘Creative City’ – seminar City of Melbourne, Australia Council in 1988 “The City should be emotionally satisfying and stimulate creativity amongst its citizens”, David Yengken, Secretary for Planning and the Environment, State of Victoria
55 Johannesburg: the creative capital GAUTENG SPATIAL DEVELOPMENT INITIATIVE, DBSA1998PREPARED BY AVRIL JOFFE FOR CREATIVE STRATEGY CONSULTING, SQW (SA)2007/8
56 Becoming an African Cultural Capital: Creating an agenda Presentation to African Cultural Capital Forum March 2010Avril JoffeDirector, CAJ: culture, arts and jobsMain results from meeting:Change name to AfricaCANAccraCAN to remain as secretariat for initiativeDevelop criteria for Cultural CapitalDevelop advocacy programme to bring more African cities on boardAMBASSADE DE FRANCEAU GHANA
57 AFRICACAN – long term advantages of AFRICAN CULTURAL CAPITAL CONCEPT Raising the international profile of the cities involvedAttracting visitors through cultural activities and art eventsExpanding local audiences for cultural activities and art eventsImprovement to cultural infrastructurePromoting creativity and innovationDeveloping the careers and talents of art professionals in the city.
58 Cultural City Mapping of city What exists, Budgets Numbers Place sectorInfrastructureMaintain, appropriate, accessible, sustainableTraditional and contemporary art forms & heritageDevelopment planShort, medium & long termPolitical commitmentMedia that reflects cultureArtistes, communities, African solidarityConsultation networking & partnershipsEducation interface – basic education & higher education
59 AFRICACAN: Way forward for all cities Mapping – who, where, what, why, how muchNetworking including identification of beneficiaries, experts and development of partnershipsSecuring political commitmentDevelopment Plan includingInfrastructure maintenance and development planEducation interface at all levels including research institutions/ individualsTraditional and contemporary art forms including heritageMedia and promotion