+ New Industries and new businesses: the Cultural Economy in Gauteng Avril Joffe, Head: Cultural Policy and Management: School of Arts, Wits The Gauteng Economic Indaba 8-9 June 2016 Cedarwoods, Woodmead

+ The Cultural or Creative Economy – from where does this concept originate? Intellectual property and copyright Creative origin of goods/ service Cultural origin of goods/service 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 Australia’s Creative Nation in 1992 ‘All our Futures: Creativity, Culture and Education” - UK’s Ken Robinson ‘The Rise of the Creative Class’ Richard Florida 2002

Throsby, 2007:5 defined in

The Arts

+ The South African cultural and creative industries SegmentTotal Limpopo Mpumalanga Gauteng Western Cape Eastern Cape Northern Cape North West Free State KwaZulu-Natal Cultural & Natural Heritage1, Performance & Celebration3, , Visual Arts & Crafts3, , Information, Books & Press2, Audio-Visual & Interactive Media 1, Design & Creative Services10, ,9222, ,356 TOTAL23, ,0945,9981, ,149 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). 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 black- owned 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 (GDP) Employment R millions*%Number% Eastern Cape8, ,5538 Free State11, ,7963 Gauteng31, ,45035 KwaZulu-Natal12, ,06914 Limpopo1,949265,50912 Mpumalanga6,091757,65410 North West3,601412,8772 Northern Cape979110,2872 Western Cape13, ,53214 Total RSA90, ,727100

+ Gauteng detail

+ Implication 1: Increasing importance of evidence-based research The Cultural Industries Growth Strategy The Economics of Culture and Cultural Statistics in South Africa Measuring Culture – developments globally to inform what we do locally Investigation in the Establishment of a South African Cultural Observatory Funding for the Creative Industries Cultural Diversity in Developing Countries – the challenges of globalisation Driving the Creative Industries in the Western Cape National Skills and Resources Audit 2003 Future Foundations: An Integrated Human Resource Development Strategy Strategic interventions for Mzansi Golden Economy DAC National mapping Study (2014)

+ 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 Agglomeration possibilities should be fostered – clusters of creative activity – that come from cities where connectivity, community and culture intersect Prioritise creative clusters Accept, 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

+ 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 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 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. Heritage is a non- renewable resource – protect it; Creativity is a renewable resource – enable it. Paraphrased from Charles Landry

+ 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.

+ Implication 11: Develop partnerships between government, private sector and universities Foster private capabilities Develop public private ventures Expand social and environmental corporate responsibility

+ 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