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Tartu Presentation Colin Mercer

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  • 1. The Creative Economy, the Creative Industries and the Ecology of Culture Colin Mercer
  • 2. The Creative Economy: market size
  • 3. The Creative Industries: definition
  • 4. Creative industries: UK sector composition and employment 2001
    • Software and computer services (555,000)
    • Publishing (141,000)
    • Music (122,000)
    • TV and radio (102,000)
    • Advertising (93,000)
    • Design (76,000)
    • Performing arts (74,000)
    • Film and video (45,000)
    • Arts and Antiques market (37,000)
    • Crafts (24,000)
    • Architecture (21,000)
    • Interactive Leisure Software (21,000)
    • Designer fashion (12,000)
      • = 1.3 million people in industry based on creativity and intellectual property
  • 5. The New Economy: characteristics
    • Intellectual property and knowledge-based
    • Symbolic goods and cultural capital
    • Symbolic and cultural entrepreneurs and intermediaries
    • The ‘weightless economy’ of ‘bits’ rather than atoms
    • From marketplace to market space
    • Based on outputs and flows of cities/city-regions rather than nations
  • 6. Four themes :
    • The significance of the creative industries at local and regional level (clustering effects)
    • The contribution of the creative industries to the national economy and international trade
    • The context of globalisation and convergence and the importance of indigenous/endogenous creative industry growth
    • Some conceptual issues and approaches enabling us to understand these realities (the ‘ cultural ecology’ and the ‘ value chain’)
  • 7. Local example: the Lace Market/Hockley area in Nottingham
    • 419 registered businesses in Lace Market/Hockley area
    • 168 businesses (40%) in Creative Industries
    • 67% of those surveyed rated as ‘important to crucial’ for their business their location in the Lace Market area (LMA).
    • 61% of those surveyed rated as ‘important to crucial ‘ for their business the capacity for meeting and networking with suppliers, collaborators, competitors in the LMA.
    • 70% gave a ‘very good to excellent’ rating to the LMA as a location for combined business and social interaction.
  • 8. The creative content makers
    • 74% rated as ‘important to crucial’ for their business the attractiveness of the built environment.
    • 60% rated as ‘important to crucial’ for their business the range and quality of restaurants, pubs, clubs, cafes.
    • 57% rated as ‘important to crucial’ for their business the heritage quality of the LMA
    • 50% rated as ‘important to crucial’ for their business the proximity of arts and cultural institutions.
    • 58% had plans for business expansion
    • 77% had experienced growth in demand for their product or service in the past year
  • 9. The creative content users
    • 91% of users agreed that the LMA ‘adds vitality to the city centre area’
    • 68% rated the LMA as a ‘safe environment’
    • 79% rated the LMA as ‘good for shopping’
    • 90% rated the LMA as ‘good for socialising’
    • 20% were there for work purposes
    • 30% were there for shopping
    • 49% were there for social reasons
  • 10. In the Greater Nottingham Area….
    • 15,000 employed in 1600 businesses
    • 5% of the workforce (equivalent to national figures) and
      • Strong growth in areas such as advertising, design,software, new media, publishing
      • Figures do not include self-employed, freelance, etc (‘the independents’)
    • The cultural sector also comprises, as part of its 'ecology', organisations, large and small, which are in receipt of subsidy from local, regional and national government agencies amounting to £10.5 million in 1999-2000 .
  • 11. The subsidised sector ...
        • These subsidised cultural organisations directly contributed some £34 million to the economy in direct operations spending (on staff, goods, services) in 1999-2000.
        • Through the 'multiplier effect' this contributes, in real terms, up to £85 million annually to the economy. The more that is created and produced locally, the more this money stays in the local and regional economies.
        • The subsidised organisations employ nearly 800 operational staff on both continuing and contract basis and a further 800 artists, performers and educators.
  • 12. What the people think
        • 68% of respondents in random street and telephone surveys, across demographics and areas, placed a 'fairly high' to 'high' value on culture with:
          • 55% agreeing that it 'encourages a sense of community'
          • 71% agreeing that it 'helps me to understand the world and its people'
          • 56% agreeing that it is 'important for my personal development'
          • 47% agreeing that it encourages ‘a sense of local identity'
  • 13. From quantity to quality….
    • The creative industries are a special sector because, while economically increasingly important, they are also about:
      • The resources of identity
      • The resources of affirmation
      • The resources of celebration
      • The resources of social inclusion and cohesion
      • The economy of symbols,values and meanings
      • The quality, vitality and conviviality of lived human environments
      • The resources of a sustainable and creative new economy
      • The development of distinctive local, regional and national identities (and industries) in the context of globalisation and potential homogenisation of cultures( ref. Uruguay Gatt Round/WTO the principles of ‘cultural exception’ and ‘cultural diversity’
  • 14. The Ecology of Culture
    • Dynamic relationship between commercial, independent, community and subsidised sectors
    • Flows of people, talent, skills back and forth between these sectors
    • Importance of informal social networks and networking capacity (social capital)
    • Importance of understanding the processes of this ecology and the ‘critical mass’ that sustains it.
  • 15. The Value Production Chain
    • Pre/creation (social conditions, training, funding)
    • Production (infrastructure and capacity)
    • Dissemination and circulation (distribution through people and places)
    • Positioning, promotion and marketing (dissemination of knowledge)
    • Consumption and usages (how, why, what people are doing and to what ends - audience and market development, co-creation)
  • 16. The Creative Class and the ‘Creativity Index’
    • Creative class/bohemian/ share of the work force (measured by SOCs)
    • High Tech Industry presence
    • Innovation index (patents per capita)
    • Diversity index (overseas born, gays)
  • 17. The Hong Kong Creativity Index
    • Manifestations of creativity (patents, etc)
    • Structural/Institutional Capital (legal system, IP, treaties, etc)
    • Human Capital (qualifications, mobility, R&D spend)
    • Social Capital (charitable donations, volunteer levels, civic engagement)
    • Cultural Capital (cultural expenditure, participation rates, values placed on cultural activity)
  • 18. The UK Creative Economy Programme
    • www. cep .culture. gov . uk  
    • “ The Creative Economy Programme is the first step in the DCMS goal to make the UK the world's creative hub .”
    • 7 working groups and reports:
    • Infrastructure
    • Competition and Intellectual Property
    • Access to Finance and Business Support
    • Education and Skills
    • Diversity
    • Technology Evidence and Analysis