Temple Bar Talks: P. Kern

Cultural Policy: A New Deal For Ireland Dublin June 2011

Plan
Culture as a source of economic growth and employment
Culture as a source of innovation and creativity
Redesigning cultural policy
Policy recommendations

CORE ARTS FIELDS CULTURAL INDUSTRIES CREATIVE INDUSTRIES AND ACTIVITIES RELATED SECTORS Visual Arts Heritage Performing Arts Books and Press Television and Radio Music Video Games Film and Video Advertising Architecture Design Consumer Electronics Telecommu-nications Industrial Design Software Tourism Education Fashion Design User Generated Content Luxury brands

“ Creative people do not get the backing they deserve because you can’t put a figure on creative value”.
Ian Livingston, Creative Director Eidos

Evolution CCIs in the EU economy Sources: KEA, The Economy of Culture 2006, European Competitiveness Report 2010 TURNOVER  More than €654 billion in 2003 VALUE ADDED TO GDP  2.6 % of EU GDP in 2003 3.3% of EU GDP 2006 CONTRIBUTION TO GROWTH  12.3% higher than the growth of the general economy in 1999-2003 EMPLOYMENT  In 2004 5.8 million people employed. = 3.1% of total employed population in EU25. In 2008 6.7 million people employed in EU-27 3% total people employed in 2008

Creative industries in Germany National Development Source: Cultural and creative industries: Growth Potential in Specific Segments, Deutsche Bank research, April 29, 2011

Creative Industries in Germany Source: Cultural and creative industries: Growth Potential in Specific Segments, Deutsche Bank Research, April 29, 2011, p. 2.

Creative Industries in Germany Source: Culture and Creative Industries in Germany 2009, Monitoring Report 2010, BMWI, p. 7.

Creative Industries in Germany Source: Culture and Creative Industries in Germany 2009, Monitoring Report 2010, BMWI, p. 8.

Evolution Copyright industries in the US Economy Source: IIPA, Copyright Industries in the U.S. Economy:The 2003-2007 Report, 2009. TURNOVER  Films, TV programmes, software, books, music represented USD 819 billion in 2006 USD 889.1 billion in 2007 VALUE ADDED TO GDP  6.6 % of US GDP in 2006 6.44% of US GDP in 2007 CONTRIBUTION TO GROWTH  Almost 13% of the overall US growth in 2005 Almost 23% of overall US growth in 2006-2007 EMPLOYMENT  In 2005 5.38 million people employed. More than 4% of total US workers In 2007 5.6 million workers More than 4% of total U.S. workers

Evolution CCIS in Chinese economy
RADIO AND TV
Revenues grew 11,4% from 2008 to 2009.
FILM
Yearly benefits increased 26.5% over 2008 and box office revenues (excluding rural market) increased 42,96% over 2008 .
PRESS AND AUDIOVISUAL
In 2009, it imported 18.7% less publication copyrights than in 2008 and exported 71.2% more than in 2008.
Sources: Chinese National Bureau of statistics 2006, China Trade in Services Report 2010, Ministry of Commerce of China, 2010 TURNOVER  € 47.6 billion in 2006 VALUE ADDED TO GDP  2.45% of GDP in 2006 CONTRIBUTION TO GROWTH  6.4% higher than the growth of the general economy EMPLOYMENT  11.32 million = 1.48% of total employed population in 2006.

“ Not everything that counts can be measured, and not everything that can be measured counts.”

Sempé

The Components of Culture-based Creativity ARTISTIC SKILLS ( expertise ) LATERAL THINKING SKILLS A CONDUCIVE ENVIRONMENT CREATIVITY

The features of culture-based creativity which generate value are described below. Culture-based Creativity leading to Innovation The features of culture-based creativity leading to innovation: Affect Spontaneity Intuition Memories Imagination Aesthetic Generate values: New vision Differentiation Intangible Disruption Community Values

PUMA – A Successful Culture based Creativity Strategy
1999 - Decision “for a strong focus on creative approaches in marketing, design, technology, to deliver distinctive , irresistible products and concepts in the pursuit of its brand mission....
...“to be one of the most desirable sport brands in the world.”
(Jochen Zeit, CEO)

CREATIVE PUMA (in millions)
Star promotion: Maradona to Ph. Starck (2004), Marc Wanders (2007), Hussein Chalayan (2008)
2006 - “Most desirable lifestyle brand.”
1999 2008 Sales € 372 € 2.500 Profits € 108 € 1.300

CONTRIBUTION OF CULTURE-BASED CREATIVITY TO BUSINESS STATEGIES Creativity 
Product innovation
Branding
Human Resources
Communication

CONTRIBUTION OF CULTURE BASED CREATIVITY TO SOCIAL INNOVATION Creativity 
Social cohesion
Community regeneration
Innovation in public services

Creativity  CONTRIBUTION OF ART AND CULTURE TO STIMULATE CREATIVITY IN LEARNING
Stimulates divergent thinking
Promotes social integration and mobility
Encourages learning

Creativity – Multi-dimensional Creativity” is defined as a cross-sector and multidisciplinary way, mixing elements of “artistic creativity”, “economic innovation” as well as “technological innovation.” A process of interactions and spill-over effects between different innovative processes Economic creativity Cultural creativity Scientific creativity Technological creativity

Implementing Creativity
« The key to creativity is to be prepared to accept the unexpected » R. Austin
Requires :
Acceptance of spontaneity
The right balance between freedom and operational efficiency
Trust , respect and time
Acceptance of failure
Willingness to challenge conventions
Breaking down barriers between disciplines
Creativity requires an environment , a mindset to flourish – it can be inimical to organisations whether in the public or the private sector.

Innovation Union Flagship Paper
“ Our strengths in design and creativity must be better exploited….”
“ We must purse a broad concept of innovation, both research-driven innovation and innovation in business models, design, branding and services that add value for users and where Europe has unique talents…. ”.
“ The creativity and diversity of our people and the strength of European creative industries, offer huge potential for new growth and jobs through innovation, especially for SMEs”.

EU support to Creativity and Innovation 2007-2013 (in € billion):
Innovation:
FP7: 53
CIP: 3.6
Structural Funds: 87
Total: 153.6
Culture based Creativity :
CULTURE: 0.4
MEDIA: 0.7
Structural Funds: 6
Total : less than 7.1
Structural Funds: € 347 billion

Presidency Conclusions, Brussels European Council, 13-14 March 2008
“ A key factor for future growth is the full development of the potential for innovation and creativity of European citizens built on European culture and excellence in science.”

A strategy for a Creative Ireland The role of cultural policy
Creativity is an essential competitive tool
Creativity is a key component of innovation
Creativity nourishes large sectors of the economy (textile, car, ICT, other industries)

The European cultural and creative sector - Strengths and weaknesses Plenty of individual talent but with limited business skills and attracted to the USA (creativity drain) Some of the largest competitive players at global level but they lack same power and leverage than the US-based creative industries on governments A myriad of creative SMEs with strong local presence market access and undercapitalisation problems Importance of the public sector but a resistance in taking stock of international challenges Sustained consumer demand (growth in demand for content) but poor understanding of consumers’ demand in relation to the digital economy Strong IP laws in the EU but poor enforcement in some countries (piracy levels) and subsidising broadband rollout.

A Creativity Policy Objectives
Encourage imagination and talents at school, in life, in enterprises and public institutions.
Support the development of a creative economy by integrating creativity in innovation policies.
Promote social innovation and inclusion through culture.
Brand Ireland as T he place to create in the world.
Balance a policy vision entirely subject to economic ends.

A Creative Ireland Recommendations
Value culture as an important resource of creativity
Mainstream culture-based creativity in local policies and programmes to foster innovation (economic and social)
Re-direct existing financial resources to stimulate creativity (to support non technology innovation)
Brand Ireland as THE place to create.
Question and tailor regulatory and institutional supports to creativity and cultural collaboration – redesign cultural policy

Conclusions : redefine cultural policy ?
Show the importance of artistic talents and cultural activities in the process of innovation, in education , in research (break the silos).
Enable spillovers in other economic and social activities
Ensure that innovation policy includes culture-based creativity.
Develop a narrative on cultural policy that go beyond heritage preservation or tourism.

Philippe Kern
51 Rue du Trône
B -1050 Brussels
 +32 2 289 26 00
pkern@keanet.eu
www.keanet.eu
www.keablog.com
Credits :
Sempé – Le Monde de Sempé (vol1), Edition Denoel
Alan Parker – Making Movies, British Film Institute

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