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Connected Communities and Creative Economy:
              Clash, cluster, complexity, creativity.
                                  John Hartley, AM
             ARC Centre of Excellence for Creative Industries & Innovation
                     Queensland University of Technology, Australia


                                              For
 AHRC Research Development Workshop on the role of the Creative Economy
   in Developing & Sustaining Vibrant & Prosperous Communities in the UK
         Winterbourne House, University of Birmingham, December 6-8, 2010




Introduction

After a brief personal orientation, this presentation offers an opening section on „clash,

cluster, complexity, cities‟ – making the case that innovation (both creative and economic)

proceeds not only from incremental improvements within an expert-pipeline process, but also

from the clash of different systems, generations, and cultures. The argument is that cultural

complexity arises from such clashes, and that clustering is the solution to problems of

complexity. The classic, 10,000-year-old, institutional form taken by such clusters is …

cities. Hence, a creative city is one where clashing and competitive complexity is clustered…

and, latterly, networked.



The presentation‟s mid-section offers three models of creative industries:

      CI-1 = creative industries – the familiar DCMS clusters-of-firms model (closed expert

       system);

      CI-2 = creative economy – b2b creative services (closed innovation system);

      CI-3 = creative culture – user-created content (open innovation network).

                                                1
„Social network markets‟ are the mechanism that link and coordinate the top-down,

controlled models of CI-1 and CI-2 with the bottom-up, self-organised systems of CI-3.

What‟s missing from early models (CI-1 and CI-2) is this connection and an account of

„social learning,‟ maximised though wide-based productive participation in both real/local

and digital/globalised communities – CI-3.



The paper‟s closing section recommends some research directions based on this analysis.

What do we need to know, and what do governments and businesses need to do, to enable

population-wide creativity based on clash, cluster and complexity?



Situated reflexivity … „dinne into your ears‟
                             d

Just by way of orientation, and as befits a self-reflexive humanities researcher, let me try to

„place‟ myself here. Although I now live in Australia I do have some connection with this

part of the world. I spent five years at an orphanage in Wolverhampton, just up the road from

here.




         The ‘Ophney’ – The Royal Wolverhampton Orphan Asylum, ca. 1957 (when I went there)



So I know something about social exclusion, and about the creative (if painful) productivity

of the clash of complexity and opposites ... as the pictures perhaps indicate.


                                                 2
Complexity and clash ...




             Eric Idle                                  Miss McCartney




                                                                                                             Robert
             Harold Macmillan                                  Enoch Powell                                  Dodd

            http://www.francisfrith.com/wolverhampton/photos/royal-wolverhampton-school-c1955_W285031/
            http://sites.google.com/site/ophney77/




Top row: Eric Idle (several years above me); Miss McCartney, cane-wielding headmistress of the Junior School;
the ‘community’ washroom. Bottom row: Harold Macmillan on a visit in 1958 (I danced the sword-dance for
                                               1
him); Enoch Powell at the 1962 Speech Day; Robert Dodd (classmate of mine) pointing to plans for change (as
head boy, after I had left) [See: http://sites.google.com/site/ophney77/]



It is also worth noting that the room in which this workshop is being held is the Nettlefold

Room, part of Winterbourne House,2 which was the home of John Nettlefold, celebrated (it

says on a plaque outside) as a pioneer of Town Planning – the very topic of my paper. Again,

I have no direct connection with Nettlefold or Winterbourne – or urban planning, come to

that – but I am very familiar with the „N‟ of Nettlefold, because that‟s also the „N‟ of GKN,
1
  The newspaper report of Enoch Powell‟s speech offered an earlier statement of the Big Society: „The Minister
of Health and M.P. for Wolverhampton South-West, Mr J. Enoch Powell, spoke yesterday in Wolverhampton of
the „prosperity tap‟ somewhere in Whitehall that some people believed could be turned on and off. Almost
every day, Mr. Powell told parents and pupils at the Royal Wolverhampton School prize-giving, they read and
heard statements which, if they meant anything, meant that a person‟s proper expectation did not depend on his
own efforts, but upon the decision of somebody else – that he was entitled to expect a year-by-year rise in his
pay, but that it did not depend on him, but on the success or skill of his union, or it being given by this or that
employer or by the Government. “Scientific achievement, discovery, adventure … you would imagine it was
governments that decided men would get into space and get to the moon. I even heard it in medicine, as Minister
of Health, as though it was the amount of money put into research that determined whether we were going to
find a cure for this disease or not,” said Mr. Powell. This doctrine which would be “dinned into your ears”, he
told the children, was not in the lesson they were taught at school. It was a false lesson, for the truth was that
achievement came back in the end to one thing – the determination and success of a man or woman. A prize day
was a symbol of this truth. “Let people never persuade you it doesn‟t matter whether you try or don‟t try, that it
doesn‟t matter whether you succeed or fail. There is nothing else that matters.”‟ Wolverhampton Express &
Star, July 14 1962.
2
  www.winterbourne.org.uk/about-us/history-of-winterbourne

                                                                                                         3
the firm whose giant East Moors Steelworks dominated the Butetown area of Cardiff where I

lived at the time. In fact the GKN steelworks closed in 1978, the same year that I published

my first book (Reading Television), written within earshot.




     Why we’re here today – the source of the Nettlefold wealth and thus of Winterbourne House: GKN’s East
                                                                        3
                                       Moors steelworks, Cardiff, 1978.



So I feel some oblique connections with this part of the world; this room. But you can sense

at once that these connections are productive more of „clash‟ than „community.‟ Their

consequences are accidental, unforeseen, and creative in unpredictable ways; even as they

speak of earlier attempts to connect high policy with lowly orphans, to parlay industrial

wealth into civic planning, and to aspire to the „Big Society‟ and social inclusion even while

reducing government investment in research and social enterprise (see fn1). Does this

situated, contextual, culturally embedded connectivity give me a warrant for speaking about

„Connected Communities and Creative Economy‟ here at the Nettlefold Room in

Birmingham, as a guest of the Arts & Humanities Research Council? I think so, but perhaps

at best in terms of „clash, cluster, complexity, creativity.‟



3
    Photo of GKN East Moors steelworks, Cardiff, from: www.flickr.com/photos/johnrw/130082427/

                                                      4
Section I. Clash, cluster, complexity, cities



Health-care versus racketeering?

While here I have heard quite a lot about two purposes for creativity, one I call the „health-

care‟ model and the other is the „real-estate‟ (or racketeering) model. This presentation is in

pursuit of a different purpose for creativity – that of innovation: the „emergence‟ and

elaboration of new ideas that result in change and renewal in complex environments.

The presentation is posited on a particular view of the creative process: that its value lies not

in real estate, not in health-care, but in innovation; and innovation occurs where systems

collide (e.g. creative and economic values; cities and networks). The place where such

tensions are worked through and decided is, historically … cities.



A creative city is one where ideas thrive, driving both economic and cultural growth. But

ideas only thrive where they are competitive, contested, can be implemented in practice, and

where difference and variety stimulate originality and novelty. Historically, this process is

most intense in urban locations, especially regional or national capitals, with a diversity of

arts and crafts, as well as mechanisms for the exchange of ideas, including markets.



Creativity and cities were made for each other, but the process is „non-linear.‟ It relies on

complex systems interacting and sometimes clashing. The city is a highly evolved „machine‟

for managing variety, change and difference in the growth of knowledge and ideas. Clash and

difference drive change and innovation. The creative city is one where „clusters of clusters‟

emerge to enable the self-management of complexity, the growth and elaboration of

knowledge.




                                                5
Recently, the idea of the creative industries has become prominent in cultural policy and

economic planning, to exploit this process further. Like other good ideas, it has not gone

uncontested. For instance, some theorists make a very pointed distinction between the

„cultural economy‟ and the „creative industries‟:

        Cultural economy: „lengthily trained artists, singers, curators and musicians‟ with „an

         aesthetic status comparable to that of many health-care systems‟; its source is in the

         academy and public institutions.

        Creative industries: „entrepreneurship bordering on racketeering‟ where: „all make

         money, some criminally large amounts thereof‟; their sources are the street, the

         market and private enterprise.4

Defenders of public culture want to protect it from market forces, but from the point of view

of a creative city, it is important that both are present, in close enough proximity to interact

and cross-fertilise. In many capital cities, this productive opposition is literally built in: high-

end cultural institutions including galleries, museums and universities are clustered in one

district; street markets, shopping malls and the HQs of global media companies in others.



This is the basis for urban cluster theory. Clustering is the historic, largely unplanned solution

to problems of complexity; cities are the cumulative result. Complexity itself springs from

myriad individual and organisational actions, stimulated by competitive difference among

creative artists, „the characteristic dialectic of disagreement, dissatisfaction, even alienation‟5

that triggers new work, which is by definition novel, original and innovative.




4
  Philip Cooke and Luciana Lazzeretti, eds. (2008) Creative Cities, Cultural Clusters and Local Economic
Development. Edward Elgar.
5
  Cooke & Lazzaretti; who say: „clustering is a sine qua non of both cultural economy and creative industries.‟

                                                        6
This rationale for the arts is the same as that for the market-based creative industries, despite

the differences between them. And both are needed for a creative city – all thrive on

complexity, competition, clash, creativity.



This formula focuses on businesses and the production process. There is one element

missing: the audience and consumer. The creative industries are unlike other sections of the

economy, because supply precedes demand – people don‟t know whether they will like a new

movie till it comes out. For artists and creative enterprises to succeed, they need a well-

informed and attentive audience, and various mechanisms for generating and „bundling‟

novelty for their attention.



Further, since the emergence of digital and participatory media, audiences have become

productive in their own right. The historic difference between producers and consumers –

experts and amateurs – is under challenge. With the growth of social media and user-created

content, the productivity of the system as a whole is increased. Consumers and producers are

linked in mutually participatory networks. Hence, creative cities require a creative population

as well as artists and enterprises.



Richard Florida argues that creative personnel will themselves cluster in certain types of

environment. In recent work he has emphasised the importance of 40 or so „mega-regions‟

globally, where creativity is accelerated by:

       The highest velocity of ideas,
       The highest density of creative people,
       The highest „urban metabolism‟ rate.6



6
Florida, R. (2009) „How the Crash Will Reshape America.‟ The Atlantic Magazine:
www.theatlantic.com/magazine/archive/2009/03/how-the-crash-will-reshape-america/7293/

                                                   7
Thus a „creative city‟ results from „clustering‟ its inhabitants and visitors, not just its

industrial plant. Think „festival‟ not „factory.‟ What is important to creative clusters is not

similarity (i.e. a cluster of similar firms) but variety and diversity7– the clash of opposites.



Section II: Three CI models



Most policy discussion to date has focused on the „industries‟ part of creative industries. But

the sector has evolved and broadened since it was first identified in the 1990s. Already, three

different models can be identified.8 Each one has supplemented – not supplanted – the one

before.



CI-1: Creative clusters

             Industry definition

             Closed expert system

             „Creative clusters‟ of different „industry sectors‟ – advertising, architecture,

              publishing, software, performing arts, media production, art, design, fashion etc. –

              that together produce creative works or outputs (DCMS list).

             „Provider-led‟ or supply-based definition.

The sector is reckoned to be anywhere between 3% and 8% of advanced economies (UK,

USA, Australia), of growing importance to emergent economies (e.g. China, Indonesia,

Brazil), high-growth, with an economic multiplier effect.



CI-2: Creative services

7
  Luciana Lazzeretti, Rafael Boix, Francesco Capone (2009) Why do creative industries cluster? An analysis of
the determinants of clustering of creative industries. IERMB Working Paper in Economics, nº 09.02, p. 21.
8
  See also: Hartley, J. (2009) The Uses of Digital Literacy. St. Lucia: UQP; New Brunswick NJ: Transaction
Publishers, chapter 2.

                                                      8
   Economic services definition

           Closed innovation system

           „Creative services‟ – creative inputs by creative occupations and companies

            (professional designers, producers, performers and writers)

Creative services expand the creative industries by at least a third, according to research at

my centre (the CCI), using the concept of the „creative trident.‟9 Creative input is high value-

add; stimulating the economy as a whole and boosting innovation in otherwise static sectors

(e.g. manufacturing).



CI-3: Creative citizens

           Cultural definition

           Open innovation network

           „Creative citizens‟ – population, workforce, consumers, users, entrepreneurs,

            artists.

This is a user-led or demand-side definition, where in principle everyone‟s energies can be

harnessed. It adds the value of entire social networks and the individual agency of whole

populations to the growth of knowledge. It is the domain of experimentation and adaptation,

where individual agency may have network-wide effects: thus it is the dynamic „edge‟ of

systemic emergence.



The first two models – CI-1 and CI-2 – are based on the economy. CI-3 is based on

technologically equipped culture. In Clay Shirky‟s phrase: „Here comes everybody!‟10 In this




9
  Higgs, P., S. Cunningham & H. Bakhshi (2008) Beyond the Creative Industries: Mapping the Creative
Economy in the UK. London: NESTA: www.nesta.org.uk/library/documents/beyond-creative-industries-
report.pdf.
10
   Shirky, C. (2006) Here comes Everybody: The Power of Organizing without Organizations. NY: Penguin.

                                                    9
model, everyone‟s creative potential can be harnessed for innovation, which can come from

anywhere in the system. In fact CI-3 is radically different from CI-1 and CI-2, because:

        It focuses on culture not economy, consumer or user not producer, and whole

         populations (social networks) not firms

        It is the beneficiary of the digital revolution, posing a direct and fundamental

         challenge to „industry‟ business models.

        Potentially it is a more productive model of creativity than the ones that are tied to

         expert-systems alone.

CI-3 is therefore another example of how the clash of opposites is proving to be the driver of

change in creative productivity. Rather than being seen as the output of an industry, creativity

becomes a property of complex systems, socially-networked relations, and the interaction of

cultural and economic activities. Furthermore, social networks themselves are sources of

innovation; they are not simply distribution media.



 „Creative destruction‟

To make matters more difficult for policymakers, technological and social changes are

forcing the pace. In particular, the rapid growth of the internet and social media has had a

disruptive effect, especially with the growth of consumer-created content.11 The existing,

„analogue‟ creative industries were themselves among the first to experience Schumpeterian

„gales of creative destruction,‟12 which followed the development of global online digital

networks and their uptake by „everybody.‟



The driver of the creative industries is transforming, from copyrighted „arts and media‟ to

„publish-yourself‟ digital networks. Examples include YouTube, Facebook, Wikipedia,
11
   OECD (2007) Participative Web: User-Created Content: Accessible at
www.oecd.org/dataoecd/57/14/38393115.pdf.
12
   See: Schumpeter, J. A. (1975 1st published 1942) Capitalism, Socialism and Democracy. New York: Harper.

                                                    10
Twitter and other social networking sites, which provide the platform for user-created content

and social network markets.



The most important „invention‟ of the internet has been „the user.‟



Among the ensuing disruptions: the digital user is in tension with the analogue copyright-

holder; a tension that is by no means resolved. The emphasis shifts from copyright (CI-1) to

innovation (CI-2 and CI-3); from intellectual property (CI-1 and CI-2) to emergence (CI-3).

Where creative industries require strong copyright enforcement, a creative culture operates

on the axiom that „knowledge shared is knowledge gained.‟



Creative ideas = the growth of knowledge

Given the importance of users as producers, learning and experimentation are vital elements

of creativity; but they are missing from the standard „creative industries‟ model. New ideas

may come from outside the industrial context of expert specialisation, to include learning

among myriad users; and learning from networks-as-agents.



This kind of networked and creative learning is informal, distributed, peer-to-peer, just-in-

time and imitative. For the general population, it is often associated with entertainment

formats rather than the formal education system. But that population is now a productive

resource in its own right. Thus a prerequisite for further economic growth is education –

formal and informal – for the growth of creative productivity and interaction among users.




                                               11
This is not just a job for higher education and schools; it is conducted informally in the

complexity, competition, clash, and creativity that people experience as part of urban life. In

short, people need to cluster, both physically and online, just as much as producers do.



A useful side-product of education for „creative quarters‟ in cities like London or San

Francisco is that such districts are associated with large numbers of students and universities

in the neighbourhood, stimulating „early adopter‟ consumers, start-up enterprises, and a

population interested in experimentation, events, happenings and novelty. For instance

London boasts half a million post-secondary students, of whom 80,000 are international.



In such a lively environment, creative innovation accelerates both formally (education and

the arts) and informally (participation and the media). It can now be seen as both ‘elaborate’

production by expert organisations (CI-1 and CI-2), and ‘emergent’ meanings arising from

distributed, self-organising social networks (CI-3).



What links them all is ideas. As John Howkins puts it, „ideas are the new currency.‟13 But it is

not always the case that this kind of currency can be monetised. Some ideas circulate entirely

outside of the market. For others, many creative artists and start-up businesses make the point

that „emergent ideas‟ and making money, especially „criminally large amounts thereof,‟ may

be separated not by sector but by time.



In practice, a combination of all three models – CI-1 creative clusters, CI-2 creative services,

and CI-3 creative citizens – is part of the intellectual infrastructure of a creative city, bringing




13
 Howkins, J. (2009) Creative Ecologies: Where Thinking is a Proper Job. St. Lucia: UQP; New Brunswick NJ:
Transaction Publishers. See also: http://news.bbc.co.uk/2/hi/business/3839193.stm

                                                   12
into one place the energies of producers and consumers, intellectual property and intellectual

capital, elaborate and emergent creativity, work and leisure, supply and demand.



The creative city is a „medium‟ in which population-wide creativity is mixed and circulated.

Creativity is the emergence of new ideas through clashes (signified by slashes) in the mix of:

     Production / consumption

      Intellectual property / intellectual capital

      Elaborate / emergent creativity

      Work / leisure

      Supply / demand.



With broadly distributed digital creativity, the extent and rate of experimentation and

adaptation accelerates for the entire economic-cultural system; as is the potential for

distributing solutions that can rapidly scale up from „garage‟ start-ups to global applications

(e.g. iTunes app-store).



This expanded notion of creativity as a broad-based „innovation culture‟ (CI-3) means that

cities will need different policy settings compared with those that see the „creative industries‟

merely as a sector of the economy (i.e. CI-1 and CI-2). Here, the creative economy is

understood as enabled innovation, where industry clusters (real estate) are only the first stage,

culture rapid adaptability is required for survival in a dynamic system, and innovation needs

to be modelled as „scale free‟ in order to link individual agency (talent, creativity,

inventiveness, originality, call it what you will) to global applications (both cultural and

economic) via digital media and online social networks.




                                                13
Rethinking creative industries as enabled social innovation precipitates changes in policy

setting:

    Creativity

          Shift from producer to consumer; from experts to users

          Networks as productive „places‟

    Urban planning

          Shift from real estate to human resources

          From provider planning to evolving networks („urban emergence‟)

    Economics

          From industry sector to adaptive, complex, open systems

          Interaction of culture and economy

          From copyright to innovation; IP to emergence.



Cities as incubators of social network markets

In terms of physical infrastructure, it will be important to focus not on production plant but

on relationship-formation, shifting attention from real-estate solutions to social networks and

places to mingle. These include „scenes,‟ festivals, incentive competitions or awards, and

venues that allow the integration of cultural and economic approaches to creativity, the

mixture of ideas, and a rich interaction between „productive consumers‟ and creative

enterprise.




                                                 14
CULTURE                 PLACE                  ECONOMY
       Consumption             Mediation              Production
       Demand                  Platform               Supply
       Scene/ Festival         City Quarter           Industry Cluster
       Novelty bundling        Urban connections      Institutions and firms

       “social         ...     network        ...     markets”

       Intellectual capital    Community context      Intellectual property
       Identity                Knowledge              Growth
       Play                    Mix / Move             Work
       Creative culture        Creative city          Creative industries


Constructing a creative city requires that all three columns of attributes (in the diagram) are

nurtured: Culture for „emergence‟; a place for „mixing‟; and economy for coordinating.



The ultimate aim must be to cluster – to broker the tensions among – all three „models‟ of

the creative industries: CI-1 (top-down industry production); CI-2 (b2b service economy) and

CI-3 (bottom-up cultural productivity).



Creative cities are also globally networked; international hubs in flows of information, data,

trade and creativity. The networked city is one where citizens are agents in myriad „small-

world‟ networks that may span the globe while remaining embedded in the neighbourhood.

Cities are network-hubs in regional and global information, data, trade and creativity flows.

The „clash, cluster, complexity, creativity‟ aspect of networked creative cities results in a

further need to broker tensions between:

      Copyright vs sharing

      Local city vs global network




                                                15
   Intense inner-city clusters vs „virtual‟ clusters in social network markets (i.e. the need

         to understand the creative productivity of the suburban and non-urban as well as

         urban ecologies)

        Elaborate art (authors) vs emergent innovation (users).

A flourishing, vibrant city is therefore one where communities thrive on the clash of

differences, opposites, and creativity among their own citizens. The global flows of

knowledge, capital, and culture are in creative tension with local agency, including bottom-up

enterprise, user-created content, and „festival‟ forms of mixing, to maximise opportunities for

something new to emerge from the disruptions caused by complex interactions.



Section III: What now?



Urban Planning or poverty porn?

In developing and emergent countries, these global flows and local complexity sometimes

clash in unproductive ways. One example is Dharavi, the slum in Mumbai made famous by

Slumdog Millionaire. Developers think it‟s an eyesore; not least because it is now overlooked

by the world‟s most expensive private home – another clash of opposites. But in a recent

documentary,14 Kevin McCloud (of Grand Designs fame) concludes that, despite the rats,

rubbish, lack of water and sanitation, Dharavi is a thriving – indeed a creative – community,

producing its own self-organised solutions to complex problems, chief of which is earning a

living. 85% of the residents are employed, money is made, recycling is endemic and waste is

minimal. In other words the creativity is bottom-up, unplanned, Beinhocker-style.15




14
 See: www.channel4.com/programmes/kevin-mccloud-slumming-it/4od
15
 Beinhocker, E. (2006) The Origin of Wealth: Evolution, Complexity, and the Radical Remaking of Economics.
Harvard Business School Press / Random House.

                                                   16
Urban planning … or ‘poverty porn’?




                            Creative Mumbai – Creative complexity or financial district?
                                     16                                                                    17
     Top: Kevin McCloud Slumming It; global brands; Mumbai financial district. Bottom: Slumdog Millionaire;
                                                                                                     18
               the world’s most expensive home ($1bn) – the Antila tower on the left of the picture.



Here is a tension between the planner‟s point of view and that of the population who are self-

creating the „emergent urbanism‟ of the productive city. Supporters of development accused

McCloud of indulging in „poverty porn.‟19 But his point is that planners need to look closely

at the emergence of complexity before they drive a bulldozer through it.



A better strategy may be to plan for a city to thrive on the productive differences, opposites,

and creativity of its own citizens, including the creative tension between global flows (of

knowledge, capital and culture), and local agency, including bottom-up enterprise, user-

created content, and „festival‟ forms of mixing, to maximise the opportunities for something

new to emerge from the disruptions and tensions caused by the clash of ideas.



16
   Picture: Channel 4.
17
   This AP picture accompanies the Daily Mail coverage of McCloud‟s Slumming It: the caption reads:
„Inspiration: Slumdog Millionaire star Rubina Ali Qureshi, nine, straddles a blocked drain next to an area strewn
with waste near her real-life home in a Mumbai slum.‟ Read more: www.dailymail.co.uk/news/article-
1245838/Slumming-It-TV-presenter-Kevin-McCloud-accused-making-poverty-porn-India-
show.html#ixzz18F4K5CT5.
18
   http://images.businessweek.com/ss/10/04/0415_most_expensive_things_sold/25.htm
19
   www.telegraph.co.uk/news/7055458/India-accuses-Kevin-McCloud-of-making-poverty-porn-in-Mumbai-
slum-programme.html

                                                       17
Recommendations

Where might reflexive, situated research look for productive tensions between cultural and

economic values to solve some of the problems faced by contemporary, complex, networked

cities? Here, to close, are some themes to consider:

        Top-down / bottom up – tensions, coordination, scale

        Complexity – emergence, elaboration, innovation

        Problems of place (situated action) in networked (digital) societies

        Copyright (the problem of property) – enforce or share?

        Business models – command and control or micro-productivity?

        Data and measurement – in the context of reflexive, situated knowledge

        Internationalisation of „community‟ ... as well as creative economy.

In short: how can „innovation for all‟ avoid policy becoming a vehicle for „revenge on the

underclass‟?20 Because the orphans are still out there, even if the city in question is not

Wolverhampton but Mumbai or Bangkok.21




                                      On the streets of Bangkok22



20
   Paul Benneworth; speaking at this AHRC workshop.
21
   All contents other than credited illustrations © Copyright John Hartley 2010
22
   Photo Gavin Gough: www.gavingough.com/2010/02/bangkok-street-photography-overcoming-resistance/;
Posted on Tuesday, February 9th, 2010.

                                                  18

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  • 1. Connected Communities and Creative Economy: Clash, cluster, complexity, creativity. John Hartley, AM ARC Centre of Excellence for Creative Industries & Innovation Queensland University of Technology, Australia For AHRC Research Development Workshop on the role of the Creative Economy in Developing & Sustaining Vibrant & Prosperous Communities in the UK Winterbourne House, University of Birmingham, December 6-8, 2010 Introduction After a brief personal orientation, this presentation offers an opening section on „clash, cluster, complexity, cities‟ – making the case that innovation (both creative and economic) proceeds not only from incremental improvements within an expert-pipeline process, but also from the clash of different systems, generations, and cultures. The argument is that cultural complexity arises from such clashes, and that clustering is the solution to problems of complexity. The classic, 10,000-year-old, institutional form taken by such clusters is … cities. Hence, a creative city is one where clashing and competitive complexity is clustered… and, latterly, networked. The presentation‟s mid-section offers three models of creative industries:  CI-1 = creative industries – the familiar DCMS clusters-of-firms model (closed expert system);  CI-2 = creative economy – b2b creative services (closed innovation system);  CI-3 = creative culture – user-created content (open innovation network). 1
  • 2. „Social network markets‟ are the mechanism that link and coordinate the top-down, controlled models of CI-1 and CI-2 with the bottom-up, self-organised systems of CI-3. What‟s missing from early models (CI-1 and CI-2) is this connection and an account of „social learning,‟ maximised though wide-based productive participation in both real/local and digital/globalised communities – CI-3. The paper‟s closing section recommends some research directions based on this analysis. What do we need to know, and what do governments and businesses need to do, to enable population-wide creativity based on clash, cluster and complexity? Situated reflexivity … „dinne into your ears‟ d Just by way of orientation, and as befits a self-reflexive humanities researcher, let me try to „place‟ myself here. Although I now live in Australia I do have some connection with this part of the world. I spent five years at an orphanage in Wolverhampton, just up the road from here. The ‘Ophney’ – The Royal Wolverhampton Orphan Asylum, ca. 1957 (when I went there) So I know something about social exclusion, and about the creative (if painful) productivity of the clash of complexity and opposites ... as the pictures perhaps indicate. 2
  • 3. Complexity and clash ... Eric Idle Miss McCartney Robert Harold Macmillan Enoch Powell Dodd http://www.francisfrith.com/wolverhampton/photos/royal-wolverhampton-school-c1955_W285031/ http://sites.google.com/site/ophney77/ Top row: Eric Idle (several years above me); Miss McCartney, cane-wielding headmistress of the Junior School; the ‘community’ washroom. Bottom row: Harold Macmillan on a visit in 1958 (I danced the sword-dance for 1 him); Enoch Powell at the 1962 Speech Day; Robert Dodd (classmate of mine) pointing to plans for change (as head boy, after I had left) [See: http://sites.google.com/site/ophney77/] It is also worth noting that the room in which this workshop is being held is the Nettlefold Room, part of Winterbourne House,2 which was the home of John Nettlefold, celebrated (it says on a plaque outside) as a pioneer of Town Planning – the very topic of my paper. Again, I have no direct connection with Nettlefold or Winterbourne – or urban planning, come to that – but I am very familiar with the „N‟ of Nettlefold, because that‟s also the „N‟ of GKN, 1 The newspaper report of Enoch Powell‟s speech offered an earlier statement of the Big Society: „The Minister of Health and M.P. for Wolverhampton South-West, Mr J. Enoch Powell, spoke yesterday in Wolverhampton of the „prosperity tap‟ somewhere in Whitehall that some people believed could be turned on and off. Almost every day, Mr. Powell told parents and pupils at the Royal Wolverhampton School prize-giving, they read and heard statements which, if they meant anything, meant that a person‟s proper expectation did not depend on his own efforts, but upon the decision of somebody else – that he was entitled to expect a year-by-year rise in his pay, but that it did not depend on him, but on the success or skill of his union, or it being given by this or that employer or by the Government. “Scientific achievement, discovery, adventure … you would imagine it was governments that decided men would get into space and get to the moon. I even heard it in medicine, as Minister of Health, as though it was the amount of money put into research that determined whether we were going to find a cure for this disease or not,” said Mr. Powell. This doctrine which would be “dinned into your ears”, he told the children, was not in the lesson they were taught at school. It was a false lesson, for the truth was that achievement came back in the end to one thing – the determination and success of a man or woman. A prize day was a symbol of this truth. “Let people never persuade you it doesn‟t matter whether you try or don‟t try, that it doesn‟t matter whether you succeed or fail. There is nothing else that matters.”‟ Wolverhampton Express & Star, July 14 1962. 2 www.winterbourne.org.uk/about-us/history-of-winterbourne 3
  • 4. the firm whose giant East Moors Steelworks dominated the Butetown area of Cardiff where I lived at the time. In fact the GKN steelworks closed in 1978, the same year that I published my first book (Reading Television), written within earshot. Why we’re here today – the source of the Nettlefold wealth and thus of Winterbourne House: GKN’s East 3 Moors steelworks, Cardiff, 1978. So I feel some oblique connections with this part of the world; this room. But you can sense at once that these connections are productive more of „clash‟ than „community.‟ Their consequences are accidental, unforeseen, and creative in unpredictable ways; even as they speak of earlier attempts to connect high policy with lowly orphans, to parlay industrial wealth into civic planning, and to aspire to the „Big Society‟ and social inclusion even while reducing government investment in research and social enterprise (see fn1). Does this situated, contextual, culturally embedded connectivity give me a warrant for speaking about „Connected Communities and Creative Economy‟ here at the Nettlefold Room in Birmingham, as a guest of the Arts & Humanities Research Council? I think so, but perhaps at best in terms of „clash, cluster, complexity, creativity.‟ 3 Photo of GKN East Moors steelworks, Cardiff, from: www.flickr.com/photos/johnrw/130082427/ 4
  • 5. Section I. Clash, cluster, complexity, cities Health-care versus racketeering? While here I have heard quite a lot about two purposes for creativity, one I call the „health- care‟ model and the other is the „real-estate‟ (or racketeering) model. This presentation is in pursuit of a different purpose for creativity – that of innovation: the „emergence‟ and elaboration of new ideas that result in change and renewal in complex environments. The presentation is posited on a particular view of the creative process: that its value lies not in real estate, not in health-care, but in innovation; and innovation occurs where systems collide (e.g. creative and economic values; cities and networks). The place where such tensions are worked through and decided is, historically … cities. A creative city is one where ideas thrive, driving both economic and cultural growth. But ideas only thrive where they are competitive, contested, can be implemented in practice, and where difference and variety stimulate originality and novelty. Historically, this process is most intense in urban locations, especially regional or national capitals, with a diversity of arts and crafts, as well as mechanisms for the exchange of ideas, including markets. Creativity and cities were made for each other, but the process is „non-linear.‟ It relies on complex systems interacting and sometimes clashing. The city is a highly evolved „machine‟ for managing variety, change and difference in the growth of knowledge and ideas. Clash and difference drive change and innovation. The creative city is one where „clusters of clusters‟ emerge to enable the self-management of complexity, the growth and elaboration of knowledge. 5
  • 6. Recently, the idea of the creative industries has become prominent in cultural policy and economic planning, to exploit this process further. Like other good ideas, it has not gone uncontested. For instance, some theorists make a very pointed distinction between the „cultural economy‟ and the „creative industries‟:  Cultural economy: „lengthily trained artists, singers, curators and musicians‟ with „an aesthetic status comparable to that of many health-care systems‟; its source is in the academy and public institutions.  Creative industries: „entrepreneurship bordering on racketeering‟ where: „all make money, some criminally large amounts thereof‟; their sources are the street, the market and private enterprise.4 Defenders of public culture want to protect it from market forces, but from the point of view of a creative city, it is important that both are present, in close enough proximity to interact and cross-fertilise. In many capital cities, this productive opposition is literally built in: high- end cultural institutions including galleries, museums and universities are clustered in one district; street markets, shopping malls and the HQs of global media companies in others. This is the basis for urban cluster theory. Clustering is the historic, largely unplanned solution to problems of complexity; cities are the cumulative result. Complexity itself springs from myriad individual and organisational actions, stimulated by competitive difference among creative artists, „the characteristic dialectic of disagreement, dissatisfaction, even alienation‟5 that triggers new work, which is by definition novel, original and innovative. 4 Philip Cooke and Luciana Lazzeretti, eds. (2008) Creative Cities, Cultural Clusters and Local Economic Development. Edward Elgar. 5 Cooke & Lazzaretti; who say: „clustering is a sine qua non of both cultural economy and creative industries.‟ 6
  • 7. This rationale for the arts is the same as that for the market-based creative industries, despite the differences between them. And both are needed for a creative city – all thrive on complexity, competition, clash, creativity. This formula focuses on businesses and the production process. There is one element missing: the audience and consumer. The creative industries are unlike other sections of the economy, because supply precedes demand – people don‟t know whether they will like a new movie till it comes out. For artists and creative enterprises to succeed, they need a well- informed and attentive audience, and various mechanisms for generating and „bundling‟ novelty for their attention. Further, since the emergence of digital and participatory media, audiences have become productive in their own right. The historic difference between producers and consumers – experts and amateurs – is under challenge. With the growth of social media and user-created content, the productivity of the system as a whole is increased. Consumers and producers are linked in mutually participatory networks. Hence, creative cities require a creative population as well as artists and enterprises. Richard Florida argues that creative personnel will themselves cluster in certain types of environment. In recent work he has emphasised the importance of 40 or so „mega-regions‟ globally, where creativity is accelerated by:  The highest velocity of ideas,  The highest density of creative people,  The highest „urban metabolism‟ rate.6 6 Florida, R. (2009) „How the Crash Will Reshape America.‟ The Atlantic Magazine: www.theatlantic.com/magazine/archive/2009/03/how-the-crash-will-reshape-america/7293/ 7
  • 8. Thus a „creative city‟ results from „clustering‟ its inhabitants and visitors, not just its industrial plant. Think „festival‟ not „factory.‟ What is important to creative clusters is not similarity (i.e. a cluster of similar firms) but variety and diversity7– the clash of opposites. Section II: Three CI models Most policy discussion to date has focused on the „industries‟ part of creative industries. But the sector has evolved and broadened since it was first identified in the 1990s. Already, three different models can be identified.8 Each one has supplemented – not supplanted – the one before. CI-1: Creative clusters  Industry definition  Closed expert system  „Creative clusters‟ of different „industry sectors‟ – advertising, architecture, publishing, software, performing arts, media production, art, design, fashion etc. – that together produce creative works or outputs (DCMS list).  „Provider-led‟ or supply-based definition. The sector is reckoned to be anywhere between 3% and 8% of advanced economies (UK, USA, Australia), of growing importance to emergent economies (e.g. China, Indonesia, Brazil), high-growth, with an economic multiplier effect. CI-2: Creative services 7 Luciana Lazzeretti, Rafael Boix, Francesco Capone (2009) Why do creative industries cluster? An analysis of the determinants of clustering of creative industries. IERMB Working Paper in Economics, nº 09.02, p. 21. 8 See also: Hartley, J. (2009) The Uses of Digital Literacy. St. Lucia: UQP; New Brunswick NJ: Transaction Publishers, chapter 2. 8
  • 9. Economic services definition  Closed innovation system  „Creative services‟ – creative inputs by creative occupations and companies (professional designers, producers, performers and writers) Creative services expand the creative industries by at least a third, according to research at my centre (the CCI), using the concept of the „creative trident.‟9 Creative input is high value- add; stimulating the economy as a whole and boosting innovation in otherwise static sectors (e.g. manufacturing). CI-3: Creative citizens  Cultural definition  Open innovation network  „Creative citizens‟ – population, workforce, consumers, users, entrepreneurs, artists. This is a user-led or demand-side definition, where in principle everyone‟s energies can be harnessed. It adds the value of entire social networks and the individual agency of whole populations to the growth of knowledge. It is the domain of experimentation and adaptation, where individual agency may have network-wide effects: thus it is the dynamic „edge‟ of systemic emergence. The first two models – CI-1 and CI-2 – are based on the economy. CI-3 is based on technologically equipped culture. In Clay Shirky‟s phrase: „Here comes everybody!‟10 In this 9 Higgs, P., S. Cunningham & H. Bakhshi (2008) Beyond the Creative Industries: Mapping the Creative Economy in the UK. London: NESTA: www.nesta.org.uk/library/documents/beyond-creative-industries- report.pdf. 10 Shirky, C. (2006) Here comes Everybody: The Power of Organizing without Organizations. NY: Penguin. 9
  • 10. model, everyone‟s creative potential can be harnessed for innovation, which can come from anywhere in the system. In fact CI-3 is radically different from CI-1 and CI-2, because:  It focuses on culture not economy, consumer or user not producer, and whole populations (social networks) not firms  It is the beneficiary of the digital revolution, posing a direct and fundamental challenge to „industry‟ business models.  Potentially it is a more productive model of creativity than the ones that are tied to expert-systems alone. CI-3 is therefore another example of how the clash of opposites is proving to be the driver of change in creative productivity. Rather than being seen as the output of an industry, creativity becomes a property of complex systems, socially-networked relations, and the interaction of cultural and economic activities. Furthermore, social networks themselves are sources of innovation; they are not simply distribution media. „Creative destruction‟ To make matters more difficult for policymakers, technological and social changes are forcing the pace. In particular, the rapid growth of the internet and social media has had a disruptive effect, especially with the growth of consumer-created content.11 The existing, „analogue‟ creative industries were themselves among the first to experience Schumpeterian „gales of creative destruction,‟12 which followed the development of global online digital networks and their uptake by „everybody.‟ The driver of the creative industries is transforming, from copyrighted „arts and media‟ to „publish-yourself‟ digital networks. Examples include YouTube, Facebook, Wikipedia, 11 OECD (2007) Participative Web: User-Created Content: Accessible at www.oecd.org/dataoecd/57/14/38393115.pdf. 12 See: Schumpeter, J. A. (1975 1st published 1942) Capitalism, Socialism and Democracy. New York: Harper. 10
  • 11. Twitter and other social networking sites, which provide the platform for user-created content and social network markets. The most important „invention‟ of the internet has been „the user.‟ Among the ensuing disruptions: the digital user is in tension with the analogue copyright- holder; a tension that is by no means resolved. The emphasis shifts from copyright (CI-1) to innovation (CI-2 and CI-3); from intellectual property (CI-1 and CI-2) to emergence (CI-3). Where creative industries require strong copyright enforcement, a creative culture operates on the axiom that „knowledge shared is knowledge gained.‟ Creative ideas = the growth of knowledge Given the importance of users as producers, learning and experimentation are vital elements of creativity; but they are missing from the standard „creative industries‟ model. New ideas may come from outside the industrial context of expert specialisation, to include learning among myriad users; and learning from networks-as-agents. This kind of networked and creative learning is informal, distributed, peer-to-peer, just-in- time and imitative. For the general population, it is often associated with entertainment formats rather than the formal education system. But that population is now a productive resource in its own right. Thus a prerequisite for further economic growth is education – formal and informal – for the growth of creative productivity and interaction among users. 11
  • 12. This is not just a job for higher education and schools; it is conducted informally in the complexity, competition, clash, and creativity that people experience as part of urban life. In short, people need to cluster, both physically and online, just as much as producers do. A useful side-product of education for „creative quarters‟ in cities like London or San Francisco is that such districts are associated with large numbers of students and universities in the neighbourhood, stimulating „early adopter‟ consumers, start-up enterprises, and a population interested in experimentation, events, happenings and novelty. For instance London boasts half a million post-secondary students, of whom 80,000 are international. In such a lively environment, creative innovation accelerates both formally (education and the arts) and informally (participation and the media). It can now be seen as both ‘elaborate’ production by expert organisations (CI-1 and CI-2), and ‘emergent’ meanings arising from distributed, self-organising social networks (CI-3). What links them all is ideas. As John Howkins puts it, „ideas are the new currency.‟13 But it is not always the case that this kind of currency can be monetised. Some ideas circulate entirely outside of the market. For others, many creative artists and start-up businesses make the point that „emergent ideas‟ and making money, especially „criminally large amounts thereof,‟ may be separated not by sector but by time. In practice, a combination of all three models – CI-1 creative clusters, CI-2 creative services, and CI-3 creative citizens – is part of the intellectual infrastructure of a creative city, bringing 13 Howkins, J. (2009) Creative Ecologies: Where Thinking is a Proper Job. St. Lucia: UQP; New Brunswick NJ: Transaction Publishers. See also: http://news.bbc.co.uk/2/hi/business/3839193.stm 12
  • 13. into one place the energies of producers and consumers, intellectual property and intellectual capital, elaborate and emergent creativity, work and leisure, supply and demand. The creative city is a „medium‟ in which population-wide creativity is mixed and circulated. Creativity is the emergence of new ideas through clashes (signified by slashes) in the mix of:  Production / consumption  Intellectual property / intellectual capital  Elaborate / emergent creativity  Work / leisure  Supply / demand. With broadly distributed digital creativity, the extent and rate of experimentation and adaptation accelerates for the entire economic-cultural system; as is the potential for distributing solutions that can rapidly scale up from „garage‟ start-ups to global applications (e.g. iTunes app-store). This expanded notion of creativity as a broad-based „innovation culture‟ (CI-3) means that cities will need different policy settings compared with those that see the „creative industries‟ merely as a sector of the economy (i.e. CI-1 and CI-2). Here, the creative economy is understood as enabled innovation, where industry clusters (real estate) are only the first stage, culture rapid adaptability is required for survival in a dynamic system, and innovation needs to be modelled as „scale free‟ in order to link individual agency (talent, creativity, inventiveness, originality, call it what you will) to global applications (both cultural and economic) via digital media and online social networks. 13
  • 14. Rethinking creative industries as enabled social innovation precipitates changes in policy setting: Creativity  Shift from producer to consumer; from experts to users  Networks as productive „places‟ Urban planning  Shift from real estate to human resources  From provider planning to evolving networks („urban emergence‟) Economics  From industry sector to adaptive, complex, open systems  Interaction of culture and economy  From copyright to innovation; IP to emergence. Cities as incubators of social network markets In terms of physical infrastructure, it will be important to focus not on production plant but on relationship-formation, shifting attention from real-estate solutions to social networks and places to mingle. These include „scenes,‟ festivals, incentive competitions or awards, and venues that allow the integration of cultural and economic approaches to creativity, the mixture of ideas, and a rich interaction between „productive consumers‟ and creative enterprise. 14
  • 15. CULTURE PLACE ECONOMY Consumption Mediation Production Demand Platform Supply Scene/ Festival City Quarter Industry Cluster Novelty bundling Urban connections Institutions and firms “social ... network ... markets” Intellectual capital Community context Intellectual property Identity Knowledge Growth Play Mix / Move Work Creative culture Creative city Creative industries Constructing a creative city requires that all three columns of attributes (in the diagram) are nurtured: Culture for „emergence‟; a place for „mixing‟; and economy for coordinating. The ultimate aim must be to cluster – to broker the tensions among – all three „models‟ of the creative industries: CI-1 (top-down industry production); CI-2 (b2b service economy) and CI-3 (bottom-up cultural productivity). Creative cities are also globally networked; international hubs in flows of information, data, trade and creativity. The networked city is one where citizens are agents in myriad „small- world‟ networks that may span the globe while remaining embedded in the neighbourhood. Cities are network-hubs in regional and global information, data, trade and creativity flows. The „clash, cluster, complexity, creativity‟ aspect of networked creative cities results in a further need to broker tensions between:  Copyright vs sharing  Local city vs global network 15
  • 16. Intense inner-city clusters vs „virtual‟ clusters in social network markets (i.e. the need to understand the creative productivity of the suburban and non-urban as well as urban ecologies)  Elaborate art (authors) vs emergent innovation (users). A flourishing, vibrant city is therefore one where communities thrive on the clash of differences, opposites, and creativity among their own citizens. The global flows of knowledge, capital, and culture are in creative tension with local agency, including bottom-up enterprise, user-created content, and „festival‟ forms of mixing, to maximise opportunities for something new to emerge from the disruptions caused by complex interactions. Section III: What now? Urban Planning or poverty porn? In developing and emergent countries, these global flows and local complexity sometimes clash in unproductive ways. One example is Dharavi, the slum in Mumbai made famous by Slumdog Millionaire. Developers think it‟s an eyesore; not least because it is now overlooked by the world‟s most expensive private home – another clash of opposites. But in a recent documentary,14 Kevin McCloud (of Grand Designs fame) concludes that, despite the rats, rubbish, lack of water and sanitation, Dharavi is a thriving – indeed a creative – community, producing its own self-organised solutions to complex problems, chief of which is earning a living. 85% of the residents are employed, money is made, recycling is endemic and waste is minimal. In other words the creativity is bottom-up, unplanned, Beinhocker-style.15 14 See: www.channel4.com/programmes/kevin-mccloud-slumming-it/4od 15 Beinhocker, E. (2006) The Origin of Wealth: Evolution, Complexity, and the Radical Remaking of Economics. Harvard Business School Press / Random House. 16
  • 17. Urban planning … or ‘poverty porn’? Creative Mumbai – Creative complexity or financial district? 16 17 Top: Kevin McCloud Slumming It; global brands; Mumbai financial district. Bottom: Slumdog Millionaire; 18 the world’s most expensive home ($1bn) – the Antila tower on the left of the picture. Here is a tension between the planner‟s point of view and that of the population who are self- creating the „emergent urbanism‟ of the productive city. Supporters of development accused McCloud of indulging in „poverty porn.‟19 But his point is that planners need to look closely at the emergence of complexity before they drive a bulldozer through it. A better strategy may be to plan for a city to thrive on the productive differences, opposites, and creativity of its own citizens, including the creative tension between global flows (of knowledge, capital and culture), and local agency, including bottom-up enterprise, user- created content, and „festival‟ forms of mixing, to maximise the opportunities for something new to emerge from the disruptions and tensions caused by the clash of ideas. 16 Picture: Channel 4. 17 This AP picture accompanies the Daily Mail coverage of McCloud‟s Slumming It: the caption reads: „Inspiration: Slumdog Millionaire star Rubina Ali Qureshi, nine, straddles a blocked drain next to an area strewn with waste near her real-life home in a Mumbai slum.‟ Read more: www.dailymail.co.uk/news/article- 1245838/Slumming-It-TV-presenter-Kevin-McCloud-accused-making-poverty-porn-India- show.html#ixzz18F4K5CT5. 18 http://images.businessweek.com/ss/10/04/0415_most_expensive_things_sold/25.htm 19 www.telegraph.co.uk/news/7055458/India-accuses-Kevin-McCloud-of-making-poverty-porn-in-Mumbai- slum-programme.html 17
  • 18. Recommendations Where might reflexive, situated research look for productive tensions between cultural and economic values to solve some of the problems faced by contemporary, complex, networked cities? Here, to close, are some themes to consider:  Top-down / bottom up – tensions, coordination, scale  Complexity – emergence, elaboration, innovation  Problems of place (situated action) in networked (digital) societies  Copyright (the problem of property) – enforce or share?  Business models – command and control or micro-productivity?  Data and measurement – in the context of reflexive, situated knowledge  Internationalisation of „community‟ ... as well as creative economy. In short: how can „innovation for all‟ avoid policy becoming a vehicle for „revenge on the underclass‟?20 Because the orphans are still out there, even if the city in question is not Wolverhampton but Mumbai or Bangkok.21 On the streets of Bangkok22 20 Paul Benneworth; speaking at this AHRC workshop. 21 All contents other than credited illustrations © Copyright John Hartley 2010 22 Photo Gavin Gough: www.gavingough.com/2010/02/bangkok-street-photography-overcoming-resistance/; Posted on Tuesday, February 9th, 2010. 18