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The Creative Economy, the Creative Industries and the Ecology of Culture

The Creative Economy, the Creative Industries and the Ecology of Culture. Colin Mercer. The Creative Economy: market size. The Creative Industries: definition. Creative industries: UK sector composition and employment 2001. Software and computer services (555,000) Publishing (141,000)

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The Creative Economy, the Creative Industries and the Ecology of Culture

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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 ofCulture • 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 • TechnologyEvidence and Analysis

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