‘Cultural and creative industries’ The Cultural Economy

Presentation to UNESCO experts meeting Cape Town 21 – 26 October 2012

UNESCO EXPERT: Avril Joffe

The Approach

• Cultural Economy

• Acknowledge the complex links between sectors

• Policy dimensions

UNESCO: Cultural Economy (based on

UNESCO’s Framework for Cultural Statistics

Unesco cultural economy

Cultural Domains Related domains

A: Cultural & Natural Heritage

B: Performance & Celebration

C: Visual Arts & Crafts

D: Books & Press

E: Audio Visual & Interactive Media

F: Design & Creative Services

A: Tourism

A: Sports & Recreation

Intangible cultural heritage

Intangible cultural heritage

Education and training

Archiving & Preserving

Equipment & Support Materials

Education & Training

Archiving & PreservingEquipment & Support Materials

1. Cultural Economy

• Those products and services whose primary economic value derives from their cultural value.

• Need economic interventions and innovations (markets, production, entrepreneurship)

• Need Public and Private Sectors• Need protection, development and transmission of all aspects

of cultural life: heritage and contemporary

2. Cultural Economy as Complex

• Acknowledge the complex links between sectors

• One size does not fit all

• Need to address specific needs but keep connections to wider cultural economy

• Cultural and creative industry products and services as – Experiences– Services– Originals – Content

Online/mobile services Publishing TV/radio broadcast/distribution Games publishers Film studios/distribution Recorded music Merchandise Designer fashion

PR, MarketingArchitecture

DesignAdvertising

Post-production, facilities

Heritage & tourism services

Exhibitions, attractions (design & build)Cinemas Live music Performing arts

Spectator sports Visitor attractions Galleries MuseumsHeritage

Antiques Designer-making Crafts Visual arts

Web/mobile development Photography TV & radio production Games development Contract publishingAgents

Services

Originals

Experiences

Content

Cultural and creative industries

• Next step up the value chain?

• Replace manufacture?

• Generate IPR through direct creative input

• Increased symbolic value of goods and services

Why are Cultural Industries

Important?

EconomicSignificance

Personal developmentCommon Culture

Social Impact

Local cultural identityGlobalisation

Distinctiveness

The “creation of meaning”

Creativity

Non-conventionalityProblem solving

Innovation& Creativity

Values

HeritageNation building

Identity

MarketingTourism

Image

Ideas & information

IdeologyForum for debate

Communication

EmploymentWealthIncome & TurnoverForeign exchange

MiningManufacturing

EmergingKnowledgeEconomy

TIME

Financial and Other Services

1886 2003

Economic History – eg Gauteng, South Africa Economic History – eg Gauteng, South Africa

3. Policy Dimensions • Sustainable and competitive creative and cultural economy needs

effective policy-making • Government interventions help shape the structure around which

the creative and cultural economy develops – IP regulations – Local of Cultural infrastructure and cultural facilities– Technology, internet and other telecommunications quality and access– Tax regimes – Education policies from school to tertiary– Local and regional government involvement – Rights and status of artists – Financial and administrative support

• Creative and cultural economy is both a global and local phenomenon

Agriculture and Agribusiness

Technology

Tourism

Lifestyle/ wellness

Consumer Product

Cultural Economy

Policy areas

Adapted from NGA Centre for Best Practice, Arts and the Economy,

Agriculture and Agribusiness

Technology

Tourism

Lifestyle/ wellness

Consumer Product

Cultural Economy

Animation, graphic,

web designDesign &

Manufacturing

Nich

e Pr

oduc

ts,

spiri

tual

art

Cultural tourism

Cuisine,

landscaping,

Adapted from NGA Centre for Best Practice, Arts and the Economy,

ELEMENTS OF TECHNICAL ASSISTANCE IN SUPPORTING AND STRENGTHENING CULTURAL AND CREATIVE INDUSTRIES

Africa wide

• Concept of culture • Making of culture • Governance of culture • How it intersects with cultural economy

Africa wide

• Concept of culture – not uniform, – diverse, ethnic-religious, heritage based, ways of life, – not about arts, contemporary culture – Leads to distortions - e.g. cultural tourism is only

about heritage or traditional culture, museums, galleries, traditional dance and music, traditional food

– Cultural tourism in this construct is not about contemporary artists, theatre, popular music

Outline1. Conceptual framework:

1. History of definition from cultural industries 2. Definition of creative industries 3. What do we mean by creative economy4. Drivers of the creative economy

DEVELOPING CLEAR ADVOCACY BASED ON COMMON, CLEAR, AFRICA-RELEVANT DEFINITION

1. Conceptual framework for Creative Industries

Definitions: number of diverse and differing definitions: Emphasise• Intellectual property/ copyright• Creative or cultural origin of goods/services• Commercialisation or wealth and job creation

– EG– UNESCO: ‘Those industries that combine the creation, production

and commercialization of products which are intangible and cultural in nature. These contents are typically protected by copyright and they can take the form of goods or services’

– UK: ‘Those industries which have their origin in individual creativity, skill and talent and which have a potential for wealth and job creation through the generation and exploitation of intellectual property’ (DCMS)

Definitions continued

• Creativity as a focus of activities including – Generation of creative content (products or

services) – Value chain associated with this activity

• Eg DACST, South Africa (1998), Bogota creative mapping (2002), Singapore (2003), UK (2001 -)

Short history• 1980’s: culture, the arts, cultural planning, cultural

resources, cultural industries• Mid 1990’s: creativity as a broad based attribute became

common currency– Australia’s Creative Nation 1992 – cultural policy– UK, Ken Robinson’s national commission on creativity, education

and economy ‘All our Futures: Creativity, Culture and Education” – CREATIVITY on the map

– Cultural industries - --- creative industries -----creative economy ---- creative class (2002 Florida ‘The Rise of the Creative Class’

Review of models & classification systems

• Concentric circles (Throsby, 1998/2001)• Cultural value of cultural goods is distinguishing

characteristic of creative industries• Creative ideas originate in the core creative arts in the

form of sound, text and image and these ideas and influences diffuse outwards through a series of layers, or ‘concentric circles’.

• As one moves outwards from the centre, the proportion of commercial content to cultural content rises

Throsby, 2007:5

Models: Stylised typology: Work Foundation from EU (Throsby) 2006

• Report to UK’s DCMS, Work Foundation developed a stylised typology of this model of the creative industries borrowed from EU’s ‘The Economy of Culture’ (2006) originating with Throsby.

• Bulls-eye of core expressive value creation at centre of concentric circles: the home of artists – musicians, lyricist, dancer, choreographer, composer, writer, painter, sculptor, scriptwriter, designer

• Expressive value – enlarging cultural meaning & understanding to include aesthetic, spiritual, social, historical, symbolic & authenticity value of cultural goods & services

• This stylised typology introduces relationship between core creative fields, cultural industries, creative industries and the rest of the economy plus notion of expressive value and outputs (not included in original model)

Models: WIPO copyright model (2003)

• All industries involved in the creation, manufacture, production, broadcast and distribution & consumption of copyrighted works are included

• Industries that PRODUCE the intellectual property – the embodiment of the creativity that is needed to produce the goods and services of the CI – are DISTINCT from those that are needed to CONVEY the goods and services to the consumer

Models: DCMS, Symbolic Texts, Concentric Circles, WIPO:

1. DCMS Model 2. Symbolic Texts Model 3. Concentric Circles Model 4. WIPO Copyright Model

AdvertisingArchitectureArt and Antiques marketCraftsDesignFashionFilm and VideoMusicPerforming artsPublishingSoftwareTelevision and radioVideo and Computer games

Core Cultural IndustriesAdvertisingFilmInternetMusicPublishingTelevision and radioVideo and computer gamesPeripheral cultural industriesCreative artsBorderline cultural industriesConsumer electronics FashionSoftwareSport

Core Creative ArtsLiteratureMusicPerforming artsVisual artsOther core cultural industriesFilm Museums and librariesWider cultural industriesHeritage servicesPublishingSound recordingTelevision and radioVideo and computer gamesRelated industriesAdvertisingArchitectureDesignFashion

Core copyright industriesAdvertising servicesCopyright collection management societiesMotion picture and videoMusicTheatre and operaPress and literatureSoftware and databasesTelevision and radioPhotography,Visual and graphic artInterdependent copyright industriesBlank recording materialConsumer electronicsMusician instrumentsPaperPhotocopiers, photographic equipmentManufacture, wholesale and retail of TV setsRadioCD recordersComputers and equipmentCinematographic instrumentsPartial Copyright IndustriesArchitectureClothing, footwearDesignFashionHousehold goodsToys

Model: Creative Economy: Singapore (2003), Unctad (2006), Nesta (2008)

• Increasing use of the term ‘Creative Economy’ • What is the relationship between core cultural fields, cultural

industries, creative industries and the broader creative economy? • Highlight the upstream (traditional art form: performing , literary &

visual arts – may have commercial value in themselves) and downstream activities (applied arts: advertising, design, publishing and media-related activity – derive commercial value principally from their application in other activities

• Because there is a symbiotic relationship between all the sectors (commercial and non-commercial as well) a growth or decline in one area will have an effect on another area.

Distribution Industries

Creative clusters, creative precincts, creative sectors

Cultural Industries

Creative Industries

CopyrightIndustries

CreativeEconomy

CAJ (2007) Adapted from Heng, Choo and Ho (2003)

Upstream

Downstream

Composition of the Creative Economy

Concept: Creative Economy

• Evolving concept based on creative assets embracing– Cultural– Economic– Social– Technological aspects

• Central application: seen as a feasible policy option to diversify economies and improve trade and development gains in countries around the world (Brandford, 2004)

• Characteristics include– Knowledge-based economic activities– Intensive use of creativity to add value to products + services– Ability to generate income from trade and property rights

What are The products & services of the Creative economy?

Its a vast field dealing with the interplay of various sub-sectors from traditional art crafts to

technology-oriented multi-media services

Creative Industries

Visual Arts

Literature and Publishing

Design

Traditional knowledge Music

Performing Arts

Audio-VisualsDigital Animation and Multi-media

(UNCTAD)

Paintings, sculptures and photograpy

Books, newspapers and periodicals

Architecture, interior objects, fashion and jewellery

Art crafts, festivals and cultural activities Concerts, CDs, tapes,

digitalized music

Theatre, dance, opera, puppetry, circus

Broadcasting, cinema, television, radio

Software, videogames and advertising

Creative economy - Innovation• Recent studies (Nesta) – creative industries play

significant role in UK innovation system ‘firms that spend twice the average amount on creative inputs are 25% more likely to introduce product innovations’

• ARC/ Queensland: creative workers are more integrated in the wider UK economy than previous mapping studies showed. More creative specialists working OUTSIDE the creative industries than within them (Higgs, Cunningham and Bahkshi, 2008)

Creative Trident – ARC centre of Excellence for Creative Industries, Queensland University of Technology

• Sector specific focus to full economic contribution of creativity to the wider economy

• Track creative occupations in traditional creative industries as well as in manufacturing & the wider service industries (health, education, business services, government)

• Design occupations particularly are embedded (ie employed in creative occupations) in other industries resulting in an undercounting of the design sector by 36%.

Creative Trident

• Diagramme illustrating significant contribution of creative occupations. – 55% of creative occupations are located in other

industries– Creative occupations in other industries account

for 35% of total employment– Creative occupations account for 64% of total

employment (in CIs and rest of economy)

Creative Trident – making CREATIVE ECONOMY apparent!

Figure 8: The number of people employed in Specialist, Embedded and Support roles within the Australian Creative Workforce (2006)

Source: Australian Research Council Linkage Project, 2008 quoted in Ameru and CAJ, 2008: 77

Developing an advocacy position in your country:

• How will you define the creative industries/ creative economy to your authorities

1. What will they include2. What will they exclude3. What will be the defining characteristic(s) of this creative

sector 4. Do we need a phased approach when working with a

definition? i.e. from cultural industries to get agreement through over time to creative economy?

Or

Do we abandon the term creative economy and refer to the cultural economy to make culture the dominant characteristic?

2. Economic analysis of Creative Industries

• Industrial organisation analysis– Measuring standard economic variables (gross

value added, levels of employment, labour, investment) – core of mapping studies

• Economic Impact analysis– Cultural events in local areas (museums, festivals

heritage sites): effect on local community + economy and benefits that flow to both

Economic analysis of Creative Industries• Economy wide contribution

– 4 distinct levels of contribution: • primary (direct and quantifiable)• secondary (indirect and quantifiable: multipliers; • tertiary (direct and non-quantifiable: invention, innovation

and diffusion and • quaternary impact (indirect and non quantifiable: quality of

life, motivation and productivity, cultural identify, preservation of tradition and culture, creative new cultural identities

• Value chain analysis– Cultural production chain – describes the full range of

activities that are required to bring a product or service from conception (creation) , through the intermediary phases of production (pre and post production) delivery to final consumers including activities such as design, production, marketing, distribution and support services up to the final consumer

– Adapted from Charles Landry for ILO study on the Impact of the Cultural Sector in SADC countries (2003) by Joffe, CAJ.

The value chain

The creative industries value chain: where and how is wealth created.

3. CIRCULATION/ DISTRIBUTION

Distributors, agents, marketers & intermediaries,

4. DELIVERY MECHANISMS:Exhibitors, broadcasters, retail outlets, live venues, performance spaces, gallery/ exhibition spaces

5. AUDIENCE RECEPTION:Journalists, trade journals, festival commentary, awards, academies

2. PRODUCTION:

- the people, the processes, the sites of productions, the facilities, the equipment and suppliers, the designers

Training & Development

SMESupport

Regulation& Policy

Core Problems: absence of business savvy, poor integration with other economic sectors (tourism), lack of appropriate training and mentoring support specifically for arts and culture managers, administrators and programming staff, poor organisation, lack of clustering and inadequate networking (© CAJ, 2001)

1.BEGINNINGS:

- the idea, the context, the rich heritage, the project funds and finance for development, promotion, recording and exhibition

Value chains for policy development/ entrepreneurial analysis, designers

• Can be used by policy makers to determine the needs of the cultural and creative industries

• Can be used to inform policies and measures, support project design and to address entrepreneurial needs

• Can be used to assess the regulatory and legislative framework at each phase of the value chain as well as the associated training and educational requirements

• Cultural entrepreneurs can use the VC to understand the reasons for market failure, to assess blockages and gaps in the phases, to offer insight into weaknesses of a specific sector, identify challenges and opportunities

Simple value chains

• Eg Craft value chain as presented by CCDI, SA

ConsumptionRetailProduction

Inputs

Craft Value Chain

Creative Process/ Design

Services and DistributionEnabling Environment

SupplyDemand

The value chain

Music Value Chain

3. CIRCULATION/ DISTRIBUTION: Personal manager, agents, artist management (for band, DJ, solo artist or instrumentalist) Distributors, agents, marketers & intermediaries

4. DELIVERY MECHANISMS: Performer, roadie, session musician, DJ

Exhibitors, broadcasters, retail outlets, live venues, performance spaces, gallery/ exhibition spaces

5. AUDIENCE

RECEPTION: critic, groupie, journalist, trade journals, festival commentary, awards, academies

2. PRODUCTION: - sound engineer, business manager, the people, the processes, the sites of productions, the facilities, the equipment and suppliers, the designers, IPR

Training & Development

SMESupport

Regulation& Policy

Core Entrepreneurial Problem: Lack of understanding where wealth is created in the value chain; that entrepreneurship occurs throughout the value chain, the absence of business savvy

or appropriate training; poor organization, lack of clustering and inadequate networking

1.BEGINNINGS: musician; lawyer; financier, songwriter

the idea (lyric, melody), the context, the rich heritage, the project funds and finance for development, promotion, recording and exhibition

Assessment of your cultural and creative industries

• Who are the key players in each ‘moment’ ?• Where are the work places ?• How supportive is the regulatory framework for each

moment and the entire value chain? • Does the education and training environment support and

align to the respective cultural and creative industry ?• Can the different value chain moments Access mainstream

business support?• Is the business and trading environment conducive to the

cultural creative industries?

Create your own value chains

STEP 1 Step 2 Step 3 Step 4Name the creative List the players list the people, players Brainstorm Originator of the idea in the production and institution who the consumersProduct or service of the product or play a role in the or people who

service. Marketing, PR, retail will enjoy yourand distribution of the good or bad product or service service

New Developments on value chains: Value Networks (Canada)

• The digital economy is transforming the value networks of Canadian 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

• Highlight functions which do and don’t add value or create new rights• 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

Disconnects in value chain• Product flows to consumer but revenue does not reach primary

creators – a ‘disconnect’– Eg Music industry: Music and video distributed to consumer on

internet through distribution platforms (eg Limewire) – used as a marketing tool for internet service providers who sell connections while ‘value perceived by consumers includes the content they receive” (Connectus Consulting Inc, 2007: 19)

– “In that sense, electronic download of music is generating revenue, but no review currently passes from the ISP to any of the producers of music in respect of this use. Since many music rights holders have not authorised the distribution of their content and this ‘free’ music is nonetheless distributed and its value perceived without being monetized through any revenue model, a disconnect is clearly present”

Economic analysis: Urban & regional growth

• Creative clusters• Creative cities

– Cultural quarters

• Creative regions– The Creative Industries have the potential to encourage regional

economic growth and employment creation and, in particular to regenerate depressed urban areas and enhance the liveability of cities thereby contributing to urban development and creating the conditions for inward investment.

The Creative City

• Important player Comedia, Charles Landry: One of 1st Studies: ‘Glasgow: the creative city and its cultural economy’ (1990) – The creative city in Britain & Germany 1994 –

• The Creative City: A Toolkit for Urban Innovators (2000)• At same time, ‘Creative City’ – seminar City of

Melbourne, Australia Council in 1988 “The City should be emotionally satisfying and stimulate creativity amongst its citizens”, David Yengken, Secretary for Planning and the Environment, State of Victoria

Johannesburg: the creative capital

GAUTENG SPATIAL DEVELOPMENT INITIATIVE, DBSA

1998

PREPARED BY AVRIL JOFFE FOR CREATIVE STRATEGY CONSULTING, SQW (SA)

2007/8

Becoming an African Cultural Capital: Creating an agenda

Presentation to African Cultural Capital Forum 11-13 March 2010Avril Joffe

Director, CAJ: culture, arts and jobs

AMBASSADE DE FRANCE AU GHANA

Main results from meeting:

1. Change name to AfricaCAN

2. AccraCAN to remain as secretariat for initiative

3. Develop criteria for Cultural Capital

4. Develop advocacy programme to bring more African cities on board

AFRICACAN – long term advantages of AFRICAN CULTURAL CAPITAL CONCEPT

• Raising the international profile of the cities involved• Attracting visitors through cultural activities and art

events• Expanding local audiences for cultural activities and art

events• Improvement to cultural infrastructure• Promoting creativity and innovation• Developing the careers and talents of art professionals in

the city.

AFRICACAN: Way forward for all cities

1. Mapping – who, where, what, why, how much2. Networking including identification of beneficiaries,

experts and development of partnerships3. Securing political commitment4. Development Plan including

1. Infrastructure maintenance and development plan2. Education interface at all levels including research

institutions/ individuals3. Traditional and contemporary art forms including heritage4. Media and promotion