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

1
The Creative Economy, the Creative Industries and
the Ecology of Culture

• Colin Mercer

2
The Creative Economy market size
3
The Creative Industries definition
4
Creative industries UK sector composition and
employment 2001

• Software and computer services (555,000)
• Publishing (141,000)
• Music (122,000)
• TV and radio (102,000)
• Advertising (93,000)
• Design (76,000)
• Performing arts (74,000)
• Film and video (45,000)
• Arts and Antiques market (37,000)
• Crafts (24,000)
• Architecture (21,000)
• Interactive Leisure Software (21,000)
• Designer fashion (12,000)
• 1.3 million people in industry based on
  creativity and intellectual property

5
The New Economy characteristics

• Intellectual property and knowledge-based
• Symbolic goods and cultural capital
• Symbolic and cultural entrepreneurs and
  intermediaries
• The weightless economy of bits rather than
  atoms
• From marketplace to market space
• Based on outputs and flows of cities/city-regions
  rather than nations

6
Four themes

• The significance of the creative industries at
  local and regional level (clustering effects)
• The contribution of the creative industries to
  the national economy and international trade
• The context of globalisation and convergence and
  the importance of indigenous/endogenous creative
  industry growth
• Some conceptual issues and approaches enabling us
  to understand these realities (the cultural
  ecology and the value chain)

7
Local example the Lace Market/Hockley area in
Nottingham

• 419 registered businesses in Lace Market/Hockley
  area
• 168 businesses (40) in Creative Industries
• 67 of those surveyed rated as important to
  crucial for their business their location in the
  Lace Market area (LMA).
• 61 of those surveyed rated as important to
  crucial for their business the capacity for
  meeting and networking with suppliers,
  collaborators, competitors in the LMA.
• 70 gave a very good to excellent rating to the
  LMA as a location for combined business and
  social interaction.

8
The creative content makers

• 74 rated as important to crucial for their
  business the attractiveness of the built
  environment.
• 60 rated as important to crucial for their
  business the range and quality of restaurants,
  pubs, clubs, cafes.
• 57 rated as important to crucial for their
  business the heritage quality of the LMA
• 50 rated as important to crucial for their
  business the proximity of arts and cultural
  institutions.
• 58 had plans for business expansion
• 77 had experienced growth in demand for their
  product or service in the past year

9
The creative content users

• 91 of users agreed that the LMA adds vitality
  to the city centre area
• 68 rated the LMA as a safe environment
• 79 rated the LMA as good for shopping
• 90 rated the LMA as good for socialising
• 20 were there for work purposes
• 30 were there for shopping
• 49 were there for social reasons

10
In the Greater Nottingham Area.

• 15,000 employed in 1600 businesses
• 5 of the workforce (equivalent to national
  figures) and
• Strong growth in areas such as advertising,
  design,software, new media, publishing
• Figures do not include self-employed, freelance,
  etc (the independents)
• The cultural sector also comprises, as part of
  its 'ecology', organisations, large and small,
  which are in receipt of subsidy from local,
  regional and national government agencies
  amounting to 10.5 million in 1999-2000.

11
The subsidised sector ...

• These subsidised cultural organisations directly
  contributed some 34 million to the economy in
  direct operations spending (on staff, goods,
  services) in 1999-2000.
• Through the 'multiplier effect' this contributes,
  in real terms, up to 85 million annually to the
  economy. The more that is created and produced
  locally, the more this money stays in the local
  and regional economies.
• The subsidised organisations employ nearly 800
  operational staff on both continuing and contract
  basis and a further 800 artists, performers and
  educators.

12
What the people think

• 68 of respondents in random street and
  telephone surveys, across demographics and
  areas, placed a 'fairly high' to 'high' value on
  culture with
• 55 agreeing that it 'encourages a sense of
  community'
• 71 agreeing that it 'helps me to understand the
  world and its people'
• 56 agreeing that it is 'important for my
  personal development'
• 47 agreeing that it encourages a sense of local
  identity'

13
From quantity to quality.

• The creative industries are a special sector
  because, while economically increasingly
  important, they are also about
• The resources of identity
• The resources of affirmation
• The resources of celebration
• The resources of social inclusion and cohesion
• The economy of symbols,values and meanings
• The quality, vitality and conviviality of lived
  human environments
• The resources of a sustainable and creative new
  economy
• The development of distinctive local, regional
  and national identities (and industries) in the
  context of globalisation and potential
  homogenisation of cultures( ref. Uruguay Gatt
  Round/WTO the principles of cultural exception
  and cultural diversity

14
The Ecology of Culture

• Dynamic relationship between commercial,
  independent, community and subsidised sectors
• Flows of people, talent, skills back and forth
  between these sectors
• Importance of informal social networks and
  networking capacity (social capital)
• Importance of understanding the processes of this
  ecology and the critical mass that sustains it.
  

15
The Value Production Chain

• Pre/creation (social conditions, training,
  funding)
• Production (infrastructure and capacity)
• Dissemination and circulation (distribution
  through people and places)
• Positioning, promotion and marketing
  (dissemination of knowledge)
• Consumption and usages (how, why, what people are
  doing and to what ends - audience and market
  development, co-creation)

16
The Creative Class and the Creativity Index

• Creative class/bohemian/ share of the work force
  (measured by SOCs)
• High Tech Industry presence
• Innovation index (patents per capita)
• Diversity index (overseas born, gays)

17
The Hong Kong Creativity Index

• Manifestations of creativity (patents, etc)
• Structural/Institutional Capital (legal system,
  IP, treaties, etc)
• Human Capital (qualifications, mobility, RD
  spend)
• Social Capital (charitable donations, volunteer
  levels, civic engagement)
• Cultural Capital (cultural expenditure,
  participation rates, values placed on cultural
  activity)

18
The UK Creative Economy Programme

• www.cep.culture.gov.uk 
• The Creative Economy Programme is the first step
  in the DCMS goal to make the UK the world's
  creative hub.
• 7 working groups and reports
• Infrastructure
• Competition and Intellectual Property
• Access to Finance and Business Support
• Education and Skills
• Diversity
• Technology Evidence and Analysis