Entrepreneurship in the Creative Industries

Entrepreneurship in the Creative Industries Entrepreneurship in the Creative Industries An International Perspective Edited by Colette Henry Head of Department of Business Studies and Director, Centre for Entrepreneurship Research, Dundalk Institute of Technology, Ireland Edward Elgar Cheltenham, UK • Northampton, MA, USA © Colette Henry 2007 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical or photocopying, recording, or otherwise without the prior permission of the publisher. Published by Edward Elgar Publishing Limited Glensanda House Montpellier Parade Cheltenham Glos GL50 1UA UK Edward Elgar Publishing, Inc. William Pratt House 9 Dewey Court Northampton Massachusetts 01060 USA A catalogue record for this book is available from the British Library Library of Congress Cataloguing in Publication Data Entrepreneurship in the creative industries : an international perspective / edited by Colette Henry. p. cm. Includes bibliographical references and index. 1. Arts—Management. 2. Entrepreneurship. I. Henry, Collette. NX163.E58 20007 658.4'21—dc22 2007017149 ISBN 978 1 84542 610 1 Printed and bound in Great Britain by MPG Books Ltd, Bodmin, Cornwall Contents List of figures vii List of tables viii Acknowledgements ix List of contributors x 1 Introduction 1 Colette Henry PART I THE NATURE OF CREATIVE ENTREPRENEURSHIP 2 The creative industries and entrepreneurship in East and Southeast Asia 9 Desmond Hui 3 Art-entrepreneurship in the Scandinavian music industry 30 Maria Aggestam 4Creative industries in the UK: cultural diffusion or discontinuity? 54 David Rae 5 Entrepreneurship features of creative industries: The Irish music and dance sector 72 Barra Ó Cinnéide and Colette Henry 6 Building the film industry in New Zealand: an entrepreneurship continuum 87 Anne de Bruin PART II SUPPORTING THE CREATIVE INDUSTRIES SECTOR 7Investment and funding for creative enterprises in the UK 107 Tom Fleming v vi Entrepreneurship in the creative industries 8Promoting entrepreneurship in arts education 126 Ralph Brown 9 Encouraging creative enterprise in Russia 142 Linda Moss 10 Human language technologies and entrepreneurship in the creative industries 159 Brian Kenny and Julia Meaton 11 Developing relationships between higher education, enterprise and innovation in the creative industries 178 Calvin Taylor 12 Conclusions 197 Colette Henry Index 209 Figures 2.1 The growth of employment in the creative sector, 1996–2002 25 3.1 A framework for describing corporate venturing 36 3.2 A cybernetic/life-stage model of corporate venturing in the music industry and illustrative actors and actions 38 4.1 Cultural diffusion in the creative enterprise 65 10.1 Relation between classes in ADAM 161 10.2 HLT national clusters 165 10.3 Finland’s ICT strategy model 175 vii Tables 2.1 The economic value of creative industries: an overview of selected countries 11 2.2 Economic impact of copyright industries in Singapore 19 2.3 Composition of Singapore’s total copyright industries in 2000 19 2.4 Economic impact of Singapore’s creative clusters 20 2.5 The economic performance of Taiwan’s cultural creative industries (CCIs) 22 2.6 Value-added of creative industries to local economy, 2001 23 2.7 Employment status and occupations of creative workforce (OCP) 26 3.1 Professional supporting bodies of the Danish music industry 40 3.2 Top ten record companies in Finland by turnover (million euro) 43 3.3 Institutional set-up of Icelandic music industry 45 3.4 The Swedish music industries’ export incomes 49 4.1 Comparison of enterprises using cultural diffusion 66 10.1 HTL benchmarking: technology opportunity factors 167 10.2 Finland’s world competitiveness rankings: selected characteristics 168 viii Acknowledgements The authors and publisher would like to thank IP Publishing Limited for granting permission to reprint material from the International Journal of Entrepreneurship and Innovation, special issue on Entrepreneurship in the Creative Industries,6 (3), 2005. This permission covers material from the following papers: Linda Moss, ‘Encouraging small cultural enterprise in Russia: gateways and barriers in Russian society’ (pp. 193–200); Ralph Brown, ‘Performing arts creative enterprise: approaches to promoting entrepreneurship in arts higher education’ (pp. 159–167); David Rae, ‘Cultural diffusion: a formative process in creative entrepreneurship’ (pp. 185–192); Barra Ó Cinnéide, ‘Creative entrepreneurship in the arts: transforming “old” into “new”: Irish dance and music test cases such as Riverdance and Lord of the Dance’ (pp. 151–158); and Anne de Bruin, ‘Multi-level entrepreneurship in the creative industries: New Zealand’s screen production industry’ (pp. 143–150). Copyright 2005 IP Publishing Limited, reproduced by permission. The input of Gerard McElwee of Lincoln Business School, editor of the International Journal of Entrepreneurship and Innovation,which is published by IP Publishing Limited (www.ippublishing.com), is also gratefully acknowledged. The editor is extremely grateful to all those who have contributed to this book. It has been a pleasure to work with such a dedicated team of schol- ars who have drawn on their particular specialist research experiences within the field of creative industries entrepreneurship. Without their expertise, dedication and patience, this international collection would not have been possible. Thanks are also due to those who willingly gave of their time and expertise to form part of the reviewing process for this book. Colette Henry ix Contributors Maria Aggestam, PhD, Department of Business Administration, Lund University, Sweden. Ralph Brown,Projects Officer – PALATINE, Lancaster University, UK. Anne de Bruin, PhD, Professor of Economics, Department of Commerce, Massey University, Auckland, New Zealand. Tom Fleming, PhD, Director of Tom Fleming Creative Consultancy Ltd, London, UK. Colette Henry, PhD, Head of Department of Business Studies and Director of the Centre for Entrepreneurship Research, Dundalk Institute of Technology, Dundalk, County Louth, Ireland. Desmond Hui, PhD, Director of the Centre for Cultural Policy Research, University of Hong Kong. Brian Kenny, PhD, Professor Emeritus, University of Huddersfield, UK. Julia Meaton, PhD, Head of the Centre for Enterprise, Ethics and the Environment, University of Huddersfield, UK. Linda Moss, PhD, School of Cultural Studies, Sheffield Hallam University, Sheffield, UK. Barra Ó Cinnéide, PhD, Professor Emeritus, University of Limerick, Ireland. David Rae, PhD, Professor of Business and Enterprise, Faculty of Business and Law, University of Lincoln, UK. Calvin Taylor, PhD, Director for Enterprise and Knowledge Transfer in the Faculty of Performance, Visual Arts and Communications, University of Leeds, UK. x 1. Introduction Colette Henry The creative industries represent one of the most important areas of the twenty-first century’s global economy. Since the 1990s, they have been her- alded as one of the fastest growing industry sectors, and are now seen as central to the success of most developing and advanced economies. The potential of the creative industries to capture both national and international markets and boost exports has been recognized in countries such as Australia (Poole, 2005), Hong Kong (CCPR, 2003), Singapore (MITA, 2002), New Zealand (NZIER, 2002) and the UK (DCMS, 2003; NESTA, 2006), among others. Often referred to as the ‘creative economy’, the creative industries represent a set of interlocking, knowledge-intensive industry sectors focusing on the creation and exploitation of intellectual property (DCMS, 2001). Such industries include, but not exclusively so, the following sectors: arts and crafts; designer fashion; film, theatre and the performing arts; advertising; architecture and design; publishing; broadcast media and recorded music. Interestingly, software development, computer services, digital media, communications and a range of activities within the heritage sector also feature strongly within the creative industries, resulting in an extremely broad economic spectrum which potentially overlaps with the culture, lifestyle and non-profit sectors (British Council, 2003; Wikipedia, 2006). While in the UK, the creative industries are currently valued at £56.5 billion, accounting for 8 per cent of the British economy, in the global market their value has increased dramatically from US$831 billion in 2000 to US$1.3 trillion in 2005 (NESTA, 2006, p. 2). Notwithstanding their economic contribution, the creative industries, with their strong cultural focus, would also seem to be particularly well positioned to respond to both social and economic agendas at the international level (Metier Report, 2002). With equality and diversity at the forefront of new millennium political correctness, music, sport, art and dance suddenly become vehicles for promoting social inclusion, encouraging cultural diversity and supporting the needs of minority groups, adding a new and interesting dimension to the creative sector. It is, perhaps, for this reason that some political leaders have been reported to 1 2 Entrepreneurship in the creative industries focus their attention on the creative industries while ‘paying no attention whatsoever to the manufacturing or service sectors’ (Benson, 2005, p. 5). Thus, for a range of reasons, the creative industries present themselves as an interesting topic for research on an international scale. This edited collection

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