Creative and Cultural Economy series ⁄ 1 the Creative Economy: An Introductory Guide

Creative and Cultural Economy series ⁄ 1 the Creative Economy: An Introductory Guide by John Newbigin British Council’s Creative And Cultural Economy Series ⁄ CONTENTS Published by The British Council 10 Spring Gardens, London SW1A 2BN, England 09 – Preface www.britishcouncil.org 13 – 1 ⁄ What is the creative economy? All rights reserved ISBN 978-086355-639-5 21 – 2 ⁄ Mapping the creative industries

Author: John Newbigin ⁄ 25 – 3 ⁄ Do the creative industries matter? John Newbigin is a cultural entrepreneur and 29 – 4 ⁄ A policy environment for the creative economy – the basic writer with a broad experience across film, television, digital media and the arts. As a Special Conditions for growth Advisor to the UK government he played a central role in establishing the idea of the creative 35 – 5 ⁄ A policy environment for the creative economy – public economy as a legitimate and necessary focus of Policies that can make a difference public policy. 41 – 6 ⁄ A business environment for the creative economy – are the Editors ⁄ Creative industries really unlike other sectors of the economy? Pablo Rosselló 47 – 7 ⁄ A business environment for the creative economy – how the Shelagh Wright digital world and the creative industries are developing new Ways of working Publication Design ⁄ YCE Brand guidelines by BB Saunders 51 – 8 ⁄ What HAPPENS NEXT? Design by Érika Muller 56 – Appendix 1 ⁄ How does the UK support its creative industries and are there lessons to be learned for other countries? Photo Credits ⁄ © Aldeguer, Jay: pages 49, 57, 58a 58 – Appendix 2 ⁄ Reading and Further Reading © Dib, Paula: page 28 © Established & Sons, page 23: London HQ, 60 – Appendix 3 ⁄ Creative Entrepreneurs photo by Ed Reeve, September 2009 © Established & Sons, page 46: London HQ, 76 – Appendix 4 ⁄ Reading photo by K. Lathigra, September 2008 © Glendinning, John: pages 54-55 (photograph of Richard Alston Dance Company’s Blow Out) © Newbigin, John: front cover, page 12 © Noon, Frank: pages 26, 58b, 59 © Powell, Mark: page 1 © Rossello, Pablo: pages 2-3, 8, 20, 27, 30, 33, 34, 36, 38, 40, 45, 48, 50, 52, 53a, 53b, 78-79, 80-81 © Rustandi, Leo: page 24 © Slade, Jon: pages 10-11, 17

© British Council 2010 Creative Economy Unit The United Kingdom’s international organisation for educational opportunities and cultural relations. We are registered in England as a charity.

Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide preface

In our interdependent contemporary Shelagh Wright world at the start of the 21st century we Advisor, Creative and Cultural Economy face complex challenges, polarization Programme and inequality within and between nations. Development strategies British Council are needed to unleash the creative The British Council is committed to potential of all to respond to the far- working in partnership to help shape reaching cultural, economic, social the contours of our shared creative and and technological shifts that we are cultural economy through its values of living through. In this context the equity, freedom of expression, mutuality concept of ‘the creative and cultural and sustainability. economy’ is growing around the globe as the interface between culture, economics and technology. Our world is increasingly dominated by images, sounds, symbols and ideas that are creating new jobs, wealth and new culture. The UK has been a leader in the development of this agenda, not just as a driver of the economy but also promoting social inclusion, diversity and development. No-one can claim a monopoly on wisdom as innovative creative people all over the world are changing the way we make and exchange goods, services and culture. This booklet (and the series it is part of) is a contribution to our shared knowledge and expertise for this emergent and valuable sector. We hope you find it both stimulating and useful.

10 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 11

1 ⁄ WHAT IS THE ‘CREATIVE ECONOMY’ ?

All around the world, the ‘creative They are one of the roots of today’s economy’ is talked about as an ‘creative economy’ important and growing part of the But when these ancient traditions of global economy. But twenty years cultural work and cultural industry - ago the terms ‘creative economy’ and designing, making, decorating and ‘creative industries’ did not even exist. performing - began to be woven Where have they come from? And are together with a wider range of modern these industries really so new that they economic activities – advertising, did not exist fifteen years ago? design, fashion and moving image media – and, even more importantly, The answer is both ‘yes’ and ‘no’. began to be given much greater reach through the power of digital technology The ‘cultural industries’ are as old as - that was the moment when the human society ‘creative economy’, as most people use Digital media and the hundreds of the term, was truly born. thousands of creative enterprises that have been made possible by digital that still weaves together economic technologies are, of course, new. So are value and cultural value many of the goods and services that This long and complex cultural heritage an increasingly sophisticated global is what makes the creative economy market demands. But the desire to unlike any other sector of the economy. create things whose value is not purely For most of human history, cultural practical – things that are beautiful; that activity has not been seen as part of communicate cultural value through the economy at all. It was what most music, drama, entertainment and the people engaged with when they were visual arts; that communicate social not working, rather than when they position through style and fashion were. Even today, the creative industries – these desires are as old as human are still expressions of cultural as society. There always have been, much as of economic value. In addition and always will be, people with the to their ‘exchange value’, (which is imagination and talent to make and do how goods and services find their these things. And there will always be price level in the market), and their people who are prepared to pay them ‘functional value’ (determined by their to do it. That is the basis of the creative use in real life), most products and economy. services of the creative industries have ‘expressive value’, a measure of their cultural significance that may bear little relationship to how much they cost

14 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 15 to make or how useful they are - for of the people working in the creative report called ‘embedded creative or buildings. It allows the inventors example, a hi-fashion handbag, a hit industries, including some of the most employment’ included large numbers of new products and processes the movie, a successful brand, a religious influential and successful practitioners, of people working in conventional means by which they can benefit from icon or a breakthrough design concept. do not regard themselves as working in manufacturing, in real estate, in their creativity. It provides a framework This additional value may be of little an ‘industry’ at all. They are much more business, in retail and wholesale within which creative businesses and consequence or long-term significance likely to define themselves as individual trading and in financial intermediation. individuals can work with security. Any – for example, an outmoded fashion creators, entrepreneurs, artists, or By looking at the creative workforce, definition of the creative economy has item or last year’s successful advertising even social activists rather than as rather than the creative industries, intellectual property at its core. The slogan – or it may be an expression of industrial workers. They may choose this NESTA report identified three original definition formulated by the profound cultural importance, such as not to define what they do primarily separate types of employment in the UK government in 1998 was: ‘those a book or a work of art, but it is one in economic terms. But the creative sector – ‘specialist artists, professional industries which have their origin in of the key elements that differentiates industries also include some of the or creative individuals working in individual creativity, skill and talent and the creative industries from any biggest and most powerful businesses creative industries; support staff in which have the potential for wealth and other part of the economy. President in the world, like software companies those industries (managerial, secretarial, job creation through the generation and Mitterrand of France expressed this and media conglomerates. Together, administrative or accountancy) and exploitation of intellectual property.’ idea in a statement made in 1992, as these industries, large and small, are creative individuals embedded in other When so much of the output the European Union rejected American becoming an increasingly significant industries’. The report highlighted the of the creative industries is of cultural demands that cultural goods, including part of the global economy. UNCTAD’s fact that while the creative industries, as well as commercial value, any Hollywood movies, be included in global Creative Economy Report of 2008 however defined, are themselves of worthwhile intellectual property regime trade negotiations: ‘Creations of the estimated that world trade in creative great and growing importance, it is a must seek to balance the private rights spirit’, he said, ‘are not just commodities; goods and services grew at an annual mistake not to see that they are only of the owner with the public rights of the elements of culture are not pure average rate of 8.7% between 2000 the most visible part of a much wider citizens to have access to information business’. and 2005, and commented that ‘this creative economy. and culture. Driven partly by the radical Similarly, in a report written for positive trend occured in all regions and changes in the access and distribution the UK government in 2008, Staying groups of countries’. However difficult they may be to of content that the internet makes Ahead: the economic performance measure, there is general agreement possible, new ways of managing IP of the UK’s creative industries, the The ‘creative economy’ is much more about one thing that defines the are being explored and tested so economist Will Hutton wrote that ’ideas than just the ‘creative industries’ creative industries – intellectual that its creators and owners have a of expressive value … create new In trying to measure the extent of the property greater range of choices open to them, insights, delights, experiences; they creative economy, policy analysts Intellectual property (or IP) law is the allowing them to make their property add to our knowledge, stimulate our quickly recognised that, while it is catalyst that transforms creative activity freely available to others if they wish, or emotions and enrich our lives.’ relatively easy to identify the size and into creative industry. It protects the requiring users simply to acknowledge value of an industry such as fashion creator’s ownership of ideas in the their ownership. But, as Dame Lynne which is one of the reasons why the or advertising, these figures fail to same way that other laws protect the Brindley, the Chief Executive of the creative economy is difficult to define capture the many individuals or groups right to the ownership of goods, land British Library says, ‘even if you decide and measure who are doing creative jobs in non- The creative industries refuse to lie creative industries. A report by the 1.1 UNCTAD down and be measured like other UK’s National Endowment for Science sectors of the economy, and that Technology and the Arts (NESTA) of The United Nations Conference on Trade and Development describes itself as is why economists and statisticians 2008, Beyond the creative industries: promoting ‘the development-friendly integration of developing countries into will probably never stop debating Mapping the creative economy in the the world economy’. It seeks to integrate the creative economy with wider about how to define them and how UK concluded that more creative development goals. UNCTAD acts as a forum for inter-governmental discussion, to estimate their worth. To make people work outside the creative and also undertakes research and analysis and provides technical assistance for matters yet more complicated, many industries than inside them. What the development to governments around the world.

16 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 17 to give it away, you need to have an IP quality of creative thinking is relatively We wake up in the morning and strategy’. Without the orderly regulation difficult, and therefore very valuable. dress, we listen to music, we read of intellectual property, the creative For most of human history the newspapers, we watch TV and listen to economy would quickly cease to vital ingredient of any economy has the radio, we consume digital services, function. been sweat: human labour. we go to the cinema and theatre’. In the industrial age of the last The creative industries pervade every However they are measured or century and a half, it has been money: aspect of our lives. defined, the creative economy, and capital. the creative industries, are growing in In the ‘information age’ of and on our quality of life importance the twenty-first century it is talent, On the whole, the creative industries As economies around the world imagination, skills and knowledge: in a systematic way from one method enrich people’s lives; they shape the have become more competitive and creativity. of doing things to another. Creativity distinctive features of different societies productive, the keys to economic In the UK and the US, industry’s drives innovation; innovation drives as well as providing the means by which success have become more dependent investment in ‘intangibles’ (human change. One of the most distinctive cultures and communities communicate on creative ingenuity and skill. What resources, databases, processes, features of the creative industries is that with each other. They bring pleasure, differentiates successful goods and technologies) now exceeds investment they are more innovation-intensive than colour and insight. They make life services from unsuccessful ones today in physical assets such as buildings and other parts of the economy; constant better and they are, to a very great is good design – of processes as well machinery, and the gap between the innovation of products, processes and extent, an expression of rising living as of products – and good marketing. two is growing steadily wider. The same business methods is the norm rather standards. As more people are able to The universal spread of manufacturing trend is evident in every advanced than the exception. Around the world raise their economic ambitions beyond technologies and skills means that industrial economy. In his book The there is a growing interest in the extent the immediate needs of survival – food actually making things has become Creative Economy, the author John to which this innovative mind-set spills and shelter – the more they want to almost entirely a function of labour Howkins writes that ‘people who own over into the rest of the economy, become consumers of creative goods costs and nothing else (factories, and ideas have become more powerful making the creative industries catalysts and experiences. With more than half even whole industries, can simply be than people who work machines and, in for wider and more fundamental change. the world’s population now living in moved wherever labour is cheapest and many cases, more powerful than people cities and with almost universal access most plentiful). The crucial spark that who own machines.’ They impact on our lives as to electronic communication systems, drives economic success lies higher consumers and citizens the creative industries are shaping our up the value chain, in the creative They drive innovation As manufacturing has become more common cultural experiences. act of imagining and designing the Creativity is a disruptive process. It cuts dependent on technology and Furthermore, many people are product or service. The cost of labour across established boundaries and less dependent on human labour, not just consumers of these goods and is not as important as the quality of assumptions. It implies ‘thinking outside employment patterns have changed. A experiences, but also creators. Their the creative thinking. To put it another the box’. The bridge that connects the growing proportion of the workforce is creativity provides a means of individual way, achieving quality of large-scale free flow of creative thinking to the moving from manual labour into service expression and an opportunity to manufacture is relatively easy, and practical realities of economic life is and managerial jobs. As economies share and collaborate with friends. therefore not very valuable. Achieving innovation – the ability to move forward grow, and as societies urbanise, It dissolves much of the traditional more people become consumers in division that exists in other parts of the 1.2 NESTA the mainstream economy. Edna dos economy between ‘professional’ and Santos, Chief of the Creative Economy ‘amateur’ and, more fundamentally, The National Endowment for Science, Technology and the Arts is an independent Programme at UNCTAD, recently wrote between ‘producer’ and ‘consumer’. It organisation in the UK, supported by a publicly funded endowment. It carries that ’all individuals, wherever they are in links the informal economy to the more out and publishes research and invests in new ideas in early-stage companies. the world, consume creative products formal structures of economic and Its role is to ‘explore ways in which innovation can solve some of the country’s every single day through education, commercial activity. While this blurring social and economic challenges’. work, leisure and entertainment. between professional and amateur

18 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 19 will always be a part of the cultural They are becoming essential to the creative industries have over most other creative industries have a significance economy, a growing number of people infrastructure of our societies sectors of the economy is that they can far beyond their immediate economic want to make a professional career for The need to apply creative intelligence create value out of nothing, out of ‘thin impact. Successive US governments themselves in the creative industries. A and imagination to every part of a air’ as Charles Leadbeater implied in the have been determined to defend the recent survey in the UK found that 30% modern economy, from mainstream title of his seminal book Living on Thin interests and markets of the American of all young people want to work in the manufacturing processes to the Air, published in 2000. Of course, the music and software industries and the creative sector, even though, at present, delivery of core public services such as creative industries do have an impact need to protect them through copyright only 11% achieve that ambition. health and education, has involved an on resources and the environment. and patent legislation and through increasingly sophisticated application Indeed, it could be said that a focus on international trade agreements. They are a vital part of the business- of knowledge. The effective use design and fashion drives unnecessary Some governments have sought to-business economy of e-technologies in schools has a and wasteful consumption. It is also to protect and promote particular While many of the creative industries measurable and beneficial impact on true that while many digital industries aspects of their national culture, not for are directly consumer-facing, such as academic standards. Good design has may appear ‘weightless’ they are their direct economic significance but films, music and games, others play an a measurable impact on the costs and major consumers of electrical power. as a means of projecting a clear and increasingly important role in driving clinical outcomes of hospitals, as well as Nevertheless, it is the case that the positive image of themselves abroad – innovation and growth in other parts contributing massively to patient well- creative industries generate jobs and what has been called the projection of of the economy. Design, advertising, being. Even one of the most ancient of create value with far less impact on ‘soft power’. architecture and much of the software all human activities, farming, demands the environment than most kinds of The Australian government went industry serve the needs of business a new kind of creative approach as economic activity. The world cannot further in a visionary document entitled rather than individual consumers. The climate change and cost pressures sustain eight or nine billion people living Creative Nation, published in 1994, UK Design Council estimates that for force the pace of new thinking and as today’s oil-dependent lifestyle of North that stated ’a cultural policy is also an every £100 invested in design, a firm greater genetic understanding opens America or Western Europe. The only economic policy‘ and that ’the level of can expect to increase its turnover up new opportunities and new threats. way we can hope to have a growing our creativity substantially determines by £225 and its profits by £83. The world is shifting to an economy that and sustainable global economy, and our ability to adapt to new economic Other studies around the world have depends more on human creativity and better life-chances for the majority of imperatives‘. demonstrated a strong link between knowledge than on any other single raw the world’s population, is by growing But it was not until a new Labour design-intensive businesses and those material, even oil. the creative economy and, more government was elected in the UK in that become more innovative and more importantly, applying the power of 1997 that a government set out to profitable.A nother UK study showed They even have an impact on the creativity to every aspect of economic systematically define and ‘map’ what its that over a ten year period between future of the planet life. A recent entry in wikipedia made creative industries looked like and what 1994 and 2004, sixty ‘design-intensive’ In fact, as the oil runs out, and as other the point with great simplicity – “Unlike they were worth. companies outperformed the FTSE100 natural resources are depleted, the most resources that become depleted (the stock market listing of the country’s value of creativity is only going to go when they are used, information and 100 biggest quoted companies) by on rising. It will not just be a desirable knowledge can be shared, and actually more than 200%. Researchers are now element in economic activity – it will be grow through application.” beginning to explore the relationship the crucial factor in our ability to adapt between the creative industries and and survive as a species. So, it’s time to take them seriously! the wider economy in greater depth. A Chris Smith, the UK’s firstM inister All through the twentieth century NESTA study found that businesses that for Culture, said ’the creative industries governments were beginning to wake spend twice as much as the average tread lightly on the world’s carbon up to these shifts. As early as 1918 firm on a range of creative inputs, not resources.’ As the depletion of natural the US President Woodrow Wilson just design, are 25% more ‘product resources and the pollution of the championed the American film industry innovative’ than the average. natural environment become major on the basis that ’trade follows the film’ global concerns, the advantage that the – a classic statement of the fact that the

20 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 21 2 ⁄ MAPPING THE CREATIVE INDUSTRIES

UK – 1998 - the first map of the job creation through the generation and creative industries exploitation of intellectual property’) The UK’s ‘map’ caused some surprise. triggered some debate. A handful of Even on quite a narrow definition, a critics complained that the definition group of industries that had never was so broad that it could include most previously attracted the interest of of the pharmaceuticals industry and government, revealed themselves all research & development activity in as being worth 8% of all economic engineering businesses. activity and employing between 7 and But the government department 8% of the working population. The that had commissioned the study, video games industry, for example, the newly created Department for was discovered to employ 25,000 Culture, Media and Sport (DCMS), was people, nearly all of them graduates. clear about its intention and set out Furthermore, its products were 13 sectors of economic and cultural generating almost half a billion pounds activity that it felt not only conformed each year in export sales, making to this definition but also adequately the UK one of the world leaders in represented the two biggest strands interactive entertainment. within the creative economy: the long- When the mapping exercise was established cultural industries and the repeated in 2001 researchers not only newly established knowledge-based discovered that the creative industries industries that sprang from them. were growing faster than most sectors of the economy, but that they were also The 13 sectors were: generating new jobs twice as fast . Two • advertising years after that, in 2003, the Financial • architecture Times newspaper announced that the • the art and antiques market creative industries contributed more to • crafts the UK economy than all the financial • design services of the City of London, which • designer fashion at that time were held up as the most • film important driving force in the economy. • interactive leisure software (in other words video games) What was included in the map? • music The definition of creative industries • the performing arts used for the mapping study, (‘those • publishing activities which have their origin in • software individual creativity, skill and talent and • television and radio. which have a potential for wealth and

Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 23 Other governments have used and The boundaries of the creative adapted the UK definition economy are shifting all the time. Because it was the first definition Exactly where they are drawn is not offered by a government, this original especially significant.T he important UK definition has been widely adopted question governments and policy by others. Some countries have used makers must ask is whether its the basic UK list but adapted it by importance and distinctiveness is such adding industries important to their own as to demand particular attention. economies (like sport, toys and games, gambling) or by excluding others that For more information about mapping the creative industries see the British Council’s Creative and are unimportant or that they feel do Cultural Economy series/2 publication. not belong within the definition (e.g. art and antiques, museums, festivals All around the world, the ‘creative Creative and Cultural Economy series ⁄ 2 economy’ is talked about as an and fairs). Some commentatorsimportant and growing part ofwant the global economy. Governments MAPPING and creative sectors across the world are increasingly recognising THE to separate the traditionalits importance ‘cultural as a generator of jobs, wealth and cultural CREATIVE engagement. industries’ (i.e. those sectorsThe UK has been awith leader in the a INDUSTRIES: development of this agenda, not just as a driver of the A TOOLKIT economy but also promoting more direct relationship socialwith inclusion, diversitythe and arts, development. This booklet (and the series it is part of) is a contribution to our shared like music, theatre, and film)knowledge and expertisefrom for this the emergent and valuable sector. wider ‘creative industries’ that include TOOLKIT A INDUSTRIES: CREATIVE THE MAPPING activities such as software development and advertising that may have very little

direct connection with the traditionally- 2 ⁄ series Economy Cultural and Creative defined arts or with a narrowly-based definition of culture. UNCTAD’s Creative Economy Report of 2008 suggested a more inclusive definition: ‘the interface between creativity, culture, economics and technology as expressed in the ability to create and circulate intellectual capital, with the potential to generate income, jobs and export earnings while at the same time promoting social inclusion, cultural diversity and human development. This is what the emerging creative economy has already begun to do.’

24 3 ⁄ do THE CREATIVE INDUSTRIES MATTER?

A decade ago, when the UK The creative industries point the way government’s first mapping exercise to the future for other less agile and was underway, the task was to get the dynamic sectors of the economy. They creative industries ‘on the map’ as a are characterised by their creative serious part of the economy. interpretation and application of Since then, the speed of development knowledge, their readiness to adopt of digital technologies, the growth new technologies and new business of the global economy and of global models, their readiness to form brands, the rapid acceleration of higher collaborative partnerships, to think education opportunities around the internationally and to use technology world, the mounting pressure on the to interact closely with their customers. Earth’s diminishing resources, and the They have an exceptionally high dawning recognition of the reality of proportion of university graduates. climate change, have all combined to An officialUK study of 2005 revealed change the centre of gravity in the way that 49% of the creative industries’ business works. From being a new and workforce had a university degree, minor factor in the global economy, the compared with 16% of the total national creative industries, with their strong workforce. Some sectors showed emphasis on innovation, are beginning an even greater concentration of to be seen as key drivers of the wider graduates – for example media, with ‘knowledge economy’ that almost every 69%. government in the world seeks to The music industry epitomises embrace. some of these tensions between traditional and innovative business models. The huge distribution conglomerates that have controlled the international music industry for decades – Warner, EMI, Universal – are struggling to adapt to the dynamics of the digital world and the rapidly changing habits of their customers. They feel themselves to be in a crisis. But measured in terms of popular interest, popular consumption and live performances, the music business has seldom, if ever, been in better health. So, to say that the established music industry is in crisis is not quite the same as saying that music

Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 27 is in crisis. What is undoubtedly true is education systems and even whole that the old model on which the world’s societies organised themselves, the recorded music industry has been creative industries may point the way based for the last fifty years, is breaking to how the world economy is going to down. have to organise itself in the future. A The same story is repeated paper published in February 2010 by in many other parts of the creative the European Commission’s Directorate economy. As Charles Leadbeater General for Enterprise and Industry writes in his essay Cloud Culture, ‘the stated that ‘the creative industries same tension – exploding possibility are not only an important economic combined with morbid anxiety – afflicts factor in themselves but also fuel most other areas of cultural production.’ the economy with knowledge and The real significance of the dynamism.’ creative industries lies not only in If the creative industries are their economic value, or even in their indeed ‘fuel’ for the wider economy, wider social and cultural impact, but it is important that policy makers in that they provide a template for the and private investors have a good way in which other economic sectors understanding of their distinctive need to change if they are to survive characteristics - i.e. what shapes them, and prosper in the digital age. Just as what are the conditions they need for the great factories of the nineteenth successful growth, and what is their and twentieth centuries shaped the interaction with the wider economy like. way in which whole economies, whole

3.1 THE KNOWLEDGE ECONOMY The term ‘knowledge economy’ is much broader than that of ‘creative economy’. It was first used by theA ustrian management theorist Peter Drucker and is yet another term whose exact meaning is the subject of debate. Wikipedia defines it as ‘the use of knowledge technologies to produce economic benefits as well as job creation’. It is sometimes used interchangeably with the term ‘information society’ which, of course, has an even broader definition - according to wikipedia, ‘a society in which the creation, diffusion, use, integration and manipulation of information is a significant economic political and cultural activity.’ In 2000 the European Union set itself the ambition to become an ‘information society’ by 2010 and re-configured one of theD irectorates General of the European Commission as ‘DG Information Society’.

28 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 29 4 ⁄ a policy environment for the creative economy– the basic conditions for growth

Intellectual property management However, the need for fresh An effective system for managing and radical thinking in an age of intellectual property rights must be at instant, ubiquitous communication the heart of the creative economy. While is widely recognised. In his book many countries have long-established Creative Ecologies – where thinking bodies of copyright and patent law, is a proper job, John Howkins argues the growth of global trade makes that ‘the IP laws that were devised for the agreement and enforcement of the repetitive economy are unsuitable common codes and standards an urgent for a creative ecology … [they] could necessity. WIPO, the World Intellectual be powerful means of promoting Property Organisation, is a UN agency access to knowledge and learning. that works in partnership with national Too often, the opposite is true’. In and international bodies to establish the 1980’s the movement for Free such common standards. and Open Source Software (FOSS) Much recent public debate about developed a licence to allow people intellectual property, or IP, has been to adapt others’ software in any way dominated by attempts to prevent they wanted, as long as they let others piracy – of music, text, images, design do the same to their adaptations. This and brand value. Some people argue open source movement has spawned that this ‘war on piracy’ is simply a last other innovative concepts, including stand by outmoded industries struggling that of ‘creative commons’ that allows to defend their vested interests in a the creators and owners of rights changing world, and that the traditional a range of options in deciding how protection afforded by copyright is their rights are used (i.e. whether unworkable in the internet age. But an that use is paid for, is free or simply enforceable system that allows creative acknowledges the creator). A mixture people to benefit from their work and of free, acknowledged, paid for and legal rights owners to defend their rights revenue-generating rights need not is essential. The OECD estimate that be mutually exclusive but they need to counterfeit goods account for between be part of a coherent and universally 5 and 7% of all global trade and the UK’s accepted system. Intellectual property audio-visual industries estimated that is the cornerstone of the creative pirate goods and illegal downloads cost economy, as the UK’s original definition their industry £460million in 2006 alone. acknowledged.

30 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 31 The free flow of information upholding the rule of law (including IP 4.1 WIPO 4.2 DIFFERENT FORMS OF IP LAW While most IP law is primarily law), or whether they are attempting to concerned with defending the rights of suppress debate and dissent for their WIPO is the World Intellectual There are several different forms of creators and owners, it is also part of a own ends. Property Organisation. Its concern is Intellectual Property law. much wider debate about individual and As well as governments, private not with the protection of individual social rights. Creative people should companies such as Google and Yahoo IP rights so much as with the flow of COPYRIGHT protects an individual’s have the right to enjoy the fruits of their have their own commercial reasons for goods and services between nations. ownership of their creativity when it labour; but, equally, citizens should have controlling access to information. As WIPO members are committed to has been expressed through a piece the right to enjoy access to culture and Charles Leadbeater writes in his essay dismantling trade barriers but reserve of writing or sound, or a film.I t offers information – and be able to share it Cloud Culture, there are ‘hungry new the right to retain them for national protection during the author’s lifetime with others. Freedom of information and monopolists and governments intent on self-protection. Even the most vocal and for some years afterwards. This access to effective means of expression reasserting control over the unruly web.’ advocates of free trade, such as varies between countries. In the UK are cornerstones of any open and The stakes are very high. Aside from the the US and the EU, still have areas copyright is maintained for 70 years democratic society, which is why the wider social, political and cultural issues, of activity such as agriculture that after the author’s death. World Wide Web, based on the principle whoever finds ways to control the they wish to protect from foreign of free and open access, has become ‘unruly web’ will have huge influence on competition. All countries have some PATENTS give the inventors of such a powerful symbol of global how the creative economy grows and elements of their national economy products or processes exclusive society and such a crucial element in where the crucial price points in the they want to protect and culture is rights to their use and exploitation the growth of the creative economy. At value chain will be established. usually on the list. WIPO should not be for a specified period of time.U nlike the same time, such openness raises confused with WTO, the World Trade copyright, which is automatic, anyone many questions for governments, Organisation, that regulates trading applying for a patent must prove whether they are pursuing legitimate relationships between countries and that their product or process really is aims such as suppressing crime and has the power to set rules and impose unique or innovative. sanctions. TRADEMARKS protect the use of a name, symbol or logo that denotes a particular organisation or product. They are designed to stop forgers and to prevent fraudsters from selling goods or services in someone else’s name.

DESIGN is sometimes identified as a fourth area of IP law and covers the use of distinctive shapes or designs by companies or individuals. Like trademarks, designs can be registered to give their users a measure of legal protection.

32 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 33 Digital infrastructure ambition to see new protocols that Digital infrastructure, with hi-speed would allow the easier transfer of broadband capacity and universal data from one system to another. reach, is probably the most effective He argued that ‘it’s not our [i.e. the single driver of modern creative government’s] job to say where data industries – as well as delivering wider might be useful: it’s our job to unleash it social and cultural benefits. and allow businesses and independent In the wake of the global developers to build innovative services.’ credit crunch of 2008/9, Professor Stuart Cunningham, Director of the Finance Australian Research Council’s Centre Ben Verwayeen, the former Chief of Excellence for Creative Industries Executive of British Telecom famously and Innovation, commented that ‘we said that ‘all it takes to be part of the should remember that Korea’s great global economic order is a dog, a surge of digital literacy and growth in chair and a computer. The dog to both the household and market sectors wake you up, the chair to sit on and of the creative economy came on the the computer to log-on to the world.’ back of many thousands thrown out of A distinguishing characteristic of many work by the Asian meltdown of the late creative businesses is that they need 1990s creating entrepreneurial start- relatively little capital to set up. Many ups backed by affordable and available entrepreneurs self-finance their first broadband capacity.’ His point was that business ventures. In a sense, their of experience in calculating risk expect been dependent on a relatively small the determination of the South Korean creativity is their capital but if they are to make money on only one film in number of investors driven primarily by government to extend broadband successful with their first venture and four. But precisely because they do particular passions and affinities rather capacity created an infrastructure want to grow, they need finance and have decades of experience, they can than by commercial logic. that allowed creative entrepreneurs to that is when difficulties may arise.T hey show that the commercial failures are That element of risk, of ‘sunk flourish.B ut as well as new businesses, may have few substantial assets against a necessary part of the whole business costs’ that must be incurred before South Korea experienced an ‘explosion which to borrow and they may not want process, and so are able to raise the a single penny of revenue can be of user-generated content; consumer to compromise their creative vision by finance to stay in business.T his was not earned, is common to many creative co-creation, games fan bases, intense inviting equity financiers to buy a part always the case. The early Hollywood industries. Finance houses with the pro-am engagement outside the pure of the business. Raising finance is, and industry struggled to raise money expertise and confidence to invest in market-optimising cash nexus.’ In other always has been, a problem for many until the arrival of A.P. Giannini and truly creative enterprises remain few in words, the publicly funded broadband creative businesses, large as well as his Bank of America. In his history of number, which is why the systematic infrastructure did more than assist small. the film industryThe Undeclared War collection and analysis of data that can creative entrepreneurs to start new For example, the film industry Lord Puttnam argues that ‘the extent give confidence to investors is of such businesses: it also created consumer has been called the ‘nobody knows of the affinity between the Gianninis significance to the long-term future of demand for their products and had anything business’ because, even with and the pioneers of the movie colony the creative economy. significant social impact because it test screenings for selected audiences, was extraordinary. It was easy to opened up new creative opportunities nobody knows for sure whether a film see why because... just like the film for ordinary citizens. will be successful or not until it is shown people, the Gianninis were outsiders, Tim Berners-Lee, the inventor to the paying public in a theatre. A big immigrants... loathed, distrusted and of the World Wide Web made a similar star, a big budget and a big marketing thoroughly misunderstood by the point in January 2010 in a newspaper campaign are no guarantee of success. financial establishment.’F inance for article about the UK government’s Even Hollywood studios with decades the creative industries has too often

34 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 35 5 ⁄ a policy environment for the creative economy– public policies that can make a difference

Government as a customer Cities and Clusters All governments spend money on One of the strong and consistent buildings, on public services such features of creative industries seems to as health and education, on public be that many of them are place-specific. infrastructure, on advertising, Unlike a car factory or a clothing communications, software and design. factory that can be relocated from one There is probably no more effective country to another wherever there are way for most modern governments cheap labour costs and favourable tax to promote the creative economy regimes, creative industries cannot be than to use this power of public lifted out of one location and dropped procurement in the open market. The into another. Evidence from cities setting of minimum standards, more around the world points to the fact that rigorous and long-term criteria for a rich and varied cultural environment establishing value for money, the use of – not just formal arts provision but public consultations and open design cafés, bars, clubs, open public spaces, competitions – all are tools that have and a diversity of education facilities been used by governments around – is as important in providing a fertile the world to make the suppliers of environment for creative businesses public goods and services raise their as good transport and affordable standards and respond in creative workspace. The more distinctive and ways. As well as producing better diverse the culture of a community, outcomes for citizens, a more creative the more creative people are likely approach to public procurement can to be attracted to it which, in turn, save money and stimulate new jobs attracts others. Diversity is commonly and new skills. As the reality of climate acknowledged as a key element of change and rising energy costs begin success in these situations, and not to make greater and greater impact simply in terms of the community, the on public policy, and as citizens are culture and the lifestyles, but also in able to engage more effectively with terms of the co-existence of different government online, the need for a kinds of knowledge and creativity in creative approach to aesthetic and one place – academic and technical as environmental standards in public well as social and cultural. In the Staying procurement will grow stronger and Ahead report for the UK government, the consequent impact on the creative the economist Will Hutton went so far economy could be very significant. as to argue that in building a successful

The area of Brick Lane in London, one of the UK’s most important media and software development clusters. Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 37 creative community ‘diversity is more of creative businesses and business 5.2 CLUSTERS important than ability.’ clusters has provided the basis for many successful urban planning ‘Sohonet’ 5.1 CULTURAL DIVERSITY strategies. It is often at regional, city The Soho district in central London has long been a favoured location for many or even neighbourhood level, rather UNESCO identifies cultural diversity as small companies working in the film and media businesses.I n the mid-1990s a than at the level of national policy, ‘a driving force of development, not group of small film industry special effects businesses inS oho began to lobby that governments can make the most only in respect of economic growth BT, the main UK telecoms company, to build a dedicated hi-speed broadband immediate and useful impact on the but also as a means of leading a more network in central London that would allow them to work collaboratively on growth of the creative economy. A UK fruitful intellectual, emotional, moral projects that were too large for any of them to accomplish on their own. The government strategy paper on creative and spiritual life... [diversity] is thus an network (‘sohonet’) was built and these same small companies were then able to industries, Creative Britain – New Talents asset that is indispensible for poverty form consortia and bid for major contracts supplying computer-generated image for the New Economy, published in reduction and the achievement of (CGI) sequences to Hollywood studios. In time, this led to the founding of CFC 2008, clearly acknowledges this, when sustainable development.’ Framestore, one of the biggest and most powerful CGI businesses in the world, stating that ‘the vision is of a Britain employing hundreds of talented people – and still based in Soho. Success breeds success. Small in ten years’ time where the local creative businesses attract others economies in our biggest cities are Factory 798 working in related fields so that mutually driven by creativity.’ sustaining clusters begin to grow. A 500,000 sq m military electronics factory in the Daishanzi district of Beijing Around the world, the phenomenon of was closed in the early 1990’s and its empty units began to be rented by artists culture-led regeneration of inner city and designers. They organised the firstB eijing Biennale in 2003, followed by areas has become a feature of the last the Daishanzi International Arts Festival in 2004. The success of these events two or three decades and the fostering persuaded the Beijing city authorities to formalise what was happening and re- zone the area as the Daishanzi Art District.

The Pervasive Media Studio in Bristol, southwest England, is a collaboration between a local publicly funded arts centre, the research department of a local university, Hewlett Packard (a major transnational technology company with research facilities in Bristol) and the government-funded economic development agency for the region. The studio offers space, on a short-term basis, to individuals and teams that bring together creative practice and technological innovation. It offers research and project development space as well as seminars and public events. The media studio is concerned with the development of ideas, rather than businesses, but is seen by all its funders as having a dynamic and positive impact on the growing number of creative digital media companies in the Bristol area.

Liverpool’s historical waterfront and docks, recently redeveloped to house museums, concert venues and other cultural attractions.

38 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 39 Education and Skills institutions are no longer external to 5.3 CREATIVE PARTNERSHIPS Arts and Culture Wherever there is a strong and the economy, but an integral part of Publicly subsidised arts activity, whether sustainable hub of creative economic it. The challenge for them is to build The Creative Partnerships programme in education, in subsidised theatres, activity, there is likely to be a university new networks and play a closer role in England, which places artists and orchestras, public service broadcasters that has helped to plant the seed and with industry without compromising creative practitioners in schools in or elsewhere, provides investment in that continues to nurture local creative their intellectual and academic areas of high social or economic areas of innovation, skills, research and businesses and the specialised local independence. deprivation, illustrates how effective physical spaces which the commercial labour markets on which they may As well as a strong and engaged the crossovers between education market is unlikely to undertake. As depend. A vivid illustration of this can university presence, the success of and creative entrepreneurship can well as the obvious cultural and social be seen in Scotland where the small a local creative economy is likely be. A report on Creative Partnerships benefits that flow from public support city of Dundee has grown a world-class to depend on good primary and carried out by the official schools for the arts, this helps to stimulate video-games sector that is closely secondary education as well as the inspectorate for England in 2007 and raise the quality and quantity of integrated with the local Abertay stimulation provided by museums, stated that ‘pupils were particularly public demand for creative goods and University. The two have become arts galleries, concert halls and other inspired by opportunities to work services. For the authors of Staying mutually dependent and mutually arts and cultural institutions. Creative directly in the creative industries (...) Ahead – the economic performance of sustaining, and the same story is Partnerships, a major programme for Regular visits to creative industries the UK’s creative industries, intelligent repeated in cities around the world. English schools, has demonstrated the profoundly changed the nature and demand is paramount in driving A true ‘knowledge economy’ benefits that can flow from encouraging purpose of learning. (...) Pupils of all developments in the creative economy. depends on the ability of the workforce school students to work with creative abilities learned how to apply skills As they expressed it, ‘demand needs to to think creatively and flexibly, not entrepreneurs. (see box on p. 39) developed in school or learned new be demanding.’ just for the creative sector but for skills they needed in order to make Talented creative people may the economy as a whole. Seen from a contribution (...) In all cases the work across both subsidised and this perspective, higher education relevance of the curriculum became commercial sectors of the arts, just clear and, for some, fundamentally as citizens and consumers enjoy the changed their aspirations (...) Skills results of both - not asking whether a were consistently improved – literacy, performance, an event or an exhibition numeracy, ICT, self-confidence, team is or is not the result of public subsidy. working, an ability to show enterprise The two sectors, commercial and and handle change – are likely to publicly subsidised arts, help to support contribute to pupils’ future economic each other. As cultural commentator well-being.’ John Holden wrote, ‘the publicly subsidised cultural sector is embedded in networks that interweave with the creative industries’.

40 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 41 6 ⁄ a business environment for the creative economy – are the creative industries really unlike other sectors of the economy?

The profile of the creative industries in the whole of Europe are still handled Despite the emphasis on individual by four companies and a tiny handful of creativity, it would be wrong to assume companies dominate global distribution that all the dynamism of the creative in the multi-billion dollar market for sector comes from sole traders or interactive video games. micro businesses. Of the estimated While this imbalance in size can 140,000 creative businesses in the produce obvious problems for small UK, just 200 account for about 50% of companies attempting to negotiate total turnover. It is sometimes said that fair terms of trade with larger and the profile of the creative industries much more powerful partners, it can resembles an hour-glass, with a large also give small businesses better number of very small companies at opportunities of reaching markets and one end, a small number of very large developing growth strategies. The companies at the other, and very report of UNCTAD’s eleventh congress few medium sized companies in the in Sao Paulo in 2004 argued that middle. The larger businesses are ‘complex value chains afford many overwhelmingly concentrated in one opportunities for developing countries part of the value chain, distribution, to link up with international production while the small and micro businesses networks.’ In California’s Silicon Valley, dominate the top end of the supply for example, the presence of very large chain – the creative end. A report by global companies such as Google the London Business School noted that has stimulated the growth of other ‘content distributors (studios, record companies that are able to acquire and labels, publishers) are bigger and more exploit IP generated at lower levels of powerful than content creators. As a the production chain. For this reason, result, distributors capture more of Silicon Valley has proved to be an the value that producers of creative especially fertile environment in which content generate.’ What is true of the small creative businesses can grow UK is true in most parts of the global bigger. creative economy, a point that was In the UK, where there are noted by UNCTAD in its 2008 Creative very few large creative businesses, Economy Report. 80% of music sales the pattern that prevails is of many

42 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 43 6.1 CHANNEL 4 TELEVISION 6.2 SME Technology and the Arts (NESTA) found that one third of creative small A unique but very successful policy intervention in the UK addressed the issue The ‘Small or Medium Enterprise’, or or medium enterprises (SMEs) had no of asymmetry of scale in the television industry. The UK broadcaster, Channel ‘SME’, is a term that is widely used formal business, planning techniques 4, was established in 1982 by Act of Parliament, with the specific purpose of in public policy planning, especially and that one third of creative providing a publicly owned platform for small, independent television producers, in Europe. SMEs are businesses that businesses with a turnover of more who had been complaining that existing broadcasters were shutting them out employ between 10 and 500 people then £1million had no explicit financial of the market to favour their own in-house production teams. The success of and with turnover of less than £25 goals. Another study found that in the new channel in re-energising British television led to a second legislative million per year. In practice, the 90% of creative SMEs, fewer than half change, requiring all the main terrestrial broadcasters, including the BBC, to term SME is widely used to describe the senior managers had any training commission a minimum of 25% of their output from independent suppliers. The small businesses at the bottom end in business strategy. Such detailed result of these two initiatives has been to make the UK’s independent television of the officialSME range, although surveys have not been done in many production sector the most commercially and creatively successful in the the formal description of a business other countries, but anecdotal evidence world, with annual export sales of around £1 billion. Some of the original small employing fewer than 10 people is a suggests that this is also the case independent companies have grown into major international media businesses. ‘micro business’. elsewhere. Such a lack of business skills small companies that emerge and major distribution businesses. If the how this new business paradigm means that creative entrepreneurs may disappear without managing to grow bulk of earned revenues are flowing to operates entirely, and how it will not make a convincing business case to a medium size, thus perpetuating a distributor that is headquartered in develop. ‘How can you make money when they seek investment. A report by the phenomenon of the ‘hourglass’. a different part of the world from the in the online world?’ is a cry heard in the UK Treasury in 2003 commented This short and brutal life-cycle for creative or production element, there every market in the world, and it is likely that many small creative businesses creative businesses has the advantage is less incentive to re-invest in the to be heard for many years to come. ‘lack the skill needed to develop a of continually refreshing creativity but development and growth of talent at its business proposal to a stage where it is it prevents systematic and sustainable source. In its 2008 Creative Economy Innovative ways of working ready to attract external investors.’ growth of the sector. Report UNCTAD urged that intellectual For many creative entrepreneurs, the It is fundamental though to One small UK business that property regimes should address quality and authenticity of what they also understand the particular nature escaped from this short life-cycle this asymmetry and ‘ensure that the do is at as important as its commercial of the business skills required by the was that of fashion designer Stella interests of artists and creators from exploitation. Their talent and passion creative sector. Where it exists, the McCartney. In 2005, and still in its early developing countries are duly taken into is focussed on creating, not selling. If business support services provided life, her company made a £1m trading account.’ they become commercially successful, by government or education loss. However, it was able to continue These asymmetries of scale they may find that they are being drawn institutions are likely to be based on trading because of its association with acquire a particular significance away from their core creative skill a conventional mass-market view of the international fashion house Gucci, where cultural identity is an issue. into business management, in which the way the economy works rather which saw the relationship as adding Many creative entrepreneurs see the they have neither skill nor interest. than the networks of personalised and to their own brand value, whatever World Wide Web as a direct route to This is one of the reasons why many niche markets which characterise the the short-term problems of their small their customers, avoiding the need to small creative businesses are often environment of the creative economy. supplier might have been. This has trade with big distribution companies characterised as ‘lifestyle businesses’ The life-cycle of many small proven to be a good long-term business that may have little interest in cultural – i.e. they are an expression of the creative businesses is also different decision – for both Gucci and for Stella integrity or identity. While it is evident owner’s personality and interests, from those of traditional business. A McCartney. that the Web is transforming the way rather than businesses whose primary ten-year tracking study in the UK (1995 The imbalance of scale between the world does business, it is, at the purpose is to grow and to generate – 2005) found that 48% of the growth producer and seller disadvantages same time, rasing a series of issues for profits. recorded in creative industries was countries that may have dynamic independent producers, visibility being A 2006 study in the UK by accounted for by start-up companies creative sectors but do not own any one of them. Overall, it is still unclear the National Endowment for Science in their first year of trading, and that

44 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 45 one-third of start-ups did not survive Very few individuals possess both for more than three years. This was an qualities at the same time. important finding because a great deal A NESTA report of 2006, of government support for business Creating Growth: how the UK can in the UK was, and is, focused on new develop worldclass creative businesses’, business ‘start-ups’. The tracking study identified what it called ‘three key showed that a more relevant issue for issues’ for creative businesses: public policy might be how to enable -‘the lack of scale of most businesses; new businesses to move beyond - difficulties in accessing markets; their initial phase and become more - and a lack of innovation to cope with sustainable, with robust investment and exploit the structural changes in strategies and medium-term business these industries’. plans. With regard to the third of these However, it is also true that issues, the lack of innovation, the many creative entrepreneurs set up report highlighted the need for creative companies with no intention of making businesses to ‘move into new markets them last long. For example, filmmakers and reach new customers by exploiting frequently establish so-called ‘SPVs’ or skills and resources developed in Special Purpose Vehicles, which are existing markets’; and ‘to use digital companies created for the purpose of technologies for distribution in order to making a single film and are dissolved by-pass traditional distribution models, when the film is completed.F or creative and move from producing to owning industries, the individual enterprise is intellectual property.’ often less important than the people All this evidence suggests who staff it and the environment within that to be effective, business advice which they work. The overall eco- and support for creative businesses system is more important than the firm. must be tailor-made, based on This is one of the reasons why city and practical experience, and sensitive to neighbourhood clusters are of such changing expectations and demands. central significance in the sustainable Governments and business schools growth of the creative economy. around the world have a long way to Patrick McKenna, founder and go in learning how that support can chief executive of one of the most best be offered. In the meantime, many successful media investment houses in creative entrepreneurs find that the the world, Ingenious Media, thinks that most practical and valuable advice and ‘we need to find new ways of getting support comes from their peers and business talent and creative talent colleagues. working together to build the creative businesses of the future.’ Although such partnerships will be largely generated by the market, public policy can facilitate better understanding between those who have creative talent and those who have a talent for business.

46 7 ⁄ a business environment for the creative economy – how the digital world and the creative industries are developing new ways of working

New forms of business support to stay abreast of the rapid evolution One of the most salient features of the of ideas. For him, ‘it’s not just a need to creative industries is that individuals act quickly but to act at the right time. and companies collaborate almost as Just too late is death in the creative much as they compete. Alex Graham, economy, as is just too early.’ the Chief Executive of Wall to Wall, Many small creative businesses one of the UK’s most successful work by forming temporary alliances independent television production with other businesses – sometimes companies considers that ‘the digital with businesses on the other side of economy is about partnerships the world. The nature of their work and rather than hierarchies.’ This sense the availability of hi-speed broadband of partnership may extend beyond means that whereas in the old model the individual company to include economy only very large businesses others who may be both collaborators with many specialist staff engaged and competitors. The ability to meet in international alliances, in the new informally in hubs and clubs, or formally world of the creative economy even in professional networks, whether sole entrepreneurs may put together online or offline, creates a climate in partnerships that span two or more which social exchange and professional continents. The fact that much of support become indistinguishable. the work may be based on trust and When technologies, creative insights personal relationships means that and consumer behaviour are evolving projects can be pursued quickly with at an accelerating pace, these networks minimum formality and bureaucracy. provide peer-to-peer teaching and support that are at least as valuable Customers become part of the as more formal skills and training business opportunities. The UK economist Andy Online interactivity means that Pratt has sressed the need for creative consumers and audiences, as well entrepreneurs to be able to meet and as fellow entrepreuneurs, can give exchange tips and information in order valuable advice and feedback to

48 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 49 creative businesses. In his book What Would google do? Jeff Jarvis describes one of Google’s core philosophies as ‘enabling customers to collaborate with you – in creating, distributing, marketing and supporting products.’ One of the most radical changes that the online world makes possible is to the relationship between producer and consumer, a change that has been pioneered by creative businesses. The basic paradigm of marketing for the last hundred years has been to establish a situation in which the public learn to trust the company from which they are feels more ‘real’ and grounded than the buying. In the online world the situation views expressed by professional media is reversed: the company selling the commentators. This new scepticism product or service must learn to trust towards media, mirrored in many the public to whom they are selling. This countries by an equivalent scepticism is the lesson that Google has applied towards government and business, so successfully. Some of the most creates a new ‘hierarchy of influence’ innovative examples of this approach in the online world that profoundly can be found in the video-games world, alters the way markets work. ‘Word of where companies encourage their mouth’ becomes the most effective customers to test features of games and trusted method of advertising and that are still at the development stage using the collective wisdom of people, and have unresolved technical or or ‘crowd sourcing’, becomes the narrative problems. By engaging in this most effective way for businesses to Nothing succeeds like failure even if the failure rate is high, it is better way, customers become partners and learn from mistakes, change and grow. Whereas in the past businesses have to constantly test consumer response co-creators and, incidentally, reduce the Crowd sourcing allows the customer done everything possible to test a than attempt to perfect new products company’s R+D costs. to add value to the product or service, product before it gets to market, in the and experiences away from the reality At a European Broadcasting and it encourages business to see digital world the market itself becomes of consumer feedback. Union marketing seminar in November customers as individuals rather than as the most valuable laboratory for testing. 2009, Peter Cowley, Head of Interactive an undifferentiated mass. This makes It may be commercially sensible to for the international media organisation good commercial sense in an economy launch a product that is felt to be 80% Endemol, commenting on the declining in which personalised products and developed, to ‘soft launch’ it, and allow audiences for news programmes on services, rather than mass-production, consumers to give it its final shape.T he television, said that ‘people now trust are the norm. process of creation and development their friends more than they trust news becomes iterative: a product or service presenters’. He explained this as a is never ‘finished’ as it can be endlessly consequence of online interactivity, re-shaped, adapted, or refined to suit where social networking sites, blogs and changing demand. A motto of many e-mail give users constant feedback creative entrepreneurs in the digital on events in the world in a way that world is ‘fail often but fail cheaply’, as

50 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 51 8 ⁄ What HAPPENS NEXT?

At its eleventh conference, held in Sao With its unique mixture of cultural Paulo, Brazil, in June 2004, UNCTAD and commercial roots, the creative issued a statement that declared economy produces many paradoxes. ‘excellence in artistic expression, Take for example Google and Wikipedia, abundance of talent, and openness to two of the most powerful players in new influences and experimentation today’s online world. Google is wealthier are not the privileges of rich countries. than many nation states, and is already With effective nurturing, these a gatekeeper to a significant proportion sources of creativity can open up new of the world’s knowledge base. It still opportunities for developing countries remains, though, a private company to increase their share of world trade accountable to no one but its owners. and to ‘leap frog’ into new areas of Wikipedia, on the other hand, is an wealth creation’. almost entirely voluntary network, Governments do have a role to play in created by its users, and is constantly that process of nurturing creativity but evolving and changing with just a tiny the real driver of the creative economy handful of employees. is creative people and they, in turn, are Both Google and Wikipedia shaped by the culture in which they live. are products of a technology that The burgeoning games, is changing the world. Both are animation and digital media industries manifestations of global culture. Both of South Korea, the Indian software are symbols of the creative economy. industry that has trebled in value in just They raise new questions: what, and five years, the shift in emphasis of the who, drives the creative economy? Who Chinese economy as the government will benefit from it as it grows in global of the People’s Republic calls for a significance? Will it be the already move from ‘Made in China’ to ‘Designed powerful? Or will these new ways of in China’, the music and television working, and these new products and industries of Brazil, the advertising services generate a new economic and media businesses of Thailand and and cultural order that mirrors the Singapore – all these rapidly growing inclusiveness and mutuality of the world sectors are testimony to a rich mixture wide web rather than the corporate of individual creativity, cultural heritage paradigm that has dominated the and public policy. world’s economy for the last 50 years? As the costs of digital technologies fall and they reach into every community in the world, the ability of economies and societies to ‘leap frog’ over whole generations of traditional economic development will only increase.

52 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 53 8.1 NIGERIA 8.3 South-South Co-operation 8.5 Uruguay 8.7 Rwanda The Nigerian film industry – A Special Unit for South-South Co- Manos del Uruguay was established in With limited public finance and a ‘Nollywood’ – has grown, since its operation was established as part 1968 as a not-for-profit co-operative country whose mountainous terrain birth in the 1970s, to become the of the United Nations Development to foster handicrafts and weaving by makes road building difficult and third largest in the world, with more Programme in 1978 to promote rural artisans. Today the company expensive, the government of than a thousand feature productions south-south co-operation and work has a network of 17 co-operatives Rwanda invited a Korean consortium a year, believed to be worth some with the G-77 group of developing employing 350 skilled craft workers to build a comprehensive broadband $2.75bn. With a decaying cinema nations. Since 2005, the Special Unit whose products are sold in major infrastructure as the most cost- infrastructure, Nigerian film producers has worked with the G-77 nations and fashion retailers in the US, Europe effective means of transforming the have concentrated on producing China to champion an International and Japan. Manos del Uruguay also life-chances of individuals and the video films that are distributed for Forum on the Creative Economy works with around 200 independent economy of the nation. A second sale or home rental through almost which has held meetings in many creative entrepreneurs who pro- phase of the project intends to half a million clubs, employing tens parts of the world, including China, duce craft products made from local provide a laptop for every school of thousands of people. The industry Jamaica, Rwanda and Brazil. materials and distributed through a pupil, with the ambition of making helps drive the Nigerian government’s chain of retail stores, thereby sustain- Rwanda a creative and commercial 8.4 France Heart of Africa project, described ing independent entrepreneurs and powerhouse for central Africa. as ‘an information programme for re-invigorating some of the traditional Nigeria’s image management and cultural technologies of Uruguay. transformation.’ 8.6 Sweden 8.2 Brazil Ingvar Kamprad started what was to TV Globo’s five channels reach an become IKEA in 1943 when he was estimated audience of 180 million still a teenager. He sought ‘to create across Latin America, employ 18,000 a better everyday life for the many staff and export programmes to people’ and do it at a price they 150 countries. As well as providing could afford. Using internationally entertainment, the company aims recognised furniture designers and to deliver pubic benefit, for example the most creative management through its sports channels which set A University of Paris study set out systems, IKEA has grown to become themselves the task of demonstrating to quantify the economic value of a global brand employing 104,000 the values of education, dedication, the main Paris museums. Identifying people. The most recently published discipline and solidarity to the young any tourist to Paris who visited three company accounts, in 2004, show people of Brazil. The company’s or more museums as a ‘museum sales of €12.8bn with profits of Director General says TV Globo tourist’, the study estimated that in €1.4bn. ‘has emerged as one of the most 1999 between 2.98 and 4.2 million valuable tools for preserving the ‘museum tourists’ had visited the city nation’s cultural heritage... there are and their total contribution to the no limits to exploring the frontiers Parisian economy had been between of knowledge on television, only €2.98bn and €4.2bn. At an assumed the challenge of making complex cost of €30,000 for the creation ideas accessible without becoming of one job in the service economy, superficial.’ this meant the city’s museums had sustained 43,000 jobs.

54 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 55

Other policies and actions by the UK • The Gowers Review (2006) Appendix 1 - HOW DOES THE UK SUPPORT ITS government that have had an impact on the This third government review explored ways of creative economy updating intellectual property law for the digital CREATIVE INDUSTRIES AND ARE THERE LESSONS age. Its recommendations included action plas to: TO BE LEARNED FOR OTHER COUNTRIES? • Skills - tackle piracy and other IP crime, Amongst a range of bodies established to improve - reduce the costs and complexity of the legal skill levels for the economy, the UK government framework for copyright and IP protection, and - reform copyright law to so as to allow the use The UK has the largest creative sector of the What has happened in the UK since the has created two with specific focus on the creative industries: of content in ways more consistent with the European Union. In terms of GDP, it is the largest ‘mapping document’ of 1998? digital age. in the world. According to UNESCO it is, in - Creative and Cultural Skills, which concerns itself absolute terms, the most successful exporter of The Department for Culture Media and Sport with advertising, design, crafts, music and the cultural goods and services in the world, ahead (DCMS) remains the government department performing arts, the visual arts and literature; even of the US. with primary responsibility for the creative - Skillset, which focuses on the skills needs of the industries, but an active engagement with issues media industries. Many explanations are offered for this success, of innovation, creativity and culture now extends including: across most other areas of government thinking Both bodies are jointly funded by government and and policy development. industry. • The fact that English is the most widely spoken and understood language in the world; Within DCMS there have been two main stages • Regional strategies in thinking about he creative industries since the Nine regional development agencies in England, • The UK’s long tradition of public support for the mapping documents of 1998 and 2001. and comparable agencies in Scotland, Wales arts at national and local level, further enhanced and Northern Ireland, together with structural by the BBC and other public service broadcasters In 2007 a substantial piece of economic analysis funds administered by the European Union on a that commission billions of pounds worth of was commissioned under the title Staying Ahead: regional basis, have been central to the growth of drama, music and other creative content each the economic performance of the UK’s creative successful creative clusters and the development year; industries . It remains the most comprehensive of creative industry policies. A coalition attempt yet made to identify the essential government, elected in May 2010, proposes to • The UK’s education system that, at least in characteristics that the creative industries have abolish these Development Agencies but replace parts, gives prominence to the value of creativity in common with each other, and the policy them with other initiatives intended to focus and originality; challenges that face any government wanting on local and regional economic development. to integrate them as part of understanding and Regional Screen Agencies have brought together • The cultural diversity of UK society, especially planning the overall management of the economy. public and private funds to assist talent and in urban areas. It is no accident that London, company development in all the screen industries the most diverse city in Europe, if not the world, The 2007 report led, in turn, to a government (film, television, games and other interactive accounts for about 40% of the UK’s entire strategy paper of 2008, published jointly by media). creative economy. DCMS, the Department of Business, Enterprise and Regulatory Reform and the Department of • The Cox Review of Creativity in Business (2005) The UK is also the country with the longest history Innovation Universities and Skills. Creative Britain: This government review drew attention to the of government policies aimed at benefiting the New Talents for the New Economy, offered a more importance of small and medium business creative industries and so it is worth looking broadly based analysis of the role of government enterprises that account for 50% of UK GDP. more closely at how public policy for the creative in promoting a creative economy. Half of its 26 It called for ‘the massive powers of public industries has evolved over the last decade and policy recommendations related to individual procurement’ to be used to ‘encourage more a half. skills and the development of local clusters. It innovative solutions from suppliers’. The Review showed that the government was beginning to urged companies in every sector of the economy integrate its thinking about the creative economy to appoint more creative people to sit on their much more closely with other areas of policy – Boards of management and emphasised that especially spreading innovation and creativity into innovation has often more to do with processes the wider economy. and people than with products.

John Howkins, a leading commentator on • The Leitch Review (2006) creativity and the creative industries wrote that This examined the long-term skills needs of ‘the time had come for a more reflective and the UK economy. It emphasised the need for a nuanced approach, and for more emphasis 3-way partnership of government, employers on the role of creativity in education, training, and employees. Most significantly, it argued that community, urban development and other social the UK’s higher education system needed to be and economic issues.’ much more closely geared to the needs of the economy, and that closer partnerships between universities and businesses were essential.

58 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 59 2. Skills and Infrastructure • UK Young Creative Entrepreneur (UKYCE) Appendix 2 - The BRITISH COUNCIL’s Creative awards’ scheme: an annual programme of Skills and infrastructure are essential to nurture awards for British young creative entrepreneurs. the creative economy’s growth and sustainability. Economy Unit Groups of finalists travel overseas to an emerging The programme of activities includes: economy to take part in a study tour of their • Media training: developing the skills and sector, and compete for the title in the UK in The British Council is the UK’s international The Creative and Cultural Economy Programme understanding of journalists so that they can front a judging panel. Argentina, Poland, India, organisation for cultural relations and educational works in the following five primary strands: better report on the business of the creative Indonesia, South Africa, China and Turkey have all opportunities and is represented in 110 countries economy. hosted award groups so far. worldwide. The British Council connects people 1. Policy and mapping • Infrastructure: assisting the development worldwide with creative ideas and learning 4. Leadership and Cultural Relations Effective policy-making is essential for the of intermediary agencies that seek to provide opportunities from the UK and builds lasting development of a sustainable and competitive tailored information and support to creative As a cultural relations agency, the British Council relationships between Britain and other countries. creative economy. The structure around which the businesses. seeks to engage the new generation of cultural The Creative Economy Unit was established in creative economy develops is shaped by a series leaders with key stakeholders around the world 1999 as part of the Arts Department to work • Business Skills: delivery of training programmes of government interventions, from IP regulations in the discussion and development of common with the UK’s creative sectors and to develop for young creative business owners that seek to to tax regimes and education policies. strategies to tackle global cultural issues. The a programme of work that would share the develop their business and sector-specific skills. This is also the framework in which cultural aim is to renew the role of the cultural sector in UK’s experience of developing the creative addressing global issues. The programme will relations take place. 3. Creative entrepreneurship and networks economy and the wider impact of this process also integrate practitioners from a wide spectrum in terms of education, social inclusion, economic Through this strand of work, the British Council Creative entrepreneurs are pivotal figures for the of sectors outside the arts (science, education, regeneration, and international engagement. seeks to promote the global discussion creative economy: by bridging the gap between sports, etc.) in order to create cross-sectoral and sharing of appropriate policy initiatives artists and consumers, they drive forward the collaborations. and perspectives, in recognition that the economic and cultural development of societies. creative economy is both a global and a local This strand of the programme seeks to raise 5. Insight and Intelligence phenomenon. their profile, celebrate their achievements, and Development of a platform for the collection and recognise their importance in informing policy- Initiatives so far have included: discussion of issues around the creative economy, making for the creative sector. This strand’s stimulated by the information and interaction • International Issues seminars: a global seminar initiatives include: programme that revolves around specific policy generated by the British Council’s creative issues (IP, education, etc.), running discussions at • Young Creative Entrepreneur (YCE) Clubs and economy activities and networks. networks: development of local and regional several places during a year. During 2010, a series For more information on these activities, please Clubs of creative entrepreneurs and cultural of seminars on the status and future of copyright visit www.creativeconomy.org.uk will take place in the UK, China, Colombia, India, leaders – mainly identified through theY oung Poland, and South Africa. Creative Entrepreneur awards’ scheme’s

selection process. Club and network activities • Mapping: an awareness raising programme include seminars, dialogues with policy-makers, on the importance of mapping exercises for the masterclasses, and networking events to share better understanding of the policy needs for information, discuss pressing issues and business different creative sectors. The programme also opportunities. supports mapping exercises in consultation with UK and international experts. • International Young Creative Entrepreneur

(IYCE) awards’ scheme: an annual programme • Toolkits: development and distribution of of awards, which sees groups of young creative resources on creative economy-related issues entrepreneurs from emerging economies visit around the world. the UK for a study tour of their industry, taking part in a major trade event, and compete for the title. Over 50 countries have taken part in the programme so far.

60 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 61 Appendix 3 - Creative Entrepreneurs

Creative entrepreneurs are pivotal figures for the In the following pages we include a list of 29 creative economy: by bridging the gap between exemplary young creative entrepreneurs from artists and consumers, they drive forward the around the world that have taken part in the YCE economic and cultural development of societies. programme. These are all leaders in their local and regional creative economy; individuals who intrinsically understand their market, take risks, 13 The British Council, through its Young Creative 16 Entrepreneur (YCE) programme, seeks to secure investment in the wider circulation of 14 15 19 identify young leaders working in the creative creative goods and services, and thus develop 20 sectors worldwide, highlight their existence and their creative sector’s infrastructure. 18 importance, celebrate their achievements, and 17 place them at the heart of policy debates for the creative economy. 21 22 24

23 27 26

9 25 28

1 10 29

3 5 2

11 12 4 6

1 China, p 62 9 Ghana, p 66 17 Slovenia, p 70 25 Yemen, p 72 2 Vietnam, p 62 10 Kenya, p 66 18 Poland, p 70 26 UAE, p 72 7 3 Thailand, p 62 11 South Africa, p 66 19 Estonia, p 70 27 Pakistan, p 74 8 4 Indonesia, p 62 12 South Africa, p 66 20 Russia, p 70 28 India, p 74 5 Mexico, p 64 13 UK, p 68 21 Malta, p 70 29 Sri Lanka, p 74 6 Colombia, p 64 14 UK, p 68 22 Turkey, p 70 7 Brazil, p 64 15 UK, p 68 23 Egypt, p 72 8 Argentina, p 64 16 UK, p 68 24 Lebanon, p 72

62 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 63 1 ⁄ China of children products, such as toys, textiles, and Et Hu, Founder, Beijing Blog Media and Good Film playground/children’s furniture. The company is Center now one of the leaders in children’s design in its local market and regularly supplies designs for Et Hu co-founded in 2005, together with a leading foreign companies in the UK, Germany, partner, the production company Beijing Filmblog India, Greece, and Egypt. In order to develop Media, one of the first production houses in the new products outside traditional commercial country working with young directors. They both constraints, Ruttikorn and her team decided to set sought to explore and develop the new cinema of up a new company (Le Knot) to run two additional China, in direct relation with the new opportunities brands for creative toys: Toy Wizard, developing digital technology provides. Their first ‘soft playgrounds’ for children, and Paper Wizard, programme, Chinese New Cinema: the Yunnan creating innovative paper toys by combining Project, involved female directors from mainland creativity, education and science. Besides running China, Hong Kong and Taiwan getting together the two companies, Ruttikorn has participated in to make ten feature films about the mysterious charity programs to help design special toys for 1 Yunnan Province. In order to better support disabled children around the world. In 2005, she young filmmakers,E t Hu founded in 2009 the took part in the UNESCO Creativity for children’s Good Film Center, a screen skills’ development workshop in Armenia, designing toys for children’s and networking agency. rehabilitation and grown-ups with special needs. www.dianyinggongchang.com www.ruttikorn.com www.cinecn.net www.club-creatives.com www.leknot.com Et Hu was the Chinese finalist for the British 3 Council’s International Young Screen Entrepreneur Ruttikorn Vuttikorn was Thailand’s finalist for 2 (IYSE) award 2008. the British Council’s International Young Design Entrepreneur (IYDE) award 2007.

2 ⁄ Vietnam Ho Tran Da Thao, Creative Director, International 4 ⁄ Indonesia Lifestyle Co. Wahyu Aditya, Founder, HelloMotion School of Animation & Cinema In 2004, Thao won the Mercedes-Benz Asia 4 Fashion Award and received a scholarship Wahyu is the founder of the HelloMotion by RafflesL aSalle Institute, Singapore. This Animation Film School, an animation institute scholarship enabled her to establish her own that has since 2004 graduated more than 1000 label, Tsafari, which combines natural fabrics students. His aims are clear: ‘We want to become and traditional handcraft techniques to produce an important part of the audio visual industry’s contemporary garments. ‘Despite the market development in Indonesia by concentrating on potential for Vietnamese traditional techniques’, skills’ development and education’. Wahyu also thinks Thao, ‘local artisans tend to work on their directs HelloFest, a festival of short and animation own, following outdated designs, and producing film that annually attracts over 10,000 young items which are inappropriate for international and professional audiences, showcasing over consumers’. Through Tsafari, she seeks to build 400 new animation features and aiming again a brand that combines her own modern designs at showcasing international animation trends to with these artisanal skills into a commercial ready- educate and inspire animators and audiences. to-wear line. www.hellomotion.com www.tsafari.com http://waditya.blogspot.com Ho Tran Da Thao was the Vietnamese finalist for Wahyu Aditya was the winner of the British the British Council’s International Young Fashion Council’s International Young Screen Entrepreneur Entrepreneur (IYFE) award 2009. (IYSE) award 2008.

3 ⁄ Thailand Ruttikorn Vuttikorn, Director, Club Creative and Le Knot After six years working in educational toy design and research, Ruttikorn opened Club Creative, a design company that works on a wide range

64 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 65 5 ⁄ Mexico Gabriel Zapata was the winner of the British Carla Fernández, Artistic Director/Founder of Council’s International Young Performing Arts Taller Flora Entrepreneur (IYDE) award 2008. Carla is the founder of Taller Flora, a fashion label and a mobile laboratory that travels throughout 7 ⁄ Brazil Mexico visiting indigenous communities, Paula Dib, Founder/ Partner Trans.forma Design especially female co-ops that create handmade textiles. ‘Contrary to the kitsch fashion stereotype Trans.forma is a design consultancy that exported abroad by Mexico, ancient patterning develops product design in association with shows an elaborate system of pleats, folds and handicraft communities throughout Brazil. ‘As a seams that blend to form garments using squares designer with a social focus, my work has always and rectangles only’, Carla explains. She believes developed through the contact with people and that only radical contemporary design will prevent society, through programmes that develop and the extinction of craftsmanship in traditional teach communities which work with craft’, says textiles. With a growing base of artisans, Taller founder Paula Dib. By working with communities Flora is also innovating as a business model of artisans, and suggesting the introduction of through its own fair trade network and a set of new colours, forms and materials, Paula tries 5 environmental policies to foster responsible to discover and bring forth the best of each practises in fashion. The model allows industry craftsman’s knowledge, stimulating their self- and talent to come together in a way that esteem and the contribution they make to local enables Mexico to become more than a ‘big culture. ‘My work’s aim is to bring together urban, manufacturer of foreign7 ideas’ by integrating developing Brazil with the rural one through existing craftsmanship into the development design, developing products that generate of a totally local and contemporary style. Taller income in rural, craft communities, and which Flora’s collections have been showcased in mayor value the culture and regional Brazilian identity of spaces in London, San Francisco, Japan, Los these communities.’ 6 Angeles, Colombia and Mexico. www.transformadesign.com.br www.flora2.com Paula Dib was the winner of the British Council’s Carla Fernández was the winner of the International Young Design Entrepreneur (IYDE) British Council’s International Young Fashion award 2006. Entrepreneur (IYFE) award 2008. 8 ⁄ Argentina 7 Manuel Rapoport, Designer and Founder of 6 ⁄ Colombia DESIGNO-patagonia Gabriel Zapata, Administrative Director, Acción Impro Manu founded in 2001 his design consultancy, DESIGNO-patagonia, providing design services After working for a car maintenance and producing and commercializing products administration company, Gabriel Zapata made a made in Patagonia. His work revolves around dramatic career change and started working for social and environmental sustainability, Acción Impro, an improvisational theatre (improv) capitalising and promoting the region’s local company based in Medellin. ‘I realized the group identity and the value of its natural materials. 8 had enormous talent but little awareness of the The studio also has collaborated with local needs of their business’, says Zapata. ‘In Colombia communities through design and development it’s pretty impossible to make a living only of programmes, and has taken part in several theatre, so I re-invented the company’s business international projects. ‘DESIGNO-Patagonia seeks model and included gigs for private companies to vindicate the local and the different ways of looking to disseminate their corporate values to seeing and experiencing objects by developing their internal staff via small plays and sketches’. more humane pieces, which draw back on local Since assuming the administrative direction, artisanal skills, promote regional employment, and Gabriel has managed to transform Acción Impro foster lasting and deeper relationships between into a sustainable and profitable business, and has the user and the object.’ participated in the most important international improv festivals in the Spanish-speaking world www.designopatagonia.com.ar (Ecuador, Argentina, Brasil, Mexico, Spain, Manuel Rapoport was the Argentinean finalist for Colombia). the British Council’s International Young Design www.accionimpro.com Entrepreneur (IYDE) award 2007.

66 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 67 9 ⁄ Ghana 11 ⁄ South Africa Nana Kwadwo Duah, CEO Oxygen/DPI Arthur Attwell, Managing Director and Co-Founder, Electric Book Works The last seven years have seen Nana chart an exciting career path in advertising and Electric Book Works is a company specialising communications. After setting up Oxygen, an in applying innovative technology to traditional Advertising, Design and Strategic Branding publishing and content distribution. It seeks Company, he then partnered to establish a to encourage the use of digital technology in bigger Communications Group, DPI, which also ways that suit developing markets. As Managing includes a publishing firm, a print production and Director, Arthur has initiated and overseen a packaging company, and a pre-press services range of publishing projects, including services provider. His vision is to grow the DPI Group into for large and small publishers, print-on-demand a conglomerate offering a full circle of services and e-book research consultancies, workshops on catering for the needs of the industry and clients digital publishing and new ways to deliver content alike. He has recently founded Vertu, an education in developing countries. ‘In order to expand facility offering practical training and seminars readership in South Africa (and in the region)’, aimed at developing their creative, technical and argues Attwell, ‘it is necessary to innovate and business acumen in the communications industry. find alternative, cheaper alternatives to traditional publishing models. It is fundamental to adapt www.oxygenghana.com content to context and local needs, which for 9 Nana Kwadwo Duah was the winner of the British Africa means probably abandoning all pre-notions Council’s International Young Communications of books and e-books’. Entrepreneur (IYXE) award 2009. http://electricbookworks.com Arthur Attwell was the South African finalist for the 10 10 ⁄ Kenya British Council’s International Young Publishing Kevin Ombajo, Director, Trueblaq Group Entrepreneur (IYPE) award 2009. He was Chair of the IYPE network from 2009-10. Kevin is the founder of Trueblaq Group, one of the most important event management companies in Kenya.. ‘As MD of Trublaq Group, I’ve been 12 ⁄ South Africa in a position to positively influence the lives of Y. Tsai, Director, Tsai Design Studio tons of Kenyan artistes for the past five years. I endeavour to create opportunities through Architect Y. Tsai runs a multi-disciplinary practice the projects I oversee for our local talent to get (Tsai Design Studio) working in product design, paid, and to get paid well’, he comments. Their furniture, interior design and architecture. The studios also seek to empower talented youth from studio strives to produce provocative designs underprivileged backgrounds to develop and that are unconventional, yet instilled with a strong utilise their musical talents. Their key interests are sense of cultural and social relevance, particularly in event management, marketing, concert, video in South Africa. His design, the ‘Nested Bunk and audio production, but their key strength has Beds’, was voted by the South African public been to use their music events to transform the as ‘The Most Beautiful Object in South Africa’ in social and political fabric of the country. They February 2008 at Cape Town’s Design Indaba. have held successful countrywide concerts and The concept - to bring better lifestyle and the 11-12 produced albums to push messages against HIV/ best use of space to those in overcrowded, tiny, AIDS, gender violence, peace, hunger, human low cost houses – led him to realize the social rights and unemployment. impacts of design and join NGO Shoebox Homes, an institution that promotes social designs for the www.trueblaqkenya.com disadvantaged communities and orphanages. www.trueblaq.com www.tsaidesignstudio.com Kevin Ombajo was Kenya’s finalist for the British http://shoeboxhomes.blogspot.com Council’s International Young Music Entrepreneur (IYME) award 2009. Y. Tsai was the South African finalist for the British Council’s International Young Design Entrepreneur (IYDE) award 2008.

68 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 69 13 ⁄ UK 15 ⁄ UK Amy Lennox, CEO Trinity Communications Mark Puddle, Owner, Mark Puddle Ltd. Amy is the owner of Trinity Communications, a Mark Puddle Ltd. is the umbrella company which media planning agency with specialist expertise in holds Mark’s three performing arts’ companies: digital planning, that she founded with her partner - The Lord Chamberlain’s Men: an all-male, open Simon in 2007. Before starting her own business, air international touring Shakespeare company Amy spent 7 years working for a large media that tours annually round the UK, Europe and group where she specialised in digital media and Middle East to over 80 National Heritage sites and marketing. ‘Digital advertising had become so outdoor amphitheatres, playing to audiences of commoditised, and I wanted to get back to the approximately 30,000 every year. business of creativity, so I set up Trinity with a - West End Stage: the fastest-growing theatre business partner’, explains Amy. Their aim is to summer school for young people in the UK. make the most of advertising spend to build their - Mark Puddle Productions: a theatre production clients’ businesses across on and offline media company dedicated to producing first class channels. ‘We work with businesses at a game theatre in the UK and promoting new acting, changing moments in their life cycle, whether directing and writing talent. they have exhausted their online advertising Mark’s ultimate goal is to develop an international success and are looking to break in to broader network of performing arts professionals in audiences, or are making the transition from a countries all over the world who would host bricks and mortar business to e-commerce.’ UK productions, ‘whether these are open air www.trinitycommunications.co.uk Shakespeare productions, new plays by unknown writers which have garnered critical acclaim, or Amy Lennox was the winner of the British Council’s theatre skills’ workshops for young people.’ UK Young Communications Entrepreneur (UKYXE) award 2009. www.markpuddle.com Mark Puddle was a finalist for the British Council’s 13-16 14 ⁄ UK UK Young Performing Arts Entrepreneur (UKYPAE) Annegret Affolderbach, Director, Choolips award 2009. Born in East Germany and trained as a designer in the UK, Annegret founded Choolips driven by a 16 ⁄ UK desire to blend fashion and ethical awareness. ‘I Sam Conniff, MD Livity was seeking a space which would allow me to be bold and versatile but at the same time introduce Sam Conniff set up Livity in 2001, a company a sustainable and humanitarian approach to the that seeks to ‘harness the power of brands and fashion and textiles industries’, says Annegret. communications as a force for social change’. Choolips creates textiles and dresses, and it Livity works with the world’s biggest brands, currently works with Ghanaian textile traditions, government, charities and, most importantly, looking to boost the commercial accessibility young people, co-creating successful of fair trade textile products. The product range communications. ‘I am particularly passionate won a series of awards and was soon snapped about how new diverse young talent is by Topshop & Asos.com. In 2008, Choolips was encouraged, explored, empowered both on and nominated for the Barclays Innovative Business of off screen and believe we have a hue opportunity the Year. to place young people at the heart of a revolution of our sector, and make them the keystone of a www.choolips.blogspot.com strong future digital screen economy’, explains Annegret Affolderbach was a finalist for the British Sam. As part of Livity’s work, Sam created the Council’s UK Young Fashion Entrepreneur (UKYFE) world’s first interactive multi-platform series, award 2008. Dubplate Drama. www.livity.co.uk Sam Conniff was the winner of the British Council’s UK Young Screen Entrepreneur (UKYSE) award 2009.

70 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 71 17 ⁄ Slovenia He still runs Rate.ee, and continues to both www.merlinlibrary.com Mitja Okorn, Founder of InfluenZ Pictures develop new projects and invest in new Estonian Christopher Gruppetta was Malta’s finalist for the internet start-ups. He is currently working in Mitja wrote, produced and directed his own British Council’s International Young Publishing Middlesbrough, developing a new start-up for film aged 19, made with almost no budget and Entrepreneur (IYPE) award 2007. the British market, CuteFund.com, a platform for no support from the government. The film was investors to make up a common mutual fund and distributed across the country, won the award for 22 ⁄ Turkey vote for the shares online. most viewed Slovenian Feature Film of 2005, and Hakki Goktas, Director, Turk Dijital became the 8th most watched film inS lovenia’s www.ratesolutions.eu Hakki established in 2004 Turk Dijital, a company independent box-office history. With his first film’s Andrei Korobeinik was the Estonian winner of the that specialises in creating and managing success he formed a production company called British Council’s International Young Interactive innovative and pioneering interactive services for di:vision, mainly producing music videos. He later Entrepreneur (IYIE) award 2008. the web and mobile platforms. The company has left it to form InfluenZ Pictures, an international created and implemented a series of successful production company for new feature films and programmes, such as the Soundklan music TV series. He also lectures extensively around community and Power Club, Turkey’s first legal 20 ⁄ Russia Europe on low budget filmmaking, encouraging and leading digital music store.The music platform Shashi Martynova, Editorial Policy Chief young people to get into the film business. has been a tremendous success, and is now Supervisor, Livebook Publishing www.mitjaokorn.si/showreel operational both in Istanbul and in Budapest. After graduating from an MSc in Chemistry from www.influenzpictures.com www.soundklan.com the Moscow Lomonosov State University, Mitja Okorn was the Slovenian finalist of the British Shashi launched Gayatri Publishing, a house Hakki Goktas was Turkey’s finalist for the Council’s International Young Screen Entrepreneur dedicated to esoteric fiction.I n 2005, Shahsi British Council’s International Young Interactive (IYSE) award 2007. and her team reinvented the company, changing Entrepreneur (IYIE) award 2009. both its name and format. Since then, Livebook Publishing has focused on books for kidults (‘kids 18 ⁄ Poland from 8 to 80’) - readers that still preserve the Ela Skrzypek, Strategic Designer, Brand New Idea curiosity, imagination and humour that come with and Public DSGN being a child. Shashi and her team are famous in Ela co-founded and, for more than a decade, the Russian book trade for their extensive and headed one of Warsaw’s top brand design revolutionary use of blogs, their book happenings studios: Studio Bakalie, a graphic design in famous Moscow clubs, and their festive and consultancy that focuses on most aspects of circus-like approach to publishing. Their range communications and branding, publishing, of publications includes cross-genre literature, and motion graphics. Leveraging her design literature of the absurd, book art, fables for kidults, expertise, Ela then established Brand New Idea, neo-post Romantic and ironic novels, provocative 19 a branding consultancy that works on sensory poetry, non-fiction titles on creativity. 20 communication for commercial and public http://livebooks.ru organisations. She also continues to work for 18 Public DSGN, a forerunner charity organisation Shashi Martynova was Russia’s finalist for the that applies design to improve Poland’s public British Council’s International Young Publishing sector and services. Entrepreneur (IYPE) award 2009. 17 Ela is one of the founding members of the Society of Emerging Polish Designers (STGU) and Brand Design Club (KBD). 21 ⁄ Malta Christopher Gruppetta, Director of Publishing, www.brandnewidea.pl Merlin Library Ltd www.publicdsgn.pl Merlin Library was the firstM altese publisher, Ela Skrzypek was the Polish finalist for the British back in the early seventies, to publish children’s 21 22 Council’s International Young Design Entrepreneur books in the Maltese language. Since then it (IYDE) award 2005. has concentrated on publishing innovative children’s fiction and non-fiction, as well as specialising in educational books. For Christopher, 19 ⁄ Estonia ‘the challenge of working for Merlin and for a Andrei Korobeinik, CEO Rate Solutions Maltese market lies in improving the process of After working as Technical Director for a dot-com local children’s publishing, supporting standards corporation, Andrei launched in 2002 a social of professionalism in editing, production and network for teenagers called Rate.ee which has marketing in a bilingual market where Maltese become the most popular site in Estonia and publishing habitually competes with English- operates in more than 20 different countries. language imports.’

72 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 73 23 ⁄ Egypt www.metropoliscinema.net Adham Hafez, Founder and Programme Director, Hania Mroue was the Lebanese finalist for the HaRaKa Dance Development and Research British Council’s International Young Screen Born in Cairo, Adham is one of the first graduates Entrepreneur (IYSE) award 2007. of the Modern Dance School at the Cairo Opera House Grounds. He is the Founder and Director of Adham Hafez Company, and Founder and 25 ⁄ Yemen Program Director of HaRaKa, an organisation Nashwan Al-Maghafi, MD Yemen Book Shop for Dance Development and Research which is the firstE gyptian institution of the kind. Adham Yemen Book Shop (YBS) is one of the leading is also the Founder of TransDance, a mini-series importers of English publications in Yemen. It of dance festivals that take place in Egypt. was initially established in 1980, and was the first He initiated the publications Dance News and bookshop in Yemen to import books in English. Cairography, to reflect critically on dance and Nashwan has been its Managing Director since performance, and to promote and publicize works 1995, when he was still attending secondary of Egyptian choreographers and support their school. He aspired to have a role in improving 24 work through a body of critical texts. His works education in Yemen and in promoting the English on sound, movement, voice, performance and language in particular. YBS is currently dealing installation, publications, lectures and cultural with more than 40 publishers from the USA, UK, events have been presented across Egypt, the France, Germany, Italy, India, Pakistan, Egypt, Arab speaking-world, Europe, Turkey, Japan, etc. Lebanon and Jordan. Adham is currently teaching contemporary dance Nashwan Al-Maghafi was the Yemeni winner of the and performance at the American University in British Council’s International Young Publishing 23 Cairo, taking part in founding a long-term dance Entrepreneur (IYPE) award 2008. education facility. 26 www.harakaproject.blogspot.com 26 ⁄ UAE Adham Hafez was the Egyptian finalist for the Rabia Z, Fashion Designer and Creative Director, British Council’s International Young Performing Rabia Z Arts Entrepreneur (IYPAE) award 2008. Of Emirati and Afghani background, Rabia Z’s passion and dedication to fashion seeks to 24 ⁄ Lebanon balance and blend style and spirituality together. Hania Mroue, Director, Beirut DC and Metropolis She is one of the few designers catering for 25 Art Cinema the needs of modern Muslim women, believing that dressing modestly can also be achieved Beirut DC was founded in 1999 by a group of in a stylish way. She has managed to creatively cinema professionals and art advocates. Its aim is modernize a very traditional fashion concept, to provide help and support to Arab independent and has succeeded in showcasing it on the filmmakers in overcoming the constraints facing international runway scene. Her styles creatively independently-minded Arab cinema. In a region convey the message that modesty is beautiful, where individuality is generally restricted, Beirut comfortable, and easy to attain whilst feeling DC encourages its partners and collaborators to good and confident about one. produce films that are relevant to their society, that seek to question pre-established forms Rabia Z was the Emirati finalist for the and beliefs, and aim to induce change and new, British Council’s International Young Fashion personal approaches to cinema. ‘Through my Entrepreneur (IYFE) award 2008. work with Beirut DC’, Hania adds, ‘I noticed that despite the standardized film programming that commercial cinemas in Lebanon offer to the public, there still remains a large audience for alternative or author-films, especially among young people and students’. This is why she also decided to open a new cinema, Metropolis, as the country’s first art-house cinema.T he space aims to ensure its audience a permanent and sustainable access to a diversified and enriching film production. www.beirutdc.org

74 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 75 27 ⁄ Pakistan 29 ⁄ Sri Lanka Shamoon Sultan, CEO Khadi Linda Speldewinde, Founder and MD, Academy of Design Shamoon established in 1998 his own textile design house, Khaadi, which came into existence In 2000, having spotted the lack of fashion and with the idea of reviving the craft of hand-woven design education in Sri Lanka, Linda founded fabric and bringing it back to high street fashion. the Academy of Design, a pioneering venture ‘Hand-woven fabric’, thinks Shamoon, ‘is the factor to provide undergraduate education in design. that makes our work stand out in the market Since its inception the Academy has played amongst other designers’. In its nine years of a strong role in developing design as both a presence in the market, Khaadi has managed to serious educational discipline and a dynamic create its own niche through the clothes’ large profession in Sri Lanka. ‘The apparel industry palette of colours, the finesse of the hand-woven is the single largest employer in Sri Lanka and fabric, and their vast range of products. Khaadi plays a pivotal role as a key driver of Sri Lanka’s has been awarded with four Style Awards, ‘Best national economy. Over the last three decades Men’s Wear’ (2002, 2005), ‘Best Retail Store’ it has grown to be a key knowledge industry, yet (2006, 2007). lacked design capabilities to focus on product design and development to service high end www.khaadi.biz consumer markets required for the industry to Shamoon Sultan was the Pakistani finalist for stay competitive. The Academy played a strong the British Council’s International Young Fashion role in producing designers enabling the fashion 27 Entrepreneur (IYFE) award 2008. sector to move up the value chain’. Since the Academy’s successful launch she has founded Peshakala, aimed at reviving the use of indigenous 28 ⁄ India textiles and to engage young designers with craft Vijay Nair, Director, Only Much Louder communities in villages. Her most recent project At 17, Vijay Nair decided to plunge into the music is the Centre for Creative Enterprise founded to 28 business after dropping out of college. He started develop the countries creative industries and as managing bands, and what started as a hobby a platform to engage the international community soon grew into India’s first artist management with Sri Lanka’s efforts in this area, she founded company for indie bands, ‘Only Much Louder’ Sri Lanka design Festival in 2009. (OML). Fuelled by a strong DIY ethic, OML started www.aod.lk Counter Culture Records (CCR), an alternative www.srilankadesignfestival.com label that has became a viable option for artists looking at releasing their material with no major Linda Speldewinde was the Sri Lankan finalist for support. Babblefish Productions BBF( ) was started the British Council’s International Young Fashion in 2008 as the video production arm of OML and Entrepreneur (IYFE) award 2009. helps indie artists develop their own visual identity by developing music videos, documentaries, podcasts, etc. Over the last 7 years, OML has booked artists for over 500 concerts, produced festivals of international repute, released independent artists and established itself as one 29 of the key players in the Indian music industry. www.oml.in Vijay Nair was the Indian winner of the British Council’s International Young Music Entrepreneur (IYME) award 2009.

76 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 77 Appendix 4 - READING

Publications quoted or referred to in Further Reading this guide The cultural industries, by D Hesmondhalgh, Creative Industries Mapping Document, Dept for Sage, London, 2002 Culture, Media and Sport, London, 1998 Creative economies, creative cities, Asian Creative Industries Mapping Document, Dept for European perspectives, by L Kong and J Culture, Media and Sport, London, 2001 O’Connor, Springer, Berlin, 2009 Staying Ahead:The economic performance London’s creative economy: An accidental of the UK’s creative industries, by R Andari, H success?, by J Knell and K Oakley, The Work Bakhshi, W Hutton, A O’Keefe and P Schneider, Foundation, London, 2007 The Work Foundation, London, 2007 My creativity reader, by G Lovink and N Rossiter, Creative Britain – New Talents for the New Institute of Network Cultures, Amsterdam, 2007 Economy, Dept for Culture, Media and Sport, Management and creativity: From creative London, 2008 industries to creative management, by C Bilton, After the Crunch, www.creative-economy.org, Wiley-Blackwell, Oxford, 2006 2009 The cultural economy of cities, by A Scott, Sage, Cloud Culture, by Charles Leadbeater, British London, 2000 Council, London, 2010 The Creative Class, by R Florida, Basic books, Living on Thin Air, by Charles Leadbeater, New York, 2002 Penguin Books, London, 2000 The Art of Innovation, by K Oakley, A Pratt and B The Creative Economy, by John Howkins, Sperry, NESTA, London, 2008 Penguin Books, London, 2001 Framework for Cultural Statistics, UNESCO Creative Ecologies, by John Howkins, University Institute of Statistics, Montreal, Canada, 2009 of Queensland Press, Queensland, Australia, 2009 So what do you do? A new question for policy in Creative Nation, The Australia Council, Sydney, the creative sector, by Charlie Tims and Shelagh Australia, 1994 Wright, Demos, London, 2007. What Would Google Do?, By Jeff Jarvis, Harper Collins, New York 2009 Beyond the creative industries: Mapping the creative economy in the United Kingdom, by Peter Higgs, Stuart Cunningham and Hasan Bakshi, NESTA, London, 2009 Creating Growth: How the UK can develop world-class creative businesses, NESTA, London, 2006 Cox Review of Creativity in Business, HM Treasury, London, 2005 UK Skills: Prosperity for all in the global economy, (‘The Leitch Review’), Dept for Business, Innovation & Skills, London, 2006 Gowers Review of Intellectual Property, HM Treasury, London, 2006 The Creative Economy Report, UNCTAD, Geneva/ New York, UNCTAD/UNDP, 2008

78 80 Creative and Cultural Economy series ⁄ 1 – The Creative Economy: An Introductory Guide 81

All around the world, the ‘creative economy’ is talked about as an important and growing part of the global economy. Governments and creative sectors across the world are increasingly recognising its importance as a generator of jobs, wealth and cultural engagement. The UK has been a leader in the development of this agenda, not just as a driver of the economy but also promoting social inclusion, diversity and development. This booklet (and the series it is part of) is a contribution to our shared knowledge and expertise for this emergent and valuable sector.

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