Creative Industries in the Modern City Encouraging Enterprise and Creativity in St Petersburg Creative Industries in the Modern City Encouraging Enterprise and Creativity in St Petersburg Tacis Cross Border Cooperation Small Projects Facility St Petersburg, Helsinki, Manchester September 2002 This publication focuses on the work of the 18-month programme ‘Creative Industries Development Partnership: St Petersburg, Helsinki, Manchester’, initiated by St Petersburg’s Leontief Centre for Social and Economic Research and the Prince of Wales International Business Leaders Forum. The project’s work has progressed under the aegis of the three city authorities. It is co-financed by the European Union’s Tacis programme through the Tacis CBC Small Project Facility. The European Union’s Tacis programme provides grant finance for know-how to foster the development of market economies and democratic societies in the New Independent States and in Mongolia. Editorial Committee Elena Belova Timo Cantell Susan Causey Elena Korf Justin O’Connor Translations into Russian Olga Reva Design Aleksandr Zhuravlev Editorial assistance Elena Dunaevskaya 1 Contents INTRODUCTION.................................................................................................................................... 3 1. St Petersburg and the international experience ............................................................................ 5 Susan Causey, Programme Manager, Russia Prince of Wales International Business Leaders Forum 1.1 What are the creative industries? ............................................................................................. 6 1.2 Why are the creative industries important for St Petersburg? ............................................. 6 1.3 International case histories: Helsinki, Manchester, Milan, Berlin, Barcelona, London ..... 7 Notes ..................................................................................................................................................... 12 2. The regulatory environment ............................................................................................................. 13 Nina Oding, Director of Research Leontief Centre for Social and Economic Research 2.1 Sector description ...................................................................................................................... 14 2.2 Regulation in the cultural sector ............................................................................................. 15 2.3 Comparative organisational models ...................................................................................... 16 2.4 Records and statistics ................................................................................................................ 18 2.5 Small enterprise development .................................................................................................19 Conclusion ........................................................................................................................................... 20 Notes ..................................................................................................................................................... 20 3. St Petersburg survey: problems and potential ............................................................................. 21 Justin O’Connor, Director, Institute for Popular Culture Manchester Metropolitan University 3.1 Background ................................................................................................................................. 22 3.2 Culture and commerce ............................................................................................................ 22 3.3 The state cultural sector ............................................................................................................ 23 3.4 The state sector and small independents ............................................................................. 24 3.5 The nonstate cultural sector ................................................................................................... 25 3.6 Grant funding and markets...................................................................................................... 26 3.7 Building capacity ....................................................................................................................... 28 4. Development prospects .................................................................................................................... 31 4.1 The next steps ............................................................................................................................. 32 4.2 Project recommendations ........................................................................................................ 32 Justin O’Connor 4.3 Pilot projects ................................................................................................................................ 33 St Petersburg Centre for Creative Industries Support .......................................................... 33 Dmitry Mil’kov, Deputy Director, Pro Arte Institute, partner, Integrity Consulting Group, cofounder of the Nabokov Museum Innovative Funding for Cultural Development in St Petersburg and the North West Region ...................................................................................................... 34 Elena Korf, Russia Representative, Prince of Wales International Business Leaders Forum Elena Belova, Head of Development and Academic Secretary, Leontief Centre Creative Industries Forum .......................................................................................................... 35 Marina Lebedeva, Director, St Petersburg Centre for Enterprise Support and Evolution of the Interior Festival Felix Naroditsky, Director, Regional Nongovernment organisation ‘New Jazz Club’, JFC Jazz Club and initiator of Art Sessii APPENDICES 1. Creative industries in the United Kingdom and London: facts and figures .......................... 36 2. St Petersburg cultural sector statistics ............................................................................................. 38 3. The creative industries development partnership ........................................................................ 42 3.1 Organising partners .................................................................................................................... 42 3.2 Project Initiative Group .............................................................................................................. 42 3.3 Participating organisations ....................................................................................................... 43 3.4 Web site ........................................................................................................................................ 44 Introduction environment takes on a new dimension in cities with a strong Introduction contemporary art scene: good art schools and intensive contemporary arts life are forcing grounds for the innovative design and style that characterise successful manufactures, Rembrandt and Matisse in the galleries of the Hermitage; as well as the imaginative content and scenarios for new harmonious architecture, avenues and canals; classic opera electronic, multimedia and telecom business. Linkage and ballet at the Mariinsky — these are international emblems between the cultural sector and manufacturing is considered of St Petersburg. Culture is feted as the city’s great strength. the main source of economic growth, competitiveness and But although instant international recognition of Petersburg’s employment in the 21st sector. The contemporary experimental palaces, art and music is clearly an asset this rarely translates outlook of artists and arts graduates hybridises with enterprise into economic thinking, where culture is most often seen to generate successful new business ideas, while the design, exclusively as a sector for investment, swallowing money with styling and marketing skills of these creative industries help little hope of return. And although St Petersburg is one of the reform manufacturing to meet increasingly global competition. world’s newest great cities — and the formerly outrageously modern art of Picasso and Van Gogh is one of its prime European urban renewal drew strength from a strong culture attractions — the emphasis of the city’s funding policy and its and vigorous artistic life. But — far from being passive selfpromotion tends today to neglect contemporary beneficiaries of this recognition — the cultural institutions and experimentation, focusing largely on heritage and the arts of professionals themselves had to make active transformations. the past. The philosophy of the crisis years — especially in Britain — was to slash publicsector funding, and culture did not escape. The The Creative Industries Development Partnership was formed enforced experience of practising selfhelp encouraged arts to exchange with St Petersburg the experience of west professionals to look at what they were doing from the outside: European cities in reevaluating the impact of culture — to to realise how much more efficiently they could operate by cherish it as a continuing source of inspiration and identity, but contracting out to small enterprise services such as design and also to understand its potential for increased selfsustainability catering, and to understand the increase in their effectiveness