Innovation and creativity are broadly used terms and Creative Economy concept is present in European and other countries policy documents, including EU policy, UNDP and other international organization strategies. In Latvia the use of the Creative Industries term increases, however the understanding of its implications often causes confusion, both among policy makers and the broader public. The aim of this article is to establish a better understanding of the principles of Cultural and Creative Industries and the concept of a Creative Economy using historical reasoning from relevant literature. Formal use of the term Creative Industries is quite recent (1994), marking the digital era of cultural industries and creativity. However there are roots back to the industrial revolution and urbanization, cultural industries from the 1930s, popular culture, ideology distributed through mass media and contra culture rebelling against the capitalist drive of mass culture.
The purpose of this paper is to provide economic modeling and its implications to government policy in promoting and financing innovation in the creative industries. First, we develop a rational expectation model with emphasis on network externalities (NE) within the creative industries, and on the moral hazard problem due to the presence of asymmetric information in a loan market for innovation. Interactions between firms' and banks' expectations play an important role in determining which of the two equilibria occurs: one with low NE and the other with high NE. Then, we show the effectiveness of policies that critically depend on the current equilibrium and how discrepancies between the expectations converge to a new equilibrium. This paper develops a theoretical model and also empirically tests some implications of the model using OECD country level data (2000–2013). The theoretical results show that policies aiming at promoting innovation in the creative industries actually decrease the equilibrium level of innovation as well as banks' confidence and network externalities in low NE equilibrium even with the presence of the positive effect of lowering the critical mass; the opposite outcomes are observed in high NE equilibrium. Other implications of government policies are also discussed.
This paper aims to define impact of creative industries (CI) on national economy in regard to sub-sectors. Employing systematic, logical and comparative analysis of scientific literature, as well as analysis of empirical data, authors define and classify the most important CI sub-sectors that impact national economy. Due to this, the value of this paper is theoretical definition, systematization and evaluation of the sub-sectors defining the impact of CI on national economy. The findings of this research provide the basis for targeted funding in order to foster and develop CI impact on national economy.
This paper reviews and synthesizes the research on how creative industry organizations (CIOs) achieve alignment ambidexterity and adaptability ambidexterity. This survey highlights the dominance of the contextual approach among CIOs, which arises through practices and processes of internal orientation and external engagement. The survey suggests promising areas for future research in clarifying the contingency factors through which various ambidexterity solutions are adopted in CIOs. These contingency factors include different forms of ambidexterity, concerns about paradoxical tensions, and industrial characteristics. These findings have useful implications for other economic sectors. The paper argues for an enriched ambidexterity research agenda in which creative industries deserve greater attention.
The new digital economy seemingly is leading to the disappearance of intermediaries. Externalities and the ongoing comparison of competitors favor dominant players; creators and producers also can distribute their content directly to consumers, bypassing any intermediaries. This movement exhibits some contradictory tendencies though. Online transactions give space to various unforeseen intermediation patterns involving contractual relations, information processing, and customer relations. In doing so, they alter cultural sectors and fundamentally challenge traditional organizations and revenues. This overhaul particularly affects economic actors, selection and creative processes, distribution channels, and cultural practices, as well as production structures. Accordingly, the Internet has had notable effects on the complexity of artistic and cultural markets. Various cultural fields thus reveal the emergence and simultaneous development of different ways to create, produce, make available, and charge for contents—that is, different business models. These unfamiliar intermediations drive reorganizations of cultural industries, because they invent innovative economic terms, restructure common forms of creation and recommendation, prompt new forms of entrepreneurship, and stimulate competition by newcomers. This study scrutinizes all these reconfigurations according to three current developments in cultural industries: the vast increase of available contents, the solid entrepreneurial dynamics in online markets, and renewed business models.
This study analyzes how hard and soft conditions influence the development of entrepreneurship in cultural and creative industries (CCIs). The study further examines what influence the context has on the effect of these conditions. A multiple multivariate regression analysis examines the importance of both the hard and soft conditions to explain the differences between the United Kingdom and the Mediterranean countries of Portugal, Spain, and Greece. The sample comprises 123 entrepreneurs from the four countries. The use of this method represents an important contribution to the understanding of entrepreneurship dynamics and for the further fine-tuning of entrepreneurship policies in CCIs in different contexts.
Movie industry experts continuously debate whether the industry's enormous investments in stars pay off. Although a rich body of research has addressed the question of whether stars are critical to the success of movies, previous research does not provide a consistent picture of the impact of stars on the economic success of the respective product. To derive empirical generalizations, the authors (1) provide a meta-analysis of the relationship between star power and movie success based on 61 primary studies reporting 172 effects of star power on movie success and (2) analyze a comprehensive dataset from that industry with n = 1545 movies using two different types of star power measures (commercial and artistic success), while controlling for selection effects of stars. Based on these two studies, four empirical generalizations emerge. First, when ignoring selection effects of stars, the impact of star power on box office revenues is strongly upwards biased. Second, artistic star power is associated with significantly lower box office revenues than commercial star power. Third, on average, movies with a commercially successful star generate 12.46 million US$ additional box office revenues. In contrast, artistic star power does not result in a statistically significant revenue premium. Fourth, commercially (artistically) successful stars have a statistically significant “multiplier effect” of 1.127 (1.083) on other characteristics that influence a movie's box office revenues.
Firms and governments increasingly see creative industries as hubs of managerial innovation and experimentation. The opening essay to this special issue examines the role of creative industries as pioneers and highly visible adopters of new organizational and business practices. The paper next focuses on four themes that are especially salient to this process. The first theme looks at creative industries as celebrity industries that popularize and legitimize organizational and business practices. The second theme examines the lessons that relatively low levels of value chain integration have for other industries that are in the process of value chain transformation. The third theme looks at the creative industries and the rise of the experience economy. The fourth theme argues that historical patterns of employment and self-employment in the creative industries foreshadow many of the issues that are experienced by the wider economy. A discussion of the seven papers appearing this special section concludes this introduction.
The purpose of this paper is to draw a clear picture of creative and cultural industries and of the creative economy, as driving factors of economic growth and local development. To this aim, the paper analyzes some recent data on the significance of the creative economies, reflecting on the concepts of creative and cultural industries. In the text, attention is paid to the links between creative economy and local development on one hand, and the concepts of territorial capital and social capital on the other side.
In the end, the work focuses on presenting the results of an in-progress study, about the recent literature on the mentioned issues, presenting a brief overview of some significant works.
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