This paper introduces crowdfunding as a concept and model for the evolution of investment banking. Crowdfunding, an application of crowdsourcing, is defined as one party’s attempt to finance a project by offering three types of investment opportunities to potential investors. The investment opportunities are donations, passive investments, and active investments. From this foundation the author develops a model in which interdependent agents operate in a dynamic, discrete setting. Potential investors decide whether or not to invest in one of three opportunities each period while the entrepreneur sets the parameters of the game to maximize the probability of successful financing. He then simulates the model to analyze the effects changes in key parameters have on the results of the game.
This study analyses from the point of view of the international crisis problematic, limitations of the traditional credit facilities. Authors want to explain and explore crowdfunding as an alternative to people and entities which have not access to traditional financial methods.
The combination of limited individual information and costly information acquisition in markets for experience goods leads us to believe that significant peer effects drive demand in these markets. In this paper, the researchers model the effects of peers on the demand patterns of products in the market experience goods microfunding. By analyzing data from an online crowdfunding platform from 2006 to 2010 the researchers were able to ascertain that peer effects, and not network externalities, influence consumption.
Crowdfunding platforms enable the financing of projects by soliciting small investments from a large base of potential backers over the Internet. These platforms create a dynamic funding network. This study uses data collected from Kickstarter, the largest crowdfunding platform, to study some of the dynamics of such a network. It focuses on project owners who choose to operate on both sides of the market, creating campaigns of their own as well as backing the projects of others. It finds that an owner’s backing-history has a significant effect on financing outcomes; campaigns initiated by entrepreneurs who have previously supported others have higher success rates, attract more backers and collect more funds. It extends network exchange theory to the domain of crowdfunding and finds evidence for both direct and indirect reciprocity. It quantifies the impact of such reciprocal forces on the performance of crowdfunding platforms and campaigns. It also shows that owners who are backers form a sub- community that is active in backing projects, especially those initiated by its members. These findings suggest that backing the projects of others is a rewarding strategy.
In order to get a constructive non-Nordic view, Tom Fleming Creative Consultancy, a UK-based leading international Creative and Knowledge Economy consultancy , has been commissioned by the Nordic Innovation Centre (NICe) , on behalf of the Nordic Council of Ministers, to develop this Green Paper. It builds on existing policy development to:Provide an overview of the current profile of the Region’s Creative Industries Introduce the current policy status of the Creative Industries Highlight key opportunities for growing the Creative Industries and maximizing the sector’s wider value Present a set of actionable policy recommendations for partners to pursue
This paper shows that the economic benefits of conserving the most threatened types of cultural heritage surpass the costs. Conservation is a sound investment. For a case study in the Netherlands three different benefits are calculated: a housing comfort value, a recreation value and a bequest value. The housing comfort value is determined through the Hedonic Pricing method (HPM). It is the first time that this monetarisation technique is used to express the value of cultural heritage in Euro's. The results show that historical characteristics of buildings and their surroundings account for almost 15% of property values. The recreation and bequest value are estimated by means of the more commonly used Contingent Valuation method (CVM).
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.
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