‘Cultural and creative industries’

The Cultural Economy

Presentation to UNESCO experts meeting

Cape Town 21 – 26 October 2012

UNESCO EXPERT: Avril Joffe

 The Approach
• Cultural Economy

• Acknowledge the complex links between sectors

• Policy dimensions
UNESCO: Cultural Economy (based on UNESCO’s
Framework for Cultural Statistics
 Unesco cultural economy

Cultural Domains Related domains

A: B: C: Visual D: Books E: Audio F: A: A:

Cultural Perform Arts & & Press Visual & Design Tourism Sports &
& ance & Crafts Interacti & Recreati
Natural Celebra ve Creative on
Heritage tion Media Services

Intangible cultural heritage Intangible cultural

heritage
Education and training Education & Training
Archiving & Preserving Archiving &
Preserving
Equipment & Support Materials Equipment & Support
 1. Cultural Economy
• Those products and services whose primary economic value
derives from their cultural value.
• Need economic interventions and innovations (markets,
production, entrepreneurship)
• Need Public and Private Sectors
• Need protection, development and transmission of all aspects
of cultural life: heritage and contemporary
 2. Cultural Economy as Complex
• Acknowledge the complex links between sectors

• One size does not fit all

• Need to address specific needs but keep connections to wider

cultural economy

• Cultural and creative industry products and services as

– Experiences
– Services
– Originals
– Content
 Services

PR, Marketing
Architecture
Design
Advertising
Post-production, facilities
Web/mobile development
Photography
TV & radio production Heritage & tourism

Experiences
Games development services
Contract publishing Exhibitions, attractions (design &
Content

Agents build)
Online/mobile services Cinemas
Publishing Live music
TV/radio broadcast/distribution Performing arts
Games publishers
Film studios/distribution Spectator sports
Recorded music Visitor attractions
Merchandise Antiques Galleries
Designer fashion Designer-making Museums
Crafts Heritage
Visual arts

Originals
 Cultural and creative industries
• Next step up the value chain?

• Replace manufacture?

• Generate IPR through direct creative input

• Increased symbolic value of goods and services

 Economic
Significance Distinctiveness

Employment Local cultural

Wealth identity
Income & Turnover
Globalisation
Foreign exchange
Social Impact

Personal development
Identity
Why are Common Culture
Heritage Cultural Industries
Important?
Nation building
Values Image
The “creation of meaning”
Marketing
Innovation Tourism
& Creativity Communication

Non-conventionality Ideas & information

Problem solving Forum for debate
Creativity Ideology
Economic History – eg Gauteng, South
Africa

Financial and
Other Services
Manufacturing
Mining
Emerging
Knowledge
Economy

1886 2003
TIME
 3. Policy Dimensions
• Sustainable and competitive creative and cultural economy needs
effective policy-making
• Government interventions help shape the structure around which
the creative and cultural economy develops
– IP regulations
– Local of Cultural infrastructure and cultural facilities
– Technology, internet and other telecommunications quality and access
– Tax regimes
– Education policies from school to tertiary
– Local and regional government involvement
– Rights and status of artists
– Financial and administrative support
• Creative and cultural economy is both a global and local
phenomenon
 Tourism

Lifestyle/ Agriculture and

wellness Agribusiness
Cultural
Economy
Policy areas

Consumer Product Technology

Adapted from NGA

Centre for Best
Practice, Arts and the
 Tourism

Cultural

l ar ,
tourism
itua cts
spir Produ
t
Agriculture and

land
Lifestyle/

Cui ping,
wellness Agribusiness

sca
sine
he

Cultural
Nic

,
Economy
h ic,
Ma Desi rap
nu g n g
n, sign
fac & o
tur
m ati de
ing i b
An we
Consumer Product Technology

Adapted from NGA

Centre for Best
Practice, Arts and the
ELEMENTS OF TECHNICAL ASSISTANCE IN
SUPPORTING AND STRENGTHENING CULTURAL AND
CREATIVE INDUSTRIES
 Africa wide
• Concept of culture
• Making of culture
• Governance of culture
• How it intersects with cultural economy
 Africa wide
• Concept of culture
– not uniform,
– diverse, ethnic-religious, heritage based, ways of life,
– not about arts, contemporary culture
– Leads to distortions - e.g. cultural tourism is only
about heritage or traditional culture, museums,
galleries, traditional dance and music, traditional food
– Cultural tourism in this construct is not about
contemporary artists, theatre, popular music
 Outline
1. Conceptual framework:
1. History of definition from cultural industries
2. Definition of creative industries
3. What do we mean by creative economy
4. Drivers of the creative economy

DEVELOPING CLEAR ADVOCACY BASED ON COMMON, CLEAR, AFRICA-

RELEVANT DEFINITION
 1. Conceptual framework for Creative
Industries
Definitions: number of diverse and differing definitions: Emphasise
• Intellectual property/ copyright
• Creative or cultural origin of goods/services
• Commercialisation or wealth and job creation
– EG
– UNESCO: ‘Those industries that combine the creation, production
and commercialization of products which are intangible and cultural
in nature. These contents are typically protected by copyright and
they can take the form of goods or services’
– UK: ‘Those industries which have their origin in individual creativity,
skill and talent and which have a potential for wealth and job
creation through the generation and exploitation of intellectual
property’ (DCMS)
 Definitions continued
• Creativity as a focus of activities including
– Generation of creative content (products or
services)
– Value chain associated with this activity
• Eg DACST, South Africa (1998), Bogota creative mapping
(2002), Singapore (2003), UK (2001 -)
 Short history
• 1980’s: culture, the arts, cultural planning, cultural
resources, cultural industries
• Mid 1990’s: creativity as a broad based attribute became
common currency
– Australia’s Creative Nation 1992 – cultural policy
– UK, Ken Robinson’s national commission on creativity, education
and economy ‘All our Futures: Creativity, Culture and Education”
– CREATIVITY on the map
– Cultural industries - --- creative industries -----creative economy
---- creative class (2002 Florida ‘The Rise of the Creative Class’
 Review of models & classification systems

• Concentric circles (Throsby, 1998/2001)

• Cultural value of cultural goods is distinguishing
characteristic of creative industries
• Creative ideas originate in the core creative arts in the
form of sound, text and image and these ideas and
influences diffuse outwards through a series of layers,
or ‘concentric circles’.
• As one moves outwards from the centre, the
proportion of commercial content to cultural content
rises
Throsby, 2007:5
 Models: Stylised typology: Work Foundation
from EU (Throsby) 2006
• Report to UK’s DCMS, Work Foundation developed a stylised typology of
this model of the creative industries borrowed from EU’s ‘The Economy of
Culture’ (2006) originating with Throsby.
• Bulls-eye of core expressive value creation at centre of concentric circles:
the home of artists – musicians, lyricist, dancer, choreographer, composer,
writer, painter, sculptor, scriptwriter, designer
• Expressive value – enlarging cultural meaning & understanding to include
aesthetic, spiritual, social, historical, symbolic & authenticity value of
cultural goods & services
• This stylised typology introduces relationship between core creative fields,
cultural industries, creative industries and the rest of the economy plus
notion of expressive value and outputs (not included in original model)
 Models: WIPO copyright model (2003)

• All industries involved in the creation, manufacture,

production, broadcast and distribution & consumption of
copyrighted works are included
• Industries that PRODUCE the intellectual property – the
embodiment of the creativity that is needed to produce
the goods and services of the CI – are DISTINCT from
those that are needed to CONVEY the goods and services
to the consumer
Models: DCMS, Symbolic Texts, Concentric Circles,
WIPO:
1. DCMS Model 2. Symbolic Texts Model 3. Concentric Circles Model 4. WIPO Copyright Model

Advertising Core Cultural Industries Core Creative Arts Core copyright industries
Architecture Advertising Literature Advertising services
Art and Antiques market Film Music Copyright collection management societies
Crafts Internet Performing arts Motion picture and video
Design Music Visual arts Music
Fashion Publishing Other core cultural industries Theatre and opera
Film and Video Television and radio Film Press and literature
Music Video and computer games Museums and libraries Software and databases
Performing arts Peripheral cultural industries Wider cultural industries Television and radio
Publishing Creative arts Heritage services Photography,
Software Borderline cultural industries Publishing Visual and graphic art
Television and radio Consumer electronics Sound recording Interdependent copyright industries
Video and Computer games Fashion Television and radio Blank recording material
Software Video and computer games Consumer electronics
Sport Related industries Musician instruments
Advertising Paper
Architecture Photocopiers, photographic equipment
Design Manufacture, wholesale and retail of TV sets
Fashion Radio
CD recorders
Computers and equipment
Cinematographic instruments
Partial Copyright Industries
Architecture
Clothing, footwear
Design
Fashion
Household goods
Toys
Model: Creative Economy: Singapore (2003),
Unctad (2006), Nesta (2008)
• Increasing use of the term ‘Creative Economy’
• What is the relationship between core cultural fields, cultural
industries, creative industries and the broader creative economy?
• Highlight the upstream (traditional art form: performing , literary &
visual arts – may have commercial value in themselves) and
downstream activities (applied arts: advertising, design, publishing
and media-related activity – derive commercial value principally
from their application in other activities
• Because there is a symbiotic relationship between all the sectors
(commercial and non-commercial as well) a growth or decline in one
area will have an effect on another area.
 Composition of the Creative Economy
Upstream

Cultural
Industries

Creative
Industries

Copyright
Industries

Creative
Economy

Distribution
Industries

Creative clusters, creative precincts,

creative sectors

Downstream

CAJ (2007) Adapted from Heng, Choo and Ho (2003)

 Concept: Creative Economy
• Evolving concept based on creative assets embracing
– Cultural
– Economic
– Social
– Technological aspects
• Central application: seen as a feasible policy option to diversify
economies and improve trade and development gains in countries
around the world (Brandford, 2004)
• Characteristics include
– Knowledge-based economic activities
– Intensive use of creativity to add value to products + services
– Ability to generate income from trade and property rights
 What are The products & services
of the Creative economy?
Its a vast field dealing with the interplay of various sub-sectors from traditional art crafts to technology-
oriented multi-media services

Traditional
Visual Arts knowledge Music
Paintings, sculptures and Art crafts, festivals and
cultural activities Concerts, CDs, tapes,
photograpy digitalized music

Literature and
Publishing Creative Performing Arts
Books, newspapers Industries Theatre, dance, opera,
and periodicals puppetry, circus

Design Audio-Visuals
Architecture, interior objects, Digital Animation Broadcasting, cinema,
fashion and jewellery
and Multi-media television, radio
Software, videogames
and advertising (UNCTAD)
 Creative economy - Innovation
• Recent studies (Nesta) – creative industries play
significant role in UK innovation system ‘firms that spend
twice the average amount on creative inputs are 25%
more likely to introduce product innovations’
• ARC/ Queensland: creative workers are more integrated
in the wider UK economy than previous mapping studies
showed. More creative specialists working OUTSIDE the
creative industries than within them (Higgs, Cunningham
and Bahkshi, 2008)
 Creative Trident – ARC centre of Excellence for
Creative Industries, Queensland University of Technology

• Sector specific focus to full economic contribution of

creativity to the wider economy
• Track creative occupations in traditional creative
industries as well as in manufacturing & the wider
service industries (health, education, business services,
government)
• Design occupations particularly are embedded (ie
employed in creative occupations) in other industries
resulting in an undercounting of the design sector by
36%.
 Creative Trident
• Diagramme illustrating significant contribution
of creative occupations.
– 55% of creative occupations are located in other
industries
– Creative occupations in other industries account
for 35% of total employment
– Creative occupations account for 64% of total
employment (in CIs and rest of economy)
 Creative Trident – making CREATIVE
ECONOMY apparent!
Figure 8: The number of people employed in Specialist, Embedded and Support roles within
the Australian Creative Workforce (2006)

Source: Australian Research Council Linkage Project, 2008 quoted in Ameru and CAJ, 2008: 77
 Developing an advocacy position in your
country:
• How will you define the creative industries/ creative
economy to your authorities
1. What will they include
2. What will they exclude
3. What will be the defining characteristic(s) of this creative
sector
4. Do we need a phased approach when working with a
definition? i.e. from cultural industries to get agreement
through over time to creative economy?
Or

Do we abandon the term creative economy and refer to the

2. Economic analysis of Creative Industries

• Industrial organisation analysis

– Measuring standard economic variables (gross
value added, levels of employment, labour,
investment) – core of mapping studies
• Economic Impact analysis
– Cultural events in local areas (museums, festivals
heritage sites): effect on local community +
economy and benefits that flow to both
 Economic analysis of Creative Industries
• Economy wide contribution
– 4 distinct levels of contribution:
• primary (direct and quantifiable)
• secondary (indirect and quantifiable: multipliers;
• tertiary (direct and non-quantifiable: invention, innovation
and diffusion and
• quaternary impact (indirect and non quantifiable: quality of
life, motivation and productivity, cultural identify,
preservation of tradition and culture, creative new cultural
identities
• Value chain analysis
– Cultural production chain – describes the full range of
activities that are required to bring a product or service
from conception (creation) , through the intermediary
phases of production (pre and post production) delivery to
final consumers including activities such as design,
production, marketing, distribution and support services
up to the final consumer

– Adapted from Charles Landry for ILO study on the Impact of the Cultural
Sector in SADC countries (2003) by Joffe, CAJ.
 The creative industries value chain:
where and how is wealth created.

1.BEGINNINGS:
5. AUDIENCE - the idea, the context, the rich heritage, the project
RECEPTION: funds and finance for development, promotion,
Journalists, trade recording and exhibition
journals, festival Training &
2. PRODUCTION:
commentary, awards,
Development - the people, the processes,
academies
the sites of productions, the
facilities, the equipment and
SME suppliers, the designers
The value
Support chain
4. DELIVERY
MECHANISMS:
Exhibitors, broadcasters,
3. CIRCULATION/
Regulation DISTRIBUTION
retail outlets, live venues,
performance spaces, & Policy Distributors, agents, marketers
gallery/ exhibition spaces & intermediaries,

Core Problems: absence of business savvy, poor integration with other economic sectors
(tourism), lack of appropriate training and mentoring support specifically for arts and culture
managers, administrators and programming staff, poor organisation, lack of clustering and
inadequate networking (© CAJ, 2001)
 Value chains for policy development/
entrepreneurial analysis, designers
• Can be used by policy makers to determine the needs of the
cultural and creative industries
• Can be used to inform policies and measures, support
project design and to address entrepreneurial needs
• Can be used to assess the regulatory and legislative
framework at each phase of the value chain as well as the
associated training and educational requirements
• Cultural entrepreneurs can use the VC to understand the
reasons for market failure, to assess blockages and gaps in
the phases, to offer insight into weaknesses of a specific
sector, identify challenges and opportunities
 Simple value chains
• Eg Craft value
chain as
presented by Supply
Craft Value Chain Demand
CCDI, SA
Creative
Process/ Design

Production Retail Consumption

Inputs

Services and Distribution

Enabling Environment
 Music Value Chain
1.BEGINNINGS: musician; lawyer; financier,
songwriter
the idea (lyric, melody), the context, the rich heritage,
5. AUDIENCE the project funds and finance for development,
RECEPTION: promotion, recording and exhibition
critic, groupie,
journalist, trade Training & 2. PRODUCTION: -
journals, festival
Development sound engineer, business
commentary, awards,
manager, the people, the
academies
processes, the sites of
SME productions, the facilities,
The value the equipment and
4. DELIVERY Support
chain suppliers, the designers,
MECHANISMS: IPR
Performer, roadie, session
musician, DJ Regulation 3. CIRCULATION/
DISTRIBUTION: Personal
Exhibitors, broadcasters, & Policy manager, agents, artist management
retail outlets, live venues, (for band, DJ, solo artist or
instrumentalist) Distributors, agents,
performance spaces, gallery/ marketers & intermediaries
exhibition spaces
Core Entrepreneurial Problem: Lack of understanding where wealth is created in the value
chain; that entrepreneurship occurs throughout the value chain, the absence of business savvy
or appropriate training; poor organization, lack of clustering and inadequate networking
 Assessment of your cultural and creative
industries
• Who are the key players in each ‘moment’ ?
• Where are the work places ?
• How supportive is the regulatory framework for each
moment and the entire value chain?
• Does the education and training environment support and
align to the respective cultural and creative industry ?
• Can the different value chain moments Access
mainstream business support?
• Is the business and trading environment conducive to the
cultural creative industries?
 Create your own value chains

STEP 1 Step 2 Step 3 Step 4

Name the creative List the players list the people, players Brainstorm Originator of
the idea in the production and institution who the consumers
Product or service of the product or play a role in the or people who
service. Marketing, PR, retail will enjoy your
and distribution of the good or bad product or
service service
 New Developments on value chains: Value
Networks (Canada)
• The digital economy is transforming the value networks of Canadian arts
and cultural industries
• Value networks: more fluid arrangements to reflect non-linear base of
value chains and map relationships between all the role players from
artist to consumer, government to industry
• Highlight functions which do and don’t add value or create new rights
• Three broad stages
– Creation/ production – primary creator + producers who organise
resources required to create the product
– Aggregation –product aggregators, eg record labels, book publishers, tv
stations, websites who assemble + sell a large number of cultural
products
– Distribution/ retail- the product distributors and the makers of media
receivers (radio signals) as well as the audience or consumer
 Disconnects in value chain
• Product flows to consumer but revenue does not reach primary
creators – a ‘disconnect’
– Eg Music industry: Music and video distributed to consumer on
internet through distribution platforms (eg Limewire) – used as a
marketing tool for internet service providers who sell connections
while ‘value perceived by consumers includes the content they
receive” (Connectus Consulting Inc, 2007: 19)
– “In that sense, electronic download of music is generating revenue,
but no review currently passes from the ISP to any of the producers
of music in respect of this use. Since many music rights holders have
not authorised the distribution of their content and this ‘free’ music
is nonetheless distributed and its value perceived without being
monetized through any revenue model, a disconnect is clearly
present”
Economic analysis: Urban & regional growth

• Creative clusters
• Creative cities
– Cultural quarters
• Creative regions
– The Creative Industries have the potential to encourage regional
economic growth and employment creation and, in particular to
regenerate depressed urban areas and enhance the liveability of
cities thereby contributing to urban development and creating
the conditions for inward investment.
 The Creative City

• Important player Comedia, Charles Landry: One of 1 st

Studies: ‘Glasgow: the creative city and its cultural
economy’ (1990) – The creative city in Britain &
Germany 1994 –
• The Creative City: A Toolkit for Urban Innovators (2000)
• At same time, ‘Creative City’ – seminar City of
Melbourne, Australia Council in 1988 “The City should
be emotionally satisfying and stimulate creativity
amongst its citizens”, David Yengken, Secretary for
Planning and the Environment, State of Victoria
 Johannesburg: the creative capital

GAUTENG SPATIAL DEVELOPMENT INITIATIVE, DBSA

1998

PREPARED BY AVRIL JOFFE FOR CREATIVE STRATEGY

CONSULTING, SQW (SA)

2007/8
 Becoming an African Cultural
Capital: Creating an agenda
Presentation to African Cultural Capital Forum 11-13 March 2010
Avril Joffe
Director, CAJ: culture, arts and jobs

Main results from meeting:

1. Change name to AfricaCAN
2. AccraCAN to remain as secretariat for initiative
3. Develop criteria for Cultural Capital
4. Develop advocacy programme to bring more African cities on
board

AMBASSADE DE FRANCE
AU GHANA
 AFRICACAN – long term advantages of
AFRICAN CULTURAL CAPITAL CONCEPT
• Raising the international profile of the cities involved
• Attracting visitors through cultural activities and art
events
• Expanding local audiences for cultural activities and art
events
• Improvement to cultural infrastructure
• Promoting creativity and innovation
• Developing the careers and talents of art professionals in
the city.
 AFRICACAN: Way forward for all cities

1. Mapping – who, where, what, why, how much

2. Networking including identification of beneficiaries,
experts and development of partnerships
3. Securing political commitment
4. Development Plan including
1. Infrastructure maintenance and development plan
2. Education interface at all levels including research
institutions/ individuals
3. Traditional and contemporary art forms including heritage
4. Media and promotion