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© GERET 2015
The Business of Creationand the creation of business
Alan FreemanGeopolitical Economy Research Group
www.geopoliticaleconomy.ca
• UK Department of Culture, Media, Sport (DCMS)• National Endowment for Science, Technology and
the Arts (NESTA)• Queensland University of Technology (QUT)• Greater London Authority (GLA)
……and a cast of billions
Sources
• Victorians: steam, trains and ships•Early C20: electricity, steel and skyscrapers
•Postwar: oil, cars, and household gadgets•C21: the internet, design and aesthetics
Mass consumer markets in designed products
Each age has characteristic technologiesand markets
Financial and insurance
Construction
Creative Economy
Manufacturing
Science economy
0 500 1000 1500 2000 2500 3000 3500
2013 jobs
Financial and insurance
Construction
Manufacturing
Creative Economy
Science economy
- 1,000 2,000 3,000 4,000 5,000
2030 jobs
The changing structure of British Industry
Science already bigger than manufacturing; creative nearly as big
By 2030 both will be bigger
Total ‘intellectual labour-based’ will be bigger than all others by 2030
Source: DCMS January 2015 estimates, figure 5 and table 6
The engine of creation
What drives this growth?
Creative workers in the creative industries
Non-creative workers in the creative industries
Creative workers outside the
creative industries
Creative Intensity = 2/(1+2) =52%Source: DCMS January 2015 Creative Industry Estimates, Figure 1 (page 3)
What are the creative industries?
• ICT is a revolution in service productivity.• It creates a mass market in cultural products
• One song can be heard by hundreds of millions of people
• Consumers use this freedom to exercise choice. • Choice is part of every product
• Manufacture is also transformed• Short, customised, incorporating design and cultural content
• Content sells products• This is why Samsung succeeded.
New mass markets
• Cars• Skylines• Restaurants• Furnishings• Real Estate• Plumbing (believe it)
… even Canada Tired
You see it here, you see it there, you see it everywhere
• This not the age of the robots • human labour is decisive• But a special kind; the kind that robots can’t replace
• Not ‘post-industrial’ • Creative labour needs the technology• The machinery supports service delivery
• High technology plus high-end labour• Software• Education• Content• Social consumption (aesthetics)
A new marriage of human and technology
Revenue from recorded music
Revenue from Live music
Music as share of consumer spendingSource: Page, W.; Carey, Chris; Haskel, Jonathan, and Goodridge, Peter. 2011. ‘Wallet Share’. Economic Insight 22, 18 April .
Expect the unexpectedCulture gets Live and Local
Creative Industry Density0.178 to 0.5830.12 to 0.1780.078 to 0.120.046 to 0.0780.003 to 0.046
The neighbourhood as factoryThree key concepts
• Open Innovation (Chesborough)
• Motley Crew (Caves)• Pre-market selection
(Caves)
Caves, R. 2002. Creative Industries: Contracts between Art and Commerce. Cambridge, Mass.: Harvard University Press.Chesbrough, H.W. 2008. ‘Open Innovation: A New Paradigm for Understanding Industrial Innovation’. In H. Chesbrough, W. Vanhaverbeke and J. West, eds. Open Innovation: Researching a New Paradigm, Oxford: Oxford University Press.
The Infrastructure of creation
How do creatives use technology?
Why do creatives
congregate?
What do cities do?
The creation of business• GET THE EVIDENCE
• Foster the creative places• Provide the creative technology
• Enable the creative people• Join the dots, build the networks
• Bring the jobs here• Showcase our strengths
• Learn how to fail• BRAND: Don’t pretend; don’t underestimate;
Don’t forget: Art knows how to fly•Feed it, and you won’t regret it•Starve it, and it won’t come back •Our infrastructure is human creativity
•You can’t manufacture creativity•You can’t manufacture people•You can give them wings•Birds remember their home