The value of the creative industry

Although somewhat dated, if you have some time to spare, you should take a look at the article ‘Four models of the creative industries’ by Potts & Cunningham (2008), in which they invite us to different viewpoints on the creative industries which the arts & culture sector are a part of. They offer a framework how to look at the current changes that challenge the arts & culture sector. Something we are quite occupied with.

In their article they define the creative industry as “the industrial components of the economy in which creativity is an input and content or intellectual property is the output”. In an attempt to place value on the value added by the creative industry to the economy, Potts & Cunningham, distinguish four relational models that link the creative industry to the rest of the economy: 1) a welfare model, which gives rise to subsidy policies, 2) a competition model, which gives rise to the standard competition policies, 3) a growth model, which gives rise to the investment & growth policies, 4) an innovation model, which gives rise to innovation policies.

The economic value of the creative industries extends beyond just the manifest production of cultural goods or the employment of creative people, but has a more general role in driving and facilitating the process of change across the entire economy.

Within the welfare model view, the creative industry is considered a producer of goods with added cultural value, which increase the welfare, even though the market value is low. Therefore, resources should flow to keep the creative industry afloat. Within the competition model view the creative industry is considered equal to other industries and as such does not need or deserve support through special policies. The impact of the creative industry on the growth of the economy is neutral. Viewed as a growth model, the creative industry is considered the driver for growth. It injects and facilitates the economy through new ideas that consequently percolate down to other and new industries. Therefore, investment policies should be developed.  Within the innovation model view, the creative industry is not seen as an industry but as part of an innovation system for the entire economy. The creative industry ensures coordination and structural change in the knowledge base of the economy. And although the creative industry does not have a direct effect on the economy, it facilitates the conditions for changes in the economic order.

To Potts & Cunningham the models that fit the value of the creative industry most are the growth model and the innovation model. They conclude that as a whole the creative industry contributes to the economy and society more than just the cultural contribution. “No argument here!”

 You can download the full article @ ResearchGate.