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The making of sustainable cultural and creative cluster in Hong Kong

Kaman Ka Man Tsang a, Kin Wai Michael Siub a School of Design , The Hong Kong Polytechnic University b School of Design , The Hong Kong Polytechnic University *Corresponding author e-‐mail: [email protected], [email protected]

Abstract: The setup of cultural and creative cluster became a trendy practice for generating economic revenue in the post-‐industrial era. Many state governments imitates those successful prescription in the setup of cluster, however, it could not guarantee the sustainable development of the cluster. This paper endeavors to identify the fundamental factors in developing a sustainable cluster in a densely populated city. Rather than considering the spatial setting as the most important factor for cluster, this paper argues that the formation of community and happening of creativity are the integral factors for creative production. A three factors model has been generated for the evaluation of a sustainable cluster. The applicability of model was examined through an empirical case, Easy-‐Pack Creative Precinct, in Hong Kong. Data were drawn through direct observation and semi-‐structured interviews. The result reviews the meaning of cultural and creative cluster in the highly condensed city.

Keywords: creative industry; cultural and creative cluster; creative community; creativity

1. Introduction In the post-‐industrial era, the rises of Cultural and Creative Industries (CCIs) become a key factor to profit making and a new convention for bringing urban viability. Creative industries situated in a physical space and formed geographical cluster (Lazzeretti, Boix & Capone 2008; Scott 2005; Siu 2012). Basically, cluster refers to “geographically defined space where cultural activities occur or where businesses assemble to produce products and services for domestic or international consumption.” (Keane, 2013, p.3) Setting up of creative clusters becomes a trendy practice to support the creative industries agenda in the restructuring economic condition of cities in worldwide context. Especially after the influential geographic

AUTHOR’S NAMES [x RUNNING HEAD Even]

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economists Alfred Marshall (1975) and Michael Porter (1998) established the cluster theory on highlighting the profit generation of cluster, a strong momentum of clusters was found in different counties; various forms and scales of creative clusters have been erected across the globe. In order to guarantee the successful ‘making’ of these sites, different governments make reference to the successful cases and recite similar formula in setting up the sites i.e. providing space with cheap rent for the start-‐up creative practitioners. Such formula is assumed as an uncritical strategy in sustaining the creative industries. However, the complexities of cultural and creative clusters were largely overlooked in both theoretical and empirical manner. Cultural and creative cluster had its own logic in operation; the homogenous practice in running the industrial clusters does not ensure the sustainable development of creative clusters (Kong 2009; Mommaas 2009). However, the highly condensed cities like Hong Kong where land is the most valuable and expensive resource, the Western operation mode may be inapplicable due to the lack of space and the skyrocketing rents. This research aims to explore the essential factors for a sustainable cultural and creative cluster in the highly dense city.

Theoretically, the emerging concern on cultural and creative cluster gained scholarly concern. Issues like profit generation and product innovation system (Lazzeretti, Boix & Capone 2008) are still the main focuses of researches. Apart from concentrating the nature and function of creative cluster, growing number of literatures concerning the relationship between cluster and other attributes were found e.g. relation between cluster and network formation were the key concerns for the works of Harvey, Hawkins & Thomas (2012) and Kong (2009). Another group of scholars focused on the relationship between cluster development and creativity (Drake 2003), while scholars Adler (2012) & Capaldo (2007) highlighted the close relationship between community and creativity. Definitely, it was fruitful to see the connection of cluster with creativity and community. However, the dualistic preposition towards the cluster development could not totally explain the complexity of operation, function and meaning of clustering.

Emphasis on the relationship between community formation and spatial quality of cluster might lighten the unique mode of creative production; these studies would be similar to those researches on other industrial clusters. While those stressed on the relationship between cluster development and creativity, the mutual support generated within the creative community might be overlooked. For those who focused on community formation and happening of creativity might neglect the qualities of place for creative production. Thus, this paper hypothesizes the importance of co-‐existence of three factors i.e. (a) Spatial quality of cluster, (b) formation of community and (c) happening of creativity for a sustainable cultural and creative cluster. The three factors should be regarded as the fundamental components as they are interrelated. Healthy and sustainable development of the cluster requires an intricate and complex mixing of all three factors.

In order to demonstrate the importance of three factors for a sustainable cluster and its applicability in the highly dense city, one creative cluster from Hong Kong, the Easy-‐Pack

Article title [X Running head odd]

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Creative Precinct had been examined under the three factors framework. The case was selected because it was a typical as well as special cultural and creative cluster in Hong Kong. Similar to other clusters formed in an organic way, Easy-‐pack Creative Precinct is located at the old industrial area where it provides large studio space with reasonable rent. However, in order to maintain the rent at an affordable level, the spatial setting of cluster is in the form of subdivided flat, which is a new form of housing residence in Hong Kong due to the high-‐priced rent in the highly dense city.

2. Sustainable cultural and creative cluster

Among the studies of cultural and creative cluster, Kong (2009, 2012) conducted detail studies on the sustainability of clusters in Asian context and she defined sustainability in terms of cultural, social and economic aspects. According to Kong (2012), cultural sustainability refers to “the continued ability for cultural workers to engage in their cultural work, and the conditions that support the specific nature of that cultural work.”(p.186) This paper basically agrees with the Kong’s understandings, but as her research target was more about artists while this study focus on the creative practitioners i.e. designer. So the cultural sustainability refers to the continuous ability to produce new creative works. For the social sustainability, Kong related it to “the sense of support that derives from social interaction within the space” (p.187). This paper will echo the importance of community and regarded it as one of the fundamental factors of sustainable cluster. To reveal the effectiveness of formation of community, the dropout rate under affordable rent is an important indicator. The economic sustainability could be understood as the happening of commercialization from Kong‘s sense, this study therefore pinpoints the commercial activities found in the cluster. Thus, sustainability of cultural and creative cluster could be reflected from two areas :( 1) dropout rate and (2) collaboration and production of new works.

3. Cultural and creative clusters in Hong Kong Hong Kong government had realized the economic potential of Cultural and Creative Industries (CCIs) since 2005. A number of measures had been suggested to develop Cultural and Creative industries, which was regarded as one of the ‘Six industries’ of the city. (Policy Address 2009-‐10, 2009) An official body Create HK was established in 2009 to drive the development of creative industries with clear vision to build Hong Kong into ‘Asia’s Creative Capital’ (Create HK 2009). To realize such vision, the official body Create HK drove the creative industries in different approaches. Apart from providing $300 million financial support to develop the creative industries in Hong Kong, one of its major directions is to “develop creative clusters in the territory to generate synergy and facilitate exchanges” (Create HK 2009). In such a small city, there are seven planned clusters


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supported by Government, NGO and education institutions. However, negative feedbacks and complaints had been resulted even the official bodies had poured huge resources in constructing the clusters and providing rent subsidy to tenants. Those instituted clusters neither attained popularity nor were welcomed by the creative practitioners. Complaints and negative feedbacks had been frequently voiced out from tenants of different sites (CNN Go, 14/01/2010; SCMP, 18/04/2014). For example, many practitioners complained that the operation of the clusters did not match well with the working pattern and lifestyle of creative groups; and the space did not encourage communication and interaction between tenants. Agglomeration of creative practitioners was able to promise the vibrancy cultural and creative clusters.

Therefore, lots of creative practitioners prefer to set up their studio outside the subsidized cluster even they have to pay for high rent with similar or even poorer environment/ facilities. The old industrial areas normally become the alternative for them to set up their studio; different cultural and creative cluster has generally formed in such an organic way.

4. Easy-‐Pack Creative Precinct Easy-‐Pack Creative Precinct locates at a 40 years old industrial building in Kwun Tong district. With the busy traffic, air pollution and messy alleys of Kwun Tong district, the surrounding environment of Easy-‐pack Creative Precinct does not provide delighting atmosphere. In 2011, the landlord renovated the upper three floors and turned it into the Easy-‐Pack Creative Precinct. In order to remain an affordable rent for the practitioners, the gross floor area was divided into small premises with shared toilets and pantries; the format of the cluster was in the style of subdivided units. Size of each premise is different, ranging from 200 to 1200 sq. ft., for meeting the affordability of tenants. Currently there are 16 creative groups from various disciplines of creative industries.


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Fig. 1. Location of Easy –Pack Creative Precinct

Image source: Google map

Fig. 2. Façade of Easy –Pack Creative Precinct.

Fig. 3. The surrounding environment of Easy-‐Pack Creative Precinct.

Fig. 4. The main entrance of Easy –Pack industrial building is located at the back alley. ( Day and Night )

5. Research methods

Data of this paper emerged from the research conducted from October 2012 to January 2015. Direct observation and semi-‐structured interview had been applied as the research methods. This research agreed with Berger (1998) “observation finds out what goes on in the subcultures or organizations being studied and to gain some insight into their operations (especially hidden aspects not easily recognized) and how they function” (p.105). This study made reference to the work of Hall (1966), Alexander (1977) and Zeisel (2006) on observation, focus was placed on three aspects i.e. (i) physical setting, (ii) social setting and (iii) cultural setting for examining the physical traces and social behaviour in the site.


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Observation at Easy-‐Pack Creative Precinct was conducted at different timeslots on both weekends and weekdays. Observation was also carried out for activities outside the site like visiting the music shows organized by tenants.

Semi-‐structured interview was selected in this research because it “allows the respondent to develop and qualify his or her ideas in the interview setting and in addition allows for the introduction of contradictions which in them can provide valuable insights into consciousness” (Hobbs & May, 1993, p.102). The data was derived from the semi-‐structured interview with 10 creative groups who work in different disciplines (i.e. product design, furniture design, graphic design, music production, leather workshop, design services, multimedia art/design) at Easy-‐Pack Creative Precinct. Also, additional interview with landlord and the caretaker of the site had been conducted. All interviews were undertaken in a face-‐to-‐face format at the studio of interviewees. Each interview lasted for approximately one and half hour. The interview was aimed to collect primary data on (i) usage and expectation of cluster (ii) social interaction between the creative practitioners, and (iii) happening of creativity within the cluster

6. Findings: Three factors for the making of sustainable cultural and creative cluster

Based on theoretical discussion and empirical study, this paper proposes three factors (i.e. Quality of cluster, formation of community and happening of creativity) are the integral elements for building a sustainable cluster fulfilling the economic, cultural and social aspects (Kong 2009). These three factors do not function independently but they are interwoven to support the creative practitioners (Refer to fig 5).

In the first place, cluster is not only a physical site; it also refers to the spatial settings that support the special nature of creative production. It is important to concern the quality of cluster in terms of its basic needs, disciplinary needs and even the psychological needs, so that it could support the wellbeing of the practitioners. Formation of community among the practitioners is very critical that it allows frequent interaction and information exchange of the practitioners. Especially for the nature of creative production, which often highlights teamwork and collaboration, the cultivated sense of belonging and mutual trust among the creative practitioners help the creative work in a positive way. While creativity is the core for cultural and creative production, generation of inspirations, stimulation and diversified idea are expected to produce in the cultural and creative cluster. In order to make the requirements of a sustainable cluster explicit, further details of the three factors are listed as follows:


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6.1. Quality of Cluster A breath of academic literatures have pinpointed the spatial setting of cluster is influential to the practice of creative users .The scholars have stated the importance of geography or spatial setting of the cluster (Cunningham 2002; Scott 2006; Kong and O’Connor 2009). To most of the creative practitioners, the studio in the cluster is more than a purely working space for temporary stay; it is essential to see how the cluster could meet the needs as well as the wellbeing of users. As reference to the classic theory Hierarchy of need by Maslow (1943), there are different levels of attainment in order to support the wellbeing of people. Similarly, the quality of cluster could be evaluated in different levels as (a) Basic need, (b) Specific need based on design disciplines and (c) psychological need. Basic need refers to the basic condition and amenities that retain the stay of creative practitioners. Specific needs are about different needs relating to design disciplines like the requirement on the ceiling height for photographic shooting. If the cluster could not provide certain freedom and amenities, it limits the variation of creative domains found in the site. The psychological level is more than supplying the primary conditions, it is about the fulfilment of psychological needs like the sense of security, sense of belonging and sense of community, it may largely raise the level of satisfaction that support the creative production.

Empirically, the existing spatial quality of cluster was examined through direct observation. Through the question ‘What are the requirements for the selection of cluster?’ and ‘What are the expectations on the cluster?’ in the semi-‐structured interview, the interviewees listed down all their needs and expectations of the cluster. They commented on different needs and data had been categorized based on the mentioned three levels.

6.2 Formation of Community This paper sees the importance of the spatiality-‐defined communities is important due to the practice of the creative job. Project-‐based, freelance or contracted works normally require last-‐minute workers with instantaneous access to skill sets. Job referral through the established social network is a win-‐win situation that helps the collaborative nature of creation works. Without prolong socialization at the physical location, the network of trust is difficult to develop. Sources of support, comments and collaboration would only happen after the development of mutual trust. As mentioned by Belussi & Staber (2012), “spontaneous & informal networks are the central organizational form in the arts domain, and formal project-‐based research networks are the locus of creative activity in science.”(p. xvii) Only with the presence of creative people in the same place, the spontaneous and informal interaction will be possible. This research would further highlight the importance of face-‐to-‐face interaction which is the truly way for long-‐term relationship and trust building. In the operation of the community, Brint (2001) came up with the concept of community through the study of Durkheim and identified the (a) structural variables and (b) cultural variables for examining the formation of community. Structural variables are about the


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dense social tie, the social attachments to and involvements in institutions and the group size, while the cultural variables refer to the similarity with the way of life and common beliefs in an idea system.

In this research, the structural variable could be evaluated through the interview question ‘What kind of activities you will have with creative practitioners in this site?’ Besides the interview, the tenants often upload the photos of the joint activities with other tenants to the social media i.e. Facebook or Instagram, it could also evident their social attachments to and involvements in the cluster. The similarity with the way of life could also be revealed in the semi-‐structured interview on the everyday life pattern.

6.3 Happening of Creativity Clustering of Motley crew, as stated by Cave (2002), diversity of different people has positive effect as the creative industries need each other’s support for survival, from the idea generation to the product valorisation. This research adopts the sociocultural approach towards the creativity by Amabile (1983) that creativity includes two key factors :(a) Novelty and (b) appropriate to some domain of human activities (Sawyer, 2012, p. 214)

In the empirical study, the number of domain of creative industries in cluster could reflect novelty as diversity of creative practitioners increase the chance for producing novel ideas. Also, the new creative works and collaboration could be examined by their company profile, official website and online promotion. Similarly, the chance of exposure, which helps to measure the appropriateness of cluster, could be discovered in the interview as well as the online promotion.

Fig. 5.Three factors model for the making of sustainable cultural and creative cluster

Community (a)Structure (b)Culture

Creativity (a) Novelty (b) Appropriateness

Cluster (a)Basic Need (b) Specific Need (c) Psychological Need


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7. Examining the sustainability of Easy-‐Pack Creative Precinct

7.1 Quality of Cluster Easy-‐Pack Creative precinct does not have a very pleasure environment as it located at the old industrial district with automotive repair shops and hardware stores nearby. The traffic is busy and the frequent loadings of Lorries create traffic jams during peak hours. For the cluster itself, as it is in the format of subdivided studio unit that some premises are very small and without window. Due to the limited size of gross floor, there are very limited supporting facilities for creation and testing. Ironically, all interviewees were satisfied with the spatial settings of the Easy-‐Pack Creative Precinct and the provision of better environment would be something “nice to have”. They agreed that the site had some drawbacks, but they could bear with in general and had their own strategy in dealing with the difficulties. For example, one interviewee shared that though the rent was his major concern, he was highly motivated by the fact that he had to pay the rent monthly. All interviewees believed that the flexible management and freedom in use of space were very crucial. For example, they could have some temporary storage spaces at the lift lobby if needed or they would not be accused of making noise or doing some testing by hand tools.

7.2 Formation of Community According to interview and observation, the dense social ties could be found among the creative practitioners. The small group size (only 16 creative groups) and intimate spatial setting encourage the interaction between tenants. Through the day-‐to-‐day encounter at the corridor, lift, toilet and rooftop garden, the tenants get familiar with each other. Most interviewees reported that they had frequent interaction with each other including chitchatting, going out for meal, playing TV game or even joining together to go out for music show. Also, the active participation of the events held/organized by cluster (i.e. flea market, rooftop music show, BBQ and hotpot gathering) showed that they had formed the creative community with good sense of belongings. The strong social tie actually helps the creative practitioners in a number of ways. For instant, one interviewee highlighted that he preferred to collaborate with tenants in this cluster. Even he knew some practitioners at some occasions or events but he never knew exactly one’s ability and knowledge without prolong observation. Many people just boasted of their talents and covered by brilliant presentation skills. Only through day-‐to-‐day observation, he knew what other’s ability, strengths and weakness. It was so risky to work with people that you were not really sure. Obviously they had built up mutual trust among tenants. Half of the interviewees mentioned the reason for their stay owing to the concentration of the creative groups. They believed it was vital to stay with the mind alike, as they had similar belief and would share and support each other. One interviewee specially highlighted that they could seek the instant but professional advices from people around them. Also, the prolong working hours or even overnight work was so common for creative practitioners, the average working hours was


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around 10.5 hours per day for tenants in the site, all interviewees emphasized the value of others’ presence.

“In order to meet the deadline, I usually work very late and very stressful; sometimes I work overnight at my studio. The feeling of loneliness makes me feel bad, but knowing your buddies in this building who are still workings just like you make me feel better. Even though they work at their units, you can hear the sound of hammer or you see dim light outside their door is good enough.” (Interview with interviewee K, 08/09/2013)

7.3 Happening of Creativity Even though there are only 16 creative groups in this small cluster, there are 7major domains of creative industries. In the interview with the landlord, he emphasized he had carefully selected the specialism of tenants as he wanted to balance the dynamic in the site. He further highlighted that many tenants asked him if there were similar creative groups in his building, as they wanted to minimize competitions and conflict of interest between tenants. The co-‐location of homogenous creative groups would not bring synergy to the creative cluster. One interviewee recalled the process of collaboration between the tenants.

“I have collaboration with the furniture maker in this building, just a moment when I wait for the lift and have casual chat with designer J, we come up the idea of making a leather chair. I am a teacher on leather design, and his buddies also join in with furniture design background. After spending few nights, we finally get the design done. But we are not sure about the production, so I just go upstairs where a curator has her own studio. She then link up with the factory in mainland, and now the leather chair is available in the market.” (Interview with Y, 04/06/2013)

Therefore, Leonard and Sensiper (1998) even concluded that innovation, to a large extent, was a social and communicative process. The exchange of idea and information flow among the creative group and face-‐to-‐face interaction should not be neglected. However, the lack of place for regular retail and showcases was one of the drawbacks of the site. In order to compensate it, some tenants initiate the bazaars and flea markets to have more exposure of their works. Also, the site had organized the joint exhibition and worked with different commercial brands in order to let people know their works.


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Table 1: Sustainability of cultural and creative cluster – an evaluation of Easy-‐Pack Creative Precinct

Cluster Basic need Subdivided studio unit Shared toilet No subsided rent

Not all premise has windows Split air-‐conditioning system (24 hours available) 1 elevator ( for both cargo and passenger use ) Convenient transportaiton ( MTR, minibus, bus nearby) Inexpensive meal nearby ( staff canteens of factories, local restaurants )

Speicific need Flexible use of space No formal exhibiton and event venue Limited supporting failicites for creation , testing , produciton(rooftop garden for small scale testing or woodwork )

Psychological Need

A number of places in the cluster have been identified by the users for casual meeting, gathering, entertainment &relaxation Flexible management Mid level of security (No security guard and security company, CCTV, entrance locked after 8pm) The cluster was unknown to the public due to the lack of promotion

Air pollution due to busy traffic and concentration of factories Noisy and chaotic traffic with frequent loading of lorries Next to the automotive repair shops and hardware store

Community Structure Dense social ties formed among the creative practitioners (e.g. frequent encounter, chitchat, meal, TV game, appreciation of music show at live music house) Frequent day to day interaction Active participation of the events organized by the site (e.g. flea market, rooftop music show, BBQ, hotpot and other festival activities) Appropriate size in forming relation tie

Culture Importance to stay with creative people with common belief Similar working pattern i.e. Prolong working hour (10.5 hour/day)

Creativity Novelty 7 major domains of creative industries in the site Self – initiated bazaars and events New creative works/activities through collaboration with tenants in the cluster

Appropriateness Lack of place for regular retail and showcase Occasional self – initiated bazaars and events for exposure Low popularity due to the lack of professional promotion and marketing


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8. Discussion: evaluation of sustainability of the cluster In order to reflect the applicability of the model, two significant evidences: (1) dropout rate and (2) collaboration and production of new works had been obtained to demonstrate the sustainable development of the Easy-‐pack Creative Precinct.

8.1 Dropout rate Sustainable growth first of all needs the stay of creative practitioners, whether the cluster is healthy enough to support the sustainable growth of creative practitioners. The dropout rate of tenants shows if the cluster could retain the stay of creative practitioners. Without any financial support from government, the dropout rate of Easy-‐Pack Creative Precinct was at a low level i.e. 11.1% during the research period. Two units of tenants moved out from the buildings due to business expansion and changing location for business purpose. The figure showed that the cluster actually supported the work of creative practitioners that they could afford the rent and run their business.

8.2 Collaboration and production of new works As highlighted by the official body of Hong Kong government Create HK, the aim of creative cluster in Hong Kong was to facilitate the synergy and exchange of creative practitioners. In fact, practitioners at Easy-‐Pack Creative Precinct actually exercised such practice that they worked closely with each other. Apart from exchanging information and discussion, tenants had various types of collaboration projects. Collaboration normally involved more than two units of creative groups and they involved in both commercial activities and creative works. During the research period, there were 2 large-‐scale joint exhibitions, 2 self-‐initiated flea markets, 4 workshops and 2 rooftop music shows. Also, a new brand for selling snacks at bazaar was even founded by three creative groups who came from the area of music production, product design and leather workshop. Collaboration did not only illustrate the good relationship between tenants, but it also demonstrated the active happening of creativity and the synergy between tenants.


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Table 2: Some examples of collaborative projects at Easy-‐Pack Creative Precinct

Nature of Work Date Project Description Number of unit(s) Involved

Commercial activity and Creative work

10/10/2015 03/10/2015 31/08/2015

Weekend Pantry Two product designers, one leather workshop and a musician form the group Weekend Pantry to produce the Handmade dessert and snacks for different weekend events held in/outside the site

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28/01/2015 Music Critique workshop

One leather workshop, two product designers and online music magazine organized music critique workshop

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Commercial activity

26/10/2015 Nomad Nomad rooftop market

Leather workshop, product design, the newly formed group and media artist participated in the rooftop market fair

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06/2013 Lee UNION-‐ALLS 100th Anniversary x Easy-‐Pack Union

The fashion brand Lee invited 10 creative groups of Easy-‐Pack to design the new denim outfit for celebrating the 100th anniversary of Lee Union-‐Alls. The woks were showcased at the Lee flagship store.

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Creative work 04/2013 Days of Being exhibition

A group exhibition with 12 creative units displaying their works at HAJI Gallery

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10/2012 Detour 2012

Participation in the production of the Detour programme

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9. Conclusion In order to express the sense of geographical concentration, a number of similar terms like quarter, agglomeration, village, district or region could be found and sometimes they were interchangeable with the notion cluster. However, the notion cluster, which was developed in the end of the nineteenth century, has very special implications. Cluster does not simply refer to the co-‐location of the creative groups or solely describes the geographical location and proximity of similar business; benefits on the efficient use of transportation, infrastructure, and utilities localized networks of specialized firms would be expected. Ultimately, generation of synergy effect is the finial goal for clustering. Moreover, there are numerous clusters in the world under the creative industries agenda, but whether the cluster could maintain its sustainability is in doubt. This research therefore suggests the


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importance of taking the three factors (i.e. cluster, community and creativity) into account in constructing the sustainable cluster. Just like the Easy-‐pack Creative Precinct; it could be regarded as a sustainable cluster as it has very high attainment of the formation of community and happening of creativity. The synergy effect could be clearly evidenced in the quantity and range of creative productions.

Acknowledgements: The authors would like to thank School of Design, The Hong Kong Polytechnic University for the partial research support and the research postgraduate research fund. This research is made possible through the help and support from the tenants, caretaker and landlord of the Easy-‐Pack Creative Precinct.

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About the Authors:

Kaman Ka Man Tsang is a PhD candidate at the School of Design, The Hong Kong Polytechnic University. Her research interests include creative industries, cultural and creative cluster, creative community, urban studies, design and culture.

Kin Wai Michael Siu is Chair Professor of Public Design, The Hong Kong Polytechnic University. He is Leader of the first Public Design Lab. His research interests are in public design, design and culture, user reception, design research methods.

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