Creative Economy: Innovation, Trade and
Business Opportunities Edna dos Santos-Duisenberg
Plenary Session 2: An Infinite Opportunity: Creativity and Innovation
CLUSTERS IN A CREATIVE ECONOMYNEW AGENDAS FOR COMPANIES AND POLICY-MAKERS
Creative Economy: Innovation, Trade and Business Opportunities
Edna dos Santos-Duisenberg
International Consultant, Creative Economy & DevelopmentFounder, Former Chief, Creative Economy Programme – UNCTAD
Policy Advisor, United Nations Institute on Training and Research –UNITAR
November 2015 – Daegu, Korea
I. A changing world and new challenges
II. Creative economy and contemporary society
III. Creative nexus, clusters and innovation
IV. Culture, trade and business opportunities
V. Knowledge, education and creative minds
A changing world
and
the new challenges…
A world in transformation
From the industrial to the knowledge-based era Strucutural, technological, social and cultural changes Globalization and connectivity changed our life style Climate change and migration became serious issues Geo-political and religious tensions causing insecurity
Imbalances, inequality and instability
Crisis… and a fragile recovery Despite the recovery the world economy remains fragile
USA economic growth was 3.7% during first half 2015 Europe may grow by 1.7% in 2015, the worst is behind
In emerging countries growth is decreasing China growth is decelerating (7% in 2015; 10.4% in 2010)
Instability in financial and currency markets (US$/CHF/E)
Rise of unemployment in advanced countries
Highly endebted public and private sectors
Boom-bust economic cycles
Economic activity in Asia
Asia remains the fastest growing region (6% GDP) Half of global growth in 2015 led by domestic demand Aging population, people with high purchasing power Youth and eldery consumes more creative products Low unemployment and growing wages Strong intra-Asian trade stimulates exports (ASEAN) Investing in R&D, IT and high-tech sectors
Rebalancing the global economy
Policy challenges and global governance
Restore global economic growth Ensure employment and social stability Redress gaps in inequality Need to improve global governance (from G-8 to G-20) Review priorities in national policies Calls for financial reform
Towards a bold agenda
A changing world
Our world is complex, there are new forces New product development processes How to capture competitive advantage?
A new wave of collaboration to nurture value creation
How to stimulate the creative process? How to combine dynamism and uncertainties?
Deliver innovation remains a top challenge
Creative economy
and
contemporary society
Culture, creativity and collaboration
In a knowledge-based era information only is not enough
Culture adds values, identity and sense to life
Creativity is needed to make the best use of knowledge
Technology is not an end but a process to foster innovation
Co-creations, networks and multidisciplinary teamwork
Top-down policies evolving towards partnerships
Creativity is driving growth, jobs and innovation
The creative economy in a new phase
Creative clusters, Creative class Creative cities, Creative entrepreneurship
Institutional and policy frameworkResearch and policy analysisIntergovernmental debatesEconomic and development agendaA priority in national policies
From theory to practice
Creative Economy / Creative Industries• The cycle of creation, production
and distribution of goods and services that uses criativity and intellectual capital as primary inputs
• Comprise tangible goods and intangible services, focused but not limited to arts, with creative content, economic value and market objectives
• Produces creative products able to generate revenues through trade and intellectual property rights
• Are at the cross-road among the artisan, manufacturing and services (UNCTAD)
CreativeEconomy
CreativeIndustries
Creative Industries
The creative economy in the contemporary society
Interface among economics, technology, cultural and social aspects and its interactions with the whole economy
Digital technologies influenced the way creative products are created, produced, re-produced and distributed
National cultural objectives, social innovation and civil society engagement are gaining prominence
Creative economy: style, brands, status and life experiences
People are eager for culture, social events entertainment and
leisure
Creative Nexus
Clusters
and Innovation
The creative nexus
Creativity
Educati
on Knowledge
CultureInformation
TECHNOLOGY ENTREPRENEURSHIP
INVESTMENT TRADE
Source: UNCTAD (Dos Santos, 2007)
Creative clusters and districts
Creative clusters helps the growth of creative production
By clustering firms can benefit from linkages and spillovers
Firms can share knowledge, information and costs
Clusters facilitate cultural and social interactions
Government and corporations working together
Blending competition and cooperating
Creativity and soft innovation
Creative ideas – innovation across sectors
New art forms, new business models, co-creations
Prêt-à-porter fashion, top ten, video clips, games
New products, differentiation help to accelerate the economy
The upsurge of creative professionals
Shift in management paradigms
20th Century 21st Century
scale and scope speed and fluiditypredictability agilityrigid organizations fluid boundariescommand and control creative empowermentreactive and risk averse entrepreneurstrategic planning profit and purposecomparative advantagecompetitive advantage
Learning from the past…. and building the future
Korea’s Creative Clusters From manufacturing to high-value sectors
Korea has top mobile phone companies Fastest Internet speeds in the world
Developed the first digital textbooks freely distributed to students
Innopolis Daedeok - Science town Smart city – hub of future (40 years)
Daegu cluster – Smart IT , Mobiles Green Energy, Medical Materials
R&D, industry and business
Culture
trade
Business opportunities
Creative enterprises…creative business
The creative economy is different Require specific rather than generic policymakingBig distinction between value-chains Different markets, technologies and distribution systems
Three important dimensions : Organizational : missing middle (Hollywood, independent artist) Operational : fast turnover of products, soft innovation cycle Locational : clustering or co-location, creative place-making
Creative economy brings many business opportunities
ICT tools unlocked the trade potential for digitalized creative content : music, films, games, advertising, books ..
Every day everywhere everybody consume creative products
The creative economy also contributes to social cohesion, cultural diversity and sustainability
Creative products are environmental-friendly contributing also to the transition towards the green economy
Creative goods and services are high-growth sectors
Creative business integrating culture and networks
Innovation-driven companies have to adapt- put art, design and science into a commercial context
A new company culture that favours : Flexibility over conformity Questions over answers Critical thinking over assumptions Teams over structures Doing over studying
Economic viability and sustainability
World trade of creative products
050
100150200250300350400450500
2002 2008 2011
Creative goodsCreative services
Source: UNCTAD Creative Economy Database
Global trade of creative products more than doubled in a decadereaching 624 billion dollars in 2011 with an annual growth rate of 8.8%
(million US dollars)
Korean culture & creative strengths
Korea has an old history and a rich culture
Architecture “harmony with nature” mixing old and new Traditional knowledge is preserved through dances, tea
ceremony, cuisine, pottery and porcelain International events and exhibitions : Olympic Games Korean films /TV dramas gaining international recognition K-Pop music and shows – “Korean wave – Hallyu” (Psy)
Policies to support traditional and new art forms A new cultural image
Growing markets for digital creative content
Advertising: Internet advertising is a growing market More time spent online in social networks and e-commerce
Games : Another market in expansion – US$ 60 billion Online mobile games overtaking console games
Music: Growing audience for digital music in smart phones
E-books : Shift from printed books to cheaper e-books
Home videos : Digital videos will double in 5 years
30% of total spending in leisure, entertainment and tourism
Innovation and Competitiveness
Competitiveness a race among countries and companies
New products replacing older ones (creative destruction)
Companies able to invest and innovate will survive
High-value industries gaining market share, other will lose
Social mobility may reflect differences in talents and choices
Creativity, skills and ability to seize opportunities
Partnerships and Strategic Alliances
Creative economy is a big business
Employs millions of people Promotes growth Attract investments Collaborative financing Public-private partnership Engaging research Providing support
services
Knowledge
education and
creative minds
Will this new generation learn more ?
Many parents are blaming this new generation:- too much gaming- always on computing- illiterate texting - too much information not assimilated- worries about privacy
End of classic classes? Ability to process data cheaply, high-speed mobile networks, low-priced tablet devices, digital education Ed-tech – the way ahead
Teaching for creative minds
From «one-size-fits-all» to a more personalized education Students should be taught at a different speed New interactive digital text books, online gaming Class time spent in refining and testing knowledge Curricula of schools and universities should be adapted to new realities – multi-disciplinary and new methodologies Need to study cross-cutting issues : arts, law, design, economics, ICT, science, management
Creative economy is knowledge-intensiverequires specific skills and high-level of education
The ecosystem for creative development
Creative capacity
EducationSkills & Creativity
Life learning
Connectivity & network
ICT infrastructure
broadband, mobility public
access
Dos Santos-Duisenberg, 2015
How to stimulate creativity and innovation ?
The main inputs to nurture the creative economy are intellectual capital, knowledge and education
Education and continuous learning are drives of innovation
Creatives should transform creative ideas into tangible goods and intangible services with economic and cultural value
Youth is attracted by cultural, creative and artistic expressions
Creative activities usually provide greater levels of satisfaction providing more autonomy, diversity and flexibility
Enhancing creative capacities
The United Nations promotes the creative economy
Capacity-building assistance can be provided in many areas :
Transformative dialogues on creative economy: creating space for conversations so as to favour innovative approaches
Transformative development strategies: empowering policymakers to design strategies to nurture the creative economy
Creative Entrepreneurship: providing courses to develop skills on creative entrepreneurship targeting youth and women
Creativity & Creative Economy: proposing e-learning courses to contribute to a culture of creativity and innovation
Open Knowledge & Digital Storytelling Platform: setting-up a crowd powered platform for sharing studies, stories, good practices
UNITAR Creative Economy Initiative
Thanks for your attention
Video : UNITAR Creative Economy
www.unitar.org/ksi
Quotes and reproduction authorized with acknowledgement E. Dos Santos-Duisenberg