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    A Critical Introduction to the Economic Literature with Reference to the British and German Record Industries

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    Cultural Industries - The British Experience in International Perspective, Cultural Industries, 02.02.2006 - 03.02.2006, Centre for British Studies, Humboldt-Universität zu Berlin, pp 71-9

    Cultural Policy and Development:What are Creative Industries and Why Do We Care?

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    This chapter suggests a framework to structure debates on cultural policy, drawing on the discipline of cultural economics. The aim is to inform cultural policymaking, in particular in middle-income countries such as India, which experience relatively rapid socio-economic change. This chapter challenges some common preconceived ideas regarding cultural and creative industries (CCI) and cultural policy, which inhibit constructive engagement with culture. For instance, I argue that we should not get stuck in definitional issues. Second, sophisticated cultural policy is desirable not just because CCI are large, but because of the dual challenge of extensive market failure in CCI and the great potential for problems with government failure in cultural policy. Third, CCI and the luxuries they supply are not negligible in developing countries that experience rapid, general economic growth but also need to cater for a large share of their population with limited access to more essential goods and services, regarding, for instance, health, nutrition, and shelter. To the contrary, in the course of socio-economic development, CCI have an increasing role to play. Fourth, the labour intensity of CCI should not be misinterpreted as a reason for its relative decline in the course of technological change. Fifth, in the case of India, following the example of CCI-related practices and policies in highly developed economies may be misleading. Different intellectual property institutions may be required, and the celebration of individual superstar creators exhibited in many countries may inhibit wide CCI participation in India. The chapter concludes with suggestions for further research on three overarching topics. When does art follow wealth and at what levels of general socio-economic development does it start working the other way around? How can CCI promote upward social mobility? How can policymakers ensure that digitalization promotes the performance of CCI regarding productivity, efficiency, and equity under swiftly changing socio-economic circumstances

    Cultural Policy and Development:What are Creative Industries and Why Do We Care?

    Get PDF
    This chapter suggests a framework to structure debates on cultural policy, drawing on the discipline of cultural economics. The aim is to inform cultural policymaking, in particular in middle-income countries such as India, which experience relatively rapid socio-economic change. This chapter challenges some common preconceived ideas regarding cultural and creative industries (CCI) and cultural policy, which inhibit constructive engagement with culture. For instance, I argue that we should not get stuck in definitional issues. Second, sophisticated cultural policy is desirable not just because CCI are large, but because of the dual challenge of extensive market failure in CCI and the great potential for problems with government failure in cultural policy. Third, CCI and the luxuries they supply are not negligible in developing countries that experience rapid, general economic growth but also need to cater for a large share of their population with limited access to more essential goods and services, regarding, for instance, health, nutrition, and shelter. To the contrary, in the course of socio-economic development, CCI have an increasing role to play. Fourth, the labour intensity of CCI should not be misinterpreted as a reason for its relative decline in the course of technological change. Fifth, in the case of India, following the example of CCI-related practices and policies in highly developed economies may be misleading. Different intellectual property institutions may be required, and the celebration of individual superstar creators exhibited in many countries may inhibit wide CCI participation in India. The chapter concludes with suggestions for further research on three overarching topics. When does art follow wealth and at what levels of general socio-economic development does it start working the other way around? How can CCI promote upward social mobility? How can policymakers ensure that digitalization promotes the performance of CCI regarding productivity, efficiency, and equity under swiftly changing socio-economic circumstances

    Introduction

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    Cultural Industries - The British Experience in International Perspective, Cultural Industries, 02.02.2006 - 03.02.2006, Centre for British Studies, Humboldt-Universität zu Berlin, pp 7-1

    Introduction

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    India is a land of an enormous number of traditional cultural industries which are juxtaposed with rapidly developing modern knowledge and cultural industries. Collectively, they offer India a possibility of faster economic growth. The present chapter introduces general issues in research on CCI and related policies, and specific opportunities and challenges in the case of India. It highlights the general themes emerging across this volume regarding CCI in India, including relevant reports and sources of data, growth of Indian CCI, clustering patterns, the social embeddedness of CCI, informality, and occasional linkages between traditional and pre-industrial modes of production in some Indian CCI with a wider trend of digitalization

    Cultural Policy

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    The development of cultural policy during the twentieth century is underscored by three key developments. First, the formation of the Arts Council of Great Britain in 1946, first headed by the Cambridge economist Lord Keynes, saw the scaffolding developed for ongoing government support for the arts. In doing so, it established the principle of an “arm’s length” relationship between the government of the day and individual artists, through the development of independent arts boards engaged in the peer review of creative works. Second, the formation of the Fifth Republic in France in 1958 saw the creation of a Ministry of Culture, headed by the writer André Malraux. Malraux and his successors have seen three major tasks for a national cultural policy: government support for the creation of new artistic and cultural works; the promotion and maintenance of cultural heritage; and enabling equitable access to creative works and creative opportunities through all segments of society. Finally, at a global level, agencies such as UNESCO have sought to promote national cultural policies as an element of national sovereignty, particularly in the developing world, and this has involved addressing sources of structural inequality in the distribution of global cultural and communications resources..

    Evolutionary Perspectives

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    The standard approach to industrial economics starts with the industry’s basic conditions, then runs through the structure–conduct–performance paradigm of industrial organization, and finally considers government regulation and policy. Most creative industries segments have been studied in this way, for example in Albarran (2002) and Caves (2000). These approaches use standard economic analysis to explain the particular properties and characteristics of a specific industrial sector. The overview presented here is different again. It focuses on the creative industries and examines their economic effect, specifically their contribution to economic evolu -tion. This is an evolutionary systems approach to industrial analysis, where we seek to understand how a sector fits into a broader system of production, consumption, technology, trade and institutions. The evolutionary approach focuses on innovation, economic growth and endogenous transformation. So, rather than using economics to explain static or industrial-organization features of the creative industries, we are using an open systems view of the creative industries to explain dynamic ‘Schumpeterian’ features of the broader economy. The creative industries are drivers of economic transformation through their role in the origination of new ideas, in consumer adoption, and in facilitating the institutional embedding of new ideas into the economic order. This is not a novel idea, as economists have long understood that particular activities are drivers of economic growth and development, for example research and development, and also that particular sectors are instrumental to this process, for example high-technology sectors. What is new is the argument that cultural and creative sectors are also a key part of this process of economic evolution. We will review the case for that claim, and outline purported mechanisms. We will also consider why policy settings in the creative industries should be more in line with innovation and growth policy than with industry policy

    Publishing

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    Publishing is no doubt one of the oldest and most diverse sectors in the creative economy. While publishing originally was associated with print and paper, the term is nowadays also commonly used to represent organizations that control, administer and license intellectual properties in other sectors of the creative economy such as videogames and music. While the title of this chapter is ‘Publishing’, we have no intention of covering all publishing related activities, but will focus on the economic consequences of digitization on two traditional and important print media sectors, namely books and magazines. Within these sectors we will specifically focus on consumer magazines and trade books, in other words books and magazines that are sold via commercial retailers to consumers. It is relevant to study these two publishing industries, since they share a number of very fundamental characteristics and have experienced similar economic consequences caused by the digitization of the creative economy. Both industries have undergone a gradual shift from print to digital and increasingly rely on revenues based on digital content carriers such as e- books, tablet magazine applications, special interest websites, blogs and so on

    From Prosumption to Produsage

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    Almost a decade after the 2004 O’Reilly Media conference which popularized the term ‘Web 2.0’, the impact of this concept on users and developers of the current generation of Web technology – and by extension, on the digital economy overall – is undeniable. At the time, ‘Web 2.0’ promised an interactive, engaging online space in which users were able to do more than surf from static, fixed Website to static, fixed Website. Although the implicit suggestion that the version change to ‘Web 2.0’ represented a clean break with this inflexible past must be read as mere marketing hype, the core principles which the concept outlined nonetheless form the operational basis for most mainstream Websites of the present day
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