WEEK 1: Analyzing Creative and
Cultural Industries (CCI)
1)Modelling the Cultural Industries
Cultural Industries:
-Combines the creation, production and commercialization of content which
create the culture
-Promotes and maintains cultural diversity and ensures democratic access to
culture
-Cultural goods and services (artworks, music performances, literature, film and
television programs, videogames etc.):
require some input of human creativity in their production.
are vehicles for symbolic messages to those who consume them, i.e.
they are more than simply utilitarian, insofar as they serve in addition
some larger communicative purpose; and
potentially contain some intellectual property that is attributable to the
individual or group producing the good or service.
-They yield cultural value in addition to whatever commercial value they may
possess, and that this cultural value may not be fully measurable in monetary
terms: goods and services are valued both by those who make them and
consume them, and it is not only limited to economic concerns because of:
spiritual concern, aesthetic considerations or the contribution of the goods and
services to community understanding of cultural identity.
-cultural goods and services can be seen as a sub-set of a wider category of
goods that can be called creative goods and services.
-the category ‘creative goods’ extends beyond cultural goods a to include
products such as advertising and software; these latter goods and services can
be seen as essentially commercial products, but they do involve some level of
creativity in their production.
-with all this, it almost seems like everything is creative industry, and the ones
which create culture can be seen as a sub-set.
Creative industries:
-Creative industries are defined as those requiring creativity, skill and talent,
with potential for wealth and job creation through exploitation of their
intellectual property.
-Human creativity is needed
-Goods & services (they can take this form)
-Commercial use (mostly used)
Cultural Goods vs Creative Goods
-cultural value -extends beyond cultural
goods
-transcends purely economic valuation
,Why is it important to make that distinction?
1) Estimates the contribution
2) Policy implications
3) Economic Analysis
Models of Cultural Industries:
-They exist to categorize cultural industries and to interpret the structure of the
cultural production economy.
1) UK-DCMS: Basically what UK Government calls creative industries.
2) SYMBOLIC TEXTS: This approach differentiates between high and popular
culture on the grounds of their different power dynamics regarding social
class, gender, and race/ethnicity. The processes by which a society’s
culture is formed and transmitted are portrayed in this model via the
industrial production and consumption of symbolic texts or messages,
which are conveyed by means of various media such as film, broadcasting
and the press.
3) CONCENTRIC CIRCLES: The model asserts that creative ideas originate in
the core creative arts in the form of sound, text and image, and that these
ideas and influ- ences diffuse outwards through a series of layers or
‘concentric circles’, with the proportion of cultural to commercial content
declining as one moves further outwards from the centre. Basis for the
creative industries in the UK.
4) WIPO COPYRIGHT: This model is based on industries involved directly or
indirectly in the creation, manufacture, production, broadcast, and
distribution of copyrighted works. Distinction is made between the
industries that produce intellectual property.
5) UNESCO INSTITUTE FOR STATISTICS: In its application to the cultural
industries, the model identifies five ‘core cultural domains’: cultural and
natural heritage; performance and celebration; visual arts, crafts and
design; books and press; and audiovisual and digital media.
6) AMERICANS FOR THE ARTS: This model is based on identifying businesses
involved with the production and distribution of the arts, labelled as ‘arts-
centric businesses
,
, Economic analysis of the cultural industries:
-Industrial Organization Theory
Enables for structure/conduct/performance analysis.
Focuses on market concentration, barriers for entry and exit of the firms
and degree of competition.
Relevant to models oriented towards the commercial production of goods
and services.
-Value Chain Analysis:
Production chain where initial creative ideas are combined with other
inputs to produce a creative good or service which may then pass-through
further value adding stages until it enters marketing and distribution
channels, and eventually reaches the final consumer.
Used by firms to analyze performance in different stages of the production
cycle.
-Inter-industry Analysis:
Output from one industrial sector as input to another sector (spillovers).
It has problems (needs so many data, too broad) to it is not as used. But
there is an alternative for it, named social accounting matrices (SAMs).
Similar tool requiring less data for analyzing the impact of industries.
-Locational Analysis
Network and agglomeration externalities in cultural production lead to
clustering of firms that benefit from being located close to other firms in
the same (or similar) industries.
Ex. Hollywood as a locational centre for film production
Used by governments to attract firms and develop cultural industries
clusters.
-Contract Theory and Property Rights
Characterizing creative activities with fundamental properties:
o Hollywood’s “nobody knows”: uncertainty of demand
o “Art for art’s sake”: irrational labor market
o “Infinite variety”: all products are more or less differentiated
o “Durability”: ability to yield rents over a long period
These characteristics of the industry are used by firms to develop optimal
contracts with value chain partners.
-Trade and Development
Theory of comparative advantage to explain specialisation of production in
different countries.
Assertion: free trade maximises world welfare (UNESCO versus WTO)
Free trade: agreement that two (or more) countries can do import and
export goods without any borders and limitations.
Cultural Industries (CCI)
1)Modelling the Cultural Industries
Cultural Industries:
-Combines the creation, production and commercialization of content which
create the culture
-Promotes and maintains cultural diversity and ensures democratic access to
culture
-Cultural goods and services (artworks, music performances, literature, film and
television programs, videogames etc.):
require some input of human creativity in their production.
are vehicles for symbolic messages to those who consume them, i.e.
they are more than simply utilitarian, insofar as they serve in addition
some larger communicative purpose; and
potentially contain some intellectual property that is attributable to the
individual or group producing the good or service.
-They yield cultural value in addition to whatever commercial value they may
possess, and that this cultural value may not be fully measurable in monetary
terms: goods and services are valued both by those who make them and
consume them, and it is not only limited to economic concerns because of:
spiritual concern, aesthetic considerations or the contribution of the goods and
services to community understanding of cultural identity.
-cultural goods and services can be seen as a sub-set of a wider category of
goods that can be called creative goods and services.
-the category ‘creative goods’ extends beyond cultural goods a to include
products such as advertising and software; these latter goods and services can
be seen as essentially commercial products, but they do involve some level of
creativity in their production.
-with all this, it almost seems like everything is creative industry, and the ones
which create culture can be seen as a sub-set.
Creative industries:
-Creative industries are defined as those requiring creativity, skill and talent,
with potential for wealth and job creation through exploitation of their
intellectual property.
-Human creativity is needed
-Goods & services (they can take this form)
-Commercial use (mostly used)
Cultural Goods vs Creative Goods
-cultural value -extends beyond cultural
goods
-transcends purely economic valuation
,Why is it important to make that distinction?
1) Estimates the contribution
2) Policy implications
3) Economic Analysis
Models of Cultural Industries:
-They exist to categorize cultural industries and to interpret the structure of the
cultural production economy.
1) UK-DCMS: Basically what UK Government calls creative industries.
2) SYMBOLIC TEXTS: This approach differentiates between high and popular
culture on the grounds of their different power dynamics regarding social
class, gender, and race/ethnicity. The processes by which a society’s
culture is formed and transmitted are portrayed in this model via the
industrial production and consumption of symbolic texts or messages,
which are conveyed by means of various media such as film, broadcasting
and the press.
3) CONCENTRIC CIRCLES: The model asserts that creative ideas originate in
the core creative arts in the form of sound, text and image, and that these
ideas and influ- ences diffuse outwards through a series of layers or
‘concentric circles’, with the proportion of cultural to commercial content
declining as one moves further outwards from the centre. Basis for the
creative industries in the UK.
4) WIPO COPYRIGHT: This model is based on industries involved directly or
indirectly in the creation, manufacture, production, broadcast, and
distribution of copyrighted works. Distinction is made between the
industries that produce intellectual property.
5) UNESCO INSTITUTE FOR STATISTICS: In its application to the cultural
industries, the model identifies five ‘core cultural domains’: cultural and
natural heritage; performance and celebration; visual arts, crafts and
design; books and press; and audiovisual and digital media.
6) AMERICANS FOR THE ARTS: This model is based on identifying businesses
involved with the production and distribution of the arts, labelled as ‘arts-
centric businesses
,
, Economic analysis of the cultural industries:
-Industrial Organization Theory
Enables for structure/conduct/performance analysis.
Focuses on market concentration, barriers for entry and exit of the firms
and degree of competition.
Relevant to models oriented towards the commercial production of goods
and services.
-Value Chain Analysis:
Production chain where initial creative ideas are combined with other
inputs to produce a creative good or service which may then pass-through
further value adding stages until it enters marketing and distribution
channels, and eventually reaches the final consumer.
Used by firms to analyze performance in different stages of the production
cycle.
-Inter-industry Analysis:
Output from one industrial sector as input to another sector (spillovers).
It has problems (needs so many data, too broad) to it is not as used. But
there is an alternative for it, named social accounting matrices (SAMs).
Similar tool requiring less data for analyzing the impact of industries.
-Locational Analysis
Network and agglomeration externalities in cultural production lead to
clustering of firms that benefit from being located close to other firms in
the same (or similar) industries.
Ex. Hollywood as a locational centre for film production
Used by governments to attract firms and develop cultural industries
clusters.
-Contract Theory and Property Rights
Characterizing creative activities with fundamental properties:
o Hollywood’s “nobody knows”: uncertainty of demand
o “Art for art’s sake”: irrational labor market
o “Infinite variety”: all products are more or less differentiated
o “Durability”: ability to yield rents over a long period
These characteristics of the industry are used by firms to develop optimal
contracts with value chain partners.
-Trade and Development
Theory of comparative advantage to explain specialisation of production in
different countries.
Assertion: free trade maximises world welfare (UNESCO versus WTO)
Free trade: agreement that two (or more) countries can do import and
export goods without any borders and limitations.
