Temple Bar Talks: P. Kern

Cultural Policy: A New Deal For Ireland

Dublin

June 2011

Plan

• Culture as a source of economic growth and employment

• Culture as a source of innovation and creativity

• Redesigning cultural policy

• Policy recommendations

CORE ARTS FIELDS

CULTURAL INDUSTRIES

CREATIVE INDUSTRIES AND ACTIVITIES

RELATED SECTORS

Visual Arts

Heritage

Performing Arts Books and Press

Television and RadioMusic

Video Games

Film and Video

Advertising

Architecture

Design

Consumer Electronics

Telecommu-nications

Industrial Design

Software

Tourism

Education

Fashion Design

User Generated Content

Luxury brands

“Creative people do not get the backing they deserve because you can’t put a figure on creative value”.

Ian Livingston, Creative Director Eidos

Evolution CCIs in the EU economy

TURNOVER More than €654 billion in 2003

VALUE ADDED TO GDP

2.6 % of EU GDP in 2003 3.3% of EU GDP 2006

CONTRIBUTION TO GROWTH

12.3% higher than the growth of the general economy in 1999-2003

EMPLOYMENT In 2004 5.8 million people employed.

= 3.1% of total employed population in EU25.

In 2008 6.7 million people employed in EU-27

3% total people employed in 2008

Sources: KEA, The Economy of Culture 2006, European Competitiveness Report 2010

Creative industries in Germany National Development

Source: Cultural and creative industries: Growth Potential in Specific Segments, Deutsche Bank research, April 29, 2011

Creative Industries in Germany

Source: Cultural and creative industries: Growth Potential in Specific Segments, Deutsche Bank Research, April 29, 2011, p. 2.

Creative Industries in Germany

Source: Culture and Creative Industries in Germany 2009, Monitoring Report 2010, BMWI, p. 7.

Creative Industries in Germany

Source: Culture and Creative Industries in Germany 2009, Monitoring Report 2010, BMWI, p. 8.

Evolution Copyright industries in the US Economy

TURNOVER Films, TV programmes, software, books, music represented

USD 819 billion in 2006 USD 889.1 billion in 2007

VALUE ADDED TO GDP

6.6 % of US GDP in 2006

6.44% of US GDP in 2007

CONTRIBUTION TO GROWTH

Almost 13% of the overall US growth in 2005

Almost 23% of overall US growth in 2006-2007

EMPLOYMENT In 2005 5.38 million people employed.

More than 4% of total US workers

In 2007 5.6 million workers

More than 4% of total U.S. workers

Source: IIPA, Copyright Industries in the U.S. Economy:The 2003-2007 Report, 2009.

Evolution CCIS in Chinese economy

• RADIO AND TVRevenues grew 11,4% from 2008 to 2009.

• FILMYearly benefits increased 26.5% over 2008 and box office revenues (excluding rural market) increased 42,96% over 2008.

• PRESS AND AUDIOVISUALIn 2009, it imported 18.7% less publication copyrights than in 2008 and exported 71.2% more than in 2008.

TURNOVER €47.6 billion in 2006

VALUE ADDED TO GDP

2.45% of GDP in 2006

CONTRIBUTION TO GROWTH

6.4% higher than the growth of the general

economy

EMPLOYMENT 11.32 million = 1.48% of total employed

population in 2006.

Sources: Chinese National Bureau of statistics 2006,

China Trade in Services Report 2010, Ministry of Commerce of China, 2010

“Not everything that counts can be measured, and not everything that can be measured

counts.”

Sempé

The Components of Culture-based Creativity

ARTISTIC SKILLS

(expertise)

LATERAL THINKING SKILLS

A CONDUCIVE ENVIRONMENT

CREATIVITY

The features of culture-based creativity which generate value are described below.The features of culture-based creativity leading to innovation:

Affect Spontaneity Intuition Memories Imagination Aesthetic

Generate values:

New vision Differentiation Intangible Disruption Community Values

Culture-based Creativity leading to Innovation

PUMA – A Successful Culture based Creativity Strategy

1999 - Decision “for a strong focus on creative approaches in marketing, design, technology, to deliver distinctive, irresistible products and concepts in the pursuit of its brand mission....

...“to be one of the most desirable sport brands in the world.”

(Jochen Zeit, CEO)

CREATIVE PUMA (in millions)

Star promotion: Maradona to Ph. Starck (2004), Marc Wanders (2007), Hussein Chalayan (2008)

2006 - “Most desirable lifestyle brand.”

1999 2008

Sales €372 € 2.500

Profits €108 € 1.300

CONTRIBUTION OF CULTURE-BASED CREATIVITY TO BUSINESS STATEGIES

Creativity

- Product innovation

- Branding

- Human Resources

- Communication

CONTRIBUTION OF CULTURE BASED CREATIVITY TO SOCIAL INNOVATION

Creativity

- Social cohesion

- Community regeneration

- Innovation in public services

Creativity

CONTRIBUTION OF ART AND CULTURE TO STIMULATE CREATIVITY IN LEARNING

- Stimulates divergent thinking

- Promotes social integration and mobility

- Encourages learning

Creativity – Multi-dimensional

Creativity” is defined as a cross-sector and multidisciplinary way, mixing elements of “artistic creativity”, “economic innovation” as well as

“technological innovation.”

Economic creativity

Cultural creativity

Scientific creativity

Technological creativity

A process of interactions and spill-over effects between different innovative processes

Implementing Creativity

« The key to creativity is to be prepared to accept the unexpected »  R. Austin

Requires :• Acceptance of spontaneity • The right balance between freedom and operational efficiency • Trust , respect and time • Acceptance of failure• Willingness to challenge conventions• Breaking down barriers between disciplines

Creativity requires an environment , a mindset to flourish – it can be inimical to organisations whether in the public or the private sector.

Innovation Union Flagship Paper

• “Our strengths in design and creativity must be better exploited….”

• “We must purse a broad concept of innovation, both research-driven innovation and innovation in business models, design, branding and services that add value for users and where Europe has unique talents…. ”.

• “The creativity and diversity of our people and the strength of European creative industries, offer huge potential for new growth and jobs through innovation, especially for SMEs”.

EU support to Creativity and Innovation2007-2013 (in € billion):

Innovation:

FP7: 53 CIP: 3.6Structural Funds: 87

Total: 153.6

Culture based Creativity:

CULTURE: 0.4MEDIA: 0.7Structural Funds: 6

Total : less than 7.1

Structural Funds: € 347 billion

Presidency Conclusions, Brussels European Council, 13-14 March 2008

“A key factor for future growth is the full development of the potential for innovation and creativity of European citizens built on European culture and excellence in science.”

A strategy for a Creative Ireland The role of cultural policy

• Creativity is an essential competitive tool

• Creativity is a key component of innovation

• Creativity nourishes large sectors of the economy (textile, car, ICT, other industries)

The European cultural and creative sector - Strengths and weaknesses

Plenty of individual talent but with limited business skills and attracted to the USA (creativity drain)

Some of the largest competitive players at global level

but they lack same power and leverage than the US-based creative industries on governments

A myriad of creative SMEs with strong local presence

market access and undercapitalisation problems

Importance of the public sector but a resistance in taking stock of international challenges

Sustained consumer demand (growth in demand for content)

but poor understanding of consumers’ demand in relation to the digital economy

Strong IP laws in the EU but poor enforcement in some countries (piracy levels) and subsidising broadband rollout.

A Creativity Policy Objectives

• Encourage imagination and talents at school, in life, in enterprises and public institutions.

• Support the development of a creative economy by integrating creativity in innovation policies.

• Promote social innovation and inclusion through culture.• Brand Ireland as The place to create in the world. • Balance a policy vision entirely subject to economic

ends.

A Creative Ireland Recommendations

• Value culture as an important resource of creativity

• Mainstream culture-based creativity in local policies and programmes to foster innovation (economic and social)

• Re-direct existing financial resources to stimulate creativity (to support non technology innovation)

• Brand Ireland as THE place to create.

• Question and tailor regulatory and institutional supports to creativity and cultural collaboration – redesign cultural policy

Conclusions : redefine cultural policy ?

• Show the importance of artistic talents and cultural activities in the process of innovation, in education , in research (break the silos).

• Enable spillovers in other economic and social activities

• Ensure that innovation policy includes culture-based creativity.

• Develop a narrative on cultural policy that go beyond heritage preservation or tourism.

Philippe Kern

51 Rue du Trône

B -1050 Brussels

+32 2 289 26 00

[email protected]

www.keanet.eu

www.keablog.com

Credits :

Sempé – Le Monde de Sempé (vol1), Edition Denoel

Alan Parker – Making Movies, British Film Institute