Introduction
Growth and jobs in many nations are bolstered by the creative economy. From advertising and television to architectural, fashion, design, cuisine, and publishing music, it encompasses a wide range of creative industries. They’re playing an increasingly important role in enterprise development, which is helping to spur economic growth and create new jobs. There has been a dramatic increase in global creative economy employment, revenue, and export profits. Many are creating new groupings of artistic and creative activity as the economy grows beyond agriculture and industry. In the past, they were seen as outgrowths of economic activity rather than types of labor. While they may not be as well-known and lucrative as other businesses, they are becoming more evident that they provide high-paying professions. The marketing and gaming industries are part of the creative economy. Entrepreneurs who start small businesses, such as eateries and design studios, may also be counted on to thrive in the creative sector. They have a critical mass and a skill base because they operate in clusters inside cities and districts, much like the old craft industries. For this article, the emphasis will be on the drivers and shapers of the creative economy, which is expected to play a significant role in the economy of the future.
Factors Driving and Shaping the Creative Industry Policy
When it comes to the creative sector, a healthy and vibrant human resource is essential, since it involves the aspect of human operations with a variety of stakeholders throughout the innovation process. Additionally, the creative sector has asserted a place on legislative agendas across the world, claiming that technological advancements have revolutionized the way people produce and distribute cultural goods. Throughout the advanced economies, as well as in developing countries, there has been an increase in the discussion on the role of creative industries to the economy and society. Since the beginning of this discussion, the developing world has focused on unorthodox methods of addressing issues such as unemployment among young people and a change in the dependence of economic development on non-sustainable industries such as mining (Raymond et al., 2020). Over time, the concept of the creative industry has broadened to include a variety of sectors ranging from theater and entertainment to analysis and innovation; it also includes difficulties in terms of the economic effect of these sectors. Those with the ability to generate riches and create jobs in the creative business are those who are born with the ability to think creatively, have talents, and have a natural aptitude for something. Because of its ability to improve the economy, it has been gaining worldwide interest since the 1990s. While there is broad agreement on its positive impact, there is growing discussion over the negative consequences of its expansion, which include the commercialization of cities and increased inequality, among other things.
Internet and Technology
The creative economy is becoming more digital since it has a unique position at the convergence of arts, business, and technology. In addition to providing a level of size and speed that has not before been seen in conventional industry, the incorporation of culture and creativity into the value chains of high-end industries is driving demand for affluent consumers’ gadgets and operating system services. The internet and new technology have heightened competitiveness by offering more access to chances for individuals to participate in innovation and entrepreneurial endeavors. Technology has not only increased access but has also decreased the cost of beginning new companies and rendered creative entrepreneurship more accessible to a wider range of people. Additionally, digital technology allows for the management of creative projects from any place and at any size. Contrary to popular belief, customers’ ability to demand personalized goods improves as the importance of scale in production and services decreases. As a result, the actions of creative entrepreneurs are becoming more and more similar to those of technology corporations in terms of their use of content and information to expand their enterprises. The cultural sector is now represented by two of the top seven categories of products and services bought on the internet, which offers enormous potential for creative entrepreneurs trying to expand their businesses. This increases the possibility that the income split between artists and online platforms begins to tilt in favor of the latter, raising concerns about the long-term viability of these business models as people tend to change their preferences and businesses need to shift their models as well.
Technologies have become widespread and widespread in the creative industries, where they are frequently employed as means to straightforwardly improve creativity. Doing so, add value to the culture and life of societal structure overall, and to the identification of solutions to tackle obstacles or find answers to certain issues. New forms of artistic expression and whole new genres of art have resulted as a result of the growing interaction between the creative sector and technological advancements, such as video art, new media art, and digital art. the consolidation of internet, computing, telecommunications, and television technologies, as well as the possibilities they provide for electronic files, big data, linked data, modification, propagation, and expression of digital media, has had a significant impact on the creative industries. The worldwide web, computing, telecommunications, and television technologies have all had an impact on the creative industries. In terms of information distribution and sharing, as well as how we participate in the co-creation and co-production of art and data, the Web has completely transformed the way we do things. In today’s world, bookstores and record stores are no longer restricted to their physical location or by the physical restrictions that historically affected the amount of their stock: they may serve consumers from anywhere in the world and carry nearly any title they choose. Our approach to creating, distributing, and consuming creative material has changed as a result of the internet. In response, some internet proponents have said that the creative industry is thriving as a result of the Internet.
Strength of Locality
Numerous thriving creative economies may be located adjacent to institutions of higher learning, as well as technological and cultural hubs, enabling them to more readily use local talents and resources. They not only supply a consistent stream of varied, highly-skilled individuals, but they also often collaborate with industry to increase the speed of scientific discovery and advancements. When additional assets, such as venture money and willing shareholders, are available, a tantalizing mix of vision, expertise, and drive provides tremendous potential for expansion. According to some, the efficiency and accessibility of London’s financial and information infrastructures, as well as the city’s image as a gateway city, make it a leader in the world (Petrakis & Kafka, 2016). When it comes to mature and developed economies, this pairing is especially widespread since universities and colleges serve as anchor organizations that influence employees while also stimulating business growth. Such centers, it is important to note, may transform into ideal capitals that, when joined with financial and human resources, can ignite and sustain the creative economy’s ability to develop. Moreover, several innovative enterprises are rooted in customs that may be traced back decades, if not centuries, in their origins. Indonesia, for instance, has a strong cultural past as a result of dynasties and sultanate that encouraged wood and stone workmanship, ranging from the building of palaces and temples to the production of small-scale artisanal goods. Localities are primed for creative growth because of their existing and ingrained qualities, which include their historic local traditions and cultures. However, a thriving local creative economy adds to the buzz factors which contribute to the appeal of certain locations.
A successful creative center is linked worldwide, drawing individuals from different cities and nations because it’s feeling of excitement and interest is balanced seamlessly with its residential satisfaction or affordability. It is most often the unique outcome of historical or geographical traits that are impossible to imitate, such as London’s traversing of time zones or San Francisco’s nice temperature, but which provide the circumstances for creative economies to flourish. Some of these benefits are attainable via design. Important characteristics include easy access to amenities, physical or digital, as well as effective governance mechanisms. Fortunately, many creative economies contain areas of cheap working and residential space with potential for growth, which is typically where the creative classes establish themselves. The creative economy is increasingly concentrated in urban areas, and this trend is expected to continue as cities eventually become the primary source of a country’s development engine. Rather than in more isolated, suburban regions, the United States’ creative industries are showing themselves in densely populated, highly talent-driven metropolises that are more varied and inventive. In reality, metropolitan regions in the United States account for between 50 percent and 80 percent of investment projects, compared to less than 20 percent in most suburban parts of the country. Quite plainly, creative economies are areas where people desire to live since they are ideally positioned, have varied populations, and have excellent local facilities; even the environment or the caliber of restaurants may create a change in where people choose to reside. Once a creative hub has started to develop a critical mass of businesses, it becomes more appealing to other businesses in the same industry. According to the findings of research conducted in Portugal, creative enterprises prefer to locate in areas where other innovative and knowledge-based industries are concentrated to benefit from enhanced local sharing, interrelations, and local networking opportunities.
Role of government
The public sector is well-positioned to contribute to the creative economy because of several compelling incentives. Apart from the detrimental influence of the industry, the sector’s secondary advantages are enormous. For instance, it is approximated that Europe’s cultural heritage sector generates 26.7 jobs indirectly for every straightforward job created, whereas the equivalent figure for the country’s automobile industry is 6.3.17. The breadth of vocations and talents available covers anything from constructions to repairs and upkeep to tourism to business start-ups and advertising. Aside from that, creative activities provide advantages that are more difficult to quantify, such as well-being, social cohesiveness, and inspirational motivation, in equal amounts (Fazlagić & Szczepankiewicz, 2020). When governments use the appropriate combination of regulatory instruments to encourage creative entrepreneurs to establish and expand their enterprises, they may assist in creating the ideal circumstances for creative economies to thrive. Intellectual property, copyrights, patents, trademarks, and geographical indications are examples of what is protected. Aside from that, government agencies can offer incentives to creative entrepreneurs in the form of subsidies, discount codes, and discounted modern facilities, among other things. Some of these incentives not only make it easier to get financing, but they may also assist to attract private donors, whether they are philanthropists or investors. Having said that, competition is severe both across and within regions and nations. Employment in the video game development industry increased by 33 percent in the province of Quebec in just two years after the administration of Quebec provided a 37.5 percent tax break to the industry. Europe is frequently cited as slowing behind the United States in terms of start-up creation, a situation that has been exacerbated by the impacts on its creative economy that have resulted from a reduction in EU expenditure on cultural services in the wake of the financial crisis of 2008.
Apart from policies and incentives, authorities can openly promote the creative economy by investing in their country’s infrastructure on a broader scale, rather than just in specific projects. University funding serves to strengthen community resilience; broadening internet access tends to expand new economic systems; and advancing trade and investment opportunities, both domestically and internationally, helps to showcase the benefits that a creative economy can provide (Fazlagić & Szczepankiewicz, 2020). Local governments, particularly those in larger cities, have substantial budgets for promoting economic development in their respective areas. Providing them with guidance and highlighting the potential for more effective expenditures of public monies towards sustainable development would be prudent. The monies might also be used to help create the circumstances necessary for the growth of the creative industries themselves. Because the products of the creative industries are related to people’s capacity to think imaginatively or symbolically, to question conventional thinking, and to advocate for symbolic and emotive communication, the outcomes of the creative industries are important. When the creative industry is integrated into a comprehensive quality and investment plan, it can improve the revival of the national economy, which is characterized by hybrid and dynamic economic and cultural interactions. In addition to promoting the general well-being of communities, investment in culture, social capital, and the creative industries as the cause of social transformation may provide dividends that enhance personal self-esteem and standard of living, as well as discourse and community cohesiveness. The creative industries, with their potential to assist both cultural and commercial aims, serve as a connection between conventional knowledge and the end consumer. When looked at in this light, the creative and cultural sectors are considered as being congruent with the concept of sustainability.
Inspired Entrepreneurs
A growing body of evidence indicates that creative entrepreneurs who lead businesses learn little from their counterparts than ordinary workers, largely as a result of time constraints and organizational hierarchy. As a result, they are likely to benefit considerably from mentorship provided by role models. When communicating with creative types and lawmakers who collaborate in the creative economy, it is clear that there is a strong demand for connectivity to role models. This demand led to the realization that increasing awareness about effective creative entrepreneurs, both regionally and abroad, can help stimulate others to participate in the creative economy and to become more entrepreneurial themselves (Maryunani & Mirzanti, 2015). In an ideal world, public awareness-raising would even include direct engagement. Several creative hubs are fueled by successful people who serve as role models for others by demonstrating what is achievable while also encouraging and teaching other creative businesses. Encouragement of communication between prospective entrepreneurs and those who have succeeded in their endeavors gives a helpful platform for talent exchange and motivation. The concept of mentoring is already closely associated with the performance of start-ups. Its advantages include that the owner-leadership manager’s characteristics, as well as their entire view and capabilities, may be improved by drawing on the mentor’s expertise, experience, and connections.
Entrepreneurs often invent new technology, introduce new goods or process breakthroughs, and expand their businesses into new markets. The radical ideas offered by innovators such as Sergey Brin (Google), Bill Gates (Microsoft), and Steve Jobs (Apple) to mention a few, are numerous and well documented. Economic development is often triggered by radical inventions. Entrepreneurs who bring new products to market make significant contributions to the advancement of the economy by creating significant value. When contrasted to established enterprises, emerging firms make more investments in the quest for new prospects. Firms that are already in business may be less inclined to create due to organizational inertia, which impairs their ability to respond to market shifts, or since new items would interfere with their already existing product lines, among other reasons (Prasetyo, 2019). Due to the sheer fear of gobbling up their markets, incumbent corporations often miss out on chances to embrace new ideas, sometimes on purpose. This is especially true in the technology sector. In many cases, for inventors and entrepreneurs who may or may not come from established companies, starting their own company looks to be the only viable option for bringing their ideas to market.
Conclusion
The importance of the creative economy in terms of the economy is undeniable; nevertheless, its effect extends beyond what can be quantified just in terms of economic production. It is a method for rebuilding the urban fabric while also providing opportunities for employment and social participation. Creative businesses depend mostly on their employees’ abilities and artistic vision, rather than on monetary investments. In places where industrial premises are empty and workspaces are reasonably priced, they grow their operations. These services, in contrast to treasury management services, are available to craftsmen and people with craft talents, thereby promoting social inclusion. This essay includes guiding concepts for people who want to expand their creative economy to a larger audience. The job of the government is to encourage the growth of the cultural environment, instead of attempting to force top-down development on the ecosystem as a whole. It is necessary to collaborate with artistic, scientific, and institutional environments to maximize their potential. It is vital to encourage and facilitate the development of a holistic ecosystem; exploiting established creative and cultural resources may act as an enabler in and of itself. Additionally, supporting investments and activities via regulatory systems, safeguards, and incentives is critical to the success of the economy. All of these efforts have the potential to generate favorable circumstances for the development of creative economies.
References
Fazlagić, J., & Szczepankiewicz, E. I. (2020). The Role of Local Governments in Supporting Creative Industries—A Conceptual Model. Sustainability, 12(1), 438. https://doi.org/10.3390/su12010438
Maryunani, S. R., & Mirzanti, I. R. (2015). The Development of Entrepreneurship in Creative Industries with Reference to Bandung as a Creative City. Procedia – Social and Behavioral Sciences, 169, 387–394. https://doi.org/10.1016/j.sbspro.2015.01.324
Prasetyo, P. E. (2019). ROLE OF ENTREPRENEURIAL CULTURE AS THE DRIVER OF ECONOMIC GROWTH. International Journal of Economics and Financial Issues, 9(3), 237–243. https://doi.org/10.32479/ijefi.7882
Petrakis, P. E., Kafka, K. I., 2016, ‘Entrepreneurial Creativity and Growth’, in M. Franco (ed.), Entrepreneurship – Practice-Oriented Perspectives, IntechOpen, London. 10.5772/65453.
Raymond, C., Horton, R.M., Zscheischler, J., Martius, O., AghaKouchak, A., Balch, J., Bowen, S.G., Camargo, S.J., Hess, J., Kornhuber, K. and Oppenheimer, M., 2020. Understanding and managing connected extreme events. Nature climate change, 10(7), pp.611-621. https://www.nature.com/articles/s41558-020-0790-4
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