Creative Economy: Definition, Development and Impact

The creative economy is one of the most dynamic sectors of the global economy with strong transformative forces for socio-economic development. Creative economy deals with the interface between economics, culture, technology, and social aspects. Having creativity as a key driver, this sector is concentrated around products and services that contain creative content, cultural values, and market objectives. Creative goods and services are strong products because they rely on ideas, knowledge, skills and abilities to seize new opportunities.

Definition of Creative Economy

About twenty years ago, Creative Economy began to be used to describe various activities, some of which are written in history and some of which only emerged with the advent of digital technology. Many of these activities have strong cultural roots and the term 'cultural economy' has been used to describe theatre, dance, music, film, visual arts and the heritage sector, although the term itself is controversial because many artists feel it is demeaning. think of what they do as "economy".

No one can dispute the fact that these activities - both a narrowly defined cultural economy and a much broader new creative economy are increasingly important for the economies of many countries and provide employment to large numbers of people. But no government has tried to measure their overall economic contribution or think strategically about their importance unless, perhaps, the US government has, for almost a hundred years, protected and developed its film economy, not only because of its value to the US economy. but because it projects US culture and influence throughout the world. Although they are not an economic 'sector' that can be easily identified in aerospace, pharmaceutical or automotive ways is seen as a sector, one thing all these activities have in common is that they depend on the creative talents of individuals and intellectual generations. belongs to.

In addition, to regard them as 'sectors', however arbitrary the definition, draws attention to the fact that they are part of or contribute to various economies and professions, from advertising to tourism, and there is evidence that the skills and work styles of the creative sector began to have an impact on other economic fields, especially in the use of digital technology.

The first attempt to measure the value of the creative economy

In 1997, the newly elected Labor government in Britain decided to try the definition and assess its direct impact on the British economy. Drawing on a study published in 1994 by the Australian government, Creative Nation, and on the advice of a group of prominent creative entrepreneurs invited, the newly published Department of Culture, Media and Sports published the Creative Economy. The concept of intellectual property (in other words the value of an idea that can be protected by copyright, patent, trademark or other legal and regulatory mechanisms to stop it being copied or converted into commercial profit without permission from the person whose idea it is) is seen as the centre of understanding of the creative economy and so on.

Critics argue that this research creates the wrong difference and that individual creativity and talent are at the heart of many other fields of activity, from bio-science to engineering. Of course, that is true but this research intentionally chose not to include the creative work of scientists and engineers built on systematic analysis and inquiry, and instead focused on driving more random creativity in the social and cultural fields. Another criticism is that this study failed to recognize the difference between businesses that actually produce intellectual property value through individual creative talents, and usually small, SME or micro-less capital ('small or medium-sized businesses', meaning they have between 25 and 500 employees, or 'micro-business', which means they have 10 or fewer employees), and businesses that benefit from owning and exploiting intellectual property which is usually large, transnational capital tycoons with large capital, sometimes with little evidence of 'creativity' the way they operate. The two types of companies cannot be different from each other, but both are defined as part of the 'creative economy'. In spite of these and other criticisms, this research attracted considerable interest, especially when a follow-up analysis in 2001 revealed that this arbitrarily defined creative sector generated employment doubled from the level that underlies the UK economy as a whole.

Development of the Creative Economy

Twenty years later, the concept of the creative economy, and its importance, was recognized by almost every government in the world and began to give way to a much more inclusive idea of a broader 'creative economy'. Of course, the desire to define a particular economy as 'creative' persists, and will no doubt continue to do so. In some countries, the definition revolves closely around art and culture. Other countries have broader definitions which include, for example, food and cooking skills on the basis that food and cuisine have economic and cultural significance. Other countries have definitions that include established economics-to-business such as publishing, software, advertising, and design; The 11th Five-Year Plan of the People's Republic has one of its central themes, namely the need to "switch from China made to design in China" - a classic exposition of understanding that producing intellectual property is more valuable in the 21st-century economy than manufacturing products. Other countries, including the United Kingdom, have grappled with complicated questions about where to place the development of policies for 'creativity' in their governance structures - is that economic policy, economic policy, cultural policy, educational policy, or all four.

The more policy analysts and statisticians around the world think about how to assess the true impact of the creative economy, the clearer that far more basic rethinking is needed. For starters, the fusion of the arts and creative economy with digital technology gave rise to a whole new economy and skills that were not captured by internationally recognized templates for measuring economic activity, called 'SIC' and 'SOC' codes (Standards). Economic Classification and Standard Occupational Classification). This has the bad effect of making important areas of skills and new wealth invisible to governments and making international comparisons almost impossible. There is another obvious anomaly - not all jobs in the creative economy are 'creative' and many jobs are outside the scope of the creative economy, but there are those who choose to define them, obviously very creative. British organizations, Nesta, and others began to explore this field, coming to the conclusion that the amount of creative work in the 'non-creative' economy might be greater than the amount of creative work in the creative economy. How can someone begin to measure its impact? In addition, the huge impact of digital technology changes every economy, creative or not, while the internet opens various platforms for new creative expressions which, in turn, generate all kinds of new and very creative businesses.

For example, in the decade and a half of its birth, the videogame economy has surpassed the economic value of a hundred-year-old film. And if 'design' is included as a creative economy, which is clear, where does it leave the design process which is a creative discipline but whose impact is felt in every other field of economic activity from retail to transportation and health planning.

The more policymakers think of the creative economy, it becomes clear that it doesn't make sense to focus on their economic value in isolation from their social and cultural values. A United Nations survey of the global creative economy, published in 2008, shows that far from being a phenomenon of certain developed and post-economic countries in Europe and North America, the rapid growth rate of 'creative and cultural economies' is being felt on every continent, North and South.

The Impact Of The Creative Economy

In a period of rapid globalization, many countries recognize that the combination of culture and trade represented by the creative economy is a powerful way to give a distinctive image of a country or city, helping it to stand out from its competitors. The widely recognized values of cultural 'icons', such as the Eiffel Tower in France, the Taj Mahal in India, or the Sydney Opera House in Australia have given way to all cultural districts that combine art and commercial activity, from Shoreditch district in London with design studios, technology businesses, cafes, and clubs for large prestige projects such as the West Kowloon cultural district in Hong Kong or the cultural centre on Saadiyat Island in Abu Dhabi representing billions of dollars of investment.

Awareness of this wider significance is reflected in the 2009 British government publication, Creative Britain, which argues that effective long-term policies for the creative economy depend on policy initiatives, many at the city and regional levels, which are as much social as economic and that including, for example, the need for radical changes in the way children's education is planned, if the British economy wants to achieve long-term success as a home of creativity and innovation.

This, in turn, opens a new arena for discussion. It seems that these economies, especially the thousands of micro and small businesses that are on the cutting edge of creativity, may not only have increased economic significance but, in some cases, are a sign of an entirely new economic order, providing a new paradigm of the way in which businesses are organized, education is understood and provided, value is measured, work-life and career prospects of millions of people are likely to develop and how their cities will be planned and built. In particular, the rapid growth of automation and the use of artificial intelligence and robotics, which marked the so-called "Fourth Economic Revolution", have certainly had a large impact on jobs globally. Researchers at Oxford University estimate that up to 47% of jobs in the US can be replaced by machines over the next 20 years, while their figures for the UK are 35%. But a 2015 study by Nesta, 'Creativity vs. Robots' argues that the creative sector is to some extent immune to this threat, with 86% of 'highly creative' work in the US, and 87% in the UK, having no or low risk of being displaced by automation.

It is sometimes said that where oil is the main fuel of the 20th-century economy, creativity is the 21st-century fuel. In the same way that energy policies and access to energy are geopolitical determinants throughout the 20th century, it is possible that policies to promote and protect creativity will be important determinants of success in the 21st century. If that is true then we must rethink the way the government is governed, the way cities are planned, the way education is provided, and the way citizens interact with their communities. So, thinking about what we mean by creativity and the creative economy cannot be more important.

Thus the explanation of the definition of the creative economy, its impact and development.

Popular posts from this blog

Types Of Digital Marketing To Boost Your Business

Definitions Of Social Science In General And According To Experts

Various Ways Of Performing Hajj