Creative Economy: Innovation, Trade and

Business Opportunities Edna dos Santos-Duisenberg

Plenary Session 2: An Infinite Opportunity: Creativity and Innovation

CLUSTERS IN A CREATIVE ECONOMYNEW AGENDAS FOR COMPANIES AND POLICY-MAKERS

Creative Economy: Innovation, Trade and Business Opportunities

Edna dos Santos-Duisenberg

(creative.edna@gmail.com)

International Consultant, Creative Economy & DevelopmentFounder, Former Chief, Creative Economy Programme – UNCTAD

Policy Advisor, United Nations Institute on Training and Research –UNITAR

November 2015 – Daegu, Korea

I. A changing world and new challenges

II. Creative economy and contemporary society

III. Creative nexus, clusters and innovation

IV. Culture, trade and business opportunities

V. Knowledge, education and creative minds

A changing world

and

the new challenges…

A world in transformation

From the industrial to the knowledge-based era Strucutural, technological, social and cultural changes Globalization and connectivity changed our life style Climate change and migration became serious issues Geo-political and religious tensions causing insecurity

Imbalances, inequality and instability

Crisis… and a fragile recovery Despite the recovery the world economy remains fragile

USA economic growth was 3.7% during first half 2015 Europe may grow by 1.7% in 2015, the worst is behind

In emerging countries growth is decreasing China growth is decelerating (7% in 2015; 10.4% in 2010)

Instability in financial and currency markets (US$/CHF/E)

Rise of unemployment in advanced countries

Highly endebted public and private sectors

Boom-bust economic cycles

Economic activity in Asia

Asia remains the fastest growing region (6% GDP) Half of global growth in 2015 led by domestic demand Aging population, people with high purchasing power Youth and eldery consumes more creative products Low unemployment and growing wages Strong intra-Asian trade stimulates exports (ASEAN) Investing in R&D, IT and high-tech sectors

Rebalancing the global economy

Policy challenges and global governance

Restore global economic growth Ensure employment and social stability Redress gaps in inequality Need to improve global governance (from G-8 to G-20) Review priorities in national policies Calls for financial reform

Towards a bold agenda

A changing world

Our world is complex, there are new forces New product development processes How to capture competitive advantage?

A new wave of collaboration to nurture value creation

How to stimulate the creative process? How to combine dynamism and uncertainties?

Deliver innovation remains a top challenge

Creative economy

and

contemporary society

Culture, creativity and collaboration

In a knowledge-based era information only is not enough

Culture adds values, identity and sense to life

Creativity is needed to make the best use of knowledge

Technology is not an end but a process to foster innovation

Co-creations, networks and multidisciplinary teamwork

Top-down policies evolving towards partnerships

Creativity is driving growth, jobs and innovation

The creative economy in a new phase

Creative clusters, Creative class Creative cities, Creative entrepreneurship

Institutional and policy frameworkResearch and policy analysisIntergovernmental debatesEconomic and development agendaA priority in national policies

From theory to practice

Creative Economy / Creative Industries• The cycle of creation, production

and distribution of goods and services that uses criativity and intellectual capital as primary inputs

• Comprise tangible goods and intangible services, focused but not limited to arts, with creative content, economic value and market objectives

• Produces creative products able to generate revenues through trade and intellectual property rights

• Are at the cross-road among the artisan, manufacturing and services (UNCTAD)

CreativeEconomy

CreativeIndustries

Creative Industries

The creative economy in the contemporary society

Interface among economics, technology, cultural and social aspects and its interactions with the whole economy

Digital technologies influenced the way creative products are created, produced, re-produced and distributed

National cultural objectives, social innovation and civil society engagement are gaining prominence

Creative economy: style, brands, status and life experiences

People are eager for culture, social events entertainment and

leisure

Creative Nexus

Clusters

and Innovation

The creative nexus

Creativity

Educati

on Knowledge

CultureInformation

TECHNOLOGY ENTREPRENEURSHIP

INVESTMENT TRADE

Source: UNCTAD (Dos Santos, 2007)

Creative clusters and districts

Creative clusters helps the growth of creative production

By clustering firms can benefit from linkages and spillovers

Firms can share knowledge, information and costs

Clusters facilitate cultural and social interactions

Government and corporations working together

Blending competition and cooperating

Creativity and soft innovation

Creative ideas – innovation across sectors

New art forms, new business models, co-creations

Prêt-à-porter fashion, top ten, video clips, games

New products, differentiation help to accelerate the economy

The upsurge of creative professionals

Shift in management paradigms

20th Century 21st Century

scale and scope speed and fluiditypredictability agilityrigid organizations fluid boundariescommand and control creative empowermentreactive and risk averse entrepreneurstrategic planning profit and purposecomparative advantagecompetitive advantage

Learning from the past…. and building the future

Korea’s Creative Clusters From manufacturing to high-value sectors

Korea has top mobile phone companies Fastest Internet speeds in the world

Developed the first digital textbooks freely distributed to students

Innopolis Daedeok - Science town Smart city – hub of future (40 years)

Daegu cluster – Smart IT , Mobiles Green Energy, Medical Materials

R&D, industry and business

Culture

trade

Business opportunities

Creative enterprises…creative business

The creative economy is different Require specific rather than generic policymakingBig distinction between value-chains Different markets, technologies and distribution systems

Three important dimensions : Organizational : missing middle (Hollywood, independent artist) Operational : fast turnover of products, soft innovation cycle Locational : clustering or co-location, creative place-making

Creative economy brings many business opportunities

ICT tools unlocked the trade potential for digitalized creative content : music, films, games, advertising, books ..

Every day everywhere everybody consume creative products

The creative economy also contributes to social cohesion, cultural diversity and sustainability

Creative products are environmental-friendly contributing also to the transition towards the green economy

Creative goods and services are high-growth sectors

Creative business integrating culture and networks

Innovation-driven companies have to adapt- put art, design and science into a commercial context

A new company culture that favours : Flexibility over conformity Questions over answers Critical thinking over assumptions Teams over structures Doing over studying

Economic viability and sustainability

World trade of creative products

050

100150200250300350400450500

2002 2008 2011

Creative goodsCreative services

Source: UNCTAD Creative Economy Database

Global trade of creative products more than doubled in a decadereaching 624 billion dollars in 2011 with an annual growth rate of 8.8%

(million US dollars)

Korean culture & creative strengths

Korea has an old history and a rich culture

Architecture “harmony with nature” mixing old and new Traditional knowledge is preserved through dances, tea

ceremony, cuisine, pottery and porcelain International events and exhibitions : Olympic Games Korean films /TV dramas gaining international recognition K-Pop music and shows – “Korean wave – Hallyu” (Psy)

Policies to support traditional and new art forms A new cultural image

Growing markets for digital creative content

Advertising: Internet advertising is a growing market More time spent online in social networks and e-commerce

Games : Another market in expansion – US$ 60 billion Online mobile games overtaking console games

Music: Growing audience for digital music in smart phones

E-books : Shift from printed books to cheaper e-books

Home videos : Digital videos will double in 5 years

30% of total spending in leisure, entertainment and tourism

Innovation and Competitiveness

Competitiveness a race among countries and companies

New products replacing older ones (creative destruction)

Companies able to invest and innovate will survive

High-value industries gaining market share, other will lose

Social mobility may reflect differences in talents and choices

Creativity, skills and ability to seize opportunities

Partnerships and Strategic Alliances

Creative economy is a big business

Employs millions of people Promotes growth Attract investments Collaborative financing Public-private partnership Engaging research Providing support

services

Knowledge

education and

creative minds

Will this new generation learn more ?

Many parents are blaming this new generation:- too much gaming- always on computing- illiterate texting - too much information not assimilated- worries about privacy

End of classic classes? Ability to process data cheaply, high-speed mobile networks, low-priced tablet devices, digital education Ed-tech – the way ahead

Teaching for creative minds

From «one-size-fits-all» to a more personalized education Students should be taught at a different speed New interactive digital text books, online gaming Class time spent in refining and testing knowledge Curricula of schools and universities should be adapted to new realities – multi-disciplinary and new methodologies Need to study cross-cutting issues : arts, law, design, economics, ICT, science, management

Creative economy is knowledge-intensiverequires specific skills and high-level of education

The ecosystem for creative development

Creative capacity

EducationSkills & Creativity

Life learning

Connectivity & network

ICT infrastructure

broadband, mobility public

access

Dos Santos-Duisenberg, 2015

How to stimulate creativity and innovation ?

The main inputs to nurture the creative economy are intellectual capital, knowledge and education

Education and continuous learning are drives of innovation

Creatives should transform creative ideas into tangible goods and intangible services with economic and cultural value

Youth is attracted by cultural, creative and artistic expressions

Creative activities usually provide greater levels of satisfaction providing more autonomy, diversity and flexibility

Enhancing creative capacities

The United Nations promotes the creative economy

Capacity-building assistance can be provided in many areas :

Transformative dialogues on creative economy: creating space for conversations so as to favour innovative approaches

Transformative development strategies: empowering policymakers to design strategies to nurture the creative economy

Creative Entrepreneurship: providing courses to develop skills on creative entrepreneurship targeting youth and women

Creativity & Creative Economy: proposing e-learning courses to contribute to a culture of creativity and innovation

Open Knowledge & Digital Storytelling Platform: setting-up a crowd powered platform for sharing studies, stories, good practices

UNITAR Creative Economy Initiative

Thanks for your attention

Video : UNITAR Creative Economy

www.unitar.org/ksi

Quotes and reproduction authorized with acknowledgement E. Dos Santos-Duisenberg