Intro

VILNIUS GEDIMINAS TECHNICAL UNIVERISTY
FACULTY OF CREATIVE INDUSTRIES

DEPARTMENT OF CREATIVE INDUSTRIES
INTRODUCTION TO THE SPECIALTY
FINAL ESSAY
The development of creative economy (1 question)
Gabrielė Staškevičiūtė
KIFU-22
VILNIUS, 2022
The development of creative economy
The creative economy consists of economic systems where value is based on

imaginative qualities rather than the traditional resources of land, labor and capital.
Compared to creative industries, which are limited to specific sectors, the term is
used to describe creativity throughout a whole economy" – John Howkins. The
concept of creative economy can best be summed up as the income-earning
potential of creative activities and ideas. Simply, creative economy is about the
relationship between creativity and economics. Creativity is not new and neither is
economics, but what is new is the nature and extent of the relationship between
them and how they can be combined to create value and wealth. The creative
economy encompasses careers in photography, graphic design, fashion design,
filmmaking, architecture, publishing, video games and more.
The roots of today's creative economy go back to two main themes on the nature of
work and especially the relationship between the individual and their work. The first
started with the industrial revolution and focused on urbanization, information and
knowledge, and was developed by economists and management writers. When
people think about industrialization in the second half of the 19th century, most do
not think about art. Nevertheless, the wealth that spread throughout society and
expanded the middle class also stimulated the art market. People had more time to
devote to art, meaning creators had a broader field to work with when trying to
understand what was meaningful to consumers and how to create meaningful art out
of available resources. More open and expanded markets made possible “forms of
creative individuality” never seen before in history. “The greater the size of the
market, the greater the number of artistic forms that creators can earn a living from.”
In the second half of the 20th century these ideas were expressed as the Post-
Industrial Society, Information Society, Knowledge Society and Network Society.
These concepts prioritized data and knowledge over the individual's creation of new
ideas and made little reference to an individual's personal creativity or the cultural
context. The second theme was the arts and culture. Europe began to recognize
culture's economic elements and to develop the concepts of cultural industries and
creative industries in the 1990s. These prioritized culture, design and media.
The primary role of individual creativity as the defining source of the new economy
was put forward by John Howkins in 2001. He prioritized creativity rather than either
information or culture. He defined a creative product as an economic good, service
or experience resulting from creativity and with the characteristics of being personal,
novel and meaningful. He said its defining characteristics are twofold: it results from
creativity and its economic value is based on creativity.
Regardless of how you define the creative economy, experts seem to agree on one
thing: It’s growing at a record-setting pace. Some of this growth can be attributed to
the expansion of internet use, taking advantage of more people spending money
online and the relative ease of delivering creative products around the world thanks
to advances in technology. Others point to increased arts programs as the reason
behind the growth, which is becoming more common as governments around the
world begin to recognize the value of the creative sector. The creative economy is a
key part of the economy, and it’s only going to become more important in the years
to come. In fact, recent studies have shown that the creative economy is likely to be
a key driver of economic growth in the years to come. There are a few increasing
issues in the creative economy, though.
Firstly, the COVID-19 pandemic crisis has changed the economy massively. During
these times, wide-spread closures of borders, venues and physical distancing
measures are impacting whole segments of the creative economy. Many people
working in the CCIs (cultural and creative industries) have lost their jobs. Live
performance and venue-based industries have been the hardest hit, impacting
livelihoods, artist mobility, market access and artistic freedom, together with broader
repercussions for the value chain of suppliers and service providers. The crafts
sector, a critical employment provider for many countries, has experienced a
massive downturn. The crisis has accelerated pre-existing trends, in particular
digitalization, and has exposed the pre-existing inequalities and precarities of the
creative economy in most countries around the world, including countries where
public support schemes for the creative sector are in place.
Secondly, digital media has drastically reduced the barrier to entry for creative work.
Anyone can start a website and share videos or other media with relative ease. With
a low barrier to entry, more people than ever are embarking on creative careers,
both through conventional employment and entrepreneurial freelance ventures. This
isn’t a bad thing—but it does mean some creators are facing increased competition
for their work. This doesn’t necessarily signify a job crisis in the creative sector, but
rather identifies potential growing pains as the industry adapts to the digital age.
Additionally, the current crisis of digital age is bringing the social and economic
weight of the creative economy to the attention of decision-makers, triggering
countries to reform their policies. The scope of disruption to the creative sector,
notably in terms of employment, comes as a wake-up call. Countries are urged to
renew their economic models and strengthen public policy investment in a sector
where global digital platforms now form monopolies that challenge the role of public
policies. Indeed, the creative economy should be acknowledged as an economic
engine – a recognition that is now clearly stated by world leaders, including those
from some the world’s largest economies, as shown by the inclusion of culture in the
most recent G20 for the first time in history. Yet, crucially, it must be strongly
supported by coherent, effective and integrated public policies. There is still a long
road ahead in terms of the adaptation of public policies.
However, today the situation of creative economy seems pretty good for creators. If
we are to thrive in business we must be creative. Business is a creative activity.
Success in business today demands constant innovation. Generating fresh solutions
to problems, and the ability to invent new products or services for a changing market,
are part of the intellectual capital that gives an organization its long-run sustainable
competitive advantage.
While brain power is our most valuable resource, great ideas are in short supply.
Creativity is the root of innovation. It is a process and a skill which can be developed
and managed throughout the entire organization. Nowadays competition among
these networks can be observed, while their growth has also become more and
more significant. There is a connection between business networks and innovation.
The network itself can be a form of innovation. Business networks can also produce
innovations.
In general, it can be said that the effect of the creative economy on jobs, income,
creativity is huge. The creative industries and economy enrich people’s lives, they
shape the distinctive features of different societies as well as providing the means by
which cultures and communities communicate with each other. They bring pleasure,
color and insight. They make life better and they are, to a very great extent, an
expression of rising living standards. The creative economy is becoming an
increasingly important driver of economic growth. By creating new opportunities for
businesses and creatives to collaborate, the creative economy is generating new
jobs and businesses. As the world becomes more connected, the opportunities for
the creative economy will continue to grow.
LIST OF LITERATURE:
Bibliography:
https://www.rasmussen.edu/degrees/design/blog/what-is-the-creative-economy/
https://cvsuite.org/resources/creative-economy/
https://www.unesco.org/en/articles/cutting-edge-creative-economy-moving-sidelines
https://medium.com/@nassim.elqochairi/the-creative-economy-a-key-driver-of-
economic-growth-c9a82267abb7
https://en.wikipedia.org/wiki/Creative_economy_(economic_system)
https://www.thepolicycircle.org/minibrief/the-creative-economy/
British Council - The creative economy:
https://www.researchgate.net/publication/42437328_THE_CREATIVE_ECONOMY

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VILNIUS GEDIMINAS TECHNICAL UNIVERISTY

FACULTY OF CREATIVE INDUSTRIES

INTRODUCTION TO THE SPECIALTY

The creative economy consists of economic systems where value is based on

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