Sunday 26 June 2016


by Hugho Deogratius
The creative industries refer to a range of economic activities which are concerned with the generation or exploitation of knowledge and information. They may variously also be referred to as the cultural industries (especially in Europe (Hesmondhalgh 2002, p. 14)) or the creative economy (Howkins 2001), and most recently they have been denominated as the Orange Economy in Latin America and the Caribbean

Properties or characteristics of creative industries



A toy cat produced in a South-African township, made from used plastic bags and old wire

According to Caves (2000), creative industries are characterized by seven economic properties:

  1. Nobody knows principle: Demand uncertainty exists because the consumers' reaction to a product are neither known beforehand, nor easily understood afterward.
  2. Art for art’s sake: Workers care about originality, technical professional skill, harmony, etc. of creative goods and are willing to settle for lower wages than offered by 'humdrum' jobs.
  3. Motley crew principle: For relatively complex creative products (e.g., films), the production requires diversely skilled inputs. Each skilled input must be present and perform at some minimum level to produce a valuable outcome.
  4. Infinite variety: Products are differentiated by quality and uniqueness; each product is a distinct combination of inputs leading to infinite variety options (e.g., works of creative writing, whether poetry, novel, screenplays or otherwise).
  5. A list/B list: Skills are vertically differentiated. Artists are ranked on their skills, originality, and proficiency in creative processes and/or products. Small differences in skills and talent may yield huge differences in (financial) success.
  6. Time flies: When coordinating complex projects with diversely skilled inputs, time is of the essence.
  7. Ars longa: Some creative products have durability aspects that invoke copyright protection, allowing a creator or performer to collect rents.

The properties described by Caves have been criticized for being too rigid (Towse, 2000). Not all creative workers are purely driven by 'art for art's sake'. The 'ars longa' property also holds for certain noncreative products (i.e., licensed products). The 'time flies' property also holds for large construction projects. Creative industries are therefore not unique, but they score generally higher on these properties relative to non-creative industries.

Difference from the 'cultural industries

There is often a question about the boundaries between creative industries and the similar term of cultural industries. Cultural industries are best described as an adjunct-sector of the creative industries. Cultural industries include industries that focus on cultural tourism and heritagemuseums and librariessports and outdoor activities, and a variety of 'way of life' activities that arguably range from local pet shows to a host of hobbyist concerns. Thus cultural industries are more concerned about delivering other kinds of value—including cultural wealth and social wealth—rather than primarily providing monetary value. (See also cultural institutions studies.)





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