On who’s in and who’s out: Part 1 –Creative Industries

Since my last post, I’ve been having a series of discussions about this tricky, slippery term, the creative industries.

The first was with Gavin Bowman who pointed out that industry definitions exist to include or exclude things; things like businesses, occupations or people. We draw boundaries around these things because it helps us make sense of them, but also because there’s usually a more specific purpose in mind. We want to lobby, to form alliances, to compare etc.

In this sense, a definition of the creative industries is indivisible from its purpose. Or perhaps the logic behind any definition can only be understood by how it’s applied. A government policy, for instance, might limit its definition due to budgetary restraints. A trade union might apply the widest possible definition in order to attract the most members.

All this made me wonder if I knew what an industry was. In my last post, I proposed a definition of creative industries that excluded activities without a commercial intent (which would include hobbyists and not-for-profit entities).

I did this in part because I had one eye on entrepreneurialism and the looming question about where that resides in the creative industries, but I was also wondering just how industrious one has to be to be part of an industry. Does membership of an industry require you to have a commercial intent? My colleague Ben Fletcher of this fine establishment here thought not; profit and not-for-profit activities sat together within an industry, each being of competition to the other.

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A quick sidestep to the mighty Australian and New Zealand Standard Industrial Classification (ANZSIC) as maintained by the ABS since 1993, in an attempt to define what an industry is.  It says,

The objective when developing an industrial classification is to identify groupings of businesses which carry out similar economic activities. Subject to certain criteria being met, each such grouping defines an industry and the similar economic activities which characterise the businesses concerned are referred to as activities primary to that industry. (my emphasis)

So if an industry definition only makes sense when you understand its purpose, we know the ABS’s is to “identify groupings of businesses”, for administrative ease in use by government, businesses and um, citizens, I suppose. A kind of Dewey decimal system for industry classification.

It goes on to confidently assert:

When the classification is completed, any individual business can then be assigned an appropriate industry category on the basis of its predominant activities. (my emphasis)

And it agrees with Ben, by saying:

The term business is used in its widest sense to include any organisation which provides goods and services, including companies, non-profit organisations, government departments and enterprises.

The first classification of ANZSIC looks like this:

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Which seems straightforward enough, but take it down a level and the complexities start to show. Take “R Arts and Recreation Services” as an example:

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And so on down through the superstructure until we hit individual occupations such bird reserve operation, journalistic services, netball club operation and bookmaking operations. All part of good ship “R Arts and Recreation Services”.

Any industry definition is obviously going to have its oddities and miscellaneous items. I suppose the point is that as much as they seek to include and exclude, they are also contestable and are, no doubt, contested.

Naturally enough, the creative industries (as defined by, take your pick, but let’s say the UK’s Department for Culture, Media and Sport) are scattered throughout sections J, M, R and probably others too. Which is apt for a term which places architects next to actors and fashion designers next to games designers and says, you lot… you all do kind of the same thing.

Another regular and robust conversationalist is Tony Shannon who reminded me that back in the day, we used to wonder about whether it was the “creative industries” or the “creative industry”. If we took the ABS at its word, it’s an industry singular, because we can identify a “grouping” of businesses, no matter how diverse and call them an industry. Even though its own library catalogue on the subject tells us that to get to that catch all term, we have to collate businesses from across a range of industries. If anything, it’s a creative cross-section.

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This whole “creative industries” malarkey started when a politician had a need to name it as such, as Australian academic Justin O’Connor points out in his literature review on the topic:

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In its genesis, then, the term “creative industries” was not a literal term, but a political one, designed, at least in part, to win votes and increase support for a government. It was invented to make sense of a group of businesses which existed across industry lines, but had a shared meaning to government and presumably, voters. It continues to be reinvented, but still, it has come to mean something which is broadly understood as a collection of organisations and individuals which create products and services. After that though, its boundaries blur, defying more precise definition.

Where does entrepreneurship intersect with this ambiguous term? Surely its definitional boundaries are even hazier than those of the creative industries. Perhaps as I talk more about entrepreneurship as a personal trait (that’s Part 2, you see), it is the individual creatives which become more important than how they classify themselves. As Tony remarked to me, perhaps what we’re talking about here is creative entrepreneurs, rather than entrepreneurship in the creative industries.

References:
Australian Bureau of Statistics 1993, 1292.0 – Australian and New Zealand Standard Industrial Classification (ANZSIC), viewed 6 May 2017, http://www.abs.gov.au/Ausstats/abs@.nsf/2f762f95845417aeca25706c00834efa/5BD72C7D74F64C6BCA25697E0018FD27?opendocument
Australian Bureau of Statistics 2006, 1292.0 – Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 (Revision 2.0) viewed 6 May 2017, http://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/1292.0Contents12006%20(Revision%202.0)?opendocument&tabname=Summary&prodno=1292.0&issue=2006%20(Revision%202.0)&num=&view=
Department for Culture, Media & Sport, Creative Industries Economic Estimates January 2015, viewed 6 May 2017, https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/394668/Creative_Industries_Economic_Estimates_-_January_2015.pdf
O’Connor, Justin (2010), The cultural and creative industries : a literature review [2nd ed.].
Creativity, Culture and Education Series. Creativity, Culture and Education, London.

A creative industries definition that recognises commercial intent (WIP).

Talk about the  term “creative industries’ seems to inevitably lead to questions of definition. And those questions lead to more questions. And before long, we’re in a world of confusion.

Who’s in and who’s out? And what does it mean when we leave some creative types out? Is the term ‘cultural industries’ a better term? What about the ‘creative economy’? What happens when we shoehorn the arts and culture in with architecture, design and games? And have we only added software development into the creative industries because it makes the numbers look better?

This matters to approximately no-one working in the creative/cultural industries/economy. But it absolutely matters to people analysing these industries, trying to make sense of what role they play in society and why government is supporting them. And as I’m thinking about entrepreneurship in the creative industries, it matters to me.

This literature review, section 5 of a paper by Justin O’Connor, gives a thorough overview of how the terminology and definitions of creativity have changed since the 1990s. He airs questions well worth asking, such as, was the term only created to legitimise culture in the eyes of government number crunchers? How legitimate is the much-mentioned link between the creative industries and creation of new IP? Is the arts strengthened (through legitimisation) or weakened (through dumbing down) by inclusion as an industrial output? And what place for the idea of quantifying the creative economy by counting creative workers in non-creative industries?

O’Connor also outlines various attempts to define the creative industries, and each model has its pros and cons. And each, I think, misses something about how the creative industries work in practice – that there’s a range of products created in these ‘industries’ which lack an essential element of industry: the intent to exploit the work commercially.

Existing models

Here are three models outlined in O’Connor’s literature review. David Throsby’s relies on a hierarchy of creativity, with purely artistic endeavours at the top of the tree:

throsby

A European Commission report from 2006 seeks to stratify the industries into arts, culture and creative.

KEA

The Work Foundation presents a version which positions the industry segments as part of the overall economy. It also introduces the concept of ‘expressive value’, to differentiate between the ‘pure’ arts and distribution based enterprises. It also places IP production as central to the definition.

workfoundation

We can use any of these to define the creative industries; none are widely adopted, all are contested in some way or other. For me, the distinguishing between activities within each industry sector by commercial intent is a missing element.

A model which recognises commercial intent

Every subset of the creative industries includes activities which are driven by commercial intent, and some which are not. For the purposes of definition, we might consider that only those with commercial intent truly sit within an ‘industry’, with its connotations of producing a product to a profitable end. Activities with little or no commercial intent can be seen as artistically valid – even essential – but their lack of connection to industry could allow us to classify them differently.

The level of commercial intent within each industry subsector will vary. Some, like architecture, exist almost entirely within the for-profit arena. Others, like visual arts, straddle between not-for-profit and for-profit activities.

My diagram below (not based on real numbers) is an attempt to illustrate this proposition. Each subsector is represented by a column, showing 100% of that subsector’s activity. The position of each column indicates the estimated proportion of each sector which is commercially driven. Under this model, we might see the ‘creative industries’ as existing only in the upper band.

sharpe

For my purposes – thinking about entrepreneurialism in the creative industries – such a model could be very useful. If we start with the idea that a critical component of entrepreneurship is driven by commercial intent, the definition used could exclude activity in the creative industries which although artistically valuable, lacks that commercial intent. It might save us from having to argue the centrality of the arts – or any other creative endeavour – with the creative industries. But it would also require a debate about what qualifies as commercially driven product, and how much of that commercial intent resides in each industry subsector.

Ref: O’Connor, Justin (2010)
The cultural and creative industries : a literature review [2nd ed.].
Creativity, Culture and Education Series.
Creativity, Culture and Education, London.