Are the arts central to defining the creative industries?

There’s more to talk about in the article by Julian Meyrick which I discussed last post. As I mentioned then, Meyrick is highly critical of measures used by successive governments to assess the arts on a “value for money” basis. As he writes:

The replacement of policy debate over the all-important question “what kind of culture do we want?” by reticulated, quantified, assessment procedures stems from a moment in time when governments became fixated on getting “value for money” for taxpayer spend.

The monocular vapidity of this reduction belies its administrative adhesion and political use. If you are forever demanding someone “demonstrate” the benefits they provide, you never have to describe or defend the world you want them to be of benefit to. In the 1980s and 1990s, artists and cultural organisations disappeared under a tsunami of Byzantine evaluative and audit tasks that disguised the heavily partisan beliefs that produced them.

The financial and statistical measurement of arts organisations for use in funding decisions and government policy is a world I inhabit and have done since the mid 2000s, a time, I note, significantly after the tsunami swept through. Still, I think that I’m familiar with the “evaluative and audit tasks” that Meyrick alludes to, and the type of arts organisations which are asked to complete them. I think it’s fair to say there are pros and cons to that regime, but some more from Meyrick first.

Meyrick notes that arts funding was one provided as part of “quality of life” legislation, as part of nation-building aspirations. To me, this sounds like what I know of as the “public good” argument for arts funding, and indeed, I have always thought of this as a thing of the past. Certainly, by the time I was running an arts organisation in the early 2000s, an organisation simply existing as a way of providing cultural benefits alone, was not an argument funding bodies supported.

(There is a notable anecdote which illustrates this shift in my paper about the rise and fall of professional regional theatre company Theatre South. When that company’s relationship with one of its key funders, the Australia Council, was floundering, the General Manager was called to a meeting there. In the face of criticism about the company’s performance, the General Manager responded with the argument that the most important aspect of Theatre South was that it existed, only to be flatly told that that was not enough. It’s worth mentioning that a key text for me in preparing that paper was Meyrick’s rigourous account of the Nimrod Theatre Company, See how it Runs: Nimrod and the New Wave.)

“In the last 40 years,” Meyrick writes, “arts and culture have found themselves weighed against criteria and targets not of their choosing.” I think Meyrick’s right that the arts industry has not been immune from the wider movement in management thinking which might be summarised in that old maxim, “you can’t manage what you can’t measure.” And if organisations and their boards have been encouraged to professionalise in order to, at least in part, comply with the measurement regimes imposed on them, that only underlines Meyrick’s point.

Meyrick seeks a more meaningful way to measure culture. “Australian culture is more than series of market preferences,” he argues, “It is more than a list of its impacts on well being, social cohesion, education levels, and the interstate sale of hotel beds.” And in the article co-written with Phiddian, Barnett and Maltby: “We argue that metrics systems for artistic quality imply a spurious homogeneity of purpose in the arts, invite political manipulation and sequester time, money and attention from arts organisations without proven benefit.”

Having seen this system in practice, I find much in Meyrick’s and his colleagues’ concerns to nod along to and to shake my head at, at various times. This is, I suppose, the difficulty of knowing about the nuance of a subject; there’s much to quibble with. So I won’t, certainly not on an open channel.

However, it’s worth revisiting the posited link between the desire to measure the arts along neo-liberal lines and the emergence of the term, “creative industries.” As I said last post, I think that relationship is of two separate but related things happening at the same time. But it might be useful to consider the conception of the creative industries that may have led to making this connection – a conception which places the arts as central to the creative industries. (Other models are available, as noted here)

Part of the issue is that any perception of the creative industries is influenced by the view from where you stand. The arts may only be central to the creative industries if that’s what our starting point is. I’m sure there are, for instance, marketing & communications professionals bemoaning the same rebadging of their industry and giving no thought at all to the arts.

But another factor is the high level of government involvement in the arts and that the fortunes of the arts rise and fall with decisions made by government. In this environment, no change of nomenclature is without motive, no change exists without an agenda to drive it. In this context, I can see how the link is made: government wants the arts to be economically viable and a reimagining of them as an industry (a term infused with economic and bureaucratic meaning) fits that agenda.

For me, the arts is a component of, not central to, the creative industries. It makes more sense to me as a categorisation of commercial sectors which have, within their business models, the exploitation of the creative process. And although my conception of it includes the arts, there’s an argument, I think, for excluding them from that definition, because they lack the commercial intent to make them truly industry-like.

And if that makes sense, then it might even lead us back to the public good argument. Because isn’t doing something for its inherent cultural or community benefit, with no need to measure its costs and returns, antithetical to what an industry is?

References: see last post.
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Is “creative industries” just the new, economically justifiable version of “the arts”?

This article, by Julian Meyrick on the Conversation, has sparked so many thoughts that they have to marshaled into an orderly queue and forced to wait patiently. Its primary focus is the evaluation of the arts and its unquantifiable benefits in a policy environment which demands quantification. That issue is enormous, so I’ll put that aside for a moment and talk about discomfort over the term “creative industries”.

Simplifying the measurement of the arts to statistical and financial data and over-reliance on such measures in policy making around the arts concerns Meyrick. His piece in the Conversation contains this paragraph:

In the last 40 years, arts and culture have found themselves weighed against criteria and targets not of their choosing, while the sophisticated calculative practices constructed to do this have sometimes exacerbated the alienated character of the situation.

The hyperlink leads to a journal article by Meyrick and colleagues Robert Phiddian, Tully Barnett & Richard Maltby, critiquing a measurement regime called Culture Counts, then being considered for use within Australian government funding bodies for the arts. In it, further reservations are expressed about quantifying the arts as economic justification, but there is also a link to the emergence of the term, “creative industries”. Meyrick et al see it as linked to an increasing desire to measure the value of the arts; in fact, that it’s a reaction to it.

They talk about the work of academics such as Hawkins, Cunningham, Bennett and Stevenson who, they say, led “the pursuit for the biggest plausible GDP number” to attribute to the cultural sector.

These authors facilitated a shift in government understanding from a traditional concept of “the arts” to a contemporary concept of “the creative industries”, and a concomitant switch from an arts policy to a cultural policy. Quantification was key to this change, as was the alliance between left-of-centre cultural democracy advocates and right-wing free-market proponents.

There are a couple of things to note here. Firstly, that the term “creative industries” is seen as a successor to “the arts” – and not so much a natural evolutionary step, but part of a wider agenda to quantify the arts (which was “key to this change”). More than that, it was a kind of merging of points of view from the left and right. So here, the adoption of the term “creative industries” is seen, at least in part, as having a political dimension. They go on:

These parties found common ground in an instrumentalist cultural materialism with little interest in nuanced critical distinction making. Someone working in advertising or software design was a “creative” in much the same way as a violinist in a symphony orchestra.

Here they express a familiar criticism of creative industry definitions. They place wildly different professions next to each other – actors and architects, musicians and marketers – within in the same category. This discontinuity is even more palpable within those subcategories themselves. Not only, I’d suggest, does an architect not think of herself as in the creative industries with actors, she probably doesn’t even consider herself to be in the creative industries. It’s far more likely, she’d see herself as being in the architecture industry.

There is a problem here, well recognised by people (like me) who work across these boundaries. It’s that the inability of the individual sectors which fill up the grab bag of industries labelled the “creative industries” to coalesce into a unified group, has prevented effective lobbying to government to support those creative industries. That problem can be seen as an inevitable result of imposing a definition of creative industries on those sectors; the term didn’t come from them so no wonder they have trouble adopting it.

The political element is then expanded upon:

The Creative Industries in Australia was a “third way” rapprochement similar to Cool Britannia under Blair. From the historical moment that we are in now, it looks like a hubristic miscalculation of the stability of a liberal democratic centre and its capacity to constrain neoliberalism through neoliberalism’s own mechanisms.

Which, I think, is fascinating. They’re saying, “you tried to play the bean counters at their own game, but you got it wrong.” And what was wrong was, again, their measurement of value.

… its imprecise use of language reduced terms of policy capture like “excellence”, “access” and “innovation” to abstractions evacuated of precise critical meaning. At the same time, it presented numbers as a tool for demystification that stripped away the obfuscating rhetoric of public value to reveal its privileging of high art in comparison with popular culture. In this way, cultural studies researchers – those who should have been most alert to the inculcation of neoliberal techniques – condoned quantification as the price for a non-exclusivist conception of culture.

All of which leaves me pondering three (ish) questions.

  1. Is “creative industries” just a rebadged version of “the arts” designed to be more economically justifiable?

Personally, I have never seen it like this. My own experience is from working with the film and TV industry to then working within “the arts” sector, which existed, at least in a policy context, separately from film and TV. So that gave me the sense that there existed creative industries outside the arts. From there I moved to working in a quasi government role with creative industries businesses/organisations of which the arts was a subset, and the measurement of those organisations in that context was not about intrinsic value, but about performance improvement and sustainability. I’ve never felt that the Creative Industries was the Arts made more palatable to neoliberals, but it can clearly be read like that.

  1. Was adopting the term “creative industries” part of an agenda to measure the arts to death? Or were the two things just happening at the same time? (Is it correlation, not causation?)

To which I think it’s probably just both happening at the same time, but nothing ever exists in a vacuum. It seems plausible that both these developments – both seemingly motivated by a desire to change how those industries are viewed externally – fed off each other.

  1. Does the creation of the term “creative industries” have a political element?

And clearly for some people it does. This is a reminder that definitions themselves – what we list, what we include, what we leave out – create meaning. Definitions are therefore inherently political; you can’t create or adopt one in an ideological vacuum.

I have been thinking about how to talk about definitions of the creative industries without resorting to simply comparing and choosing between various lists of industry sectors. And here, I think, is an indication that definitions are never just that. They are designed for a purpose, informed by ideologies and infused with motives. They are, in themselves, narrative processes and the stories they tell are contested.

Meyrick, J (2017) “A new approach to culture”, The Conversation, viewed 30 Sep 17. https://theconversation.com/a-new-approach-to-culture-82448
Robert Phiddian, Julian Meyrick, Tully Barnett & Richard Maltby (2017), Counting culture to death: an Australian perspective on culture counts and quality metrics, Cultural Trends, 26:2, 174-180, DOI: 10.1080/09548963.2017.1324014

What made the creative industries different then, may not be so potent now.

Management consultants tend to come in two types; generalists and industry specialists. I’m the second type. If I was of the first type, I might tell you (as many have told me) that all businesses are essentially the same – you can consult as effectively to a chair maker as you would to an international arms dealer, because all businesses boil down to the creation of profit via a production process of some kind.

I have always maintained that creative industries businesses are different (well, I would, wouldn’t I? I’m an industry specialist). My point is that a creative work constructs value in a very different way. The profit generated by a chair can be traced through the cumulative addition of each of its components, up to completion when it can be sold for an amount which covers the cost of its production and then some. The profit created by, say, a hit song, is a dependent on a far more complicated formula, with many more unpredictable variables.

Richard E. Caves’ (dauntingly brainy but still pleasingly readable) book Creative Industries: Contracts between Art & Commerce starts with tackling this issue of what makes the creative industries different from all the other industries. He takes an economist’s view of this question, dispassionately considering the sellers and buyers of creative transactions and assuming the perfectly rational decision-making process which underlies economic theory. He lists 7 basic economic properties of creative industries, which, I think, describe the unique combination of complexities which influence the production of creative work.

Caves’ basic economic properties of creative industries

Name of property Summary Detail
Nobody Knows Demand is uncertain. It is almost impossible to tell how a creative product will be valued until it is completed, and by then the costs of producing the good have already been met.
Art for Art’s Sake Creative workers care about their product. Creatives are not indifferent to the traits and features of their work. Instead, they are deeply invested in aspects such as originality, technical prowess, resolution and harmony. In short, artistic achievement.
Motley crew Some creative products require diverse skills. A creative work such as a film requires the cooperation of many different collaborators. But unlike some other collaborative endeavours, a creative work is more than just the sum of the efforts of each part of a production line. It has a “multiplicative production function”, where each input must be present and “do its job – if any commercially valuable output is to result.”
Infinite variety Differentiated products. Creative work can be simultaneously vertically differentiated (a buyer will choose between two similar products on perceived quality) and horizontally differentiated (a buyer will choose between two similar products on personal taste). And the array of choice an artist has in producing a work, and the array of creative products a buyer can choose from, making this variety infinite.
A list/B list Vertically differentiated skills. Creative producers are ranked based on quality, reputation and so on – creating a hierarchy of artists.
Time flies Time is of the essence Maximising profitability of a creative product is dependent on it being finished by a certain date.
Ars longa Durable products and durable rents Creative work can continue to generate revenue after its initial production with no additional inputs, through the exploitation of copyright.

 

I can’t recall seeing these characteristics of the creative economy expressed so clearly. I can add one more:

Name of property Summary Detail
Inspiration knows no timetable How long it will take to come up with a creative concept is unknown. Unlike other industries, where the time taken to produce a good can be accurately predicted, creative concepts can emerge quickly or slowly, and you can’t tell which it will be. This matters because the creative concept is often the component of a creative work which consumers value most and increases profitability – but it’s the part of the process which is the least predictable.

 

Meanwhile, I have been prompted by my tutorial class of Management Consulting students to think about startups and their relationship to entrepreneurship. They have been asking about the threat which start-ups might present to bigger, more established companies, and the predilection of some multi-national corporations to acquiring start-ups. I suspect that this conversation, as with so many on this topic, is actually defining “start-ups” as newly established tech companies. It’s that subset of companies which we, as a society, seem particularly enamoured of.

That particular definition, personified in sneaker wearing, tablet wielding, young tech nerds, successfully raising capital to accelerate their SAAS product’s growth, has become an early 21st century archetype. That archetype is a kind of start-up rock star; the version of an entrepreneur where everything has gone right. I worry that the far more common experience of tech start-ups – the long, lonely slog with no money, no angel investors and time rapidly running out before they need to go get a job – is rarely talked about. If there’s a rerun of the 1990s dot com crash, this time starring exhausted start-ups which never accelerated beyond a brief canter, and with investors looking for their money back – what will this do to our current idolisation of entrepreneurship?

But putting that aside, it struck me that when Caves was writing about his economic properties of creative industries, it was in the immediate shadow of that dot com crash. Caves sought – as I have done – to differentiate the creative industries from the non-creative industries, and in 2000 he could clearly do that.

Would it be so easy now? Because if we consider the new breed of tech industry startups, typically pushing an online software product, across multiple platforms but addressing distinct, almost niche, customer needs… don’t all Caves’ properties apply to them? Is it possible that the distinction between creative industries and non-creative industries (the definition of creative industries, as I’ve been describing it) is actually getting harder over time?

If so, the reason why may be that today’s emerging industries look and feel more like creative industries than traditional industries; that the promising, rock star tech industries which we all have such a crush on, actually operate more like creative industries than anything else. In which case, studying what makes creative industries tick may have much wider future use and significance.

Caves, Richard E. Creative Industries: Contracts between Art & Commerce, Cambridge, Mass.: Harvard University Press, 2000.

The Dimensions of Worth

Everyone loves a good list. Lists of things, if complete, give us a definitive account of the contents of a category. They let us put things into easily understood groups and help us make sense of what those groups are. Colours of the rainbow. Planets in the solar system. Quantifiable and legitimised, tick ‘em off at your pleasure.

Lists also provide great fodder for debates, because who’s to say that a list is truly definitive? It’s not just that everyone loves a list, but that everyone loves the list they love, and loves to contest the lists other people love. Seven colours of the rainbow? What about the myriad hues between those seven colours? There are lots of people still insisting on putting Pluto on their list of planets.

Defining the creative industries seems to me to be a similar debate about what to include on a list. It seems to have started, by nearly all accounts, in 1998, when the UK’s Department of Culture, Media and Sport (those three happy bedfellows) described the creative industries as “those industries which have their origin in individual creativity, skill and talent and which have a potential for wealth and job creation through the generation and exploitation of intellectual property” and provided a handy list of 13 sectors. And it seems people have been arguing about that list ever since.

I’ve written about that debate before and the variations proposed and rejected. It is a crucial debate for policy makers and researchers, as boundaries need to be set in order to effectively map, measure and learn about the creative industries (how can we analyse the solar system if we don’t know where it starts and finishes?). At the same time, it’s a pointless debate for many creative industry practitioners, with no day to day impact on their activities (call it what you like, Pluto is still a big ball of rock and ice orbiting the sun).

Having sampled this debate, I’ve been considering a couple of questions. One, how to add to this discussion, in a way which isn’t simply arguing about other people’s lists. And two, what do we mean by the term ‘industry’ anyway? What is one and how do we recognise it?

This article, by Mukti Khaire, offers an interesting perspective on these questions. In it, she talks about the identification of a new industry, not by its vital statistics (is it in orbit around the sun, does its self-gravity make it a globe, has it cleared its orbit of smaller objects) but by a series of socio-cognitive actions.

An industry is self-defined by a process she calls “distributed sanctification”, whereby a variety of participants in an activity take a series of self-directed actions which legitimise that activity as an industry. It is a gradual and unplanned process, the start and end points of which are undefined. In essence, no-one says, “this is now an industry,” in an ABS sort of way. Instead, people start behaving like they’re in an industry and sooner or later, everyone else agrees with them.

To illustrate this process, she looks at the rise of the high fashion industry in India. This is useful because she can identify a time period (the 1980s) before which there was no such thing and after which there was. She then examines the actions which participants in the formation of the industry took during this time.

As might be expected, the steps taken by designers, clothes makers and sellers are important, but she argues, so are the actions taken by other more tangential players – educational institutions, the media and so on. The cumulative effect of these actions is the accumulation of social currency in the term “high fashion industry” in India. In her own words, she is mapping “the dimensions of worth.”

This process, she says, is difficult but essential for new industries:

These complexities make the construction of worth of new industries particularly difficult. New industries […] lack definition and coherence—that is, clear boundaries and identities, so they are difficult to understand.

Which seems to be to be exactly the problem faced in describing the creative industries. She goes on to say:

In addition, new industries  […] typically lack norms and conventions of evaluation, so it is difficult to determine their worth. However, the construction of the worth of a new industry is particularly important because worth is a prerequisite for cognitive legitimacy, which is a critical resource that pioneering entrepreneurs in new industries lack. A cognitively legitimate industry—one that is accepted “as a taken-for-granted feature of the environment”—is well defined and understood by both industry actors and audiences and broadly accepted as appropriate. Cognitive legitimacy, or taken-for-grantedness is a condition of complete intersubjective agreement and total absence of dissent regarding the right of an entity to exist.

Which again, seems to aptly describe the creative industries – lack of definition, leads to complexity in evaluation, leading to a lack of legitimacy and “taking-for-grantedness” which in turn is an impediment to entrepreneurship.

It’s tempting to describe Khaire’s approach as the opposite of “definition by list making”. But actually, she does provide a list of actions she says participants take which legitimise an industry:

Curation Customers and outside influencers, like education, media and government orgs, identify what’s high and low quality product.
Certification Educational institutions start offering qualifications for entrants into the nascent industry.
Commentary Educational institutions offer instruction on what’s good and bad practice in the industry.
Critique Media publications offer opinion on what’s good and bad practice in the industry.
Co-presentation Various examples of competing product are displayed together enabling…
Comparison Customers to make judgements about the qualities of those products.
Commensuration The growing number of comparisons allows the development of standard measures of quality.

Khaire’s example (high fashion in India) springs from the creative industries, which she says is appropriate because, “the highly symbolic nature of the products makes collectively understood definitions, shared meanings, and broad agreement on norms and rules crucially important…value construction in creative industries is a complex process because of the relative “singularity” of the products, and involves multiple actors and cognitive processes.”

No argument there. But while her criteria can be applied consistently to fashion, I suspect they could not be as easily applied to the creative industries, as defined as a collection of creative sectors, of which fashion is only one. I think all of her 7 Cs listed above create the “worth” she describes, but only within each creative sub-sector. We can’t measure a fashion designer by the same yardstick as a musician or an architect and so on.

This is leading me to the conclusion that whatever the “creative industries” is, it is not an industry in and of itself – at least not yet. It might be more helpful to see it as a selection of like industries, and that selection as being influenced by a variety of social and political pressures on the entity defining the term.

What makes them “like” is something we can’t quite grasp. Something alchemical, the transformation of imagination into IP. But just because a beautifully designed gown springs from the same creative well as a symphony or a grand old building, doesn’t necessarily mean they together form a cohesive creative industry. Pluto’s a really different place to Jupiter.

Khaire, M. (2014). Fashioning an Industry: Socio-cognitive Processes in the Construction of Worth of a New Industry. Organization Studies, 35(1), 41-74. Available at http://journals.sagepub.com.ezproxy.uow.edu.au/doi/full/10.1177/0170840613502766

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.

***

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:

blog1

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:

blog 2

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.

***

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:

blog 3

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.