Drivers of innovation, entrepreneurship and regional dynamics

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Advances in Spatial Science Editorial Board Manfred M Fischer Geoffrey J.D Hewings Anna Nagurney Peter Nijkamp Folke Snickars (Coordinating Editor) For further volumes: Karima Kourtit Peter Nijkamp Roger R Stough l l Editors Drivers of Innovation, Entrepreneurship and Regional Dynamics Editors Dr Karima Kourtit Prof Dr Peter Nijkamp VU University Amsterdam Department of Spatial Economics De Boelelaan 1105 1081 HV Amsterdam, The Netherlands Prof Dr Roger R Stough George Mason University School of Public Policy University Drive 4400 Fairfax, VA 22030, USA Advances in Spatial Science ISSN 1430-9602 ISBN 978-3-642-17939-6 e-ISBN 978-3-642-17940-2 DOI 10.1007/978-3-642-17940-2 Springer Heidelberg Dordrecht London New York Library of Congress Control Number: 2011930132 # Springer-Verlag Berlin Heidelberg 2011 This work is subject to copyright All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer Violations are liable to prosecution under the German Copyright Law The use of general descriptive names, registered names, trademarks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use Cover design: eStudio Calamar S.L Printed on acid-free paper Springer is part of Springer Science+Business Media ( Editorial Preface The annual Tinbergen Workshop held over the last several years has brought together regional scientists from Europe, North America and Australia – and sometimes beyond – to address issues relating to the general field of innovation, entrepreneurship and regional development The theme of the June 2009 Workshop was Creative, Intellectual and Entrepreneurial Resources for Regional Development: Analysis and Policy In addressing these issues it is inevitable that we will be focusing our attention on forces and processes in regional development that are largely endogenous to a city or region and how policy may play a role to enhance regional growth performance through the roles that institutions and leadership might play in the context of regional development policy to help cultivate creativity, human capital development and innovation and entrepreneurial activity as drivers of economic development to give a city or region its competitive edge The present volume is based on a selection of papers presented at the above workshop It aims to provide an overview of thinking about endogenous forces and processes that may enhance the economic performance of a city or region and the type of empirical evidence that supports the notion that creativity, intellectual and entrepreneurial resources, along with leadership and institutions, are crucial drivers of the regional development process and consequently are key factors differentiating between high and low performing cities and regions The various contributions in this volume have been carefully reviewed and may be seen as novel contributions to the emerging field of creative, intellectual and entrepreneurial resources for regional development The editors wish to thank Elfie Bonke and Ellen Woudstra for their assistance in composing this volume Amsterdam, The Netherlands Fairfax, VA Karima Kourtit, Peter Nijkamp Roger R Stough v Contents Part I Concepts and Models An Endogenous Perspective on Regional Development and Growth Roger R Stough, Robert J Stimson, and Peter Nijkamp Interregional Knowledge Spillovers and Economic Growth: The Role of Relational Proximity 21 Roberto Basile, Roberta Capello, and Andrea Caragliu Agglomeration and New Establishment Survival: A Mixed Hierarchical and Cross-Classified Model 45 Martijn J Burger, Frank G van Oort, and Otto Raspe Social Capital in Australia: Understanding the Socio-Economic and Regional Characteristics 65 Scott Baum Part II Evidence-Based Analysis: European Studies Entrepreneurship, Innovation and Regional Development: A Southern European Perspective 81 George Petrakos, Pantoleon Skayannis, Apostolos Papadoulis, and George Anastasiou Productivity Spillovers, Regional Spillovers and the Role of by Multinational Enterprises in the New EU Member States Marcella Nicolini and Laura Resmini 105 Determinants of Entry and Exit: The Significance of Demand and Supply Conditions at the Regional Level Jenny Grek, Charlie Karlsson, and Johan Klaesson 121 vii viii Contents Creativity and Diversity: Strategic Performance Management of High-Tech SMEs in Dutch Urban Areas Karima Kourtit and Peter Nijkamp Part III 143 Evidence-Based Analysis: Non-European Studies Modelling Endogenous Regional Employment Performance in Nonmetropolitan Australia: What Is the Role of Human Capital, Social Capital and Creative Capital? Robert J Stimson, Alistair Robson, and Tung-Kai Shyy Domestic Innovation and Chinese Regional Growth, 1991–2004 William Latham and Hong Yin 179 205 The Spatial Dynamics of China’s High-Tech Industry: An Exploratory Policy Analysis Junbo Yu, Peter Nijkamp, and Junyang Yuan 223 Regional Psychological Capital and Its Impact on Regional Entrepreneurship in Urban Areas of the US Ryan C Sutter and Roger R Stough 245 Incubators in Rural Environments: A Preliminary Analysis Peter Schaeffer, Shaoming Cheng, and Mark Middleton Creative, Intellectual and Entrepreneurial Resources for Regional Development Through the Lens of the Competing Values Framework: Four Australian Case Studies John Martin Regional Growth in the United States: Correlates with Measures of Human and Creative Capital William B Beyers Part IV 271 291 307 Outlook and Policy Exploring Regional Disparities in Employment Growth William Mitchell 337 Regional Branching and Regional Innovation Policy Ron Boschma 359 Beyond the Creative Quick Fix Conceptualising Creativity’s Role in a Regional Economy Jane Andrew and John Spoehr 369 Contributors George Anastasiou Department of Planning and Regional Development, School of Engineering, University of Thessaly, Pedion Areos, 38 334 Volos, Greece Jane Andrew PhD Candidate, Australian Institute for Social Research, University of Adelaide Lecturer, Director matchstudio, Art, Architecture and Design School, University of South Australia Roberto Basile ISAE (Institute for Studies and Economic Analyses), Piazza dell’Indipendenza, 4, 00185 Rome, Italy Scott Baum Urban Research Program, Griffith University, Nathan, Brisbane, QLD 4111, Australia William B Beyers Department of Geography, University of Washington, 426 Smith Hall, Seattle, WA 98195-3550, USA Ron Boschma Faculty of Geosciences, Department of Economic Geography, University of Utrecht, PO Box 80 115 3508 TC Utrecht, The Netherlands Martijn J Burger Department of Applied Economics, Erasmus University Rotterdam, Room H13-27, P.O Box 17383000 DR Rotterdam, The Netherlands Roberta Capello Dipartimento BEST, Politecnico di Milano, Piazza Leonardo da Vinci 32, 20133 Milano, Italy Andrea Caragliu Dipartimento BEST, Politecnico di Milano, Piazza Leonardo da Vinci 32, 20133 Milano, Italy Shaoming Cheng Professor, Department of Public Administration, Florida International University, 11200 SW 8th Street, Miami, FL 33199, USA ix Beyond the Creative Quick Fix Conceptualising Creativity’s Role 371 In order to understand the role creativity plays in stimulating innovation and regional growth more broadly across the economy, it is necessary to utilize a more flexible means of identifying the actors, institutions and instruments that contribute to a creative economy This has not been the starting point for many as the following examination of definitional models of the creative industries/creative economy highlights This suggests a tendency in creative economy policy debates to reduce the debate about creativity to instrumentalist discussions about what constitutes a creative product, industry or occupation Reconceptualising the Creative Economy’s Definitional Framework Policy debates surrounding creativity commonly draw from relatively narrow conceptualizations of creativity, bounded by instrumental imperatives of developing and sustaining a creative economy or more specifically export oriented creative industries One of the key contributors to this debate has been cultural economist David Throsby (2000) who argues that the creative industries might be best understood as a set of concentric circles (see Fig 1) He argues that individual Creative SME’s and Companies $ $ $ architects, designers, commercial film and screen industries, publishing, advertising, etc Creative micro businesses i.e craftspeople, designer/makers; illustrators; digital media; commercial artists; performers, writers, fashion designers, photographers I ndividual artists whose intention is to express ideas and convey meaning through the not for – profit sector or those who produce ‘art for art’s sake’ i.e Not-for – profit and low income creative professional and groups in all media/disciplines -’a hot house of creative R&D’ Throsby’s radiating model (2000) Fig Concentric spheres of the creative industries, consisting of communities of creative practice - the creative workforce, the creative cluster and the creative community from which regional economies can draw knowledge and methodologies to address issues and develop sustainable regional economies 372 J Andrew and J Spoehr communities of Creative practice Creative workforce creative individuals working in the arts and cultural sectors New England’s The Creative Economy Initiative (2000) Fig The Creative Cluster comprises enterprises and industries populated by the creative workforce as well as sectors that contribute to creative and cultural production artists whose intention is to express ideas and convey meaning through the not for – profit sector or those who produce “art for art’s sake” lie at the core of the creative/ cultural economy This sector is what Landry suggests is a hot house of creative R&D.2 As the circles radiate outward the creative intention and resulting product or service becomes increasingly commercially orientated New England’s Creative Economy Council offers a conceptualisation of a creative economy that is built upon creative individuals that constitute a creative workforce The diversity and application of creative capacity within the creative workforce is illustrated by the multiple communities of practice that work within and across the creative economy’s spheres In addition to the web of individuals and businesses within the creative workforce, are businesses and individuals who act as interacting agents working with the creative workforce and are critical in the realisation, development and delivery of cultural goods The Creative Economy Council terms this creative cluster The sustained interaction and acknowledgement of the value of creative ideas, services and products mediated by the local market is referred to by the Creative Economy Council as the creative community The conceptualisation of a creative community can be considered within any scale of geographic region such as a precinct, a city, a state or a larger region The following three diagrams (Figs 2–4) represent Throsby’s concentric circles model overlaid with the New England Creative Economy Council; model We propose that this hot house of R&D includes the art and design educators such as universities and colleges of technical and further education (TAFE’S) Beyond the Creative Quick Fix Conceptualising Creativity’s Role 373 Creative Cluster web of individuals and businesses within the creative workforce, are businesses and individuals who act as interacting agents working with the creative workforce and are critical in the realisation, development and delivery of cultural goods Fig A Creative Community is defined as a geographic area with a concentration of creative workers, creative businesses, cultural organisations and supporting agencies Jason Potts broadens the conceptual landscape of creativity arguing that we should view the “creative industries” as part of a “creative system” He suggests that the creative system is not just focused on the origination, innovation and initial adoption of physical technology; but rather on “all novel ideas” (Potts 2007) Like Csikszentmihalyi, Potts argues for the exploration of a Systems Theory approach to understanding the creative economy and the potential for it to contribute more significantly to the broader economy To this end drawing from debates surrounding regional innovation systems is informative when attempting to reconceptualise the creative industries, how they fit into and contribute to the mainstream economy Discourse informing regional innovation systems theory has a long history stemming back to Schumpeter in 1911 with his work on innovation Emerging out of this tradition in the late 1990s Porter, Henton and Walesh were influential in South Australia in the mid 1990s through their research on industry clusters and networks Porter (2002) proposed that the enduring competitive advantage in a global economy is often heavily local, arising from a concentration of highly specialised skills and knowledge, institutions, related businesses and customers in a particular region In South Australia, this led to the establishment of a number of precincts populated by business within a specific industry sector or supply chain Although much attention and investment on the development of on clusters focuses on particular industries and their supply chains, Lagendijk suggests that “regional economic success is increasingly attributed to the performance of particular networks and institutional configurations, with an emphasis on idiosyncratic forms of 374 J Andrew and J Spoehr Creative Community defined as a geographic area with a concentration of creative workers, creative businesses, cultural organisations and supporting agencies Fig The Creative Community as a catalyst for policy innovation A more integrative approach to enabling the creative industries to contribute more broadly to regional economies would be to consider how the creative sectors or could in the future contribute to addressing issues within policy domains such as health and wellbeing, the environment, industry and commerce, and society and culture knowledge, interaction and strategic power” To this end Lagendijik’s work has informed this papers proposition that reconceptualising the creative economy as an integral part of the broader economy’s innovation system can inform policy makers of the creative industries potential to contribute to regional economic growth across industry sectors and policy domains Like Lagendijik, Cooke and Memedovic (2006) argue that successful regional economies knit together a mix of regional innovation policies and institutions with knowledge flows, and the systems on which they rely They observe successful systems tend to display a number of common characteristics such as: l l l l l l Intensive co-operation among firms High quality workforces Flexible work structures Dense infrastructures of supporting institutions and organisations Innovative regional cultures Activist regional governments It is common for innovative activity to be recognised within the realms of science and engineering Jason Potts suggests that this heavy focus on innovation Beyond the Creative Quick Fix Conceptualising Creativity’s Role 375 as a technical search and discovery process by universities and businesses “largely ignores the more complex interactions between producers and consumers, as well as subsequent phases beyond technology innovation, such as adoption and adaptation of a novel product or service to human lifestyles, along with its retention and normalisation by a population of carriers” (Potts 2007, p 7) This brief discussion of broad and narrow conceptions of creativity provides a foundation for examining the evolution of creativity as a concept and policy objective in South Australia How might engagement with the concept be characterised in South Australia? Has a particular conception of creativity prevailed and what is the likely trajectory for creativity as an object of government policy given our view about this? To begin to answer these questions we need to provide some context to the emergence of creativity as a core objective of South Australia’s Strategic Plan Creativity, Art and Culture: Changing Models of Production, Definition and Government Support Creativity has been commonly viewed in Australia through the lens of the arts and cultural sectors Inspired by the Keynesian model of support for the arts in Great Britain, a view that culture is a national good, from which locally specific cultural expression builds national, and regional identity has prevailed Following the British experience the establishment of the Australia Council for the Arts in the 1970s enshrined government support for the arts and cultural sectors, manifesting in a wide range of Federal and state based arts funding programs that support organisations and individual artists to develop and exhibit new work in a wide range of forms including Dance, Music, Theatre, and Literature, Visual arts, craft and design More recently, traditional forms of cultural expression have been influenced by the introduction of new technologies, which has led to increasingly fuzzy boundaries between what were once specialised artistic genres With an increasing emphasis in art colleges on conceptual development as opposed to developing exceptional production skills, many emerging artists are choosing to side step the purist gatekeepers in their chosen field or domain such as gallery curators, publishers or music producers and are turning into cultural producers in their own right Using new technologies and the internet has enabled self publishing of texts and “blogs”, producing and distributing music, and the production and distribution of animations, films and images In order to disseminate their ideas images and sounds to a global audience, this group of cultural producers develop and utilise their large social networks to support and promote their work rather than more traditional market intermediaries Mapping and measurement studies of regional creative economies are consistently identifying these increasingly hybrid forms of artistic and cultural production which include the use of new technologies in the production 376 J Andrew and J Spoehr and distribution of their creative content as having the potential to become increasingly economically significant As part of their strategies to promote a region to potential business investors, local and state governments are increasingly emphasising the role of arts and culture in promoting vibrant, creative and innovative communities as part of a broader economic growth strategy However, the utilisation and promotion of the cultural assets of South Australia does not necessarily equate to significantly increased investment in the individuals, agencies and programs that enable the creation, development and presentation of our of our home grown arts and cultural assets Rather, government expenditures on the arts and cultural sectors are increasingly absorbed by long standing cultural institutions in the maintenance of their collections and buildings, whilst arts development and support organisations that foster the development of creative capital and knowledge sharing find it increasingly difficult to sustain their programs with increasing industry and funders expectations despite their limited funding and capacity to generate earned income Within this uncertain environment of support for the arts sectors, there is tension in debates surrounding how best to evaluate the contribution of creativity to the economy and how broadly or narrowly conceived the concept of the creative industries should be As public expenditures on the not for profit arts and culture sector struggle to find justification in the face of commercialisation pressures, there has been a growing tendency to focus policy on those parts of the cultural sector that are seen to have potential to generate commercial returns These are commonly areas of the arts and cultural sectors that intersect with science and technology and have the greatest export potential These are commonly described as the creative industries Defining what constitutes the creative industries and quantifying the significance of these has been the focus of great deal of recent research There has been a considerable debate about what the “creative economy” or “creative industries” are Definitions range in scope and detail, from conceptually based descriptors to lists of products and services or occupations as the following table illustrates Richard Caves’ definition of the creative industries is bounded by the commonly held view that the cultural, artistic and entertainment sectors represent a creative core David Throsby focuses on a conceptual description of cultural capital and the areas of the economy in which he argues it resides Others such as the United Kingdom’s Department of Culture, Media and Sport (DCMS), Charles Landry, and PMSEC3 offer an expanded list of creative industries and include those that are on the cusp of arts, technology and entertainment This report was prepared by an independent working group for the Prime Minister’s Science, Engineering and Innovation Council (PMSEIC) and was presented at the 14th meeting of PMSEIC on December 2005 The report provides recommendations for leveraging the intellectual and creative wealth of the nation (Prime Minister’s Science Engineering and Innovation Council Working Group and (PMSEIC) (2005) Imagine Australia: The Role of Creativity in the Innovation Economy, PMSEIC) Beyond the Creative Quick Fix Conceptualising Creativity’s Role Richard Caves (2000) Creative industries: contracts between art and commerce David Throsby (2000) Economics and culture Creative industries Supplying goods and services that we broadly associate cultural artistic, or simply entertainment value Book and magazine publishing Visual arts (painting, sculpture) Performing arts (theatre, opera, concerts, dance) Sound recordings Cinema and TV films Fashion Toys and games Cultural capital Core creative arts Location of the primary artistic producers at the centre producing text, sound, image in both old and new art forms Wider cultural industries Film, television, publishing, video games, etc 377 Department of Culture Media and Sport (DCMS, UK) (2001) Creative industries taskforce Creative industries Advertising Architecture Music Art and antiques markets Performing arts Computer and video games Crafts Publishing Design Software Designer fashion Film and video Television and radio More prescriptive definitions based on production outputs, are offered by the Australian Department of Communication, Information Technology and the Arts (DOCITA) who base their definitional parameters around ANZSIC classifications Richard Florida bases his theoretical argument on a human capital model and describes the main resource of a creative economy as its stock of creative capital which he refers to as the creative class (Florida 2003, pp 8, 249) Richard Florida (2003) The rise of the creative class Creative industries: contracts between art and commerce Creative class Computer and mathematical occupations Architecture and engineering occupations Life, physical and social science occupations Arts, design, entertainment, sports, and media occupations Management occupations Business and Financial operations and Charles Landry (2003) Rethinking Adelaide capturing imagination DOCITA (2007) Creative industries Culture related industries Based on the Australian and New Zealand Standard The creative Industrial Classification (ANZSIC) industries are Printing those industries Newspaper printing and publishing that are based on Book and other publishing individual Architectural services creativity, skill Advertising services and talent They Commercial art and display services are also those that Film and video production and distribution have the potential Motion picture exhibition to create wealth Radio and TV services (including broadcasting) and jobs through Libraries and museums developing Parks and gardens intellectual Music and theatre production property Creative arts Architecture Musical composition, the literary arts, and Music visual arts Art and antiques Such as painting, drawing, sculpture, pottery etc markets (continued) 378 Richard Florida (2003) The rise of the creative class Creative industries: contracts between art and commerce occupations Legal occupations Healthcare practitioners and technical occupations High end sales and sales management J Andrew and J Spoehr Charles Landry (2003) Rethinking Adelaide capturing imagination Performing arts Computer and video games Crafts Publishing Design software Designer fashion Film and video Television and radio DOCITA (2007) Services to the arts Operating sound recording studios; operating performing arts venues (e.g., entertainment centres, concert halls, play houses and opera houses) Providing services to the arts Such as casting agency operations, costume design services, set design services and theatre ticket agencies Video hire outlets and photographic studios Innovation and Creativity Must Be at the Centre of Everything We Do: A South Australian Perspective South Australian politicians and policymakers have been particularly influenced by the work of Richard Florida and Charles Landry with both being invited on separate occasions to advise the South Australian government on measures to foster creativity and innovation in South Australia Since the early 1990s Landry has focused his research and consultancy work on the idea of the “Creative City” He argues that cities possess, to varying degrees, a collection of broadly defined cultural resources which he describes as: the skills and creativity of local people, the concrete manifestations of people’s work (buildings, manufactured products, artifacts) and more intangible, yet significant qualities such as social milieu, people’s memory and the reputation of the place These three types of cultural resources can be exploited in different ways and require different kinds of intervention (Landry and Bianchini 1994, p 16) The publication of The Creative City: A toolkit for urban innovators by Landry in 2000 caught the attention of policy makers and politicians in South Australia with Landry being invited by the South Australian Government to be one of it’s first Thinkers in Residence The focus of his residency was on: l l l l Helping Adelaide unlock its creative potential Enhancing understanding of why creativity is so important in achieving social and economic progress Developing new connections between the city and the northern suburbs The role of culture in building stronger and more cohesive communities In his Rethinking Adelaide report to the South Australian Government, Landry (2003) argues that Adelaide should consider its creative and cultural assets as an industry He observed that the government funded arts and cultural sector often acts as an important hub for research and development that fuels innovation in the wider Beyond the Creative Quick Fix Conceptualising Creativity’s Role 379 economy He argued that consideration should be given to the development of links between the subsidised and commercial sectors to better enable this In many regions this is characterised by “arts” led approaches to economic regeneration which assert that a lively arts and cultural scene is symbolic of a creative and innovative region – a creative place that attracts tourists with discretionary income, and most importantly for sustained economic activity businesses and their employees In policy terms, this commonly manifests in major events and arts and cultural festivals, and in the development of cultural precincts In South Australia the support for major events and festivals is most notably illustrated by the Adelaide Festival of Arts established in 1960, and WOMADelaide the world music event established in Adelaide in 1992 Using evidence from economic impact statements, many argue that these events contribute to regional development McGregor Tan Research calculated that South Australian businesses experienced a 15% increase in turnover during the Adelaide Bank 2006 Festival of Arts, generating around 190 FTEs equivalents of employment (Adelaide Festival of Arts 2008, http://festival.fusion In 2008, 855 artists and performers participated in the Festival, including 277 from overseas and 232 from interstate (ibid) It is important to bear in mind that the Adelaide Festival of Arts lasts for two weeks; however the development and preparation leading up to presenting at the festival can take years In addition the presenters form interstate or overseas often develop their productions and exhibitions outside of the city in which it is to be presented, thus the economic benefit of increased artist activity and expenditure on goods and services during the development phase is not providing benefit to the city in which the festival is hosted Economic impact studies are commonly undertaken to justify public expenditure in festivals and events, however no research has been undertaken to demonstrate the role that investments in the development of creative capital across the creative industries make to a more broadly conceptualised “creative economy” embraced within the day to day mainstream economy rather than an annual demonstration of creative capacity Conceptualising a Creative Class: Useful or Not in Informing Regional Economic Developments Strategies? In 2004, Richard Florida presented his “Creative Class” theory to a cross section of politicians’ and policy makers in Adelaide Florida argued that “regional economic growth is powered by creative people who prefer places that are diverse, tolerant and open to new ideas – a so called creative class” He asserts that the most successful places are those that combine the three “T0 s” – tolerance, talent and technology (Florida 2003, p 266) Florida argues that the creative class comprises two elements: the Super Creative Core including scientists and engineers, university professors, poets and novelists, artists, entertainers, actors, designers and architects as well as the thought leadership of modern society: nonfiction writes, editors, cultural figures, think tank researchers, analysts and other opinion makers’ (Florida 2003, p 69) Beyond the core group 380 J Andrew and J Spoehr Florida defines the “creative professionals” who work in areas such as accounting, high tech sectors, legal and health care professionals and business management who all he argues utilise creative problem solving in their work Attempting to break down the rigid typologies of academic disciplines and industries Florida’s Creative Class theory argues that “creativity” rather than any single industry or policy intervention per se, is the fundamental source of economic growth To this end he argues that: The best route to continued prosperity is by investing in our stock of creativity in all its forms, across the board This entails more than just pumping R&D spending or improving education It requires increasing investments in the multidimensional and varied forms of creativity- arts, music, culture, design and related field – because all are linked and flourish together (Florida 2003, p 320) As a result of Florida’s presentations in Adelaide in 2004, there was heightened interest in understanding how his indices of creativity might be applied to enable South Australia to benchmark itself against other regions and set targets to improve its national rating Gibson and Klocker observe this increased attention to creativity is dominated by a perception of its “power to transform the images and identities of places This has constituted a ‘cultural turn’, of sorts, away from an emphasis on macro-scale projects and employment schemes, towards an interest in the creative industries, entrepreneurial culture and innovation” (Gibson and Klocker 2005, p 93) Since the initial interest in Florida’s work, there is growing recognition that Florida’s indices not adequately reflect and measure the multidimensionality of the creative sector, nor they take account of regional scale, politics, policies, assets and economic environment as key variables associated with the development of creative economies Whilst Florida’s indices relating to technology, talent and tolerance, such as the Bohemian Index, the Gay Index, the High Tech Index, the Melting Pot Index and the Creative Index enable regions to benchmark themselves against other regions, they not provide enough detail for the development of endogenous policy that might assist in attracting or developing a regions “creative class” Nor does he explicitly identify the frameworks and processes that enable the translation of investments in human capital to create “the creative class” which in turn must be cultivated to produce the raw commodity “creative capital” to be utilised on an economy wide basis In Australia, Gibson and Klocker (2005, p 99) observe that these constructions of class have been used to label both individuals and geographical regions, and the resulting discourse contributes to what Howlett (2003, cited Gibson and Klocker 2005, p 99) identifies as “a damaging conflation of socio-economic inequality and cultural attributes” Regardless of the debate surrounding the robustness of Florida’s theory, his work has attracted the attention of policy makers and focused attention on a broader notion of creativity that transcends art and culture This and narrower conceptualisations of creativity appear to co-exist in the South Australian creativity policy landscape Much of the practical attention however appears to have been upon defining and quantifying creative industries Beyond the Creative Quick Fix Conceptualising Creativity’s Role 381 The Creative Industries in South Australia In 2003, the South Australian Government began to contemplate the changing nature of the local arts and cultural sectors, in particular how new technologies intersected with art forms, and the increasingly fuzzy boundaries between craft and design (designer-makers) A cross-government steering committee representing Arts SA, Department of the Premier and Cabinet (DPC), Department of Trade and Economic Development (DTED), and the Department of Further Education, Employment, Science and Technology (DFEEST) commissioned a study to map and measure the creative industries in South Australia The objective of the study was to provide an assessment of the economic significance of the creative industries to South Australia (SA) The final report The Creative Industries in South Australia discusses the complexity of defining the creative industries, and states the approach to definition and measurement they adopted was the most pragmatic approach to take The report authors qualify their remarks by suggesting the chosen grouping of creative sectors is “linked by the use of similar creative and artistic inputs and produce products and services that fall into the categories of entertainment, education and art” (Arts S.A, Department of Premier and Cabinet et al 2005, p 21) The Creative Industries in South Australia report, like similar studies in Australia identified the following sectors as constituting the creative industries: l l l l l l l l l Audio-visual, media and digital media Advertising Craft, visual arts and indigenous arts Design (including architecture, fashion, and graphic, urban, industrial and interior design) Film and television Music Publishing Performing arts Cultural heritage/institutions The report argues that the sectors with the greatest potential for growth are those that are based on digital technologies Typically, these are companies that are near the definitional borderline between creative industries and information and communications technology (ICT) The report defines these as the “digital creatives” – or those companies exploiting creativity and technology to drive growth, high skill employment and exports The diversity of business products and services in this sector ranges from software for mobile phone producers to clay animation The Creative Industries in South Australia report concluded that at the time of writing “there are probably fewer than ten significant players” in the sector (Arts S.A, Department of Premier and Cabinet et al 2005, p 83) Together with approximately the same number of emerging businesses the report estimates that total employment in the sector as of 2004 was 480 people (ibid) 382 J Andrew and J Spoehr This more narrowly focused and pragmatic conception of the value of creativity has been followed by a more ambitious attempt to elevate creativity to a central objective of state policy in South Australia’s Strategic Plan Creativity, Innovation and Regional Growth: The Agenda Broadens In April 2003 the Economic Development Board (EDB), was formed by South Australia’s Rann Labor government The EDB was charged with the responsibility of guiding long-term economic development in the state The EDB’s report A Framework for Economic Development in South Australia (2003) contained 72 major recommendations for action by government, business and the community Section of the document outlined a broad framework and strategy, identifying key sectoral strengths as automotive, wine, water technology, food, defence, electronics tourism and the creative industries Importantly the EDB recommended that South Australia develop a whole of government Strategic Plan based on the State of Oregon, US, Comprehensive Plan (1999) In 2004, the first iteration of South Australia’s Strategic Plan (SASP) was released and “Fostering Creativity” was included as a central policy objective The SASP stated that: innovation and creativity provide South Australia’s future capital for growth and expansion The Government recognises its role in providing the right environment for these attributes to flourish in sectors ranging from the arts to manufacturing, and its ability to provide a lead for the rest of the community Our capacity to things differently will be one of the keys to achieving all of our objectives (Department of the Premier and Cabinet 2004, p 3) The “Fostering Creativity” objective identified creativity as a key to future prosperity, arguing that South Australia had a long history of creativity, which was exemplified by South Australia’s Nobel Prize winners, award winning South Australian filmmakers and innovative manufacturing In introducing the Fostering Creativity Objective the SASP proclaimed that: Our priority is to reinforce South Australia as a place that thrives on creativity and innovation This capacity to things differently will be one of the keys to achieving all of our objectives The focus will be on fostering a culture of creativity, on developing creative, innovative and enterprising people, on investing in science and research, and in innovation infrastructure, and on converting ideas into practice (Department of the Premier and Cabinet 2004, p 39) The Key Targets of the 2004 Fostering Creativity objective were: l l Achieve a ranking in the top three of Richard Florida’s Creativity index within 10 years Increase patent applications to exceed our population share of all Australian applications within years Beyond the Creative Quick Fix Conceptualising Creativity’s Role l 383 Significantly grow and expand South Australia’s share of the national feature film industry to match our population share Investment in Science, Research and Innovation l Exceed the national average of business expenditure on research and development (SA a percentage of GSP) and approach the OECD within 10 years Providing Support Infrastructure l Increase the level of internet use in metropolitan and regional South Australia by 20% within 10 years Developing Creative and Innovative People l Improve learning outcomes in the arts and other curriculum areas that utilise enterprise education l Improve the connections between educational institutions and industry to enhance creativity and innovation l Increase the number of families participating in the Learning Together and school-community arts and recreation programs The 2007 edition of the SASP involved substantial changes to key targets Notably these included the omission of a target to achieve a ranking in the top three nationally in Richard Florida’s “Creativity index” within 10 years More broadly the “Fostering Creativity” objective became “Fostering Creativity and Innovation”, reflecting an important shift in thinking about the relationship between the two concepts This did not appear to translate into the presentation of targets in the plan which separated the innovation targets from the creativity targets with the latter focusing heavily on science and technology R&D The targets for Creativity in the 2007 SASP included: l l l l l TARGET 4.1: Creative industries: increase the number of South Australians undertaking work in the creative industries by 20% by 2014 TARGET 4.2: Film industry: double the number of feature films produced in South Australia by 2014 TARGET 4.3: Cultural engagement – institutions: increase the number of attendances at South Australia’s cultural institutions by 20% by 2014 TARGET 4.4: Cultural engagement – arts activities: increase the number of attendances at selected arts activities by 40% by 2014 TARGET 4.5: Understanding of Aboriginal culture: Aboriginal cultural studies included in school curriculum by 2014 with involvement of Aboriginal people in design and delivery Valuable though these targets may be they reflect the narrow but historically dominant conceptualisation of creativity centring on the arts and cultural sector The wider objective of “Fostering Creativity” in the SASP appears to have been reduced through these targets to the more pragmatic goal of fostering business 384 J Andrew and J Spoehr development at the interface of design and technology This less ambitious project is not the end of the story however More recent developments suggest that a broader conception of creativity may be emerging The establishment in late 2009 of an “Integrated Design Commission” by the State Government represented a significant broadening of the creativity agenda, engaging a range of professions and agencies in the future development of South Australia’s urban environment This is perhaps the most tangible manifestation of the more ambitious underlying purpose of the “Fostering Creativity” objective in South Australia’s Strategic Plan Conclusion Concepts like creativity are more rather than less likely to preoccupy researchers and policymakers over decades to come as the search for answers to multi-dimensional challenges like climate change and population ageing demands that we become more creative This in itself is a challenge Brewer (1999, p 328) observed that “the world has problems, universities have departments” This might also be true of governments where agencies compete with each other and often struggle to interpret and operationalise complicated concepts like creativity The narrow focus on creative industries that emerged in South Australia reflects the dominant player in the creativity agenda within government – the Department of Trade and Economic Development which approached the challenge through a commercialisation and export orientation lens Until recently other government agencies have been relatively peripheral to the “Fostering Creativity” objective The challenge ahead in South Australia is to build on attempts to operationalise a broad conception of creativity, one that moves beyond creative quick fixes and the digital creatives to one that is holistic, multi-sectoral, multi-disciplinary and multidimensional It is likely that attempts in South Australia to engage with the concept of creativity will resonate with other regions seeking to acknowledge the significance of creativity in our social and economic lives Translating a broad conception of creativity into an integrated strategic whole of government response is about as difficult as policy challenges can get Moving beyond creative quick fixes will require both the elevation of creativity as an overarching objective of strategic policy within government and processes that enable it to be operationalised in a systematic and integrated way Some of the foundations appear to have been laid in South Australia References Adelaide Festival of Arts (2008) “Festival facts.” Retrieved 28 June 28 2008, from http://www¼62 Arts S.A, Department of the Premier and Cabinet et al (2005) The creative industries in South Australia, Cross-Government Steering Committee, Adelaide Beyond the Creative Quick Fix Conceptualising Creativity’s Role 385 Bilton C (2007) Management and creativity - from creative industries to creative management, Blackwell Brewer G (1999) “The challenges of interdisciplinarity.” Policy Sciences (32):327–337 Caves RE (2000) “Contracts between art and commerce” The Journal of Economic Perspectives 17(2):73–83(11) Cooke P, Memedovic O (2006) Regional innovation systems as public goods United Nations Industrial Development Organization, Vienna Csikszentmihalyi M (1996) Creativity: flow and the psychology of discovery and invention Harper Collins, New York Department of Culture Media and Sport (DCMS) (2001) Creative industries mapping document London, Department for Culture Media and Sport Department of the Premier and Cabinet (2004) South australian strategic plan: Creating opportunity Department of the Premier and Cabinet Adelaide, Government of South Australia Department of Communications Information Technology and the Arts (DOCITA) and The National Office for the Information Economy (NOIE) (2002) Creative industries cluster study- stage one report, DOCITA Economic Development Board (2003) A framework for economic development in South Australia Government of South Australia, Adelaide Florida R (2003) The rise of the creative class: And how it’s transforming work, leisure, community and every day life Melbourne, Pluto Press Gibson C, Klocker N (2005) The ‘cultural turn’ in Australian regional economic development discourse: neoliberalising creativity? Geogr Res 43(1):93–102 Howlett M and Ramesh M (2003) Studying public policy: Policy cycles and policy subsystems, Oxford University Press, Canada Landry C (2003) Rethinking Adelaide ‘Capturing Imagination’ Department of Premier and Cabinet, South Australian Government, Adelaide, 51 Landry C, Bianchini F (1994) The creative city: Indicators of a creative city a methodology for assessing urban viability and vitality Landry C (2000) The creative city: A tool kit for urban innovators London, Earthscan Leadbetter C (2000) Living on thin air: The new economy; with a new blueprint for the 21st century London, The Penguin Group Porter M (2002) Clusters and the new economics of competition Harv Bus Rev 76:77–90 Potts J (2007) Innovation: an evolutionary economic view of the creative industries, UNESCO observatory, Faculty of Architecture, Building and Planning, The University of Melbourne Refereed E-Journal Prime Minister’s Science Engineering and Innovation Council Working Group and (PMSEIC) (2005) Imagine Australia: The role of creativity in the innovation economy, PMSEIC Reich R (2001) The future of success: Working and living in the new economy New York, Vintage Tepper (2002) “Creative assets and the changing economy” The Journal of Arts Management, Law and Society 32(2):159–168 Throsby D (2000) Economics and culture Cambridge University Press, New York van den Steenhoven J, Stikker M et al (2005) Final report creative capital conference Creative Capital conference, Amsterdam, ... Roger R Stough l l Editors Drivers of Innovation, Entrepreneurship and Regional Dynamics Editors Dr Karima Kourtit Prof Dr Peter Nijkamp VU University Amsterdam Department of Spatial Economics De... change and adjustment Understanding these newly recognized processes of change is crucial for analysing and understanding different patterns of regional economic performance and in formulating and. .. brought together regional scientists from Europe, North America and Australia – and sometimes beyond – to address issues relating to the general field of innovation, entrepreneurship and regional development
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