Wednesday, June 2, 2021

Understanding the economy of the future ­– innovation and its place in the knowledge economy, creative economy, creative industries and cultural economy

When we start to think about the economy of the future - and the clean and clever jobs that make it up - we encounter a confusing array of ideas and terms. Innovation, the knowledge economy, the creative economy, creative industries and the cultural economy are all used, often interchangeably. Over the years my own thinking about them has changed and I thought it would be useful to try to clarify how they are all related.

Knowledge economy, creative economy, creative industries and cultural economy
Increasingly the new industries in the knowledge economy of the future, with its core of creative industries and its links to our cultural landscape are both clever and clean. They are mainly service industries that make up the knowledge economy, based on intellectual inquiry and research and exhibiting both innovative services or products and often also new and innovative ways of doing business. At their heart are the developing creative industries which are based on the power of creativity and are a critical part of Australia’s future, in most cases centred on small business and closely linked to the profile of Australia as a clever country, both domestically and internationally.

Where the cultural economy (and to a lesser degree, creative industries) differ completely from other knowledge economy sectors is that, because they are based on content, they draw on, intersect with and contribute to Australia’s national and local culture and are a central part of projecting Australia’s story to ourselves and to the world ­– they help channel those who write the stories, paint the pictures and dance the dances that tell our story. In that sense they have a strategic importance that other sectors of the knowledge economy do not. As part of Australia's culture sector and the cultural economy that derives from it, they share the critical function of managing the meaning of Australia and what being Australian means, which distinguishes this sector from other parts of the knowledge economy.

Artists, the arts and culture sector and the cultural economy
The cultural economy is underpinned by the arts and culture sector and the artists and arts and cultural organisations, mainly small, that make it up and create the content which often feeds into and inspires other sectors of the creative economy. 

The cultural sector (including the arts sector and much of the heritage sector) can't be reduced to economics, in fact the cultural economy may well be one of the less important aspects of the cultural sector and its role. However, the reality is that the cultural sector does have an associated cultural economy, which is an important part of the creative economy and overlaps with the creative industries. This interconnected economy also happens to be my main area of interest.

The work I did on creative industries, including while I was in the Research, Statistics and Technology Branch of the Department of Communications, established the parameters of my subsequent interest. Even though I went on to manage various aspects of the Indigenous cultural programs of the Commonwealth for almost six and a half years, I have always seen my primary area of interest as being creative industries (and their links to the cultural economy) and even my continuing interest in First Nations culture and languages has largely been from this perspective.

Creativity, culture and everyday life
Both economic relevance and a sense of being embedded with community are complementary aspects of contemporary creativity and culture that make it so strong a force. It links up both the economic role of culture and creativity and their community role of building resilience, well-being, social inclusion and liveable cities. What they have in common is that both spring from the reality that culture and creativity are integral to everyday life and the essential activities that make it up.

If we start from a dynamic view of culture, we start to think about cultural diversity not as a static aggregate of many diverse cultures, but as the constantly evolving interaction between those cultures. Once we start with the reality of everyday life, then that abstract entity ‘the economy’, becomes the effort to make a living, society and community become the way people interact through living and expressing their culture. Recognising the central role of creativity involves seeing the full, rich, interconnected, dynamic picture of everyday life. It’s not about simply economics, it about something much more fundamental – making a living.

The main downside for those working in the creative economy is that though these industries may sometimes – but not often – pay relatively well, they, like most arts and culture jobs as well, tend to be short-term, project-based and, as with most small business environments, precarious and subject to the vagaries of international markets. The global COVID-19 pandemic has underlined this in a dramatic way.

Innovation is applied creativity and cultural diversity fosters innovation
The concept of innovation is important in this context. It helps place creativity firmly at the centre of economic and social development in the new knowledge economy which represents the future of Australia. All too often, creativity is confused with innovation. A number of writers about innovation have made the point that innovation and creativity are different. In their view, innovation involves taking a creative idea and commercialising it. If we look more broadly, we see that innovation may not necessarily involve only commercialising ideas. Instead the core feature is application—innovation is applied creativity. Cultural diversity fosters innovation because innovation occurs where cultures intersect and differing world-views come into contact and fixed ideas and old ways of doing things are challenged.

Addressing central social challenges
The focus of the cultural economy (and to some degree creative industries) on content has other implications. Creativity, culture and creative industries also show promise in helping address central social challenges Australia faces. In attempting to address the major issue of Indigenous disadvantage, to take just one example, it is critical to recognise that one of the most important economic resources possessed by First Nations communities is their culture. Creative firms are already developing which draw on that cultural content. Through the intellectual property that translates it into a form that can generate income in a contemporary economy, that culture is pivotal to jobs and to income. It may not be mining but they mine a far richer seam – authentic and rich content that has already been recognised internationally for its high value, just like our iron and coal.

See also

‘indefinite article’ on Facebook – short arts updates and commentary
‘Short arts updates and irreverent cultural commentary about contemporary Australian society, popular culture, the creative economy and the digital and online world – life in the trenches and on the beaches of the information age’, 'indefinite article' on Facebook.

An everyday life worth living – indefinite articles for a clean, clever and creative future
‘My blog “indefinite article” is irreverent writing about contemporary Australian society, popular culture, the creative economy and the digital and online world – life in the trenches and on the beaches of the information age. Over the last ten years I have published 166 articles about creativity and culture on the blog. This is a list of all the articles I have published there, broken down into categories, with a brief summary of each article. They range from the national cultural landscape to popular culture, from artists and arts organisations to cultural institutions, cultural policy and arts funding, the cultural economy and creative industries, First Nations culture, cultural diversity, cities and regions, Australia society, government, Canberra and international issues – the whole range of contemporary Australian creativity and culture’, An everyday life worth living – indefinite articles for a clean, clever and creative future

Beyond a joke – surviving troubled times (on 'indefinite article')
‘We live in troubled times – but then can anyone ever say that they lived in times that weren’t troubled? For most of my life Australia has suffered mediocre politicians and politics – with the odd brief exceptions – and it seems our current times are no different. Australia has never really managed to realise its potential. As a nation it seems to be two different countries going in opposite directions – one into the future and the other into the past. It looks as though we’ll be mired in this latest stretch of mediocrity for some time and the only consolation will be creativity, gardening and humour’, Beyond a joke – surviving troubled times

Beyond a joke – surviving troubled times (on 'balloon')
‘We live in troubled times – but then can anyone ever say that they lived in times that weren’t troubled? For most of my life Australia has suffered mediocre politicians and politics – with the odd brief exceptions – and it seems our current times are no different. Australia has never really managed to realise its potential. As a nation it seems to be two different countries going in opposite directions – one into the future and the other into the past. It looks as though we’ll be mired in this latest stretch of mediocrity for some time and the only consolation will be creativity, gardening and humour’, Beyond a joke – surviving troubled times.

Always was, always will be – a welcome long view in NAIDOC week
‘Being involved with Australian culture means being involved in one way or another with First Nations arts, culture and languages – it’s such a central and dynamic part of the cultural landscape. First Nations culture has significance for First Nations communities, but it also has powerful implications for Australian culture generally. NAIDOC Week is a central part of that cultural landscape’, Always was, always will be – a welcome long view in NAIDOC week.  
 
Remaking the world we know – for better or worse
‘Given the Government cannot avoid spending enormous sums of money if it is to be in any way capable and competent, this is an unparalleled opportunity to remake Australia for the future. Usually opportunities such as this only arise in rebuilding a country and an economy after a world war. It is a perfect moment to create the sort of clean, clever and creative economy that will take us forward in the global world for the next hundred years. Unfortunately a failure of imagination and a lack of innovative ambition will probably ensure this doesn’t happen any time soon’, Remaking the world we know – for better or worse.

The old normal was abnormal – survival lessons for a new riskier world
‘When I hear the call to get back to normal, I think ‘what was normal about the old normal?’ The sudden shutdown of large sectors of the economy highlighted drastically how precarious was the situation of vast chunks of Australian society, in particular but not exclusively, the creative sector. The business models implemented by the Government to help businesses survive and employees keep their jobs didn’t work at all for those who had already been happily left at – or even deliberately pushed to – the margins of society and the economy. In good times the creative sector is flexible and fast at responding. In bad times it is a disaster, as the failure of the COVID-19 support packages for the sector shows’, The old normal was abnormal – survival lessons for a new riskier world.

Cut to the bone – the accelerating decline of our major cultural institutions and its impact on Australia’s national heritage and economy
‘I always thought that long after all else has gone, after government has pruned and prioritised and slashed and bashed arts and cultural support, the national cultural institutions would still remain. They are one of the largest single items of Australian Government cultural funding and one of the longest supported and they would be likely to be the last to go, even with the most miserly and mean-spirited and short sighted of governments. However, in a finale to a series of cumulative cuts over recent years, they have seen their capabilities to carry out their essential core roles eroded beyond repair. The long term impact of these cumulative changes will be major and unexpected, magnifying over time as each small change reinforces the others. The likelihood is that this will lead to irreversible damage to the contemporary culture and cultural heritage of the nation at a crucial crossroads in its history’, Cut to the bone – the accelerating decline of our major cultural institutions and its impact on Australia’s national heritage and economy.

Better than sport? The tricky business of valuing Australia’s arts and culture
‘Understanding, assessing and communicating the broad value of arts and culture is a major and ongoing task. There has been an immense amount of work already carried out. The challenge is to understand some of the pitfalls of research and the mechanisms and motivations that underpin it. Research and evaluation is invaluable for all organisations but it is particularly important for Government. The experience of researching arts and culture in Government is of much broader relevance, as the arts and culture sector navigates the tricky task of building a comprehensive understanding in each locality of the broader benefits of arts and culture. The latest Arts restructure makes this even more urgent.’, Better than sport? The tricky business of valuing Australia’s arts and culture.

Crossing boundaries – the unlimited landscape of creativity
‘When I was visiting Paris last year, there was one thing I wanted to do before I returned home – visit the renowned French bakery that had trained a Melbourne woman who had abandoned the high stakes of Formula One racing to become a top croissant maker. She had decided that being an engineer in the world of elite car racing was not for her, but rather that her future lay in the malleable universe of pastry. Crossing boundaries of many kinds and traversing the borders of differing countries and cultures, she built a radically different future to the one she first envisaged’, Crossing boundaries – the unlimited landscape of creativity.

Creativity and culture in change: Change in creativity and culture
‘A vast transformation of contemporary culture not seen since the breakdown of traditional arts and crafts in the industrial revolution is under way due to the impact of the digital and online environment. Artists, culture managers and cultural specialists today are confronted with radically different challenges and opportunities to those they faced in the 20th Century. There are a number of strategic forces which we need to take account of in career planning and in working in or running cultural organisations’, Presentation at ‘Creative and Cultural Futures: Leadership and Change’ – a symposium exploring the critical issues driving change in the creative and cultural sector, University of Canberra, October 2018, Creativity and culture in change: Change in creativity and culture.

Full circle – where next for Australian national arts and culture support in the 21st Century?
‘With a Coalition Government which now stands a far better chance of being re-elected for a second term, the transfer of the Commonwealth’s Arts Ministry to Communications helps get arts and culture back onto larger and more contemporary agendas. This move reflects that fact that the new industries in the knowledge economy of the future, with its core of creative industries and its links to our cultural landscape, are both clever and clean. Where they differ completely from other knowledge economy sectors is that, because they are based on content, they draw on, intersect with and contribute to Australia’s national and local culture and are a central part of projecting Australia’s story to ourselves and to the world. In that sense they have a strategic importance that other sectors do not’, Full circle – where next for Australian national arts and culture support in the 21st Century?

Endless attrition at major collections institutions undermines our cultural future
‘The endless attrition of the ‘efficiency dividend’, with its long-term debilitating impact on our major national cultural institutions, continues to do harm. With the periodic announcement of job losses, more and more valuable expertise is increasingly lost and important programs affected. This will undermine the ability of these institutions to care for our heritage and to provide access to their collections for Australians across the country. The long term impact of these cumulative changes will be major and unexpected, magnifying over time as each small change reinforces the others. At some point Australians will ask where valued and important programs have gone and how critical institutions have managed to diminish to the point where return will not be possible,’ Endless attrition at major collections institutions undermines our cultural future.

Cut to the bone – the accelerating decline of our major cultural institutions and its impact on Australia’s national heritage and economy
‘I always thought that long after all else has gone, after government has pruned and prioritised and slashed and bashed arts and cultural support, the national cultural institutions would still remain. They are one of the largest single items of Australian Government cultural funding and one of the longest supported and they would be likely to be the last to go, even with the most miserly and mean-spirited and short sighted of governments. However, in a finale to a series of cumulative cuts over recent years, they have seen their capabilities to carry out their essential core roles eroded beyond repair. The long term impact of these cumulative changes will be major and unexpected, magnifying over time as each small change reinforces the others. The likelihood is that this will lead to irreversible damage to the contemporary culture and cultural heritage of the nation at a crucial crossroads in its history’, Cut to the bone – the accelerating decline of our major cultural institutions and its impact on Australia’s national heritage and economy.

After a fashion – creative industries from First Nations culture
‘When I first heard that Victorian regional gallery, Bendigo Art Gallery, was planning an exhibition about contemporary Indigenous fashion I was impressed. The Gallery has had a long history of fashion exhibitions, drawing on its own collection and in partnership with other institutions, notably the Victoria and Albert Museum in London. It is fascinating to consider how a leading regional Australian museum and an internationally renowned museum on the global stage, while in many ways so different, have so much in common. The exhibition is far more than a single event in a Victorian regional centre – it is an expression of a much broader contemporary Indigenous fashion phenomenon nation-wide. It hints at the potential of the creative economy and creative industries to build stronger communities. Both the economic importance and the community and social importance of creativity and culture are tightly interlinked because of the way in which creativity and culture are integral to everyday life and the essential activities that make it up’, After a fashion – creative industries from First Nations culture.
 
A world turned upside down – UNESCO Creative City of Design Wuhan
‘World-shaking events can completely reframe your perspective. When I drove from Canberra to Adelaide and Kangaroo Island in March this year, everyone was being urged to visit regional centres to help them recover from the devastating bushfires. Only weeks later, as I was heading home – via Victoria, a State entering lockdown as I passed through – everybody was being encouraged to stay home to help stop the spread of disease. Back in Canberra I had been involved in a long-running effort to have the city listed as a UNESCO City of Design. The new reality that threatened to overshadow that effort was the global COVID-19 pandemic. Ironically that pandemic had originated in the Chinese city of Wuhan, which as I discovered, was itself a City of Design in the global UNESCO Creative Cities Network’, A world turned upside down – UNESCO Creative City of Design Wuhan.
 
Creative and cultural futures – understanding the creative and cultural economy
‘Survival in the creative sector in a post-COVID world will require enhanced literacy in the opportunities of the new industries of the future, the clean and clever knowledge economy which is altering our world on a daily basis. Now a new short course delivered completely online in the new digital universe we are all increasingly inhabiting will look closely at the creative and cultural economy and the broader impacts of creativity and culture, both economic and social. It will outline the role of the creative sector in managing meaning and explain how telling Australian stories puts us on the international stage in an increasingly globalised world’, Creative and cultural futures – understanding the creative and cultural economy.

Making a living – building careers in creative and cultural futures
‘Making a living in the developing creative economy is no easy task. For a viable career, flexibility and creativity are crucial. For this a strategic outlook and a grasp of the major long-term forces shaping Australian creativity and culture is essential. To help foster this amongst emerging cultural sector practitioners, a new flagship course, a Master of Arts in Creative and Cultural Futures, was launched at the University of Canberra in 2019, building on earlier experiments in aligning research and analysis with real world cultural sector experience’, Making a living – building careers in creative and cultural futures.

Industries of the future help tell stories of the past – Weta at work in the shaky isles
‘After three weeks travelling round the North Island of New Zealand, I’ve had more time to reflect on the importance of the clean and clever industries of the future and the skilled knowledge workers who make them. In the capital, Wellington, instead of the traditional industries that once often dominated a town, like the railways or meatworks or the car plant or, in Tasmania, the Hydro Electricity Commission, there was Weta. It’s clear that the industries of the future can thrive in unexpected locations. Expertise, specialist skills and industry pockets can occur just about anywhere, as long as you have connectivity, talent and a framework of support that makes it possible. These skills which Weta depends on for its livelihood are also being used to tell important stories from the past’, Industries of the future help tell stories of the past – Weta at work in the shaky isles.

Designs on the future – how Australia’s designed city has global plans
‘In many ways design is a central part of the vocabulary of our time and integrally related to so many powerful social and economic forces – creative industries, popular culture, the digital transformation of society. Design is often misunderstood or overlooked and it's universal vocabulary and pervasive nature is not widely understood, especially by government. In a rapidly changing world, there is a constant tussle between the local and the national (not to mention the international). This all comes together in the vision for the future that is Design Canberra, a celebration of all things design, with preparations well underway for a month long festival this year. The ultimate vision of Craft ACT for Canberra is to add another major annual event to Floriade, Enlighten and the Multicultural Festival, filling a gap between them and complementing them all’, Designs on the future – how Australia’s designed city has global plans.

Creativity at work – economic engine for our cities
‘It is becoming abundantly clear that in our contemporary world two critical things will help shape the way we make a living – and our economy overall. The first is the central role of cities in generating wealth. The second is the knowledge economy of the future and, more particularly, the creative industries that sit at its heart. In Sydney, Australia’s largest city, both of these come together in a scattering of evolving creative clusters – concentrations of creative individuals and small businesses, clumped together in geographic proximity. This development is part of a national and world-wide trend which has profound implications’, Creativity at work – economic engine for our cities.

The immense potential of creative industries for regional revival
‘Across Australia, local communities facing major economic and social challenges have become interested in the joint potential of regional arts and local creative industries to contribute to or often lead regional revival. This has paralleled the increasing importance of our major cities as economic hubs and centres of innovation’, The immense potential of creative industries for regional revival.

Design for policy innovation – from the world of design to designing the world
‘Design and the language of design is very broad – much broader than architecture or industrial or graphic design – the forms we are most conscious of. Design is also very much about processes and the development of concepts across almost all areas of human activity. This means it also has a high relevance to the development of policy to solve pressing social challenges, moving beyond the world of design to embrace the design of the world. In a highlight of DESIGN Canberra this year, respected Dutch presenter Ingrid Van der Wacht led discussion about the relevance of design to innovative policy – from local, highly specific policy to grand strategic policy designed to change whole regions and even nations’, Design for policy innovation – from the world of design to designing the world.

The clever business of creativity: the experience of supporting Australia's industries of the future
‘The swan song of the Creative Industries Innovation Centre, ‘Creative Business in Australia’, outlines the experience of five years supporting Australia’s creative industries. Case studies and wide-ranging analysis explain the critical importance of these industries to Australia’s future. The knowledge economy of the future, with its core of creative industries and its links to our cultural landscape, is both clever and clean. Where the creative industries differ completely from other knowledge economy sectors is that, because they are based on content, they draw on, intersect with and contribute to Australia’s national and local culture’, The clever business of creativity: the experience of supporting Australia's industries of the future.

My nephew just got a job with Weta – the long road of the interconnected world
‘My nephew just got a job in Wellington New Zealand with Weta Digital, which makes the digital effects for Peter Jackson’s epics. Expertise, specialist skills and industry pockets can occur just about anywhere, as long as you have connectivity, talent and a framework of support that makes it possible. This is part of the new knowledge economy of the future, with its core of creative industries and its links to our cultural landscape. Increasingly the industries of the future are both clever and clean. At their heart are the developing creative industries which are based on the power of creativity and are a critical part of Australia’s future – innovative, in most cases centred on small business and closely linked to the profile of Australia as a clever country, both domestically and internationally. This is transforming the political landscape of Australia, challenging old political franchises and upping the stakes in the offerings department’, My nephew just got a job with Weta – the long road of the interconnected world.

Creative industries critical to vitality of Australian culture
‘The developing creative industries are a critical part of Australia’s future – clean, innovative, at their core based on small business and closely linked to the profile of Australia as a clever country, both domestically and internationally.’ Creative industries critical to vitality of Australian culture.

Applied creativity
‘I have been dealing with the issue of creativity for as long as I can remember. Recently, I have had to deal with a new concept—innovation. All too often, creativity is confused with innovation. A number of writers about innovation have made the point that innovation and creativity are different. In their view, innovation involves taking a creative idea and commercialising it. If we look more broadly, we see that innovation may not necessarily involve only commercialising ideas. Instead the core feature is application—innovation is applied creativity. Even ideas that may seem very radical can slip into the wider culture in unexpected ways’, Applied creativity.

Creative industries – applied arts and sciences
‘The nineteenth century fascination with applied arts and sciences — the economic application of nature, arts and sciences — and the intersection of these diverse areas and their role in technological innovation are as relevant today for our creative industries. From the Garden Palace, home of Australia’s first international exhibition in 1879, to the Economic Gardens in Adelaide’s Botanic Gardens these collections and exhibitions lay the basis for modern Australian industry. The vast Garden Palace building in the Sydney Botanic Gardens was the Australian version of the great Victorian-era industrial expositions, where, in huge palaces of glass, steel and timber, industry, invention, science, the arts and nature all intersected and overlapped. Despite burning to the ground, it went on to become the inspiration for what eventually became the Museum of Applied Arts and Sciences — the Powerhouse Museum’, Creative Industries.

 

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