A beginner's guide to culture-based creative economy
Professor Chun Taeck-soo of the Academy of Korean Studies
By Chun Taeck-soo
For too many times we have heard of or seen the term a “creative economy” through the mass media, not only in Korea but also at an international level. Still many people complain that it is not easy to understand.
Creativity is neither new nor is economics. According to LinkedIn, a social networking website for about 200 million people in professional occupations, creativity has been the most overus ed word in 2011 and 2012. But when the two different words are integrated into one phrase, it becomes mysterious. Here I will explain the creative economy in simple terms based on the work of John Howkins.
Q What is creativity?
A This is not an easy question to answer. It is nearly impossible to capture the complete essence of the concept of creativity. But for heuristic and practical purposes, I would like to suggest the very simple definition of creativity as having new ideas following Mr. Howkins. The new ideas may be huge so as to change the world order or tiny so as to improve one’s life. Creativity is arguably the most important input for production and the most important criteria in consumer choices during the 21st century.
Q What is a creative economy?
A
Mr. Howkins has defined the creative economy as an economy where the major inputs are new ideas and the outputs are commodities (goods and services) loaded with new ideas. These outputs are called the creative commodities in the sense that they not only are loaded with creativity but also provide their consumers with creativity.
Q What is a creative industry?
A It has various definitions depending on what activities are included in it. One of the most popular definitions in use is given by the United Kingdom which defined the creative industries as those activities which have their origin in individual creativity, skill and talent and which have the potential for wealth and job creation through intellectual property. It includes 13 sectors related to the arts, culture, broadcasting, software, and television and radio. The industries produce commodities with symbols, sign and beauty. From enjoying them, the consumers will get new ideas which can be implemented for their workplace, start-ups and even in their daily lives. The best exemplary case really is the hallyu industry.
Q Who is creative?
A Each and every single person can be creative. This premise is the most important distinction between the creative economy and the previous type of economy like the knowledge economy or industrial economy where scientists, artists, or geniuses have been considered creative. To name a few, Steve Jobs, Einstein and Mozart are the typical examples. They are considered to have Big-C creativity in the sense of affecting the world. But in the creative economy we all are creative in the Small-C way, doing things that enrich our own lives but do not receive recognition from the outside world.
Q Where does creativity come from?
A In the past, creative talent was believed to be a gift given by gods. But in 2003, the National Academy of Sciences of America has identified four sources of creativity: sciences, technology, economy and culture. Scientific creativity involves curiosity for understanding natural processes. Technological creativity involves the enhancement of the functionality of commodities. Economic creativity involves bringing together ideas, talent, and capital in innovative ways. And cultural creativity involves novel ways of seeing, interpreting, and expressing the world.
Q Why do the western countries underscore the arts and culture?
A Both consumers and producers are being affected by the three worldwide phenomena: globalization, rapid rise in global income and development of ICT. Ordinary consumers are changing their tastes towards the pursuit of the aesthetic, emotional and symbolic aspects of commodities. The ordinary producers have to satisfy the consumers’ new taste by producing those types of commodities. Western countries believe that cultural creativity connects consumers’ wants and producers’ capabilities through the artistic experience made by them. With the help of the three phenomena from this time on, the cultural creativity will play a major role in the invention of new commodities, the development of cost-reducing processes, and the development of new ways of organizing the activities of firms.
Q In conclusion, what should Korea do to succeed as a creative economy?
There are three economic agents: households, firms and government. As a kind of organization, they should reduce the command-and-control culture of hierarchy and instead enhance the culture of communicative-artistic-empowering management to mobilize the full creative talents of their members.
Also, the government should contemplate how to enhance everyone’s creativity rather than a selected few, which is similar to the old type of industrial policy. The firms should place consumers at the center of management strategy rather than maximizing the shareholder’s profit. Finally, each household should firmly believe that individual creativity is the most fundamental and essential asset to survive the 21st century.
The writer is a professor of cultural economics at the Academy of Korean Studies. He was the former secretary general of the Korean National Commission for UNESCO.