New Horizons in Institutional and Evolutionary Economics series
Chapter 1: Introduction
1.1 DYNAMIC VALUE AND THE ECONOMICS OF CULTURE This book offers a new way of looking at the arts, culture and the creative industries from the perspective of evolutionary economics. It offers a ‘new’ cultural economics, or better: an evolutionary economics of creative industries. The evolutionary economic approach to cultural and creative industries is new because it largely abandons the dominant neoclassical marketfailure model of welfare and subsidy that otherwise underpins modern cultural economics. An excellent survey of this is Throsby (1994). Instead, it offers a market-process model of innovation dynamics and economic and cultural co-evolution. This is not a new approach (Grampp 1989, Cowen 1998, 2002, Peacock 1993, 2006, Cowen and Kaplan 2004, among others) but more a new consolidation. I propose here a general framework to refocus the economic analysis of arts and culture away from marketwelfare arguments and cultural protectionism and instead towards openmarket arguments based on consumer and producer uptake of new ideas, innovation dynamics, and industrial evolution. This focus on evolutionary economic dynamics of arts and culture leads us to trace different economic mechanisms – specifically, the contribution of the creative economy to the innovation system. In turn, this leads to very different policy models. So this is a book about the economics of arts and culture but done so from the perspective of economic evolution. Let me be clear about my intentions from the start. I do believe that the arts, culture and creativity are all good things (that is, they are ‘goods’) and that...