Creative Industries and Economic Evolution

Creative Industries and Economic Evolution

New Horizons in Institutional and Evolutionary Economics series

Jason Potts

The creative industries are key drivers of modern economies. While economic analysis has traditionally advanced a market-failure model of arts and culture, this book argues for an evolutionary market dynamics or innovation-based approach. The book explores theoretical and conceptual aspects of an evolutionary economic approach to the study of the creative economy. Topics include creative businesses and labour markets, social networks, innovation processes and systems, institutions, and the role of creative industries in market dynamics and economic growth.

Chapter 15: Creative Industries and Economic Development

Jason Potts

Subjects: economics and finance, evolutionary economics

Extract

Prolegomena This chapter arose from projects on cultural and creative industries in developing nations (including China and Papua New Guinea). The question was whether creative industries as a policy framework applies only to advanced nations. I present the case here that from the evolutionary/ adaptation perspective, creative industries may actually be more important in the process of economic development than as a driver of economic growth. 15.1 INTRODUCTION Economic growth is the increase in gross domestic product or some market-based measure of economic output. Economic development is a broader topic by its additional concern with the social, cultural, industrial and institutional conditions underlying the economic progress of a nation, thus referring to a broader composite of indicators that also include factors such as poverty, sanitation, literacy and education, unemployment, underground economy and income distribution, along with other political, social and environmental indicators. Growth theory concerns the dynamics of an economy, and development theory concerns the dynamics of a socio-political–cultural–environmental economic order. Apart from greater attention to welfare, structural and institutional factors in development theory, a further distinction is that where economic growth theory is largely a positive analysis, development economics has a strong normative and teleological dimension relating to the scope for public, government or non-governmental intervention. Development theory focuses on the institutional changes in socio-cultural, legal and political as well as economic institutions to promote goals of economic development. The significance of this to creative industries is that many of the received notions of industry significance and...

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