A Model of Creative Spillovers and Economic Growth

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Public policy spanning a broad range of contexts, ranging from the European Union, to states, cities and local communities around the globe, has turned to entrepreneurship to provide the engine for economic growth, competitiveness in globally linked markets, and jobs. This book explains why entrepreneurship has emerged as a bona fide instrument of growth policy. The knowledge spillover theory of entrepreneurship suggests that entrepreneurship provides a crucial mechanism in the process of economic growth by serving as a conduit for knowledge spillovers. Investments in new knowledge and ideas may not automatically spill over and result in commercialization, as has typically been assumed in models of economic growth. Rather, the existence of what is introduced as the knowledge filter impedes the spillover and commercialization of investments in new ideas and knowledge. By penetrating the knowledge filter and facilitating the spillover of knowledge that might otherwise not be commercialized, entrepreneurship provides the missing link to economic growth. This new focus of entrepreneurship as a conduit transmitting the spillover of knowledge generates a series of theoretical propositions, involving not just the impact of entrepreneurship on economic performance and growth, but also the very nature of entrepreneurship. The theoretical propositions range from positing that entrepreneurial opportunities are not exogenously given but rather endogenously and systematically created by investments in new knowledge and ideas, to the importance of geographic proximity between entrepreneurial activity and knowledge sources, the impact of location on entrepreneurial performance, and the new roles for board, managers and modes of finance in entrepreneurial firms accessing and absorbing knowledge spillovers. These propositions are subjected to systematic econometric scrutiny and verification using both aggregate data to analyze the links between entrepreneurship and growth, as well as firm-level data to analyze the impact of knowledge spillover on entrepreneurial location, performance, boards, managers and mode of finance. The resulting empirical evidence supports the knowledge spillover of entrepreneurship not only by linking entrepreneurship to economic growth and performance, but also by identifying how the organization and strategy of entrepreneurial firms are influenced by the need to access, absorb and commercialize external knowledge spillovers. The book concludes that the new millennium may not be so much about the process of Joseph Schumpeter's creative where entrepreneurial startups displace and ultimately drive incumbent company's out of business, but rather characterized by creative construction. Globalization and its concomitant outsourcing and offshoring is the source of the destruction, especially in terms of lower skilled jobs. By contrast, in the 21st century global economy, entrepreneurship is constructive by commercializing investments in knowledge and ideas that might never have been commercialized but ultimately result in growth, global competitiveness and employment. Thus, the emergence of entrepreneurship policy can be interpreted as the attempt to generate entrepreneurial based economic growth by creating an entrepreneurial economy. Available in OSO: http://www.oxfordscholarship.com/oso/public/content/economicsfinance/0195183517/toc.html

Public policy spanning a broad range of contexts, ranging from the European Union, to states, cities, and local communities around the globe has turned to entrepreneurship to provide the engine for economic growth, competitiveness in globally linked markets, and jobs. This book explains why entrepreneurship has emerged as a bona fide instrument of growth policy. The knowledge spillover theory of entrepreneurship suggests that entrepreneurship provides a crucial mechanism in the process of economic growth by serving as a conduit for knowledge spillovers. Investments in new knowledge and ideas may not automatically spill over and result in commercialization, as has typically been assumed in models of economic growth. Rather, the existence of what is introduced as the knowledge filter impedes the spillover and commercialization of investments in new ideas and knowledge. By penetrating the knowledge filter and facilitating the spillover of knowledge that might otherwise not be commercialized, entrepreneurship provides the missing link to economic growth. This new focus of entrepreneurship as a conduit transmitting the spillover of knowledge generates a series of theoretical propositions, involving not just the impact of entrepreneurship on economic performance and growth, but also the very nature of entrepreneurship. The book concludes that the new millennium may not be so much about the process of Joseph Schumpeter's creative destruction, where entrepreneurial startups displace and ultimately drive incumbent company's out of business, but rather characterized by creative construction.

Istanbul as a "City of Design"

Traditionally, suburbs have been conceived as dormitory – in binary opposition to the inner-city (Powell). Supporting this stereotypical view have been gendered binaries between inner and outer city areas; densely populated vs. sprawl; gentrified terraces and apartment culture vs. new estates and first home buyers; zones of (male) production and creativity against (female) sedate, consumer territory. These binaries have for over a decade been thoroughly criticised by urban researchers, who have traced such representations and demonstrated how they are discriminatory and incorrect (see Powell; Mee; Dowling and Mee). And yet, such binaries persist in popular media commentaries and even in academic research (Gibson and Brennan-Horley). In creative city research, inner-city areas have been bestowed with the supposed correct mix of conditions that may lead to successful creative ventures. In part, this discursive positioning has been borne out of prior attempts to mapthe location of creativity in the city

Purpose – the Tourism-Led Economic Growth Hypothesis (TLGH) is fundamental to the development of the tourism countries. The following research stresses the ever-growing importance of knowledge and creativity– through various disciplines – on national competitiveness and overall economic and tourism development. Emphasis will be given to the particulars of the tourism industry, the achieved level of economic growth, the tourism and economic competitiveness as well as the level of creativity. The study asserts that the nation’s economic and tourism development corresponds to the acquired competitiveness and creativity level. Methodology – the relationship between the variables which indicate economic and tourism development, knowledge, competitiveness and creative economy, will be examined through the comparative study on the case of EU countries (EU28). Multiple linear regression model (MLR) is tested on the case of Croatia (IBM SPSS). Findings – in today’s global crisis, one of the ways to promote economic wealth and growth is supporting service and creative industries. Tourism, as a part of the economic growth model, has a strong positive impact on the creative economy and competitiveness. The optimal development model of tourism economies is global comprehensive approach and it encompasses multidisciplinary relationship with all economic activities. Competitiveness, creativity, economic and tourism growth can be used as variables in forecasting tourism demand and tourism consumption. Contribution – the research’s contribution is reflected in a comprehensive study of the competitiveness and creative economy with a particular emphasis on tourism. The proposed macroeconomic model forms an excellent basis for the conduction of an economic policy and the employment of the appropriate instruments.

THE ROLE OF CREATIVE INDUSTRIES IN THE CONTEXT OF INNOVATIVE DEVELOPMENT OF UKRAINE

В настоящее время инструментам для устойчивого роста национальной экономики уделяется значительное внимание. Опыт анализа роли промышленности и оценки развития промышленности в рамках модели устойчивого роста экономики Социалистической Республики Вьетнам может быть использован для выявления перспектив развития экономик других развивающих стран. В статье исследуется развитие промышленности как ключевой инструмент для перехода к модели устойчивого роста экономики Вьетнама. В этом контексте обсуждаются взгляды на определение понятия «развитие промышленности» и выявляются основные направления моделирования экономического роста в современной экономике. На основе расчета вклада развития промышленности в рост ВВП Вьетнама и сравнительного анализа данных о развитии промышленности новых индустриальных стран, например Филиппин и Индонезии, показаны текущее состояние развития экономики Вьетнама и пути реализации модели устойчивого роста до 2030 г. Эффективное осуществление государственной стратегии развития промышленности оценивается на базе сравнения поставленных целей и результатов, достигнутых во Вьетнаме до 2020 г. Значительное внимание уделено процессам трансформации модели экономического роста за счет повышения уровня развития промышленности во Вьетнаме. В статье представлена концептуальная модель устойчивого роста экономики на основе развития промышленности, разработанная на базе системного подхода, объединяющая организационные, институциональные и экономические факторы развития промышленности и увязывающая его с триадой устойчивого развития. Выявлены основные проблемы развития промышленности во Вьетнаме на основе оценки развития промышленности в соответствии с основными блоками модели устойчивого роста экономики. В заключение предложены рекомендации по улучшению управления развитием промышленности во Вьетнаме в рамках этой модели. Currently, considerable attention is being paid to the issues of tools for sustainable growth of the national economy. An analysis of the role of industry and an assessment of the state of industrial development within the framework of a model of sustainable economic growth using the example of the Socialist Republic of Vietnam reveal the promising development of the economy in many developing countries of the world. This article examines the development of industry as a key tool for changing the model of sustainable economic growth in Vietnam. In this context, the main directions of modeling economic growth and the perspective on the definition of the concept of “industrial development” have been identified. Based on the calculation of the contribution of industrial development to the growth of Vietnam’s GDP and a comparative analysis of the data on the development of industry in new industrial countries, for example, the Philippines and Indonesia, the current state of development of the Vietnamese economy and ways to implement the model of sustainable growth until 2030 in Vietnam are shown. The effective implementation of the state strategy on the development of industry is evaluated on the basis of a comparison of the goal forecast and reality in Vietnam until 2020. The article presents a conceptual model of sustainable economic growth on the basis of industrial development, developed on the basis of a systematic approach, combines the organizational, institutional and economic factors of industrial development and links it with the triad of sustainable development. The main problems of the development of industry in Vietnam are identified on the basis of an assessment of the development of industry in accordance with the main blocks of the model of sustainable economic growth. In conclusion, recommendations are proposed for improving the management of industrial development in Vietnam in the framework of this model.

The rapid development of creative industries and the formation of the creative economy as a new paradigm of economic growth actualizes the need for a deep theoretical understanding of the interrelationships between these concepts. Despite growing research in this field, fundamental problems remain unresolved, including conceptual uncertainty, fragmentation of research, underestimation of multi-level interactions, problems of statistical accounting and comparison of indicators of the creative sector development between countries and regions, and difficulties in developing effective state policies. This study aims to theoretically substantiate the relationship between "creative industries" and "creative economy," analyze their structural elements, and develop an integrative model of their interaction at structural, functional, and value levels. The research methodology is based on comprehensive analysis of international experience, modern trends, and statistical data. The evolution demonstrates transformation from cultural industries studied by the Frankfurt School in the 1930s to modern comprehensive economic phenomena. "Creative industries" was officially first used in 1998 by the UK DCMS, defining them as "those industries which have their origin in individual creativity, skill and talent and which have a potential for wealth and job creation through the generation and exploitation of intellectual property." The creative economy concept emerged later through contributions from John Howkins, Richard Florida, and Charles Landry. Structural analysis reveals creative industries as economic sectors uniting enterprises, organisations and individual entrepreneurs whose activities are based on individual creativity, skills, and talent, creating high added-value products through intellectual property development. Various models have been developed by different organizations, including John Howkins (15 creative sectors), NESTA (four business models), UNCTAD (six types of creative outputs and about ten industry categories), and David Throsby's concentric circles model. The creative economy is a broader concept encompassing not only creative industries but also socio-economic relations related to production, distribution, and consumption of creativity-based goods and services. Its structural elements include the creative class, creative industries, institutional environment, innovation and digital infrastructure, and creative spaces. The proposed integrative model considers interaction at three levels. At the structural level, creative industries form the creative economy's core, with the creative class as driving force. At the functional level, creative industries generate ideas, innovations, and solutions that penetrate traditional sectors, while creative economy creates favorable development conditions. At the value level, creative industries form new value systems based on creativity, innovation, individuality, and cultural diversity. Practical aspects demonstrate significant economic impact. According to UNCTAD, the creative economy in 2022 created 0.5-7.3 % of GDP and provided 0.5-12.5 % of workforce employment. Creative services exports reached $1.4 trillion USD, nearly double creative goods exports ($713 billion USD). Creative industries generate $2.3 trillion USD annually worldwide (3.1% of global GDP), with projections reaching 10% by 2030. The creative economy shows high multiplier effects: each creative job creates up to 1.9 jobs in related sectors, and every $1 spent generates $2.5 economic effect. For Ukraine, the creative sector represented 7 % of GDP in 2021, with potential exceeding 10%. Despite war challenges, Ukraine exported $3.766 billion in creative services in 2022, creating a $3.042 billion positive trade balance. The research concludes that creative industries and creative economy exist in complex multi-level interaction, with creative industries serving as the system-forming core, generating innovations and transforming socio-economic relations. The integrative model provides theoretical significance and practical value for effective state policy formation to stimulate creative sector development. Keywords: creative industries, creative economy, creative class, creative sector, creativity, innovations, cultural industries, economic development, multiplier effect, structural analysis, integrative model, state policy, international cooperation, Ukraine, UNCTAD, NESTA, UNESCO.

The purpose of this article is to analyze the models of economic growth proposed by scientists and study the feasibility of including socio-cultural potential and human capital in them. In the process of conducting scientific research, methods of analysis and synthesis, comparison and generalization, as well as modeling were used. The work analyzes the evolution of scientific approaches to modeling economic growth, the formation of a new system of determinants of economic development, in particular, socio-cultural potential and human capital. Emphasis is placed on three main conceptual approaches to modeling the process of economic growth, namely historical-sociological, neo-Keynesian, and neoclassical. If the first of these approaches is characterized by an understanding of growth in the broad sense of the word, the other two – in a narrow sense. It is indicated that the majority of scientists devoted their scientific works to the presentation of the results of scientific research on economic growth in the narrow sense of this word. These scientists proposed models based on Keynes’s J. theory of economic equilibrium. Emphasis is placed on the growing role of education and the level of development of human capital in the economic growth of countries, which prompted scientists to expand the concept of "capital" in the model of the Cobb-Douglas production function, in which they began to include human capital, together with production capital, in the formation, accumulation and development in which considerable attention is paid to the education of the employee, as well as factors such as the rule of law, the level of economic freedom, political stability, quality of infrastructure, etc. Such models of economic growth were first proposed by Robert Lucas. In addition to him, models of economic growth taking into account human capital were developed by Romer P., Aghion P. and Howitt P., Velfe V. and others. It was noted that religion, mainly through the spread and support of religious faith, affects economic activity, and that, accordingly, determines the formation of such personal characteristics and characteristics as a tendency to save, trust, honesty, and work ethics. It has been established that if it is desired to "line" the process of participation of various factors in economic growth in a certain way, it is advisable to include the socio-cultural potential in the production function model. However, with this approach, the fact of interaction and mutual influence between traditional factors of growth with the indirect participation of socio-cultural potential is excluded from the scope of analysis. It is argued that the most productive consideration is not the direct, but the indirect influence of socio-cultural capital on economic growth.

A Simple Model of �Creativity� and the Transformation of Economic Growth Mode

The article draws on material gathered as part of three research projects, the first, ‘Supporting Creative Business’ was funded by the UK Arts and Humanities Research Council, the second, ‘Towards a model of support for the rural creative industries’ was funded by the University of Glasgow’s Knowledge Exchange fund and the third, ‘The effects of improved communications technology of rural creative entrepreneurs’ funded by CREATe, the Research Councils UK Centre for the Study of Copyright and New Business Models in the Creative Economy. Drawing on ethnographic research conducted at a range of sites around the Highlands and Islands of Scotland, this paper argues that despite recent attempts to develop the creative economy in remote and rural Scotland, the current institutional infrastructure is lacking. The paper explores creative practitioners’ responses to the opportunities and challenges posed by ‘place’. Therefore, the paper documents the tactics that creative entrepreneurs employ to aid the development of the creative economy ‘from below’, focusing in particular on the opportunities posed by improved communications technologies.

Creative Industry is one of the most influential economy sources in the world in era 2000 years. It was introduced by John Howkins [1] in which economy growth is dependent on new ideas. This concept answers concerning to industrial-based economy and has shifted from industrial economy (manufacture) to creative economy (intellectual as main asset). As developing countries, Government of Indonesia has seriously paid attention on creative industry sectors since 2009 through President Instruction Number 6 Year 2009 about Development of Creative Economy in Indonesia [23]. Since Joko Widodo has been President of Republic of Indonesia, creative economy is more developed by forming creative economy agency (Bekraf). Now, economy creative is one of new economy sources which is promoted by Government of Indonesia. Many creative sectors are pushed to complete national economy in Indonesia. In this term, perspective of regional innovation system is also important to understand what is creative industry expected by Government of Indonesia. Innovation and creative economy is two terms which is not separated each other. This paper uses case study in Indonesia as research methodology, also perspective of regional innovation system is to be main perspective in this study. The result is that creative industry and innovation are mutual relation each other in conceptual level. Practically, both are aimed to support national economy growth in Indonesia

In a period of crisis – namely, a pandemic and martial law – the economy is transforming into a system where the main driving forces are the exchange of knowledge, its mutual evaluation, where creativity and creative industries play a significant role, which ultimately form the creative economy, which economist and sociologist Richard Florida called "the new economic era of the 21st century". The purpose of the scientific work is to analyze the tools of Ukrainian creative industries that contribute to the production of a new cultural product or service, have a semantic load, are a resource for strategic communications and increase the potential of the creative economy in martial law (on the examples of successful Ukrainian cases of creative industries in the crisis period). The methodology of the study is based on a combination of systemic and value-based approaches, as well as discourse analysis, which together contribute to the disclosure of structural relationships in the ecosystem of the creative economy (in particular, social capital, entrepreneurial culture, state and international support, innovation potential, reputational capital of Ukraine in the world), their correlations with the peculiarities of national political and economic development and global trends, in particular in times of crisis, such as pandemic and wartime. The scientific work traces the genesis of the formation of a conceptual understanding of the creative economy and creative industries in the Ukrainian dimension, which contains legislative (Order of the Cabinet of Ministers of Ukraine No. 265-r "On Approval of Economic Activities Related to Creative Industries", the Law of Ukraine "On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on State Support of Culture, Small Business and Creative Industries in Connection with the Implementation of Measures Aimed at Preventing the Occurrence and Spread of Coronavirus Disease (COVID-19)", etc.), terminology (the meaning of the concepts of "creative product", "creative industries", "project", "institutional support grant", etc. was clarified), social and institutional (creation of the Public Union "Center for the Development of the Creative Economy", the National Bureau of the EU program "Creative Europe" in Ukraine, the Startup Fund, the Ukrainian Cultural Foundation (UCF), etc. Special attention in the scientific work is paid to the anonymous online survey of the UCF together with the Ministry of Culture and Information Policy of Ukraine of creative entrepreneurs and creative professionals, which was conducted among UCF 2020-2022 applicants on the state of culture and creative industries during the war (June 2022) in order to form a recovery and strengthening plan, which identified the following needs: transparent competition for managerial positions, restructuring of the management vertical of the industry, international educational trainings and exchange programs for artists and managers of the creative sector; co-production and cooperation in international projects; emphasis on cultural factors in the state international policy; strategy of state support, minimization of document circulation. The analysis of successful Ukrainian cases of creative industries allowed to outline the tools for the development of the creative economy in the crisis period: monetization of hobbies, innovative entrepreneurship, business clustering (in particular, the idea of a cluster of creative industries), brand collaboration, craft production, creation of cultural products such as books, grant/fund support and others, on the terms of donation to support the humanitarian and military needs of Ukrainian society. And the recently created podcast "Frontline of Creative Industries" about the success stories of representatives of this industry, who with their projects resist Russian aggression and support the economy and the institution of national identification of Ukraine, opens up prospects for further analysis of such tools as crowdfunding, revitalization, development of creative clusters of Ukrainian business.

In the past five years, President of Indonesia has intended to improve the Indonesian economya through the creative economy sector. The creative economy is parallel with Micro, Small and Medium Enterprises, where more than 90 percent Indonesian people put their livelihood. Therefore, the positive growth of the creative economy industry in Indonesia will faster stimulate local and national economic growth. Consequently, it is necessary to have the right policies, especially facilitation from the central government to local governments, which directly dealing with the Indonesian civil people. For example, through the Special Allocation Fund which properly encourage the creation of business leverage for MSMEs engaged in the creative economy industry. This study answers how central government transfer funds in the form of Special Allocation Funds can stimulate the creation of this acceleration of creative economic growth, especially in the pandemic era which bases its business on digital marketing. Using the simultaneous panel method of the local budget industrial sector (APBD sector) and central fund transfer (TKDD) for 34 provinces and other indicators such as labors, household consumption, the construction cost index, and investment in the form of PMTB from the 2014-2019 period, this study results in the significance of all these variables on the growth of the creative economic subsector. The output of this study shows that DAK has the most significant effect in increasing the economic growth of the creative economy in 34 provinces. In addition, investment and household consumption are the biggest levers in supporting the high growth of the creative economy. This is in accordance with the economic theory of the potter model and the neoclassical Solow growth model where investment and technology are important factors in the acceleration of economic growth. Given the condition of the Indonesian people, where most of which are MSMEs in the creative economy sector, investment through DAK to finance the technological transfer and research development is very significant. This was also confirmed through further research in this study in a qualitative method which conducted in-depth interviews with one of the Heads of Bakung Kidul Village, Cirebon. In the interview, there were several important inputs for the evaluation of transfer fund policies that support economic productivity in the creative economy sector, especially in the Tourism Village Area which was built 2 years ago. The results of this qualitative study were also enriched by interviews with DAK policy maker from the Directorate General Fiscal Balance, Ministry of Finance and MSME business actors who were also victims of the Covid-19 pandemic that hampered the Indonesian economy.