Creative economy entrepreneurship: Political rationalities in the new public management of Chile’s cultural sector

This chapter analyses participative and entrepreneurial activities in the cultural and creative sector in Italy, by adopting a benchmarking approach. We present the case of a call for projects addressed to all actors working in the cultural sector by Lazio Region, regarding the promotion of the region’s cultural heritage. Projects are evaluated and graded by a team of experts: those scoring more than 70/100 points are included in the collection of “BuonePratiche”, a publication by the Regional Directorate for Culture. We propose a research design based on the following steps. First, we build the theoretical framework by defining the cultural and creative sector, and then we illustrate our chosen approach, i.e. evaluation in the cultural sector. Then, the case study regarding “BuonePratiche” is presented and analysed. Data was collected from the direct observation of the call for projects and subsequent evaluation by experts, and from accessing the database containing all projects and their scores. Results indicate that actors in the cultural sector prioritise the enhancement of cultural heritage over entrepreneurship: this may represent an opportunity for improvement by educating cultural players on combining entrepreneurship and culture. We also find that networking has a positive influence on achieving better scores.

Introduction There are currently 295 cities designated as members of the UNESCO (United Nations Educational, Scientific and Cultural Organization) Creative Cities Network, an initiative launched in 2004 (Hanoi Department of Culture and Sports). These cities are expected to “work together towards a common objective: placing creativity and cultural industries at the heart of their development plans at the local level and cooperating actively at the international level” (UNESCO “Creative”). More specifically, one of the aims of the Creative Cities Network is to “develop hubs of creativity and innovation and broaden opportunities for creators and professionals in the cultural sector” (UNESCO Creative Cities Network). This UNESCO initiative emerged soon after Richard Florida’s influential “creative city thesis”. Florida’s thesis encourages the implementation of socio-economic development policies and physical design plans—by entire cities or specific urban areas—that attract and draw from the creative and art sectors, and especially the ‘creative class’. Focusing on the North American and European contexts, Florida credits the creative sector, rather than industry, for generating the economic growth that transformed post-industrial cities. Seeking to replicate this same growth in non-Western contexts, international consultancy firms and organizations—including UNESCO—have advised governments and municipalities around the world to follow this approach to foster creative activities. Despite a number of academic critiques of Florida’s ideas (e.g. Borén and Young; Gibson and Klocker; Peck; Scott), the creative city thesis is now “going global”, and influencing many policy-makers and politicians in Asia (Landry 100). This is not to say, however, that exciting movements were not already underway in such locales, driven by local enthusiasts. Yet the degree to which governments are taking these ideas on board has certainly shifted (see Ren for an excellent discussion of such synergies in Beijing and Berlin). Over the last two decades, large cities across the region have witnessed the rapid emergence of so-called creative hubs and districts (Hee et al.; Huabcharoen and Ellsmore; Kong). To date, studies on such spaces in Asia have largely analysed their role within the circulation and adoption of creative city policies by national or local governments (e.g., Kong; Lin and Chiu; Yeoh). This scholarship has pointed to the ways by which the development of urban creative spaces is advanced as a strategy to brand cities, increase their cultural production, and encourage economic development (e.g., O’Connor and Gu; Ooi and Lai; Yeoh). At the same time, the implementation of such policies is also linked to negative externalities and tensions regarding gentrification, censorship, commodification, and social exclusion (e.g., Currier; Hee et al.; Lin and Chiu; Luger). Within this context, Vietnam’s capital city Hanoi has witnessed the establishment of a number of small-scale sites devoted to creative activities since the mid- to late 1980s (fig. 1). Locally known as ‘creative spaces’ (không gian sáng tạo), these locales share a number of key characteristics with creative hubs researched elsewhere (see Gill et al.; Virani). Notably, Hanoi’s creative spaces are assembly points for a range of creative activities and people. Also, as is common elsewhere, they operate as local nodes in their respective creative communities, while supporting their affiliates and participants through mutual social support, and knowledge and information exchange (Pratt; Virani). To date, however, there has been relatively little academic research into Hanoi’s creative hubs (or those elsewhere in Vietnam), their motives for becoming established, and the emerging relationship between these hubs and the Vietnamese government’s newly adopted creative city policy for the capital (but see commissioned reports by Truong the Mapping of; Truong Mapping Creative Hubs, and Gasparin and Quinn on creative organisations in Vietnam). Our aim in this brief feature article is thus two-fold. First, we investigate the growth of independent creative hubs in Hanoi, focussing on their founders’ motivations for establishing the hubs, and how the hubs are meeting local creative demands. Second, we consider the possible tensions and conflicts emerging between the visions of these creative hub operators and users, compared to those of the Vietnamese state, with regard to what the city’s creative hubs should represent. We suggest that the state is now strongly influenced by Hanoi’s membership within UNESCO’s Creative City Network since 2019. To inform our analysis, between 2019 and 2021 we conducted an in-depth investigation of 10 creative hubs in Hanoi, focussing on their missions, activities, founders, and users. By drawing on two preliminary reports on the city’s hubs prepared for the British Council (Truong The Mapping of; Truong Mapping Creative Hubs), we selected our case studies to include different artistic orientations, length of time operating, and physical size. We included eight small, unifunctional spaces, and two large, multifunctional complexes, all of which began operations between 2009 and 2017. The hubs all engage in—or previously engaged in—non-mainstream cultural practices, including contemporary and experimental art. Given some of the hubs’ politically sensitive practices and discourses, we do not name them here. In the summer of 2019, while employed as a university research assistant, the third author, Celia Zuberec, completed semi-structured interviews with hub founders and operators (n=21), tenants (n=21), and users (n=36). These interview schedules were designed by the first and second authors, Sarah Turner and Danielle Labbé. We also interviewed three representatives from Vietnam’s central state ministries and two representatives from international organisations involved in Hanoi’s arts community. Additionally, Labbé and Nguyen N. Binh attended a number of meetings between creative hubs and representatives from the Vietnamese government and international organisations, including Nguyen being an observer at a high-level meeting with the National Assembly’s Committee on Culture, Education, Youths, Teenagers and Children (Ủy ban Văn hóa, Giáo dục, Thanh niên, Thiếu niên và Nhi đồng) in 2019. The objective of this meeting was to discuss the organisation and development visions of ‘creative industries’ in the city. Fig. 1: A small-scale creative hub in Hanoi. (Photo credit: Zuberec.) Note: the use of images from specific creative hubs does not mean that we completed interviews at these sites. To maintain confidentiality we visited a broader range to take photographs and complete observations. Emergence of Creative Hubs in Hanoi Since the mid-1950s, an affiliation with the Vietnamese state was a non-negotiable requirement for the establishment of any form of organisation in the country. Citizen-led groups or associations with no connection to the state were effectively banned unless given explicit authorisation to operate. Cultural activities were restricted to state-managed associations and venues, with the government being the only provider of cultural training institutions, and sponsor of art works. By maintaining tight control over cultural production, the government worked to limit the circulation of ‘subversive’ content and ideas, and uphold and legitimate its authority (Healey). With the onset of Đổi Mới (‘economic renovation’) in the mid-1980s, and following a rare moment of self-scrutiny when the government acknowledged its grip on the cultural sector had been “undemocratic, authoritarian and overbearing”, this situation began to change (ibid. 121). The government’s acknowledgement came with promises of new creative freedoms and signalled a relative scaling back of its control over society (Kerkvliet “Introduction”; Wells-Dang). Thereafter, new possibilities opened up for Vietnamese citizens to form autonomous groups, paving the way for the emergence of creative hubs in urban locales such as Hanoi. As this policy shift came into play, artists began to carve out their own scene in Hanoi. Supported by curators, collectors, and gallery operators, individuals started engaging more freely with artistic practices, media, and ideas, leading to the growth and diversification of the Vietnamese arts scene. Concurrently, other exhibitions and performances were held clandestinely in home-studios in order to operate away from the state’s gaze and its remaining censorship policies (Taylor). Driven by the impetus to “break from the establishment”, such private studios lay the groundwork for the city’s first accessible, non-government affiliated independent art spaces (Taylor and Corey 110). International cultural centres and foreign embassies also played a key role in the establishment of the city’s first creative hubs, by drawing on their social, political, and financial capital to support such endeavours (Nualart; Taylor). From the 2010s onwards, such spaces began to multiply rapidly, with a four-fold increase in the number of creative hubs operating in Hanoi between 2014 and 2018, a rise from 22 to 81 (Truong The Mapping of; Truong Mapping Creative Hubs). While the first creative hubs were mostly fine arts-oriented, they have since become more diverse, showcasing various contemporary, experimental and, to a lesser degree, traditional art forms. Broadly, these spaces can now be grouped into two distinct organisational structures, differentiated by their size and diversity of activity. The first model typically operates from a large multi-story, multi-room building, and brings together a diverse mix of artistic and commercial activities. Tenants rent or own spaces in such complexes, transforming them to fit their needs as studios, galleries, performance spaces, cafes, bars, and shops. This model—which aligns closely with the literature’s accepted definition of

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 evolution of entrepreneurship in the cultural and creative sectors leads to social innovation by creating new jobs intended for the creative class and by building a long-run smart, sustainable and inclusive local development. Innovation and sustainability are concepts that can be applied to many industries, and they can involve numerous improvements related but not limited to processes, products, services, logistics. This paper supports the idea that the creative and cultural sectors can develop through innovative entrepreneurship, by introducing new methods of production, optimizing existing processes, improving the delivery methods or by developing new products or services, while also relying on the help of the government and smart organizations such as clusters. Since innovation involves improving the way of doing business, this paper will focus on identifying the available innovative methods that can be applied to the businesses activating in the cultural and creative sectors of the economy in Romania, together with the main challenges and opportunities that might arise by applying them. The perspectives of intellectual capital, creative economy and knowledge-based society in relation to the impact of innovation and entrepreneurship towards the development of the cultural and creative sectors in Romania will also be considered. The paper will also tackle a series of best practice examples of innovative businesses in the creative sectors, as well as a comparative analysis of the successfully implemented innovative ideas in this field of activity and their impact on the customer satisfaction and on the development of the local economy.

Extensive research has been carried out on government capacity to cope with the pandemic. However, little study on this issue exists examining it in the context of the creative economy sector. It has been argued that the successful organizations to address changes in the environment are determined by their organizational capacity. In this paper, we analyze the Indonesian government’s capacity to recover the creative economy sector during the first year of the COVID-19 pandemic. The qualitative content analysis method and key informant interviews were undertaken to understand government capacity. The paper extended the RISE (resilience, intention, sustain, and endurance) model to understand the process of government actions in recovering the creative economy sector from the adverse effects of the COVID-19 pandemic. The RISE model portrays the government’s capacity to respond to the hostile and uncertain environment through tax and loan relaxation, social and health assistance, and capacity building. This paper provides valuable insight into public administration by highlighting government responses to the global pandemic. By analyzing four stages of government actions in restoring the creative economy sector, this study shows that the expected outcomes are far from satisfactory. The government intervention during the first year of the COVID-19 pandemic becomes ineffective because the government is weak in preparing the creative economy recovery policies according to the needs of creative economy actors and accurate data. These findings suggest that the central and local government should improve their collaborative capacity to upgrade the creative economy recovery programs according to the local aspiration.

ABSTRACTThis paper explores the relationship between the creative economy and universities. As funders, educators and research bodies, universities have a complicated relationship with the creative economy. They propagate its practice, ‘buying-in’ to the rhetoric and models of creative value, particularly in teaching, research and knowledge exchange. Third mission activities also play a role, seeking to affect change in the world ‘outside’ academia through collaboration, partnerships, commercialisation and social action. For arts and humanities disciplines, these practices have focused almost exclusively on the creative sector in recent years. This paper asks how the third mission has been a site where universities have modified their function in relation to the creative economy. It considers the mechanisms by which universities have been complicit in propagating the notion of the creative economy, strengthening particular constructions of the idea at the level of policy and everyday practice. It also briefly asks how a focus on alternative academic practice and institutional forms might offer possibilities for developing a more critical creative economy. The argument made is that the university sector is an important agent in the shaping and performance of the creative economy, and that we should take action if we wish to produce a more diverse, equitable space for learning, researching, and being under the auspices of ‘creativity’.

In the conditions of military aggression against Ukraine, the issue of revitalizing economic growth and restoring domestic competitiveness is acute. Creative industries can become the driver of these processes because the creative process is characterized by an initial understanding of why, for whom and how something needs to be created and, in fact, what exactly needs to be created. In the context of the total globalization of economic processes, creativity, as one of its carriers, acts as the most valuable product, but at the same time it only forms it - without becoming a product itself. Thus, the main goal of the article is to highlight and analyze the prospects for the development of the creative economy of Ukraine in the conditions of the challenges of wartime. The authors highlighted issues related to the theoretical foundations of the formation and functioning of creative industries of the economy in conditions of military aggression. It was found that the creative economy is an element of the new economy and forms it together with the innovative and knowledge economy. The study is dedicated to distinguishing the meaning and essence of the components of the economic category "creative economy" and “creative industry” and studied the retrospective of theoretical studies on the interpretation of these definitions by foreign and domestic scientists. The authors also noted that there are no system documents in Ukraine that would regulate such a category as the creative economy. The creative economy is considered as a systemic phenomenon, the peculiarities of its functioning from the point of view of the systemic approach are given. The main problems of functioning and development of the creative sector of the economy are outlined. The international experience of state support of creative industries is analyzed and the prospects of their application in Ukraine in the conditions of military aggression are highlighted. It is also stated that creative sectors that are able to contribute to innovation, modernization and creation of high added value, with the potential for the development of small and medium-sized businesses, should be of primary importance in the reconstruction of the Ukrainian economy. And as a result, creative sectors will be in high demand in global markets.

The core theme of this paper revolves around the recent changes at the Ministry of Culture, which led to a modification on how some productive activities, amid them Fashion and Design, turned out to be understood by local government. This change occurred due to the addition of such areas within what is currently known as Creative Economy, therefore including it under the Ministry of Culture's scope (MinC). Thus, the Fashion field, which was mainly perceived as an industrial sector, started equally being seen as a creative sector, becoming part of public policies also within the culture area, including the tax exemption mechanisms granted by the Rouanet Law. This thesis's aim is to evaluate how these changes took place, analyzing some public and private documents on this theme produced by different national and international institutions. It was emphasized on the executed analysis how the concepts that substantiate the inclusion of Fashion amidst Creative Sectors are being set, just like the decisions of the agents associated to this industry and that participate spreading the concepts that reinsure its place as part of the Creative Economy. For the performed analysis it was taken into consideration the "Creative Economy Report" from the UN Conference on Trade and Development (UNCTAD), Bank Ita and The Federation of Industries of Rio de Janeiro state (FIRJAN) on the theme, besides federal government documents such as the National Plan of Culture, the Creative Economy Secretariat Plan and the fashion chain sector plans. Folha de So Paulo newspaper articles that addressed public actions specifically focused on promoting fashion as a creative sector were also analyzed. In order to evaluate how these changes have been taking place, it was necessary to foment a brief discussion on how, among the current centre-left-PUC-Rio -Certificao Digital N 1113330/CA wing government (PT -Workers' Party), has been composed the very perception of culture. The Creative Economy investment as part of the government's policy and development model relates to the poverty reduction policies proposed by the PT government, and this was one of the gateways for MinC on the "neodevelopmental" project from Workers' Party. However the way Creative Economy have been settling in the country end up by privileging wasted working relations pretty usual to the cultural field. On the other hand, it was possible to observe that specifically to the fashion field, supported actions taken up till now by the government end up by benefiting already established agents. This way, although the development model proposed by Creative Economy goes on a line of plan where means are built in order to increase the possibilities of income and jobs creation not only on the fashion business, the way this project is being developed in this field is not enabling, up until this moment, the deconstruction of a series of benefits already acquired by those individuals well-established and do not reach the most socially vulnerable populations that act in this industry.

ABSTRACTThis article reviews the research objectives and contributions of the Creative Industries Observatory, based at the University of the Arts, London, from 2006 to 2009. As a government-sponsored project, the Observatory was designed to support the development of the creative and cultural sectors in the United Kingdom and to encourage relationships with creative organizations in key world markets, including China and India. This article describes how in its brief history the Observatory contributed to an understanding of the creative industries landscape, the relationship between different creative sectors and the real-world processes of creative practice. As such it enhanced the definitional and academic debates as well as informing policy-makers and practitioners.

The UK creative and cultural sector offers a unique contribution tothe British economy. British music, films, digital productions, publicationsand creative artefacts not only represent 6.2% of the country'sGDP and drive innovation across a number of related sectors, but areat the heart of the UK's identity on the global stage. This success storyrests on the country's ability over the last few years to usher in a newgeneration of cultural entrepreneurs, who have seized on the opportunityof a changing funding and public policy landscape to drive innovationand change across the creative sector. The public sector,flanked by a number of charitable bodies and quangos such as theBritish Council and Nesta, has successfully set up a number of initiativesto harness and support young entrepreneurial talent, and hasworked hard to reduce the bureaucratic barriers and fiscal burden oncreative start-ups and on the film and digital industries. As a result, theUK cultural sector now dominates, in terms of entrepreneurial drive,innovation and revenues, its European counterparts and London hasbecome one of the global capitals of the cultural economy.

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.

The rapid development of information and communication technology is currently able to encourage the growth of business activities to enter the creative economy era, which will be very elastic and dynamic in facing the challenges of globalization and modernization. This research uses a qualitative descriptive approach with a literature study method. The results of the analysis state that the creative economy is a form of effort to find a formula for sustainable development through ideas and creativity. The creative business in Indonesia contributes 3% to the world's GDP. Therefore, it is clear that this area of the economy is booming because of the rise of digitization and the improvement of service delivery. Digitalization has bolstered this by creating more employment openings, but labor impermanence is still not an issue in the creative sector. The presence of a creative economy aids in reducing poverty and increasing economic levels. The development of information and communication technology contributes to and encourages the growth of the creative economy, which can be used as a solution to social welfare because the creative economic system provides added value both to the industry itself and to existing resources. The creative economy is an alternative solution to the welfare of society by improving the economy to become competitive.

Cultural and creative sectors are a significant driver of local development through job creation and income generation, spurring innovation across the economy and increasing the attractiveness of cities and regions as destinations to visit, work and live. This case study offers a review of cultural and creative sectors in Lithuania, highlighting issues and trends in employment and business development, financing and cultural participation. It brings a specific focus on three municipalities within the County of Klaipėda located on the Baltic coast – Klaipėda City, Neringa and Palanga – small cities specialised in port activities, logistics, traditional manufacturing and seaside resort tourism. It highlights how culture and creative sectors can be leveraged to foster local development, diversify the economy and strengthen territorial attractiveness. It provides recommendations and international examples on ways to support business development in creative sectors and to strengthen synergies between culture and tourism.

In the new European economy, European Commission provides funding for a broad range of projects and programs covering a great range of areas, as regional development, employment & social inclusion, Research & Innovation, etc. A key-sector of the EU economy is Cultural Sector, gathering great European funds with central scope relative to creativity and creative economy as well as a cultureled local and regional development, always respecting the cultural environment and needs of the Member States. Even the European funding could cover the expectations of the EUmembers for cultural extroversion, a significant parameter which should be taken into consideration and is related to the performance of those funds. Paying a greater focus on results, is showing us that projects on cultural sector - getting funds by EU resources, are linked to the impact created. But the difficulties in categorizing grants data in Culture terms, is not giving us a well-defined approach regarding the Culture investment of EC and its members. Through this work is proposed a way to conceptualize and measure the EU-funded projects performance and the impact those create, using the indicators approach, but not only through a statistical approach, otherwise using a more conceptual analysis.

Aberdeen, City of Culture?