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The Economics of Creative Industries
This timely volume explores the emerging field of the economics of creative industries. Professor Potts has selected key papers, authored by leading scholars, which cover the evolution and development of this new subject of study. Topics addressed include: the economic theory foundations, creative economic agents, contracts and organizations, creative industries dynamics and innovation, creative cities and clusters, as well as digital new media and intellectual property.
With an original introduction by the author, this in-depth and considered collection will be an invaluable source of reference for academics, scholars and practitioners.
With an original introduction by the author, this in-depth and considered collection will be an invaluable source of reference for academics, scholars and practitioners.
More Information
Contributors
Contents
More Information
This timely volume explores the emerging field of the economics of creative industries. Professor Potts has selected key papers, authored by leading scholars, which cover the evolution and development of this new subject of study. Topics addressed include: the economic theory foundations, creative economic agents, contracts and organizations, creative industries dynamics and innovation, creative cities and clusters, as well as digital new media and intellectual property.
With an original introduction by the author, this in-depth and considered collection will be an invaluable source of reference for academics, scholars and practitioners.
With an original introduction by the author, this in-depth and considered collection will be an invaluable source of reference for academics, scholars and practitioners.
Contributors
52 articles, dating from 1981 to 2014
Contributors include: R. Caves, T. Cowen, S. Cunningham, R. Florida, J. Hartley, A. Kirman, J. Lerner, J. Quiggin, S. Rosen, U. Witt
Contributors include: R. Caves, T. Cowen, S. Cunningham, R. Florida, J. Hartley, A. Kirman, J. Lerner, J. Quiggin, S. Rosen, U. Witt
Contents
Contents:
Acknowledgements
Introduction Jason Potts
PART I ECONOMIC THEORY FOUNDATIONS
A Choices
1. Alan Kirman (1993), ‘Ants, Rationality, and Recruitment’, Quarterly Journal of Economics, 108 (1), February, 137–56
2. Sherwin Rosen (1981), ‘The Economics of Superstars’, American Economic Review, 71 (5), December, 845¬–58
3. Israel M. Kirzner (1997), ‘Entrepreneurial Discovery and the Competitive Market Process: An Austrian Approach’, Journal of Economic Literature, 35 (1), March, 60–85
4. Ulrich Witt (2001), ‘Learning to Consume – A Theory of Wants and the Growth of Demand’, Journal of Evolutionary Economics, 11 (1), January, 23–36
B Markets
5. A.T. Peacock (1994), ‘Welfare Economics and Public Subsidies to the Arts’, Journal of Cultural Economics, 18 (2), June, 151–61
6. Tyler Cowen (1996), ‘Why I Do Not Believe in the Cost–Disease: Comment on Baumol’, Journal of Cultural Economics, 20 (3), 207–14
7. Tyler Cowen and Alexander Tabarrok (2000), ‘An Economic Theory of Avant–Garde and Popular Art, or High and Low Culture’, Southern Economic Journal, 67 (2), October, 232–53 [22]
8. Bryan Caplan and Tyler Cowen (2004), ‘Do We Underestimate the Benefits of Cultural Competition?’, American Economic Review, 94 (2), May, 402–7
9. Richard Swedberg (2006), ‘The Cultural Entrepreneur and the Creative Industries: Beginning in Vienna’, Journal of Cultural Economics, 30 (4), December, 243–61
C Value
10. Elizabeth Currid (2007), ‘The Economics of a Good Party: Social Mechanics and the Legitimization of Art/Culture’, Journal of Economics and Finance, 31 (3), Fall, 386–94
11. Michael Hutter (2011), ‘Infinite Surprises: On the Stabilization of Value in the Creative Industries’, in Jens Beckert and Patrik Aspers (eds), The Worth of Goods: Valuation and Pricing in the Economy, Chapter 9, Oxford, UK and New York, NY: Oxford University Press, 201–20
PART II CREATIVE ECONOMIC AGENTS
A Learning Agents
12. Gary B. Magee (2005), ‘Rethinking Invention: Cognition and the Economics of Technological Creativity’, Journal of Economic Behavior and Organization, 57 (1), May, 29–48
13. R. Alexander Bentley (2009) ‘Fashion versus Reason in the Creative Industries’, in Michael J. O’Brien and Stephen J. Shennan (eds), Innovation in Cultural Systems: Contributions from Evolutionary Anthropology, Chapter 8, Cambridge, MA and London, UK: MIT Press, 121–26
B Socially Embedded Agents
14. John Hartley and Lucy Montgomery (2009), ‘Fashion as Consumer Entrepreneurship: Emergent Risk Culture, Social Network Markets, and the Launch of Vogue in China’, Chinese Journal of Communication, 2 (1), March, 61–76
15. John Banks and Jason Potts (2010), ‘Co¬–creating Games: A Co–evolutionary Analysis’, New Media and Society, 12 (2), March, 253–70
16. Jason Potts, John Hartley, John Banks, Jean Burgess, Rachel Cobcroft, Stuart Cunningham and Lucy Montgomery (2008), ‘Consumer Co-creation and Situated Creativity’, Industry and Innovation, 15 (5), October, 459–74
PART III CONTRACTS AND ORGANIZATIONS
17. Richard E. Caves (2003), ‘Contracts between Art and Commerce’, Journal of Economic Perspectives, 17 (2), Spring, 73–84
18. John Quiggin (2013), ‘The Economics of New Media’, in John Hartley, Jean Burgess and Axel Bruns (eds), A Companion to New Media Dynamics, Chapter 5, Malden, MA: Wiley-Blackwell, 90–103
19. Arthur De Vany and W. David Walls (1996), ‘Bose-Einstein Dynamics and Adaptive Contracting in the Motion Picture Industry’, Economic Journal, 106 (439), November, 1493–514
20. Arthur S. De Vany and W. David Walls (2004), ‘Motion Picture Profit, the Stable Paretian Hypothesis, and the Curse of the Superstar’, Journal of Economic Dynamics and Control, 28 (6), March, 1035–57
PART IV CREATIVE INDUSTRIES MARKETS
21. Jason Potts, Simon Cunningham, John Hartley and Paul Ormerod (2008), ‘Social Network Markets: A New Definition of the Creative Industries’, Journal of Cultural Economics, 32 (3), September, 167–85
22. Jason Potts (2012), ‘Novelty–Bundling Markets’, Advances in Austrian Economics, 16, 291–312
23. Pierre–Michel Menger (1999), ‘Artistic Labor Markets and Careers’, Annual Review of Sociology, 25, 541–74
PART V CREATIVE INDUSTRIES DYNAMICS AND INNOVATION
A Evolutionary Dynamics
24. Martin Kretschmer, George Michael Klimis and Chong Ju Choi (1999), ‘Increasing Returns and Social Contagion in Cultural Industries’, British Journal of Management, 10 (1), September, S61–S72
25. Peter E. Earl and Jason Potts (2013), ‘The Creative Instability Hypothesis’, Journal of Cultural Economics, 37 (2), May, 153–73
26. Christian Handke (2006), ‘Plain Destruction or Creative Destruction? Copyright Erosion and the Evolution of the Record Industry’, Review of Economic Research on Copyright Issues, 3 (2), 29–51
B Co-Evolutionary Dynamics
27. Stuart Cunningham (2012), ‘Emergent Innovation through Coevolution of Informal and Formal Media Economies’, Television and New Media, 13 (5), September, 415–30
28. Hasan Bakhshi and Eric McVittie (2009), ‘Creative Supply-Chain Linkages and Innovation: Do the Creative Industries Stimulate Business Innovation in the Wider Economy?’, Innovation: Management, Policy and Practice, 11 (2), August, 169–89
29. Kathrin Müller, Christian Rammer and Johannes Trüby (2009), ‘The Role of Creative Industries in Industrial Innovation’, Innovation: Management, Policy and Practice, 11 (2), August, 148–68
PART VI CREATIVE CITIES AND CLUSTERS
30. Ron Martin and Peter Sunley (2003), ‘Deconstructing Clusters: Chaotic Concept or Policy Panacea?’, Journal of Economic Geography, 3 (1), January, 5–35
31. Richard Florida (2002), ‘Bohemia and Economic Geography’, Journal of Economic Geography, 2 (1), January, 55–71
32. Allen J. Scott (2006), ‘Entrepreneurship, Innovation and Industrial Development: Geography and the Creative Field Revisited,’ Small Business Economics, 26 (1), February, 1–24
33. Luciana Lazzeretti, Rafael Boix and Francesco Capone (2008), ‘Do Creative Industries Cluster? Mapping Creative Local Production Systems in Italy and Spain’, Industry and Innovation, 15 (5), October, 549–67
PART VII DIGITAL NEW MEDIA AND INTELLECTUAL PROPERTY
A Intellectual Property and Its Discontents
34. Michele Boldrin and David Levine (2002), ‘The Case Against Intellectual Property’, American Economic Review, Papers and Proceedings, 92 (2), May, 209–12
35. Benjamin Klein, Andres V. Lerner and Kevin M. Murphy (2002), ‘The Economics of Copyright “Fair Use” in a Networked World’, American Economic Review: Papers and Proceedings, 92 (2), May, 205–8
36. Hal R. Varian (2005), ‘Copying and Copyright’, Journal of Economic Perspectives, 19 (2), Spring, 121–38
37. Ruth Towse (2010), ‘Creativity, Copyright and the Creative Industries Paradigm’, Kyklos, 63 (3), August, 461–78
38. Christian Handke (2012), ‘Digital Copying and the Supply of Sound Recordings’, Information Economics and Policy, 24 (1), March, 15–29
B Digital Features
39. Mikko Mustonen (2003), ‘Copyleft – the Economics of Linux and Other Open Source Software’, Information Economics and Policy, 15 (1), March, 99–121
40. Josh Lerner and Jean Tirole (2002) ‘Some Simple Economics of Open Source’ Journal of Industrial Economics, 50 (2), June, 197–234
41. Erik Brynjolfsson, Ju (Jeffrey) Yu and Michael D. Smith (2002), ‘Consumer Surplus in the Digital Economy: Estimating the Value of Increased Product Variety at Online Booksellers’, Management Science, 49 (11), November, 1580–96
42. Peter Tschmuck (2003), ''How Creative are the Creative Industries? A Case of the Music Industry'', Journal of Arts Management, Law, and Society, 33 (2), Summer, 127–41
43. John Quiggin (2006), ‘Blogs, Wikis and Creative Innovation’, International Journal of Cultural Studies, 9 (4), December, 481–96
PART VIII CREATIVE INDUSTRIES AND THE WIDER ECONOMY
44. Stuart Cunningham (2002), ‘From Cultural to Creative Industries: Theory, Industry and Policy Implications’, Media Information Australia, 102, February, 54–65
45. Ann Markusen, Gregory H. Wassall, Douglas DeNatale and Randy Cohen (2008), ‘Defining the Creative Economy: Industry and Occupational Approaches’, Economic Development Quarterly, 22 (1), February, 24–45
46. Peter Higgs and Stuart Cunningham (2008), ‘Creative Industries Mapping: Where Have We Come From and Where Are We Going?’, Creative Industries Journal, 1 (1), 7–30
47. Kate Oakley (2004), ''Not So Cool Britannia: The Role of Creative Industries in Economic Development'', International Journal of Cultural Studies, 7 (1), March, 67–77
48. Jason Potts (2009), ‘Why Creative Industries Matter to Economic Evolution’, Economics of Innovation and New Technology, 18 (7), October, 663–73
49. Jason Potts and Stuart Cunningham (2008), ‘Four Models of the Creative Industries’, International Journal of Cultural Policy, 14 (3), August, 233–47
50. Francisco Marco-Serrano, Pau Rausell-Koster and Raul Abeledo–Sanchis (2014), ‘Economic Development and the Creative Industries: A Tale of Causality’, Creative Industries Journal, 7 (2), 81–91
51. Jason Potts (2009), ‘Creative Industries & Innovation Policy’, Innovation: Management, Policy and Practice, 11 (2), August, 138–47
52. Phil Cooke and Lisa De Propris (2011), ‘A Policy Agenda for EU Smart Growth: The Role of Creative and Cultural Industries’, Policy Studies, 32 (4), July, 365–75
Index
Acknowledgements
Introduction Jason Potts
PART I ECONOMIC THEORY FOUNDATIONS
A Choices
1. Alan Kirman (1993), ‘Ants, Rationality, and Recruitment’, Quarterly Journal of Economics, 108 (1), February, 137–56
2. Sherwin Rosen (1981), ‘The Economics of Superstars’, American Economic Review, 71 (5), December, 845¬–58
3. Israel M. Kirzner (1997), ‘Entrepreneurial Discovery and the Competitive Market Process: An Austrian Approach’, Journal of Economic Literature, 35 (1), March, 60–85
4. Ulrich Witt (2001), ‘Learning to Consume – A Theory of Wants and the Growth of Demand’, Journal of Evolutionary Economics, 11 (1), January, 23–36
B Markets
5. A.T. Peacock (1994), ‘Welfare Economics and Public Subsidies to the Arts’, Journal of Cultural Economics, 18 (2), June, 151–61
6. Tyler Cowen (1996), ‘Why I Do Not Believe in the Cost–Disease: Comment on Baumol’, Journal of Cultural Economics, 20 (3), 207–14
7. Tyler Cowen and Alexander Tabarrok (2000), ‘An Economic Theory of Avant–Garde and Popular Art, or High and Low Culture’, Southern Economic Journal, 67 (2), October, 232–53 [22]
8. Bryan Caplan and Tyler Cowen (2004), ‘Do We Underestimate the Benefits of Cultural Competition?’, American Economic Review, 94 (2), May, 402–7
9. Richard Swedberg (2006), ‘The Cultural Entrepreneur and the Creative Industries: Beginning in Vienna’, Journal of Cultural Economics, 30 (4), December, 243–61
C Value
10. Elizabeth Currid (2007), ‘The Economics of a Good Party: Social Mechanics and the Legitimization of Art/Culture’, Journal of Economics and Finance, 31 (3), Fall, 386–94
11. Michael Hutter (2011), ‘Infinite Surprises: On the Stabilization of Value in the Creative Industries’, in Jens Beckert and Patrik Aspers (eds), The Worth of Goods: Valuation and Pricing in the Economy, Chapter 9, Oxford, UK and New York, NY: Oxford University Press, 201–20
PART II CREATIVE ECONOMIC AGENTS
A Learning Agents
12. Gary B. Magee (2005), ‘Rethinking Invention: Cognition and the Economics of Technological Creativity’, Journal of Economic Behavior and Organization, 57 (1), May, 29–48
13. R. Alexander Bentley (2009) ‘Fashion versus Reason in the Creative Industries’, in Michael J. O’Brien and Stephen J. Shennan (eds), Innovation in Cultural Systems: Contributions from Evolutionary Anthropology, Chapter 8, Cambridge, MA and London, UK: MIT Press, 121–26
B Socially Embedded Agents
14. John Hartley and Lucy Montgomery (2009), ‘Fashion as Consumer Entrepreneurship: Emergent Risk Culture, Social Network Markets, and the Launch of Vogue in China’, Chinese Journal of Communication, 2 (1), March, 61–76
15. John Banks and Jason Potts (2010), ‘Co¬–creating Games: A Co–evolutionary Analysis’, New Media and Society, 12 (2), March, 253–70
16. Jason Potts, John Hartley, John Banks, Jean Burgess, Rachel Cobcroft, Stuart Cunningham and Lucy Montgomery (2008), ‘Consumer Co-creation and Situated Creativity’, Industry and Innovation, 15 (5), October, 459–74
PART III CONTRACTS AND ORGANIZATIONS
17. Richard E. Caves (2003), ‘Contracts between Art and Commerce’, Journal of Economic Perspectives, 17 (2), Spring, 73–84
18. John Quiggin (2013), ‘The Economics of New Media’, in John Hartley, Jean Burgess and Axel Bruns (eds), A Companion to New Media Dynamics, Chapter 5, Malden, MA: Wiley-Blackwell, 90–103
19. Arthur De Vany and W. David Walls (1996), ‘Bose-Einstein Dynamics and Adaptive Contracting in the Motion Picture Industry’, Economic Journal, 106 (439), November, 1493–514
20. Arthur S. De Vany and W. David Walls (2004), ‘Motion Picture Profit, the Stable Paretian Hypothesis, and the Curse of the Superstar’, Journal of Economic Dynamics and Control, 28 (6), March, 1035–57
PART IV CREATIVE INDUSTRIES MARKETS
21. Jason Potts, Simon Cunningham, John Hartley and Paul Ormerod (2008), ‘Social Network Markets: A New Definition of the Creative Industries’, Journal of Cultural Economics, 32 (3), September, 167–85
22. Jason Potts (2012), ‘Novelty–Bundling Markets’, Advances in Austrian Economics, 16, 291–312
23. Pierre–Michel Menger (1999), ‘Artistic Labor Markets and Careers’, Annual Review of Sociology, 25, 541–74
PART V CREATIVE INDUSTRIES DYNAMICS AND INNOVATION
A Evolutionary Dynamics
24. Martin Kretschmer, George Michael Klimis and Chong Ju Choi (1999), ‘Increasing Returns and Social Contagion in Cultural Industries’, British Journal of Management, 10 (1), September, S61–S72
25. Peter E. Earl and Jason Potts (2013), ‘The Creative Instability Hypothesis’, Journal of Cultural Economics, 37 (2), May, 153–73
26. Christian Handke (2006), ‘Plain Destruction or Creative Destruction? Copyright Erosion and the Evolution of the Record Industry’, Review of Economic Research on Copyright Issues, 3 (2), 29–51
B Co-Evolutionary Dynamics
27. Stuart Cunningham (2012), ‘Emergent Innovation through Coevolution of Informal and Formal Media Economies’, Television and New Media, 13 (5), September, 415–30
28. Hasan Bakhshi and Eric McVittie (2009), ‘Creative Supply-Chain Linkages and Innovation: Do the Creative Industries Stimulate Business Innovation in the Wider Economy?’, Innovation: Management, Policy and Practice, 11 (2), August, 169–89
29. Kathrin Müller, Christian Rammer and Johannes Trüby (2009), ‘The Role of Creative Industries in Industrial Innovation’, Innovation: Management, Policy and Practice, 11 (2), August, 148–68
PART VI CREATIVE CITIES AND CLUSTERS
30. Ron Martin and Peter Sunley (2003), ‘Deconstructing Clusters: Chaotic Concept or Policy Panacea?’, Journal of Economic Geography, 3 (1), January, 5–35
31. Richard Florida (2002), ‘Bohemia and Economic Geography’, Journal of Economic Geography, 2 (1), January, 55–71
32. Allen J. Scott (2006), ‘Entrepreneurship, Innovation and Industrial Development: Geography and the Creative Field Revisited,’ Small Business Economics, 26 (1), February, 1–24
33. Luciana Lazzeretti, Rafael Boix and Francesco Capone (2008), ‘Do Creative Industries Cluster? Mapping Creative Local Production Systems in Italy and Spain’, Industry and Innovation, 15 (5), October, 549–67
PART VII DIGITAL NEW MEDIA AND INTELLECTUAL PROPERTY
A Intellectual Property and Its Discontents
34. Michele Boldrin and David Levine (2002), ‘The Case Against Intellectual Property’, American Economic Review, Papers and Proceedings, 92 (2), May, 209–12
35. Benjamin Klein, Andres V. Lerner and Kevin M. Murphy (2002), ‘The Economics of Copyright “Fair Use” in a Networked World’, American Economic Review: Papers and Proceedings, 92 (2), May, 205–8
36. Hal R. Varian (2005), ‘Copying and Copyright’, Journal of Economic Perspectives, 19 (2), Spring, 121–38
37. Ruth Towse (2010), ‘Creativity, Copyright and the Creative Industries Paradigm’, Kyklos, 63 (3), August, 461–78
38. Christian Handke (2012), ‘Digital Copying and the Supply of Sound Recordings’, Information Economics and Policy, 24 (1), March, 15–29
B Digital Features
39. Mikko Mustonen (2003), ‘Copyleft – the Economics of Linux and Other Open Source Software’, Information Economics and Policy, 15 (1), March, 99–121
40. Josh Lerner and Jean Tirole (2002) ‘Some Simple Economics of Open Source’ Journal of Industrial Economics, 50 (2), June, 197–234
41. Erik Brynjolfsson, Ju (Jeffrey) Yu and Michael D. Smith (2002), ‘Consumer Surplus in the Digital Economy: Estimating the Value of Increased Product Variety at Online Booksellers’, Management Science, 49 (11), November, 1580–96
42. Peter Tschmuck (2003), ''How Creative are the Creative Industries? A Case of the Music Industry'', Journal of Arts Management, Law, and Society, 33 (2), Summer, 127–41
43. John Quiggin (2006), ‘Blogs, Wikis and Creative Innovation’, International Journal of Cultural Studies, 9 (4), December, 481–96
PART VIII CREATIVE INDUSTRIES AND THE WIDER ECONOMY
44. Stuart Cunningham (2002), ‘From Cultural to Creative Industries: Theory, Industry and Policy Implications’, Media Information Australia, 102, February, 54–65
45. Ann Markusen, Gregory H. Wassall, Douglas DeNatale and Randy Cohen (2008), ‘Defining the Creative Economy: Industry and Occupational Approaches’, Economic Development Quarterly, 22 (1), February, 24–45
46. Peter Higgs and Stuart Cunningham (2008), ‘Creative Industries Mapping: Where Have We Come From and Where Are We Going?’, Creative Industries Journal, 1 (1), 7–30
47. Kate Oakley (2004), ''Not So Cool Britannia: The Role of Creative Industries in Economic Development'', International Journal of Cultural Studies, 7 (1), March, 67–77
48. Jason Potts (2009), ‘Why Creative Industries Matter to Economic Evolution’, Economics of Innovation and New Technology, 18 (7), October, 663–73
49. Jason Potts and Stuart Cunningham (2008), ‘Four Models of the Creative Industries’, International Journal of Cultural Policy, 14 (3), August, 233–47
50. Francisco Marco-Serrano, Pau Rausell-Koster and Raul Abeledo–Sanchis (2014), ‘Economic Development and the Creative Industries: A Tale of Causality’, Creative Industries Journal, 7 (2), 81–91
51. Jason Potts (2009), ‘Creative Industries & Innovation Policy’, Innovation: Management, Policy and Practice, 11 (2), August, 138–47
52. Phil Cooke and Lisa De Propris (2011), ‘A Policy Agenda for EU Smart Growth: The Role of Creative and Cultural Industries’, Policy Studies, 32 (4), July, 365–75
Index
