Support a conception of the knowledge economy
Creativeindustries include service, art and crafts, and productionindustries. Knowledge economy refers to the buying and selling ofknowledge. Investing in research and education is paramount for asuccessful knowledge economy (Smith & Flew 67). Creative class,class of workers, is one of the chief drivers of the knowledgeeconomy. This class creates new ideas and forms that bring realizableeconomic assets. The growth of knowledge economy creativity thatmostly flourish in urban areas or environments attract and retain alarge number of people who indulge in various activities thatstrength and boost economy. This is because most business oriented orcreative people prefer living in places thatopen to new ideas,tolerant, and diverse. According to Smith et al (93), creativeindustries generate and process change in the economic system hence,they are reliable source of economic growth. haveseveral economic properties that include their role in the economiccoordination whenever an uncertainty arises. New media and networkedICTs all over the world also help in enhancing and strengtheningknowledge economy. They create a platform for local employment aswell as for accumulation of capital within a larger global economy.In addition, new media has made people acknowledge and appreciate thesignificance of knowledge-sharing through use of cross-sectoralknowledge communities and cross-institutional societies. Indeed,creative industries have been the sources of new wealth creation overtime as a result, knowledge economy is more rooted in theproduction, distribution, and use of knowledge than it was in thepast.
How creative industries and the knowledge economy are two distinct and perhaps incompatible concepts
Creativeindustries constitute all activities that arise from a person’sskills, creativity, and talent and have a high likelihood of creatingjobs and wealth in a society. They rose due to various trends thatinclude the ever growing significance of creativity and knowledge toall aspects of economic consumption, distribution, and production,the growing need of the service sector, and the growth in culturalproduction and consumption. Networked, global, and knowledge-basedeconomies also constitute some of the dynamics that are linked to theexpansion of creative industries. In addition, the ability of ICTs toallow eligibility in production has partially given rise to creativeindustries (Smith et al., 128). In most cases, the rise of creativeindustries is measured in terms of economic commerce. There areseveral economic drives of creative industries that include culturaland economic factors. Cultural factors constitute of information oftechnology sectors, re-branding of arts policy and arts industrieswith an aim of emphasizing on their significance in thewealth-generating sectors, as well as the impacts of digitalconvergence in bringing together the media and communication.Culturalization of the economy, the emergence of the knowledge-basedeconomy, and rise of the service industry sectors are some of thechief economic drivers of creative industries.
Inknowledge economy, knowledge is a product and an economic asset itis not a means to an economic end. Knowledge economy arises fromthree developments that include networked ICTs and unique nature ofnew media, globalization, and knowledge economy ideas and intangibleassets as sources of new wealth creation. Globalization describes aswell as makes sense of many interrelated processes like internationalcommunication flows and internationalization of production.
Smith,Richard & Flew, Terry.New Media: An Introduction. Oxford: Oxford University, 2011. Print.