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Creative Industry

CREATIVE INDUSTRY 4

CreativeIndustry

CreativeIndustry

Creativeindustries are businesses that are based on the information of agiven place. Since these businesses aim at producing goods andservices for specific people, investments should match the socialvalues of that society. The objective of this research will be toillustrate how creative industries support establishment of knowledgeeconomies. In addition, the research will also portray the waycreative industries and knowledge economies are two distinct, andprobably, incompatible ideologies.

Accordingto Castells (2000), creative industries have arisen from theincreasing significance of the service sector, the development ofcultural consumption and production, and the growing importance ofcreativity and knowledge to the entire aspects of consumption,production, and distribution. According to the lead-off report theCanada’s Creative City Network published in the 2005 report series,“Culture as an Economic Engine,” it stresses on the significanceof culture on jobs and economic growth, developing connectionsbetween private foundations and the private sector, urbanrevitalization through attracting experienced professionals, and theestablishment of spin-off business such as tourism. Abromovitz andDavid (2001) assert that the development of intangible capital share(for example, good health, knowledge production and dissemination)has been growing steadily in the US throughout the Twentieth Centurysuch that it has surpassed tangible assets such as natural resources,physical infrastructure, and inventories from the 1970s. Economistsassociate this trend to the fact that many manufacturers arerelocating their plants in developing countries such as India andChina, which offers affordable and experienced labor. Similarly,developing nations such as the India has gained a cultural reputationas the leading IT-based services provider in the world. In addition,a review of the 2003 Chinese GDP calculation in China discovered thatthe service industry contributes 40% of the nation’s economy,instead of the previously assumed 20%. In summary, the creativeindustries in developed countries, such as the software and hardwaredevelopment companies, have contributed to the development ofknowledge economies (such as a service industry) in some developingAsian countries such as China and India.

Onthe other hand, several countries are buying and selling, producingthings, and offering services to an international community. WorldBank (2010) report asserted that Canada is a suitable model of theinternational business since 30% of its economic activities areeither imports or intended for export. One of the key components thatare propelling global knowledge economy includes the internationalICT network and the omnipresent model of the latest media. The otherfactor includes the fast-paced globalization. Lastly, the ideologythat intangible assets and knowledge economy information is the mostpopular wealth creation source presently and the economy is directlybased on the distribution, production, and application of informationthan ever in the past is also accelerating the rate of growth of theglobal knowledge economy.

Theknowledge economy differs from creative industries since the latterinvolves a list of economic activities that are concerned withgeneration or exploitation of information and knowledge within agiven community. On the contrary, the knowledge economy is based onan comprehensive understanding of a given economy. This implies thatan entrepreneur requires extensive research and education whenventuring in this industry. This information is unique and is notpurchasable. Entrepreneurs planning to invest in creative industriescan opt to purchase knowledge from various sources. The significanceof such information is that it would help them to understandstrategies that can help them to excel in a given business.