The Role of Creative The Role of Creative Industries for the Industries for the Competitiveness of Competitiveness of EuropeEuropeCreative Industries on Stage, Vienna,December 4th,2007
dr. Žiga Turk, ministerGovernment Office for GrowthSLOVENIA
2008: Starting a new 2008: Starting a new chapter in European chapter in European historyhistory
end of period of EU looking inward treaty signed, form defined, expansion from EU15 to EU27 success of Euro
time to look at the content, not form time to look outward time to shape, not respond to
globalization
Lisbon Strategy is Lisbon Strategy is response to globalization response to globalization which is driven by …which is driven by …
freedom in politics fall of iron curtain and Berlin wall
freedom in trade free trade agreements in WTO and GATT
advances in logistics of goods: container ships, DHL, UPS … of information: internet, mobile phones
Europe a follower, not driver of these processes
Context - Lisbon Strategy Context - Lisbon Strategy
Lisbon 1.0 (2000) most competitive economy in the world Japan and USA
Lisbon 2.0 (2005) growth and jobs looking inward
if it's not broken don't fix it …
Lisbon 2.1 (2008)
SWOTSWOT
Strengths: cares for people, cares for nature, quality of life, social security, health system, culture of peace, human rights, tolerance, cooperation, tradition in science and art, humanism …
Opportunities: builds on strengths, attracts talents, innovates in all aspects of living, adapts and opens up to the world, projects its values to the world, dynamic economy
Weaknesses: no risk taking, little individualism, depending on government, highly regulated, low entrepreneurial drive, weak r&d - industry links, decreasing quality of education, weak capital markets, unreadiness to hard work, hard study …
Threats: does not address weaknesses, graying of population, unable to compete with Asia, closes itself from the world, Europe is satisfied, tired and lazy
In the wake of the Asian In the wake of the Asian centurycentury
1800s … European Century 1900s … American Century 2000s … Asian Century
"they know it belongs to them" again!
AsiaAsia
India + China GDP > West's GDP until 1820
India + China GDP > West's GDP after 2050 or before?
other BRIC countries!
Innovation?Innovation?
United States graduated roughly70,000 undergraduate engineers
China graduated 600,000 and India 350,000.
½ of software developed in India ½ of Fortune 500 outsource software work to India new R&D centers of Microsoft, Cisco, Google, IBM
… are in Asia, not Europe by 2020 80% of scientific papers in sci&tech will be
written by asians out of top 10 universities 2 in Europe Asia (Singapore) is setting education standards
The shiftThe shift
Agriculture Age (farmers) Industrial Age (factory workers)
Information Age (knowledge workers - innovators)
Conceptual Age (creators)
Source: Dan Pink, A Whole New Mind
Theoretical basisTheoretical basis
Schumpeter:products fulfill needs "profit is result of innovation"
Dan Pink (rephrased):products fulfill passions "profit is result of creativity"
1 EUR 30 EUR
Price of function is Price of function is droping, and price of droping, and price of meaning risingmeaning rising
price of funcion
pric
e of
mea
ning
environmentaly
friendly
environmentaly
friendly
"home made"
"home made"
trustedtrusted
just function more
trade marktrade mark
imageimage designdesign "healthy""healthy"
“fair traded”“fair traded”
marketingmarketing
who can thinkof it
who iswilling topay for it
who cansell it
Who makes Who makes meaning?meaning?
What gives What gives meaning?meaning?
what is meaning?what is meaning?
what gives meaning?what gives meaning?
what influences what influences meaning?meaning?
values, morals, values, morals, virtues!virtues!
MORALIZATION OF MORALIZATION OF THE MARKETS!THE MARKETS!
Innovation vs. Innovation vs. CreativityCreativity
Innovation: “The past few decades have belonged to a certain kind of person with a certain kind of mind—computer programmers who could crank code, lawyers who could craft contracts, MBAs who could crunch numbers."
Creativity: "The future belongs to a very different kind of person with a very different kind of mind—creators and empathizers, pattern recognizers and meaning makers. These people—artists, inventors, designers, storytellers, caregivers, consolers, big picture thinkers—will now reap society’s richest rewards and share its greatest joys.” Source: Dan Pink, A Whole New Mind
Left brain vs. right Left brain vs. right brainbrain
“The era of ‘left brain’ dominance—is giving way to a new world in which ‘right brain’ qualities—inventiveness, empathy, meaning—will govern.”
left brain - rational, methodical, mathematical … culturally independent
right brain - intuitive, artistic, spiritual … depends on cultural background Source: Dan Pink, A Whole New Mind
““Human Human creativity is the creativity is the
ultimate ultimate economic economic
resource.” resource.”
Source: Richard Florida,Source: Richard Florida,
The Rise of the Creative Class The Rise of the Creative Class
War forWar fortalent!talent!
Educate talentEducate talent
Attract talentAttract talent
Retain talentRetain talent
Florida's 3 "T"s for Florida's 3 "T"s for CreativityCreativity
Talent (educate, attract, retain)½ mil. top EU engineers and researchers abroad
Technologyattracts talent
Tolerancemakes talent stay
FocusFocus
knowledge, innovation and creativity support for JTI, technology platforms widening of ERA towards SE Europe knowledge as 5th freedom ERA and ERA networked approach to concentration
growth, competitiveness & entrepreneurship entrepreneurship, education, role models SMEs, early stage financing internal market (review) continued reduction of administration burden
jobs, human resources sharing best practices on flexisecurity improving education of youth and adults, weakness in knowledge triangle perspectives of the young
energy and environment environmental policies as key driver of innovation and consequently
economic growth
Creativity as the Creativity as the horizontal issue in the horizontal issue in the four themesfour themes
innovation and creativity not only engineers but designers, artists
competitiveness how to make talents entrepreneurial
people how to educate, attract and retain talent, how to make talent entrepreneurial, how to flexibly employ talents
environment make it into a value, make it into a business
opportunity
1. Pillar: 1. Pillar: Increasing the EU’s Increasing the EU’s
economic potential through R&Deconomic potential through R&D
Promote Creativity as a horizontal issue to make Europe the most creative place in the world
Innovation: generation and application of knowledge – establishment of the European Research Area (ERA), focus on the successful introduction of the European Institute of Technology (EIT) as a link between the public research sphere, the European higher educational environment and the economy.
Introduction of knowledge as 5th freedom Establishment of joint technology initiatives (JTI) Opening the research infrastructure for researchers in
SMEs, improving the competitiveness of the EU, Member States and regions;
Inclusion of neighboring regions (especially the West Balkans) in European research programs.
The Role of Europe in The Role of Europe in globalizationglobalization
it is ultimately about values such as well designed, fair, environmentally friendly, nice, trustworthy …
Europe's role in the globalized world is to shape values … dealing with conflict,
addressing climate change, agreement among generations, social sensitivity, global empathy … valuing design, brand, intellectual property
project these values to the rest of the world
creating products fitting this world view, exporting products
century of European values!
Creativity is essentialCreativity is essential
creative industries powerful on its own culture, media, advertising,
branding, design, architecture … even more powerful as creator of
"meaning" and "value" for all other sectors
innovation should meet creativity
The The ChineseChinese invented cheap invented cheap
paper.paper.
In 15In 15thth century century Europe learned Europe learned
to use it.to use it.
Democratic use of Democratic use of paper. It can be used paper. It can be used for anything. So many for anything. So many more people can more people can learn, create …learn, create …
The The Reneissance Reneissance
follows.follows.
Europe takes Europe takes the lead.the lead.
In ethics, arts, In ethics, arts, science, technology. science, technology. World domination World domination follows. Culminates in follows. Culminates in the early 20the early 20thth century. century.
In the 20In the 20thth Century Century
AmericansAmericans invent the invent the
Internet.Internet.
Europe learns Europe learns to use it.to use it.
Democratic use of Democratic use of digital technology.digital technology.
Anyone can be an Anyone can be an author.author.
Anyone can publish.Anyone can publish.
Do movies.Do movies.
Do music.Do music.
Spread ideas.Spread ideas.
Values.Values.
His or her own.His or her own.
What will we What will we make of it?make of it?
Not in colonies. Not in Not in colonies. Not in steel production.steel production.
In ideas. In values.In ideas. In values.
Creativity 2.0Creativity 2.0
Everyone gets Everyone gets involvedinvolved
Creative, media Creative, media empowered society!empowered society!
Or we get so poor Or we get so poor manufacturing will manufacturing will come back to Europe.come back to Europe.
No room for No room for complecancycomplecancy