What is the Creative Economy?
Context Developed countries around the world have now transitioned into functioning within a
knowledge economy where information and knowledge are important drivers of economic
growth. As we navigate this move to a post-industrial knowledge economy, from an economy
solely based on the production of goods to an economy significantly fuelled by ideas and
innovation, the role of creativity in shaping and fuelling that growth can no longer be ignored.
This refined understanding of the drivers beneath the post-industrial economy has spurred the
evolution of the concept of the knowledge economy into that of the creative economy – a notion
that recognizes the greater value and desire being placed on expressive content in goods and
services. In fact, as this literature review outlines, evidence suggests that the creative economy
is revitalizing manufacturing, services, retail, and entertainment industries. It is also changing
what work people do and want to do as well as where they want to live.
Concepts
Multiple definitions of the creative economy have developed over the past ten to fifteen years which are contributing to further understanding of the knowledge-based economic activities
upon which the ‘creative industries’ are based. This literature review outlines the key definitions
and models that are informing policy decision-making around the world in developing this
important sector.
The ‘Creative Economy’
The creative economy concept has emerged as a means of focusing attention on the role of
creativity as a force in contemporary economic life, stating that economic and cultural
development are not separate but can be a part of a larger process of development.
The term first appeared in John Howkins’ 2001 book, The Creative Economy: How People
Make Money From Ideas, where he defined the creative economy as “the transactions of
creative products that have an economic good or service that results from creativity and has
economic value” (p. 8).
Today the most often cited definition of the creative economy is from the UK Department of Culture, Media and Sport (DCMS). They define the creative economy as “those industries which have their origin in individual creativity, skill and talent and which have a potential for wealth 4 and job creation through the generation and exploitation of intellectual property