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The Role of Creative Industries for the Competitiveness of Europe

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  1. The Role of Creative Industries for the Competitiveness of Europe Creative Industries on Stage, Vienna,December 4th,2007 dr. Žiga Turk, minister Government Office for Growth SLOVENIA ziga.turk@gmail.com

  2. 2008: Starting a new chapter in European history • 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

  3. Lisbon Strategy is response to globalization 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

  4. 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)

  5. 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 SWOT

  6. In the wake of the Asian century • 1800s … European Century • 1900s … American Century • 2000s … Asian Century • "they know it belongs to them" • again!

  7. Asia • India + China GDP > West's GDP until 1820 • India + China GDP > West's GDP after 2050 or before? • other BRIC countries!

  8. 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

  9. Innovation is not enough!

  10. The shift • Agriculture Age (farmers) • Industrial Age (factory workers) • Information Age (knowledge workers - innovators) • Conceptual Age (creators)Source: Dan Pink, A Whole New Mind

  11. Theoretical basis • Schumpeter: • products fulfill needs • "profit is result of innovation" • Dan Pink (rephrased): • products fulfill passions • "profit is result of creativity"

  12. Do you buy what you need?

  13. Or do you buy what you think and feel you need?

  14. Do you pay for functionor do you pay for meaning?

  15. Added valuein function or inmeaning?

  16. Price of function is droping, and price of meaning rising image design "healthy" trade mark "home made" 30 EUR “fair traded” marketing trusted environmentalyfriendly price of meaning who can think of it who can sell it who is willing to pay for it price of funcion 1 EUR just function more

  17. Who makes meaning?What gives meaning? • what is meaning? • what gives meaning? • what influences meaning? • values, morals, virtues! • MORALIZATION OF THE MARKETS!

  18. Innovation vs. Creativity • 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

  19. Left brain vs. right brain • “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

  20. “Human creativity is the ultimate economic resource.” Source: Richard Florida, The Rise of the Creative Class

  21. War fortalent! • Educate talent • Attract talent • Retain talent

  22. Florida's 3 "T"s for Creativity • Talent (educate, attract, retain) • ½ mil. top EU engineers and researchers abroad • Technology • attracts talent • Tolerance • makes talent stay

  23. Focus • 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

  24. Creativity as the horizontal issue in the four themes • innovation andcreativity • 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

  25. 1. Pillar: Increasing the EU’s economic 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.

  26. The Role of Europe in globalization • 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!

  27. Creativity 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

  28. We have legacies and traditions to build on!

  29. PS.

  30. The Chinese invented cheap paper.In 15th century Europe learned to use it. • Democratic use of paper. It can be used for anything. So many more people can learn, create …

  31. The first communi-cation revolution

  32. The Reneissance follows.Europe takes the lead. • In ethics, arts, science, technology. World domination follows. Culminates in the early 20th century.

  33. In the 20th Century Americans invent the Internet.Europe learns to use it. • Democratic use of digital technology. • Anyone can be an author. • Anyone can publish. • Do movies. • Do music. • Spread ideas. • Values. • His or her own.

  34. The second communication revolution

  35. What will we make of it? • Not in colonies. Not in steel production. • In ideas. In values. • Creativity 2.0 • Everyone gets involved • Creative, media empowered society! • Or we get so poor manufacturing will come back to Europe. • No room for complecancy

  36. References • Dan Pink, A Whole New Mind • Richard Florida: The Raise of the Creative Class • Jeremy Rifkin: The European Dream