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

ziga.turk@gmail.com

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

Innovation is Innovation is not enough!not enough!

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"

Do you buy Do you buy what you what you

need?need?

Or do you buy Or do you buy what you what you

think and feel think and feel you need?you need?

Do you pay Do you pay for functionfor function

or do you pay or do you pay for meaning?for meaning?

Added valueAdded valuein functionin function

or inor inmeaningmeaning??

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

We have We have legacies and legacies and traditions to traditions to

build on!build on!

PS.PS.

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 first The first communi-communi-

cation cation revolutionrevolution

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.

The second The second communication communication

revolutionrevolution

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

ReferencesReferences

Dan Pink, A Whole New MindRichard Florida: The Raise of the Creative Class

Jeremy Rifkin: The European Dream