The Creative Industries: Culture and Policy

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Terry Flew

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    Dedication

    For Charlotte.

    List of Tables

    Preface

    I would like to acknowledge the support of people who have helped me in the development of The Creative Industries, Culture and Policy. Thanks to my colleagues in the Creative Industries Faculty at QUT, particularly to Stuart Cunningham, John Hartley, Axel Bruns, Christy Collis, Christina Spurgeon, Michael Keane, Lucy Montgomery and Brad Haseman. Thanks to those who have worked with me on preparation of the manuscript and research for the book, particularly Mimi Tsai, Tanya Nitins, Adam Swift, Emma Felton, Mark Ryan and Angela Lin Huang. While writing the book, I had the opportunity to spend time at the Department of Telecommunications, Indiana University: thanks to Mark Deuze for being my host, and to Betsi Grabe and David Waterman for their hospitality during that visit. The ideas developed in the book have also been refined through presentations at Monash University, Murdoch University, RMIT University, Beijing University and the Communications University of China, and I thank those who invited me. I have also benefitted from conversations with Mark Gibson, Terence Lee, Kate Oakley, Jiannu Bao, Gay Hawkins, Jason Potts, Julian Thomas, Elinor Rennie, Trevor Barr, Michael Curtin, Joshua Green, Tony Bennett, Dwayne Winseck, Jason Wilson, Melissa Gregg, Nick Couldry, Danny Butt, Jack Linchuan Qiu, Brendan Harkin, Megan Elliott and many others. I would also like to thank Mila Steele, Sarah-Jane Boyd, Rachel Hendrick, Imogen Roome, Chris Rojek and the team at Sage for overseeing the project to fruition, and their unwavering support for the book.

    Acknowledgements

    I am grateful to the following authors and publishers for permission to use their work in this book:

    Table 1.1, Department of Culture, Media and Sport, Creative Industries Mapping Document, 1998; Table 1.2, Department of Culture, Media and Sport, Creative Industries Economic Estimates 2007: Statistical Bulletin; Table 4.1, Design Institute of Australia, What is a Designer? <http://www.dia.org.au/index.cfm?id=186.>; Table 7.3, Arts Council of England, published in Helen Jermyn, The Arts and Social Exclusion, 2001, p. 13.

    Figure 1.1, National Endowment for Science, Technology and the Arts, for Creating Value: How the UK can Invest in Creative Businesses, 2006, p. 55; Figure 1.2, The Work Foundation, for Staying Ahead: The Economic Performance of the UK's Creative Industries, p. 103; Figure 2.1, KEA Economic Affairs, for the Economy of Culture in Europe, p. 3; Figure 2.2, The World Bank, for Indermit Gill and Homi Kharas, An East Asian Renaissance: Ideas for Economic Growth, p. 49, p. 49; Figure 2.3 and Figure 2.4, United Nations Educational, Scientific and Cultural Organisation, Understanding Creative Industries: Cultural Statistics for Public Policy-Making, p. 80 and p. 81; Figure 2.5, United Nations Trade, Aid and Development, Creative Economy Report 2008, p. 14; Figure 3.1, United Nations Educational, Scientific and Cultural Organisation, for The 2009 UNESCO Framework for Cultural Statistics, p. 20; Figure 4.1, Australian Research Council Centre of Excellence for Creative Industries and Innovation, for Peter Higgs, Stuart Cunningham and Janet Pagan, Australia's Creative Economy; Basic Evidence on Size, Growth, Income and Employment, CCI Technical Report, 2007, p. 10; Figure 4.2, National Endowment for Science, Technology and the Arts, for Peter Higgs, Stuart Cunningham and Hanan Bakhshi, Beyond the Creative Industries: Mapping the Creative Economy in the United Kingdom, Technical Report, 2008, p. 6; Figure 5.1, Sage, for Colin Hoskins, Stuart McFadyen and Andy Finn, Media Economics: Applying Economics to New and Traditional Media, p. 145; Figure 7.1, National Academies Press, for William Mitchell, Anal Inouye and Marjory Blumenthal, Beyond Creativity: Information Technolgoy, Innovation, and Creativity, 2003, p. 25.

    About the Author

    Terry Flew is Professor of Media and Communications in the Creative Industries Faculty at the Queensland University of Technology (QUT), in Brisbane, Australia. He is the author of New Media: An Introduction (OUP), which has gone into three editions (fourth edition forthcoming), and Understanding Global Media (Palgrave).

    He is a leading international figure in creative industries research, having played a key role in establishing the world's first Creative Industries Faculty at QUT, and undertaking invited presentations on creative industries in China, Japan, Korea, Taiwan, the United States and New Zealand. He has edited special issues of the journals International Journal of Cultural Studies and The Information Society on creative industries.

    He is a Chief Investigator in the ARC Centre of Excellence for Creative Industries and Innovation, the leading humanities and creative arts research centre in Australia, where he has been engaged in research into creative industries and cities in China and East Asia. He has also headed research projects into citizen journalism and the role of suburbs in creative industries development.

    He has published over 30 book chapters and over 50 scholarly journal articles, in leading international publications in the fields of communication, media and cultural studies, journalism and digital media.

    He has been President of the Australian and New Zealand Communication Association, and is active in the International Communications Association. He has provided expert advice to the Organisation for Economic Co-operation and Development, the National Academies Forum, the Australian Federal government and the European Science Foundation.

    During 2011–12, he headed the National Classification Scheme Review, undertaken by the Australian Law Reform Commission for the Australian Federal Government.

  • Conclusion

    This study concludes at an interesting historical juncture in both theory and practice with the creative industries. The creative industries concept is unique, at least in terms of cultural theory, in having its origins in policy discourses, particularly those of the ‘New Labour’ governments of Tony Blair and Gordon Brown in Britain in the 1990s and 2000s. Given these origins, it may appear reasonable to surmise that the concept departs the scene with these administrations. Yet the set of developments which the concept of creative industries has sought to capture, particularly the growing economic importance of activities relating to creativity and innovation, and the reflexive and mutually determining relationships this points to between economy and culture, have not gone away at all. In fact, every indication is that this has become more important in terms of public policy, particularly if we understand creative industries broadly to also incorporate entertainment industries more generally. The proliferation of statistical and mapping exercises that have taken place around the world over the 2000s, and the greater global integration of cultural statistics being led by agencies such as UNESCO internationally, as well as by regional entities such as the European Union, point to a set of developments that are moving to the front and centre of policy makers’ thinking. Ideas associated with the rise of creative industries have also permeated cultural policy, urban planning and innovation policy worldwide to a degree that will not be reversed simply as a result of political changes in Britain.

    This book has sought to navigate a path through the complex policy, empirical and analytical debates that have surrounded the rise of creative industries. While such an exercise can be tedious, it is nonetheless necessary, as a variety of different terms have been developed to describe these phenomena. In the course of providing an overview of the field for economic geographers, Jeff Boggs makes this point:

    Collectively, these industries take many names: cultural industries, creative industries, cultural-products industries, the creative economy, and the cultural economy. While individual authors are often consistent in the terms they use (at least within a single manuscript), when viewed collectively, these terms appear as an imprecise muddle … However, these competing definitions make it difficult to evaluate the claims of individual scholars and to provide well-founded policy recommendations. Do scholar A and scholar B mean the same thing when they both say creative industry? Does scholar B mean creative economy when scholar C means cultural industries? In a perfect world, one term would emerge that corresponds to these kinds of industries, and what they are called collectively. But given scholars’ penchant for inventing new names for concepts … this hope will probably remain unfulfilled. One must muddle through the existing concepts, which are useful ones despite their imprecision. (Boggs, 2009: 1484)

    So we muddle through with vague but useful concepts! It is of course hoped that this book has made these concepts less vague, as well as indicating how they may be useful. What certainly can be noted is that we have greater clarity as to the industries that we are referring to, as well as better data from which to make comparisons between countries and over time, which will certainly assist with ongoing policy formation. In this respect, the advances made in such reports as UNESCO's revised Framework for Cultural Statistics (UNESCO, 2009) will continue to have an impact, particularly in the developing world, thereby also confirming that creative industries is not simply a ‘First World’ or rich nation concept.

    Thinking about this diverse range of sectors and activities – arts to architecture, performance to publishing, music, games, publishing, broadcasting, film, design, writing, journalism, and so on – as creative industries presents a series of distinctive empirical challenges. Some relate to the ‘missing middle': sectors where there are large global corporate conglomerates and myriad individual entrepreneurs and small businesses, but an apparent shortage of medium-sized businesses; or to the ‘hourglass’ structure of many of these sectors, with large numbers of producers and consumers and a concentration at the level of distribution, wherein economic and other forms of power reside in the sectors. Some relate to the unpredictable nature of creativity in terms of realisation of financial gain, and the ways in which contracts and industrial organisation emerge as ways of seeking to manage, but never fully resolving, questions of endemic risk and uncertainty. Other issues concern the centrality of intrinsic motivators to many creative people and creative activities, and to people who resist being disciplined by bureaucracy, policy or industrial organisation, and how the combination of ‘Fame Academy’ artistic and creative ideals bump up against the risks that flexible labour markets bring, particularly in industries with strong propensities towards ‘winner takes all’ outcomes. Finally, there are issues surrounding a possible mismatch between the traditional instruments and priorities of arts and cultural policy, focused upon protecting the best elements of human endeavour and creativity from the predations of the market (at least in some areas), and the new focus upon innovation cultures, creative cities and wealth derived from intellectual property, or the capitalisation of new ideas for economic gain. As Tom O'Regan has observed in his commentary on the rise of creative industries policy discourse, ‘even “creativity” seemed too important to be left up to cultural policy institutions and frameworks’ (O'Regan, 2002: 23).

    If creativity raises one set of questions, the idea of industries raises others. Empirically, the Standard Industrial Classifications (SIC) were developed in the heyday of manufacturing employment, and what we refer to today as the creative industries, along with other service industries more generally, tend to be spread across a diverse range of categories, including the arts, media, services, information, culture and leisure (Flew, 2004c; Hartley, 2005). Moreover, and reflective of these origins, the term industry itself tends to imply mass production, standardisation, the separation of the mind and the hand, assembly lines, etc. Adorno and Horkheimer's critique of the culture industry turned around precisely the concern that cultural production was being industrialised in the age of monopoly capitalism, alongside counter claims – most notably by Lash and Urry (1994) – that other industries are now being increasingly ‘culturalised', do little to dispel the perception that being involved in an industry entails losing control over one's creativity and individual autonomy. But this concern is neither new nor is it unique to cultural sectors, and it is not universally held by those engaged in cultural activities. To take sub-sections of the creative industries as case studies, people who are involved in making films or television programmes have tended to be more comfortable with the idea that they work in the film industry or the television industry than, say, painters, sculptors, writers or photographers may be about being said to be working in the arts industry, the writing industry or the photographic industry. They would more likely be referred to as artists, writers or photographers. A parallel could be drawn here with universities. People who teach, research or study in universities do not typically refer to themselves as working in the education industry. They refer to themselves as academics, teachers, researchers, scholars, or a term that captures their individual occupational identity. But there are clearly instances when it makes sense to refer to the education industry, while acknowledging that it does not cover the totality of practices taking place within universities. To take an example, in Australia in 2009–2010 there were a series of bashings of Indian students in Melbourne, including one death; these incidents were widely reported in India, and led to a significant reduction in the number of those travelling from India to study in Australian universities. This has a negative impact on the Australian higher education industry, but does not – at least not in any direct sense – impact on how teaching is taking place, what research projects are being supported, or a myriad of other activities that take place in Australian universities. Reference in this instance to the education industry, like that of the creative industries, provides us with a handle with which we can grasp some aspects of a broadly defined field, without claiming to be the only prism through which such activities can be observed or comprehended.

    At the same time, I would argue that there is a wider animating force to debates surrounding creative industries that goes beyond the empirical and the definitional. It goes to the heart of questions about the underlying purposes of intellectual work, and it has its strongest force in the critical humanities, particularly cultural studies. There would appear to be a degree to which creative industries – at least from some understandings of the role of cultural studies and the critical persona of the cultural studies intellectual – constitutes by its very nature a discursive field that is simply incommensurable with it. This is different from the question of whether it is best to refer to cultural industries or creative industries, or whether those who analyse the creative industries should apply greater critical scrutiny to the practices of the firms that constitute these industries, such questions of labour exploitation in the digital games industry or self-exploitation in industries such as fashion design (McRobbie, 2005; Neff et al., 2005; Miller, 2008). It relates to what Jean-François Lyotard referred to as the différend, or the impossibility of reconciling one set of claims with another:

    A différend would be a case of conflict between (at least) two parties, that cannot be equitably resolved for lack of a rule of judgement applicable to both arguments. One side's legitimacy does not imply the other's lack of legitimacy. However, applying a single rule of judgement to both in order to settle their différend as though it was merely a litigation would wrong (at least) one of them … A wrong results from the fact that the rules of the genre of discourse which one judges are not those of the judged genre or genres of discourse. (Lyotard, 1988: xi)

    An example of such a différend can be found with Jim McGuigan's view of creative industries as selling out to the business school, developed in his book Cultural Analysis (McGuigan, 2009a) and elsewhere. McGuigan associates talk about the creative industries – he largely avoids questions of whether they have influence in the broader economy – with a trajectory associated with what he identifies as the ‘cultural populist’ strand of cultural studies – approaches that champion engagement with popular cultural texts and media rather than identifying them as sites for his preferred methodology of ‘critical intervention'. Indeed, McGuigan's bugbear with creative industries arises not only from its being insufficiently critical of popular culture; it also arises from its wish to engage with policy makers, whose horizons are, for McGuigan, inevitably limited by their indebtedness of what he refers to as ‘recipe knowledge', and their inability or unpreparedness to transcend their administrative horizons in order to acquire critical knowledge (McGuigan, 1996; for a critique, see Bennett, 2007). A similar set of arguments can be found in Simon During's Exit Capitalism (During, 2010). For During, creative industries talk is indicative of a turn to reformism in cultural studies, which can only seek to ‘manage capitalism's crises and growth spurts in the interests of social justice and the alleviation of suffering’ (During, 2010: 158), turning away from a ‘Great Refusal’ of capitalism, the administrative state and reformism that During establishes as the sine qua non of a critical cultural studies practice, from which (for During) it has been unfortunately deviated from a putative Marxist heyday in the mid-1970s.

    This vision of cultural studies as engaged in an existential anti-capitalist struggle is best described in terms of what Michael Lowy refers to as revolutionary romanticism, which he identifies as the most powerful legacy of the post-1968 New Left. Noting its long history, Lowy identifies romanticism as ‘a structure of feeling and a world view … defined as a rebellion against modern capitalist society … [and] as a protest against the modern disenchantment of the world, the individualist/competitive dissolution of human communities, and the triumph of mechanization, mercantilization, reification, quantification’ (Löwy, 2002: 95). Noting that romanticism can be both nostalgic and reactionary, and utopian and forward-looking, Löwy observes that it is not driven by crises in the capitalist economy: he points out that the high point of the New Left in the late 1960s and early 1970s was also the high water-mark of post-World War II Western capitalist economies. Rather, it exists as a form of what Daniel Singer termed ‘total rebellion', and Herbert Marcuse described as the ‘Great Refusal', of capitalist modernisation, consumer society and hierarchical authority (Löwy, 2002: 97).

    Interventions to influence government policy, reshape markets, reorganise industries, or promote local cultural products or firms are, from this perspective, not part of a solution but a fundamental part of the problem, as they can only serve to make capitalism work more effectively, thereby further entrenching its hold over the social imaginary. During is explicit about this in his critique of social movement activism, arguing that ‘even when successful, such activism is easily absorbed by democratic state capitalism thought of as an integrated and global system, and indeed tends to strengthen the system by the old logic of reformism’ (During, 2010: 133). Moreover, as Boltanski and Chiapello (2005) observe in relation to creativity and the ‘new spirit of capitalism', not only does social reformism become absorbed back into the system, but so too does the artistic critique of capitalism, whose demands for freedom and authenticity are repackaged as the ‘no-collar’ workplace, counter-cultural commodity branding, and the bohemian lifestyles of the ‘creative class'. It is therefore not surprising that During would find creative industries to be doing the bidding of what he terms ‘democratic state capitalism', for ‘the grounds for making an anti-reformist refusal are finally … ethical and irrational’ (During, 2010: 158). To seek to reform social and cultural relations from within the system is, according to this perspective, to be complicit in systems and structures of domination. Such a position stands in notable contrast to traditions of academic involvement in industry policy in other sectors, most notably manufacturing, where it has been seen as a necessary complement to strategies to protect existing jobs and promote new ones, to the benefit of people, regions, nations and communities.

    The perspective of revolutionary romanticism is not the perspective undertaken in this book. The analysis developed here is concerned with capitalisms in the plural, rather than Capitalism in the singular. While one can identify a set of common features of capitalist economies – production for profit, the role played by markets, legally sanctioned private property relations, etc. – it is maintained that the differences between capitalist economies are as important as their similarities, and that tendencies towards convergence over time are counter-balanced by the continuing significance of national differences that are historically and institutionally grounded (Perraton and Clift, 2004). This is a key factor setting limits to the globalisation thesis: the differences between cities, regions and nations are not being negated by multinational capital. The rise of China as the world's fastest-growing economy from the late 1970s to the late 2000s, with its political culture of state orchestration of socio-economic relations in order to maintain power and sovereignty in the face of the foreign ‘barbarians', should be a salutary reminder that the forces of global capital do not invariably trump nation-states, nor do they flatten the distinctive features of national polities and cultures. Rather, close analyses of how multinational corporations operate in practice reveals their propensity to work with the grain of historically defined differences between one place and another, rather than seek to flatten such differences in the name of global homogeneity. Moreover, when we seek to identify factors that continue to generate differences between places, culture and policy emerge as two of the key intervening variables. It is not surprising, therefore, that even where we are seeing policy transfer of ideas from one place to another, of which creative industries can be seen as a case study, the national, regional and local variations on the theme continue to be highly significant (Flew and McElhinney, 2005).

    This distinction between capitalism as social totality that absorbs all forms of non-revolutionary critique, and institutionally variable capitalisms shaped by variances in culture, history and forms of public policy, plays itself out in differing conceptions of neo-liberalism. We noted in Chapter Seven that neo-liberalism has ballooned out as a concept over the 2000s, from its origins as a form of economic theorising associated with writers such as Friedrich von Hayek and Milton Friedman, to a Moloch-like entity responsible for everything from Bollywood weddings to cinematic violence to the digitisation of library collections. Moreover, it can only be conceived of negatively: neo-liberalism is a term with ‘negative normative valence’ (Boas and Gans-Morse, 2009), a term used to critique the bad ideas associated with others – particularly economists but also politicians and policy makers – even if they may not recognise such a categorisation themselves. It is, in short, an ideology, in the sense defined by John Thompson as ‘a system of ideas which expresses the interests of the dominant class but which represents class [and other social – TF] relations in an illusory form’ (Thompson, 1991: 37). For critics such as Hesmondhalgh (2008), Freedman (2008), Miller (2009a) and McGuigan (2009a), creative industries is read as an instantiation of neo-liberalism in the cultural sphere. As Toby Miller puts it, ‘neo-liberalism is at the core of creative industries’ (Miller, 2009a: 270).

    In thinking through claims about the influence of neo-liberalism over the last 30 years, there is a need, as Andrew Gamble observed, to resist a tendency ‘to reify neo-liberalism and to treat it as a phenomenon which manifests itself everywhere and in everything. [and] to deconstruct neo-liberalism into the different doctrines and ideas which compose it, and relate them to particular practices and political projects’ (Gamble, 2001: 134). If we adopt this approach – of being specific about neo-liberalism rather than using it as a synonym for the market economy or a scare-word for something the author does not like – there are three interconnected layers from which neo-liberalism as a political-economic project can be understood:

    • The coalescing of a diverse range of economic schools, united in the first instance by an opposition to Keynesian economics and socialist economic planning, through forums such as the Mont Pelerin Society (Peck, 2008). These most famously include the Austrian economists such as Freidrich von Hayek and his mentor, Ludwig von Mises, and the ‘Chicago School’ of economists such as Milton Friedman, George Stigler and Gary Becker. An extension of this family of economists into a wider formation would also include the German Ordoliberals discussed by Foucault (2008), economists at the London School of Economics such as Lionel Robbins, and the ‘Rational Expectations’ and ‘Public Choice’ schools of political economy that emerge in the United States from the 1970s.
    • Transformations in the political sphere, associated in the first instance with the rise of Margaret Thatcher in Britain and Ronald Reagan in the USA, that saw conservative politics move decisively towards the ‘New Right’ position of reducing the size of government, deregulating markets and privatising public assets (Dunleavy and O'Leary, 1987: 72–135). This would give conservative thought a more overtly economistic and ideological character, and would in turn come to influence liberal/social democratic politics, as seen with Bill Clinton's ‘New Democrats’ in the USA, and Tony Blair's ‘New Labour’ and the ‘Third Way’ in Britain, which accepted large parts of the New Right agenda and consolidated the turn away from post-World War II ‘liberal corporatism’ (Curran and Leys, 2000; Gamble, 2004; Wilentz, 2008);
    • The globalisation of neo-liberalism, or what is also referred to as neo-liberal globalisation, with the influence of the ‘Washington Consensus’ in policy advice to developing countries tied to funding from the International Monetary Fund or the World Bank (Stiglitz, 2002) and, more generally, the influence of international free trade agreements and entities such as the World Trade Organization (Scholte, 2005b).

    All of the factors outlined here have been of great significance over the last 30 years, particularly as the economic downturn on the 1970s was successfully attributed by the New Right to the impact of Keynesian economics, big government and the power of trade unions (Marglin and Schor, 1990; Armstrong et al., 1991). Some have argued that the global financial crisis of 2008 similarly marks the harbinger of a turn away from such untrammelled faith in free markets and deregulation (Quiggan, 2009). But we need to be wary, as Abercrombie and Turner observed many years ago in relation to Marxist theories of a dominant ideology (Abercrombie and Turner, 1978), of attributing all prevailing belief systems and power relations to an overarching system of ideological control. For example, neo-liberalism tends to be associated with individualism, but individualism, defined as a social theory advocating the liberty, rights or independent action of the individual, can co-exist with a number of political ideologies. Historically, markets as mechanisms for the allocation of economic resources have operated across a very diverse range of social formations, and a strong argument exists that attempting to eliminate markets altogether was the greatest economic mistake of twentieth-century communist societies (Nove, 1983; McMillan, 2002). As social democrats such as Australia's Hugh Stretton have observed:

    Wherever they [markets – TF] work as they should, especially where they work without generating undue inequalities of wealth or power, Left thinkers should value them as highly as any privatiser does. Indeed, more highly: the Left has such necessary tasks for government, and so much to lose from inefficient or oppressive bureaucracy, that it should economise bureaucracy every way it can. (Stretton, 1987: 27)

    The critique of neo-liberalism also seems to possess some conceptual confusion about liberalism. As a body of thought, liberalism runs all the way from the individualist utopians such as von Hayek to social democratic traditions such as those associated with John Maynard Keynes, so it is often hard to gauge where the critics of neo-liberalism stand on liberalism more generally. In the United States, for instance, to be termed a liberal is to be placed on the left, not the right, of the political spectrum. It is important to note that the tradition of the New Left discussed earlier has tended to be anti-Leninist, and therefore to often see socialism as a democratic extension of liberalism, rather than the overthrow of the liberal-democratic state in the name of a collectivist social order. Authors such as Ernesto Laclau and Chantal Mouffe were quite explicit in arguing that socialist struggles involved the democratic extension of liberalism: ‘The task of the Left therefore cannot be to renounce liberal-democratic ideology, but on the contrary, to deepen and extend it in the direction of a radical and plural democracy'. (Laclau and Mouffe, 1985: 176)

    The claim that neo-liberalism has spread as a hegemonic ideology across the globe is less persuasive than it may first appear. While one can acknowledge, with Stiglitz (2002), the profound influence of neo-liberal economic doctrines in places such as Russia in the 1990s, the clear international counter-weight to such claims is China. Contrary to Harvey's (2005) account of China since 1980 as ‘neo-liberalism with Chinese characteristics', scholars such as Kipnis (2007) and Nonini (2008) have argued that the depth of both popular and official commitment to such principles as private property rights, free markets and free trade are limited, contingent and reversible, indicative of both the historical weakness of liberalism as a political philosophy in China and the extent to which the Communist party-state has sought to manage economic reform in ways that preserve its own leadership, so that ‘the strong version of neo-liberalism does not exist in China as a hegemonic project’ (Nonini, 2008: 168). While China may be an exceptional case, it is a pretty large exception, given its size, its rapid growth rates since 1978, and its significance in the global economy. Moreover, there are parallels between the Chinese case and the more general model of the developmental state that continues to play a critical role in East Asia (Weiss, 2003; Yeung, 2004). Turning from Asia to Europe, it is worth reminding ourselves that while Foucault identified the German Ordoliberals as playing a leading role in translating neo-liberalism from moral philosophy to governmental practice in Germany in the late 1940s and 1950s, the resulting German social market economy is today understood by many as an exemplar of the neo-corporatist alternative to neo-liberalism that is based on consensus culture. For critics of Anglo–American neo-liberalism such as Michael Pusey, neo-corporatist nations such as Germany ‘have managed structural economic change with far fewer social costs and presently enjoy the best quality of life in the world’ (Pusey, 2009: 141). My point here is not to champion German capitalism, or indeed French, Scandinavian, Chinese or Japanese capitalism, over the models that have evolved in the United States or Britain. It is rather to point again to the ongoing significance of national variations in institutional formations and political economic dynamics, and to question arguments asserting that these have been swept aside by a tide of global neo-liberalism.

    Excessive use of the term neo-liberalism resembles a problem identified by the French writer Alain Lipietz in the 1980s with the concept of imperialism (Lipietz, 1984). Drawing upon Umberto Eco's The Name of the Rose (Eco, 1983), Lipietz observed that just as William of Baskerville comes to the Benedictine monastery to investigate a series of murders which the monks have become convinced are signs that the Beast of the Apocalypse is among them, the work on imperialism that he surveyed found that imperialism could function as a kind of master category capable of explaining anything and everything happening in the Third World, and that no crimes or atrocities were beyond its malevolent reach. It could, for instance, be held responsible for driving industrial development in Brazil or the ‘tiger economies’ of East Asia, just as it could be held responsible for the lack of industrial development in sub-Saharan Africa. Unfortunately, the concept of neo-liberalism has acquired a similar conceptual elasticity. For example, Fuchs (2008: 108) associates neo-liberalism with ‘the withdrawal of the state from all areas of social life', while Nick Couldry (2010: 61) identifies growing state surveillance of citizens as a feature of the neo-liberal state. The point is not so much that these propositions are right or wrong, but whether anything is added to the claim, other than a rhetorical flourish and a burnishing of one's radical credentials, by putting all such propositions under the banner of neo-liberalism. Even if we take a basic tenet of neo-liberalism – Milton Friedman's maxim that the happiness of the citizenry is inversely related to the size of the public sector – the evidence of the United States and Britain in the 2000s is unequivocal. The size of the public sector in both countries grew significantly over the 2000s – and over the whole decade, not just after the 2008–2009 bank bailouts – and it grew by more in these apparently neo-liberal countries than in countries such as France and Germany (The Economist, 2010). So the evidence of whether we are in an era of neo-liberalism remains decidedly mixed, not least because there seems to be little agreement on what evidence of it would be, aside from comments made at the highest level of generality and abstraction.

    In light of these problems with the concept of neo-liberalism, I think it is reasonable to say that, whatever other issues or problems arise with the concept of creative industries as either analytical concept or policy discourse, the criticism that it is emblematic of or furthers neo-liberalism is one that now needs to be discounted. This is not to say that the concept of neo-liberalism does not itself raise important debates about contemporary public policy – and the translation of Michel Foucault's 1978–1979 lectures adds depth and richness to these in the English-speaking world – but that it has come to be a much-abused term that too easily lends itself to a poorly theorised condemnatory stance towards whatever happens to be a particular author or presenter's bugbear at that point in time.

    Having rejected the claim that creative industries is primarily a product of a malign neo-liberalism, or that it was a politically driven fad whose historical moment has passed, we conclude with consideration of what may be the most pressing developments in the creative industries field in the near future. Definitional questions remain important, with an important question being the porosity of the boundaries between what we refer to as the creative industries on the one hand, and the whole range of entertainment industries that include activities related to tourism and sport as well as live performance and public exhibitions, on the other. This becomes particularly significant as we see how major events such as the Olympics and football World Cups are structured in such a way as to be catalysts for the development of other arts and media-related activities, as well as being central to the branding of cities and nations (Kornberger, 2010).

    Another issue will be the ongoing relationship between creative industries policy discourse and cultural policies. Cultural policy since the 1970s has been moving, albeit with many fits and starts, from a supply-side, artist-centred approach that was primarily focused upon the flagship cultural institutions, to one that gave stronger consideration both to the diversity of forms of creative practice, and to questions of consumer demand and cultural markets (Flew, 2005b). Nonetheless, it remains implicitly framed by what we have referred to in this book as the ‘hourglass’ structure of the creative industries, where a relatively small number of gatekeepers – be they major performing arts companies and centres, large media corporations, or cultural funding bodies – constitute a distributional ‘bottleneck’ between the large number of prospective creative content producers and their potential audiences. The Internet and social media are an important force breaking up this linear pattern of cultural production and consumption, and by no means the only ones, yet there remains a mismatch between the large and growing numbers of individuals, small groups and SMEs engaged in the cultural sector, many of whom are quite new to the field and are pursuing ‘portfolio careers', and the political power and lobbying clout of the incumbents in the sector, be they large corporations, established trade unions and producer organisations, or traditional cultural funding bodies. The challenge will be how to tap into the loosely configured, emergent networks of cultural producers – that increasingly include the consumers as well – which are increasingly the mainspring of innovation in the arts, media and cultural sectors, in ways that differ from the traditional focus of cultural policies on large-scale and highly visible institutions and interests.

    A final issue that will keep emerging relates to the boundaries of an industry itself, and the relationship between the creative industries and other sectors of the economy. As we have seen, the early list-based approach taken by UK policy makers, where you could identify 13 sectors and declare them to be ‘the creative industries', based upon a loose alignment of assumptions about creativity and the application of intellectual property regimes, has proved inadequate. While measurement and classificatory technologies have become more rigorous and sophisticated, the question continues to remain of why we are saying that creativity is uniquely applied and valued in these particular domains, when the wider implication of the arguments being developed is that creativity needs to be applied across all industries and domains in an increasingly knowledge-based economy and society (Hartley, 2009). The switch in the late 2000s from talk about the creative industries to that of a creative economy reflected this to some extent, although the sectoral silos and interest group alignments associated with policy formation continue to keep pushing creative industries policies towards designated arts, media and cultural sectors, and other parts of the economy towards their own designated domains, such as information technology policies or manufacturing industry policies.

    An even more radical conception of the challenge, developed by the Chinese scholar Li Wuwei, is to ask whether we should in fact be thinking about a creative society? (Wuwei, 2011) If it is the case that socially valued applications of creativity come, not from abstract entities such as industries or ‘the economy', but from the original and independent initiatives of people, then should the development of the creative potential of people be our starting point? Such arguments take the debate out of the logical cul-de-sacs that arise when one attempts to quantify the value of the arts, or consider whether software development should be considered a part of the creative industries, and into wider questions around the future of education, knowledge, lifelong learning, and the evolving social compact between citizens and the state. Thinking in such terms also brings us back to the original remit of cultural studies, which sought to transform the study of culture from the close reading of a canon of privileged texts to an understanding of the social, historical and spatial dynamics of cultural behaviour and practices of whole communities and societies. In this respect, creative industries moves from being a niche field within the domain of cultural policy, to being central to debates about the ongoing development of 21st century culture and policy.

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