Creativity and capital

1. History & Trajectory

2. What’s Going On

3. IP

4. Jobs That Haven’t Been Invented Yet

History & Trajectory

CREATIVITY Psychological – creativity as an individual value Social – creativity as a social value

What’s Going On?

Erosion of the ‘Welfare State’

Erosion of ‘Liberal Arts’

CREATIVITY =

LIBERAL ARTS =

RECTIFYING OBJECTS =

WELFARE =

STATE RESPONSIBILITY

CREATIVITY =

CREATIVE INDUSTRIES =

CONSUMER GOODS =

SERVICES =

MARKET DYNAMICS

A Political Context - Creativity and ‘Structural’ Change

THE WELFARE STATE

Lord William Henry Beveridge, 1879-1963 Liberal Party – grew from WhigsInfluence of Fabian SocialismInstrumental in policies of post-war Labour governments in UK


• Erosion of the Welfare State

http://cepa.newschool.edu/het/profiles/beveridge.htm

THE IMPACT OF TECHNOLOGICAL CHANGE

Schumpeter – “Creative destruction” The opening up of new markets, foreign or domestic, and the organizational development from the craft shop and factory to such concerns as U.S. Steel illustrate the same process of industrial mutation–if I may use that biological term–that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one. This process of Creative Destruction is the essential fact about capitalism. It is what capitalism consists in and what every capitalist concern has got to live in. . . . Capitalism, Socialism and Democracy (New York: Harper, 1975) [orig. pub. 1942], p. 82


Labour Market Evolution

Creative Destruction: Loss of jobs in wagon-building, increase of job in automobile manufacture Ubicomp – ubiquitous computing – the ‘IT revolution’ impacts on all industries simultaneously and globally The Job For Life ‘Portfolio careers’, part-time-, fractional- and contract-employment.


Scandinavian (‘Advanced Social-Democratic’) Model (Sweden) - Government spending creates work in the public sector

‘Free Market’ Model (USA, UK) – Deregulation of wages and conditions increases employment through lower costs for employers (the emerging phenomenon of the ‘working poor’)

‘Hybrid’ Model (Australia) – ‘Change by negotiation’

Emergent Welfare State Models – Asia, Eastern Europe, South America

After the Golden Age: The Future of the Welfare State in the New Global OrderUnited Nations Research Institute for Social Developmenthttp://www.unrisd.org/engindex/publ/list/op/op7/op07-09.htm



A new welfare settlement is needed, to show how we can come together to protect one another against the risk and turbulence inherent in the new economy. The task is not simply to reform the welfare state but to create a welfare society in which the state is one player, alongside new mutual organisations, the family and the voluntary sector.

Charles Leadbeater, 2000, Living on Thin Air, Penguin


• Erosion of Liberal Arts

‘Liberal arts’ – term associated with subsidised and sponsored ‘public’ arts

Derived from (and still related to) British values of State philanthropy (Lord Shaftesbury – early 18th C)

‘Liberal’ (‘Free’) arts, as distinct from artisanship or ‘commercial’ arts

The value of ‘recitifying objects’ (like the gallows) 19th C - Bentham’s ‘Panopticon’ (the State as all-seeing eye)

Foucault, in Discipline and Punish and elsewhere – state-funded prisons, schools, museums, barracks – formalisations and instruments of state power

CREATIVITY =

LIBERAL ARTS =

RECTIFYING OBJECTS =

WELFARE =

STATE RESPONSIBILITY

CREATIVITY =

CREATIVE INDUSTRIES =

CONSUMER GOODS =

SERVICES =

MARKET DYNAMICS


Social entrepreneurs are people who use the techniques of business to achieve positive social change’). Social Entrepreneurship Network - www.sen.org.au … there is an additional right and that is the right to a fair place in the economy and this is what government and laws don't seem to be able to deliver. A fair place in the economy seems to be something that you have to take. It's a hill we have to climb. Noel Pearson, address to Brisbane Institute, 2001

(http://www.brisinst.org.au/resources/pearson_noel_pbbook.html)

“Social Democracy”“The Welfare State” ?

THE ‘NEW ECONOMY’ & INTANGIBLE ASSETS

IP

What's a company worth? If the books tell a story investors find useful, then a company's market value should roughly (not precisely, because the market looks forward and the books back) correlate with the value accountants ascribe to it.

It doesn't: Arthur Andersen consultants Richard Boulton, Barry Libert, and Steve Samek compared market value with book value for 3,500 U.S. companies over a period of two decades. At the beginning, in 1978, the two were pretty well matched: Book value was 95% of market value …

Twenty years later, book value was just 28% of market value. Investors simply don't value what accountants count.

FORTUNE 500Accounting Gets RadicalThomas A. StewartMon Apr 16 00:00:00 EDT 2001

http://pages.stern.nyu.edu/~blev/

The Value of Assets To measure knowledge capital, Baruch Lev assigns proxy returns to various types of assets, as shown below. The returns themselves are an indication of where companies can best allocate resources. Type of Asset Financial(Ten-year average return on U.S. Treasury bonds)

4.5% Physical(Average ROE for all companies with physical assets and inventories)

7.0% Intellectual(Average expected return on equity for biotech and software industries)

10.5%

I.P. Patents

Copyrights

Circuit Layouts

Plant Breeders' Rights

Trade Secrets / Confidential Information

http://www.wipo.intWorld Intellectual Property Organisation http://www.ipaustralia.gov.auIP Australia http://www.copyright.org.auAustralian Copyright Council

KEY SITES

Jobs That Haven’t Been Invented Yet

(Creative industries) deal in value and values, signs and symbols; they are multi-skilled and fluid; they move between niches and create hybrids; they are multi-national and they thrive on the margins of economic activity; they mix up making money and making meaning. The challenge of the creative industries is the challenge of a new form of economic understanding - they are not 'catching up' with serious, mainstream industries, they are setting the templates which these industries will follow. Manchester Institute for Popular Culture - http://www.mmu.ac.uk/h-ss/mipc/foci/mission.htm

The Future of Creative Work

‘Creative industries are the service industries of the new knowledge economy. Indeed, once the term is understood in relation to the existing ‘content’ industries, such as media, publishing, interactive software etc., it can be extended to any enterprise whose business is the ‘application’ of creativity. Thus ‘creativity’ becomes a service sector, supplying high value-added inputs to other enterprises, including education, finance, tourism … The list of creative industries is not endless, but it is not resticted to existing arts and media entertainment. It extends wherever creative content is required’

Cunningham, Hartley, From Blue Poles to Fat Pipeshttp://www.creativeindustries.qut.edu.au/cirac/readingroom/CunninghamHartley.pdf


http://www.creativeindustries.qut.edu.au/cirac/readingroom/CunninghamHartley.pdf












LESSONS FOR CREATIVES Don't be romantic. Stop thinking about 'art' as something you're born to do, that is somehow privileged or special (as in 'liberal arts') Don't think the world owes you a living because you're creative Understand history, economics and politics - you need the context Understand and use new technologies, and keep up to date Develop a portfolio career Understand and use financial planning Get off your bum, become entrepreneurial Accept nothing, embrace change, stay on your toes. (Gandhi) Be the change you want to be.


KAOS PILOTS

www.kaospilot.dk

The KaosPilots is a modern value based education for project leaders. Our work builds upon our 6 core values which are; Playfulness, Real world, Streetwise, Risk-taking, Balance and Compassion.

The arena in which we operate in practice is the common ground shared by the arts, culture and business.

Course design and methodology

The course at The KaosPilots is generally based around assignments set by external organisations/businesses.

· Project and business design - What is it?

· Creativity and innovation - can you make a system for it?

· Branding and telling a story - everybody’s talking about it...why?

· Communication and press strategy - how do you get your message out?

· Event and campaign organisation and implementation - how do you organise and implement as professionally and effectively as possible?

· Understanding finances and budgets - how do you ensure viability?

· Collaboration between culture, the arts and business – where is the synergy?

· Stakeholder-thinking and ethical bottom-lines - when are we selling out?

Business

Creativity and capital