What does the creative sector have to learn from the world of economics?
In a world where the cultural sector interacts with everyday economics, here are three economic principles artists and creatives —
Paths for Generating Income: Doing and Owning
In the 1867 documentary “The Bowler and The Bonnet,” director Sean Connery explores two fundamental ways artists and artisans can generate revenue: by doing things and by owning things. He uses the example of a bowler hat maker and a bonnet maker to illustrate how different approaches to production and distribution can affect the income and lifestyle of creatives.
DOING
For artists and creative organizations, doing involves creating experiences, works, services, or products of value to audiences, users, and communities.
Doing so requires time, effort, and skill but allows for direct interaction and immediate feedback from audiences, users, and communities.
OWNING
Revenue from owning in the arts often implies licensing, multiplying, distributing, or otherwise creating revenue from reproducible creations or creative processes of value.
The challenge of owning for creatives is often that it requires upfront investment, legal protection, and marketing, but the return on this investment is that it can allow for passive income and broader reach.
Smart Policies for a Creative Landscape
Policymakers play a crucial role in creating an environment that allows artists and creative organizations to benefit from the opportunities of both doing and owning. Policymakers can do this by designing policies that foster creativity, innovation, and entrepreneurship within the cultural sector.
Examples of smart policies for a creative landscape include —
- Providing funding, grants, or tax incentives for artistic and cultural projects.
- Protecting intellectual property rights.
- Facilitating public access to cultural activities.
- Supporting and enhancing the education and training of artists and creatives.
- Encouraging and enabling collaboration between artists, creative organizations, and other business, government, and civil society stakeholders.
Making the Arts Productive: Capital Investment
Artistic capital investment is the process of the large-scale creation, development, or enhancement of artistic and cultural works, with the expectation of generating returns in the short or long term. These returns don’t have to be financial; they can include increased revenue, reputation, influence, or social good.
Examples of Capital Investment in the Arts include investing in
- Investing in the development of new techniques, processes, or forms.
- Investing in the distribution processes to reach larger and more diverse markets.
- Preserving and restoring cultural heritage to safeguard their value.
- Investing in relevant and impactful cultural endeavors that address key societal challenges.
