Journal of Cultural Economics

, Volume 32, Issue 3, pp 167–185 | Cite as

Social network markets: a new definition of the creative industries

  • Jason Potts
  • Stuart Cunningham
  • John Hartley
  • Paul Ormerod
Original Article

Abstract

We propose a new definition of the creative industries in terms of social network markets. The extant definition of the creative industries is based on an industrial classification that proceeds in terms of the creative nature of inputs and the intellectual property nature of outputs. We propose, instead, a new market-based definition in terms of the extent to which both demand and supply operate in complex social networks. We review and critique the standard creative industries definitions and explain why we believe a market-based social network definition offers analytic advance. We discuss some empirical, analytic and policy implications of this new definition.

Keywords

Social networks Creative industries Innovation systems 

References

  1. Albert, R., & Barabasi, A. L. (2000). Topology of complex networks: Local events and universality. Physical Review Letters, 85, 5234.CrossRefGoogle Scholar
  2. Arthur, W. B. (1989). Competing technologies increasing returns and lock-in by historical events. Economic Journal, 99, 116–131.CrossRefGoogle Scholar
  3. Barabasi, A. L. (2002). Linked: The new science of networks. Cambridge, MA: Perseus.Google Scholar
  4. Baumol, W., & Bowen, W. (1966). Performing arts: The economic dilemma. New York: Twentieth Century Fund.Google Scholar
  5. Beck, J. (2007). The sale effect of word of mouth: A model for creative goods and estimation for novels. Journal of Cultural Economics, 31(1), 5–23.CrossRefGoogle Scholar
  6. Beinhocker, E. (2006). The origin of wealth: Evolution, complexity and the radical remaking of economics. Boston: Harvard Business School Press.Google Scholar
  7. Benkler, Y. (2006). The wealth of networks. New Haven: Yale University Press.Google Scholar
  8. Bentley, R. A., Lipo, C., Herzog, H., & Hahn, M. (2007). Regular rates of popular culture change reflect random copying. Evolution and Human Behavior, 28, 151–158.CrossRefGoogle Scholar
  9. Bentley, R. A., & Ormerod, P. (2008). Selection and fashion in consumer choice: Bagging the Scottish Munros. Paper presented at the Scottish Economic Society Conference, April 2008.Google Scholar
  10. Castronova, E. (2006). Synthetic worlds: The business and culture of online games. Chicago: University of Chicago Press.Google Scholar
  11. Caves, R. (2000). Creative industries: Contracts between art and commerce. Harvard: Harvard University Press.Google Scholar
  12. Chai A., Earl, P. E., & Potts, J. (2007). Fashion, growth and welfare: An evolutionary approach. In M. Bianchi (Ed.), Advances in Austrian economics. Elsevier.Google Scholar
  13. Cowen, T. (2002). Creative destruction. Princeton: Princeton University Press.Google Scholar
  14. Cunningham, S. (2006). What price a creative economy? Platform papers #9. Sydney: Currency House.Google Scholar
  15. Currid, E. (2007). The Warhol economy: How fashion, art, and music drive New York City. Princeton: Princeton University Press.Google Scholar
  16. DCMS (Department of Culture, Media, Sport, UK Government). (1998). Creative industries mapping document. London: HMSO.Google Scholar
  17. De Vany, A. (2004). Hollywood economics. London: Routledge.Google Scholar
  18. De Vany, A., & Walls, W. (1996). Bose-Einstein dynamics and adaptive contracting in the motion picture industry. The Economic Journal, 106(439), 1493–1514.CrossRefGoogle Scholar
  19. Dopfer, K., & Potts, J. (2008a). The general theory of economic evolution. London: Routledge.Google Scholar
  20. Dopfer, K., & Potts J. (2008b). Evolutionary institutional economics. Mimeo, School of Economics, University of Queensland.Google Scholar
  21. Earl, P. E., & Potts, J. (2004). The market for preferences. Cambridge Journal of Economics, 28, 619–633.CrossRefGoogle Scholar
  22. Florida, R. (2002). The rise of the creative class. New York: Basic Books.Google Scholar
  23. Foster, J. (2006). From simplistic to complex systems in economics. Cambridge Journal of Economics, 29, 873–892.CrossRefGoogle Scholar
  24. Foster, J., & Potts, J. (2006). Complexity, networks and the importance of demand and consumption in economic evolution. In M. McKelvey & M. Holman (Eds.), Flexibility and stability in economic transformation. Oxford: Oxford University Press.Google Scholar
  25. Foster, J., & Potts, J. On the use of simulation and econometrics to empirically analyze the rule-structure of an evolving economic system. Schumpeter Society 2006 Conference Volume (forthcoming).Google Scholar
  26. Garnham, N. (1987). Concepts of culture: Public policy and the culture industries. Cultural Studies, 1(1), 23–38.CrossRefGoogle Scholar
  27. Garnham, N. (2005). From cultural to creative industries: An analysis of the implications of the “creative industries” approach to arts and media policy making in the United Kingdom. International Journal of Cultural Policy, 11, 15–29.CrossRefGoogle Scholar
  28. Granovetter, M. (1973). The strength of weak ties. American Journal of Sociology, 78(6), 1360–1380.CrossRefGoogle Scholar
  29. Hahn, M., & Bentley, R. A. (2003). Drift as a mechanism for cultural change: An example from baby names. Proceedings of the Royal Society B, 270, S1–S4.Google Scholar
  30. Hartley, J. (1996). Popular reality: Journalism, modernity, popular culture. London: Arnold.Google Scholar
  31. Hartley, J. (Ed.). (2005). Creative industries. Oxford: Blackwell.Google Scholar
  32. Hartley, J. (2008a). Television truths: Forms of knowledge in popular culture. Oxford: Blackwell.Google Scholar
  33. Hartley, J. (2008b). From the consciousness industry to creative industries: Consumer-created content, social network markets and the growth of knowledge. In J. Holt, & A. Perren (Eds.), Media industries: History, theory and methods. Oxford: Blackwell.Google Scholar
  34. Heilbrun, J. (1991). Innovation in arts, innovation in technology and the future of the high arts. Journal of Cultural Economics, 17, 89–98.CrossRefGoogle Scholar
  35. Heilbrun, J., & Gray, C. (2000). The economics of art and culture. Cambridge: Cambridge University Press.Google Scholar
  36. Hesmondhalgh, D., & Pratt, A. (2005). Cultural industries and cultural policy. International Journal of Cultural Policy, 11, 1–13.CrossRefGoogle Scholar
  37. Higgs, P., Cunningham, S., & Bakhshi, H. (2008). Beyond creative industries: Mapping the creative economy in the UK. London: NESTA.Google Scholar
  38. Howkins, J. (2001). The creative economy. London: Penguin.Google Scholar
  39. Jacobs, J. (1969). The economy of cities. London: Penguin Books.Google Scholar
  40. Kauffman, S. (1993). The origins of order: Self-organization and selection in evolution. Oxford: Oxford University Press.Google Scholar
  41. Kirman, A. (1993). Ants, rationality and recruitment. Quarterly Journal of Economics, 108, 137–156.CrossRefGoogle Scholar
  42. Kretschmer, M., Klimis, G., & Choi, C. (1999). Increasing returns and social contagion in cultural industries. British Journal of Management, 10(1), 61–72.CrossRefGoogle Scholar
  43. Leadbeater, C., & Miller, T. (2004). The Pro-Am revolution: How enthusiasts are changing our economy and society. London: Demos.Google Scholar
  44. Lee, R. (2007). Cultural studies, complexity studies and the transformation of the structures of knowledge. International Journal of Cultural Studies, 10(1), 11–20.CrossRefGoogle Scholar
  45. Metcalfe, J. S. (1998). Evolutionary economics and creative destruction. London: Routledge.Google Scholar
  46. Nelson, R., & Sampat, B. (2001). Making sense of institutions as a factor shaping economic performance. Journal of Economic Behaviour and Organization, 44, 31–54.CrossRefGoogle Scholar
  47. Newman, M. E. (2003). The structure and function of complex networks. SIAM Review, 45, 167–256.CrossRefGoogle Scholar
  48. Ormerod, P. (1998). Butterfly economics. London: Faber & Faber.Google Scholar
  49. Ormerod, P. (2005). Why most things fail: Evolution, extinction and economics. London: Faber & Faber.Google Scholar
  50. Ormerod, P. (2007). Extracting deep knowledge from limited information on evolved social networks. Physica A, 378(1), 48–52.CrossRefGoogle Scholar
  51. Ormerod, P., & Roach, A. (2004). The medieval inquisition: Scale-free networks and the suppression of heresy. Physica A, 339, 645–652.CrossRefGoogle Scholar
  52. Pelikan, P., & Wegner, G. (Eds.). (2003). The evolutionary analysis of economic policy. Cheltenham: Edward Elgar.Google Scholar
  53. Postrel, V. (2005). The substance of style. New York: HarperCollins.Google Scholar
  54. Potts, J. (2000). The new evolutionary microeconomics: Complexity, competence and adaptive behaviour. Cheltenham: Edward Elgar.Google Scholar
  55. Potts, J. (2006). How creative are the super-rich? Agenda, 13(4), 139–150.Google Scholar
  56. Potts, J. (2007a). Why the creative industries matter to economic evolution. Paper presented at STOREP workshop on innovation and complexity, Pollenzo, Italy, 3rd June.Google Scholar
  57. Potts, J. (2007b). Art and innovation: An evolutionary view of the creative industries. UNESCO Observatory e-Journal, 1(1).Google Scholar
  58. Potts, J. (2008). Creative industries and innovation policy. CCi Working Paper, QUT.Google Scholar
  59. Potts, J., & Cunningham, S. (2008). Four models of the creative industries. International Journal of Cultural Policy, 14(3) (forthcoming).Google Scholar
  60. Potts J., Banks J., Burgess J., Cobcroft R., Cunningham S., Hartley J., & Montomery L. (2008). Consumer co-creation in digital media and the dynamics of situated creativity. CCi Working Paper, QUT.Google Scholar
  61. QUT, Creative Industries Research and Applications Center, and Cutler & Co. (2003). Research and innovation systems in the production of digital content. http://www.cultureandrecreation.gov.au/cics/.
  62. Roodhouse, S. (2001). Have the cultural industries a role to play in regional regeneration and a nation’s wealth? Proceedings AIMAC, QUT.Google Scholar
  63. Sassoon, D. (2006). The culture of the Europeans from 1800 to the present. London: Harper Collins.Google Scholar
  64. Schelling, T. (1973). Hockey helmets, concealed weapons, and daylight saving: A study of binary choices with externalities. Journal of Conflict Resolution, 17(3), 381–428.CrossRefGoogle Scholar
  65. Shy, O. (2001). The economics of network industries. Cambridge: Cambridge University Press.Google Scholar
  66. Simon, H. (1962). The architecture of complexity. Proceedings of the American Philosophical Society, 106, 476–482.Google Scholar
  67. Strogatz, S. (2001). Exploring complex networks. Nature, 410, 268–276.CrossRefGoogle Scholar
  68. Surowiecki, J. (2004). The wisdom of crowds: Why the many are smarter than the few and how collective wisdom shapes business, economies, societies and nations. NY: Random House.Google Scholar
  69. Swedberg, R. (2006). The cultural entrepreneur and the creative industries: Beginning in Vienna. Journal of Cultural Economics, 30(2), 243–261.CrossRefGoogle Scholar
  70. Throsby, D. (1994). The production and consumption of the arts. Journal of Economic Literature, 32, 1–29.Google Scholar
  71. Throsby, D. (2001). Economics and culture. Cambridge: Cambridge University Press.Google Scholar
  72. Vega-Redondo, F. (2007). Complex social networks. Cambridge: Cambridge University Press.Google Scholar
  73. Watts, D. (1999). Small worlds. Princeton: Princeton University Press.Google Scholar
  74. White, H. (1981). Where do markets come from? American Journal of Sociology, 87(3), 517–547.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media, LLC. 2008

Authors and Affiliations

  • Jason Potts
    • 1
    • 2
  • Stuart Cunningham
    • 1
  • John Hartley
    • 1
  • Paul Ormerod
    • 3
  1. 1.CCIQueensland University of TechnologyBrisbaneAustralia
  2. 2.School of EconomicsUniversity of QueenslandBrisbaneAustralia
  3. 3.Volterra LtdLondonUK

Personalised recommendations