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John Howkins

 
The Inner Mechanism and Competition Strategy of the Cultural Creativity Industry Zone
By Hua Jian, Director of the CRIC of Shanghai SSA
With the development of the cultural creativity industry, establishing all kinds of industry zones has become an important measure in enhancing cultural productivity, developing creative economy and enhancing size effect. A great number of factual practices have demonstrated that in order to make industry zones bring about good benefits, we must master the following rules and strategies:
First, Competition pushes innovation. There is bound to be fierce competition if a relatively small area is crowded with a large group of cultural creativity companies. However, generally speaking, to keep moderate competition pressure is healthy, for no company can maintain long-term technological advantages, and if a company wants to be competitive in technology, it has to increase investment in R&D. As a result, many cultural creativity zones both home and abroad, no matter large or small, are actively participating in competitions and increasing the company and government’s R&D investment especially by means of encouragement, assistance and support. Most of the increase rates in R&D investment have reached over 2.5%, and some even reached 3-4%, much higher than the average investment rate of medium-developed Countries. Besides, the creativity and output rate of scientific products of the companies in those industries zones has greatly exceeded other regions, making the of those areas evolve to gathering places of cultural productivity, and new gardens where “creativity+culture=wealth”.
Second, we can utilize the advantage of co-living. Since the cultural creativity industry is a community, whose development is interwoven with industries of digital technology, network, telecommunication, manufacturing, agency and marketing. So the realization of a certain industry’s functions must depend on efficient support of a group of auxiliary industries. Besides, the needs of clients and consumers are varied and multiple, therefore, the development of the cultural creative industry demands cooperation and service of other companies with different functions in the industry zone. Consequently, to establish a healthy cultural creativity industry zone, we should be good at designing industry sectors and adjusting industry structure, so that we can lower cost, and share public facilities like land, water, electricity, factory buildings, office buildings, information sharing equipment, air-conditioners and waste water treatment services. In this way, it is helpful for suppliers to offer various auxiliary services, and also beneficial for us to obtain investment and services provided by government and other public relation agencies.
3. Transfer of Cultural Tradition. The core objective of cultural creativity industry is to create cultural value which is created by human being. The creativity and creative awareness of human being prepare for the cultural psychology which is necessary for inheriting the tradition. Primitive creativity, integrated creativity, as well as re-creation after absorption and digestion need to carry on beneficial cultural tradition. In order to improve and make good use of the unused spaces of the cities and build a new cluster of cultural functions and creative industry, the humanistic environment of the area should be combined first to carry forward the culture and human resources of the local industry, with creative spirit starting the industrial space and new content added to the industrial zone. Such cultural tradition makes great differences. Therefore, many successful industrial clusters of cultural creativity depend upon a certain university, research institution or enterprise. For example, Tongji creative industrial clusters in Shanghai depends upon Tongji University’s expansion capability in terms of architecture, engineering, development of environmental protection, etc; Tianmian creative industrial zone in Shenzhen depends upon a group of enterprises engaged in design; the creative industrial zones in Hangzhou such as LOFT49 depend upon the creative vigor of China Academy of Art. In addition to taking advantage of “knowledge resources” of universities, another important reason lies in the humanistic spirits of science, creativity and emphasis on development advocated by universities, institutions and enterprises, which could make great differences.
4. Establishment of New Business State. With the expansion and reconstruction of the cities, and the improvement of the urban ecologicalized environment , more and more cities strive for an urban style industry which is basically characterized by low energy consumption, little resource consumption, small occupation area, little pollution or zero-pollution, high economic value added and good sight effect. Good clusters of cultural creative industries could limit those dying industries and absorb those knowledge-oriented service industries including architecture, design, software, exhibition, mass media, etc. The industrial patterns should be greatly emphasized such as urban-style design, research & development, fashion and other creative industries; these industries are talent-intensive and technology-intensive, and are often conducted in buildings and communities; industries such as software, cosplay, games, etc are related to each other, and often gather around software industrial zones, shaping a business state of technological development area; and industries such as printing, packing, etc are a kind of service manufacturing which emphasizes economies of scope, so industrial zones are often adopted. With the development of cultural creative industry, newer industries which suit better the development of productivity will emerge definitely.
5. Upgrade of Differential Rent. Differential rent does exist in agricultural production; it mainly influences production efficiency of different lands in agricultural productive activities. However, in creative economic activities, differential rent not only influences the increase of production efficiency, but also shapes a group of creative industrial clusters due to intension of creative talents and creative information, which directly results in clusters of industrial activities, absorbs more powerful enterprises of brands and market prospects and thus upgrades the differential rent in this area. A proverb “Shop considers customers first, and customers are proud of shop” reveals the complementary relationship between clusters (like hotels) and enterprises (like customers).
Six, we can promote economy of scale. The gathering of cultural creativity industries in place can lead this industry to the development of “scope economy”. That is to say, in an area where industries are relatively gathered, the products of an industry can be the input of another industry. For instance, the intelligence products of R&D industry can be applied into printing&packing industry, and products of the printing&packing industry can be used in the industry of advertising and mass media, moreover, products of the advertising industry and mass media can be taken as the production elements of exhibition industry. This phenomenon resembles that of the coral reef in subtropical seas. The coral reef gathers a variety of water plants, which attracts lots of planktons, and draws on large and medium-sized fish. The wastes discharged by the fish as fertilizers nurture more water plants in return. So when many related cultural creativity industries gather in a single industry zone, they can lower the cost of transportation and push productivity considerably, therefore promote the economy of scale.
Hua Jian: director and researcher of the CRIC of Shanghai SSA, contributing researcher of the International Cooperation Center of the National Development and Reform Commission, strategy consulting expert of Shanghai municipal government, master tutor. He has been engaged for long time in the research and strategy consultation for cultural industry, creativity economy, cultural investment and cultural strategy, having gained rich experiences. Having headed more than ten key national and provincial research projects, as well as projects for the World Bank, he has also led other important projects including “Impression?Overall Evaluation and Prospect of the Liu Sanjie Cultural Industry Development”, “The Development Mode of the Animation&Game Industry Base in West Regions of China”, “The Inner Structure and Competition Strategy of Creativity Industry Zone”, “The Planning of Cultural Industry in Jincheng City” respectively in Shanghai, Guangdong, Guangxi and Sichuan provinces, which obtained widespread praise. He has also published many famous books home and abroad, among which “Culture+Creativity=Wealth” is listed as one of the ten best sellers by Taiwan National Cheng-Chi University Enterprise Management Research Institute. Also he was once a member of the expert team by invitation for drafting “The National Culture Development Outline”. He was awarded important prizes home and abroad for many times and was once a visiting scholar in Canada. E: huajian@sass.org.cn
 
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