ENTREPRENEURIAL AND INNOVATIVE POTENTIAL OF THE … · The cultural and creative sectors have...
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ENTREPRENEURIAL AND
INNOVATIVE POTENTIAL OF THE
CREATIVE INDUSTRY
Martina HARC, Ph. d.
Croatian Academy of Sciences and Arts
Institute for Scientific Research and Artistic Work in Osijek E-mail: [email protected]
Ivana BESTVINA BUKVIĆ, Ph. d.
J. J. Strossmayer University of
Osijek Academy of Arts and
Culture
Department of Culture and Creative industries E-mail: [email protected]
Josipa MIJOČ, Ph. d.
J. J. Strossmayer University of
Osijek Faculty of Economics in
Osijek E-mail: [email protected]
Abstract
The cultural and creative sectors have always played an important role in the
creative economy generating economic growth, employment opportunities, and
innovation capacities. In order to strength European identity, culture, and values,
the creative industry has a significant role in enhancing entrepreneurial and
innovative potential. Although the cultural and creative sector is characterized by
a predominance of small enterprises, the majority of enterprises are one-person-
enterprises. In comparison to other sectors, due to their generally smaller size, they
are knowledge-intensive, generators of innovation and in a position to foster spill-
over effects to other sectors. With regard to their specific characteristics, a high share
of intangible assets, specificity of their business models or uncertain demand for
their products and services, they also face various challenges, limiting them from
improving their full potential. The European Commission has recognized and
undertaken a variety of initiatives and actions in order to provide support to the
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creative industry. Specifically, one of four priority area in Work Plan for Culture
(2015-2018) concerns the cultural and creative sectors, the creative economy and
innovation. This paper highlights the prominent role of creative industry and its still
scarcely explored entrepreneurial and innovative potential contributions to the on-
going debate on the creative industry as indispensable part for almost every new
product and service.
Keywords: creative industry, entrepreneurship, innovation, business models
JEL Classification: L26, O30
1. INTRODUCTION
Culture and creativity are important factors for economic development. Due to the broad
range of impacts that they can generate, they promote creative entrepreneurship, show above-
average growth and create new employment opportunities, while stimulating economic growth
and strengthening social cohesion (EC, 2018). As such, creative industry has been one of the
successes of the UK economy in recent times. Over the past 20 years the contribution made by
companies within these industry has increased from 3.96% to 5.20% of the total UK economy,
while the number of employees working in this industry has also increased by 94%, from 1997
to 2014 (Oliver, 2017). Further, 13% of all start-ups in Germany occurred in creative industries
in 2010, whilst, the self-employment rate in creative industries was 24%, compared to 11% in
the total economy in Germany in 2013 (Kohn and Wewel, 2018). Furthermore, between 2011
and 2017, European Union cultural employment increased up to 8.7 million employees,
accounting for 3.8% of total employment. In 2017, the percentage of self-employed in cultural
employment in the EU was at least a double of that observed in total employment (Eurostat,
2018). According to Eurostat, there was8.7 billion Euros trade surplus in cultural goods, and
cultural and creative sectors are estimated to contribute with 4.2% to EU gross domestic product
in 2016(EC, 2018a). In Croatia, culture and creative industries represent 2.3% of Croatian GDP,
3.0% of the total number of employees, and make up to 5.7% of the total number of business
entities in Croatia (EIZ, 2015).
“Cultural and creative industries are at the heart of the creative economy: knowledge-
intensive, based on individual creativity and talent, they generate huge economic wealth and
preserve European identity, culture and values. Moreover, they include a number of subsectors,
such as architecture, archives and libraries, artistic crafts, cultural heritage, design, fashion, film,
high, end, music, performing and virtual arts, publishing, radio, television and video-games”
(EC, 2018b).
There is no unifying European or global classification of the creative industry sector. In
UNESCO's analysis (UNESCO, 2013), different models of division of the sector and their
relevance to the creative industry were set out, from which the researchers highlight four basic
models of the creative industry: DCMS Model, Symbolic Texts Model, Concentric Circles
Model and WIPO Copyright Model. Analysing European approaches in defining the creative
industry, KEA (KEA, 2006) outlines three European approaches: UK approach - “creative
industries”, The French approach - “cultural industries” and The Nordic approach - “the
experience economy”. UNCTAD defines the “creative economy” as a “growing convergence on
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a core group of creative industries and their overall interactions both in individual countries and
at the international level” (UNCTAD 2010, 9). In defining creative industry Horvat et al. (2018)
emphasize that creative industry implies copyrighted production covered by the projects
generating non-material products and services intended for market exchange.
According to European Commission, cultural and creative sectors include all sectors whose
activities are based on cultural values or artistic and other individual or collective creative
expressions. On the other hand, the cultural and creative industries, focus more on the further
stages of the value chain, including the production and dissemination stages of industrial and
manufacturing operations (EC, 2018c).
Whatever we addressed them, they are at the forefront of innovation and create the spillover
effects to other sectors and industries, as well as contributing to entirely society. Hence, with the
emergence of more complex and networked business models, the cultural and creative sectors
are becoming a decisive component in the value chain of almost every product and service (EC,
2018c). There is a binding role of the European Commission in strengthening the sense of
European Identity and awareness of cultural heritage. In the Communication of the European
Commission “Promoting cultural and creative sectors for growth and jobs in the EU” (EC, 2012),
the European Commission stated that cultural and creative sectors are a largely untapped
resource for the EU 2020 strategy because they are high growth sectors, catalysts for innovation
as well as a key element in global competition (EC, 2016). In 2014, EC adopted Work Plan for
Culture (2015-2018) in which set out four main priorities for European cooperation in cultural
policy-making. One of them concerned the Cultural and creative sectors, the creative economy
and innovation (Priority area C: Cultural and creative sectors: Creative economy and
Innovation). These are complemented through a variety of actions and initiatives, the Creative
Europe Programme and funding from other Commission sources. In 2018, EC adopted the New
Agenda for Culture in order to achieve full potential of culture, supporting innovation, creativity
and sustainable jobs and growth. Although, the New Agenda has three strategic objectives,
comprises social, economic and external dimensions, many of actions will serve as cross-cutting
actions.
Despite all efforts, still 36% of Europeans do not participate in any of cultural activities
(Eurostat, 2017). Market fragmentation, insufficient access to finance and uncertainty in
contractual conditions and incomes are still most common challenges faced in creative industry
(EC, 2018a).
This paper is aiming at providing recent data on creative industry among EU Member States
enterprises, focusses on its entrepreneurial and innovative potential. Further, this paper is closely
linked to the survey of the European Commission and Austrian Institute for the SME research
and their initiatives to better understanding of the cultural and creative industries. The purpose
of this paper is to provide a better grasp of creative industry by identifying differences between
individual sub-industries and the determining its standing on the EU level measured by
employment and presence of companies. By analysis of existing information, this paper will give
the insight to the level of regional development of cultural and creative industries on the EU
level.
The paper is organised as follows. After introduction, next section provides key findings
from literature on objectives and challenges faced by creative industry. The third section analyses
recent trends in creative industry followed by concluding remarks.
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2. STRATEGIC OBJECTIVES AND CHALLENGES
FACED BY CREATIVE INDUSTRY – KEY FINDING
FROM LITERATURE REVIEW
Cultural and creative enterprises do not fit well in traditional business models due to
asymmetry of information between banks and creative enterprises and whereas lack of specialists
in evaluating cultural and creative business models. Although, creative enterprises are of high
economic importance and show inviable financial results, their access to finance is difficult.
Moreover, small and micro size of such enterprises, high share of intangible assets, complexity
of their business models, uncertainty regarding the demand for their products and services and
uncertainty in income are just some of challenges creative enterprises are facing in accessing
finance and preventing them from exploiting their full potential (EC, 2016).
The most of employee in creative industry is characterised by a high share of educated
people and by a high share of flexibility and mobility within working time (Benhamou, 2003).
Further, the cultural and creative sectors are an important contributor to a youth employment.
According to Lhermitte et al. (2014), in 2013, almost one fifth of employed were between 15
and 29 years old. Furthermore, another important characteristic of the creative industry is the
high percentage of self-employment, so called, “One-Person-Enterprises” (OPEs) and
freelancers (Rammer et al., 2008). Because of the specificity of business models characterised
in creative industry (development of creative goods and services that are complex and hard to
standardise), these models do not fit well in traditional working time (Falk et al., 2011). As of
uncertainty in demand of products and services and incomes, most of employee have irregular
forms of employment such as part-time jobs or temporary form of employment. Many of creative
workers combine freelance or part-time jobs with permanent job in order to provide financial
stability to maintain their creative activities (Kooyman, 2010). Those specific forms of creative
employment directly influence the innovativeness of the creative industry. Creative workers are
often engaged in frequently changing project team, allow a free flow of information and fresh
ideas, facilitating interactive learning and innovation processes (Falk et al., 2011).
Business-to-business (B2B) is the main form of relationship between clients and
customers in creative industry. Austrian's Report on Creative Industries Recent show that sales
to other creative enterprises (either in the same creative sector or in culture creative industries
cross-sector alliances) account for almost one third of total sales in sector (EC, 2016). Another
study from UK showed high importance of purchases of creative products by creative industries
themselves (Bakhshi et al., 2008). Creative alliances across different creative sectors and
integration in creative networks results with better business performance and higher success rates
in attracting customers and interesting projects (Voithofer et al., 2010). The client’s benefits from
the creative industry include high professional competence, flexibility in delivering a product or
services to clients’ specific needs and bringing in innovative ideas. This innovative process also
includes client’s own innovative efforts in order to improve business processes, develop new
products and to gain competitive advantages (Gassler et al., 2015; Voithofer et al., 2010).
Market of the creative industry is characterised by specific market conditions in which
creative enterprises or persons across different creative sectors operates. Many of creative
enterprises operate successfully on domestic markets and abroad. For others, because of
language barriers and specific market demand, but and due to their small size, market is limited
only within national market. In addition, the market demand for creative products and services
is often highly uncertain. There is always uncertainty on how the market will react to new
innovative products or services (Dörflinger et al., 2014). Another reason is high share of
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intangible assets (Intellectual Property Rights) as part of product or services are made of, the
value which is often inappreciable or uncertain. Hence, the fragmentation of the markets not only
hampers opportunities to access foreign markets and to grow, but also increases distribution and
marketing costs (EC, 2013).
Another feature characterized by creative industry is collaboration and business
networks among enterprises. Due to their generally small or micro-sized enterprises (including
a large share of one-person-companies and freelancers) and because of their high level of
specialization, business relationships with other creative companies become necessary to
combine competencies for the purpose providing more complex and more integrated creative
products. Especially for large orders and large deals. Hence, the creative sector depends on
mutual cooperation and networking, gathering in places high concentration of creative
enterprises, talented individuals and institutions, pooling knowledge and resources such as
creative eco-systems, creative hubs and clusters which are of particular importance to the
creative industry (EC, 2016).Therefore, this industry can be called project industry, as
companies, one-person-companies and freelancers occasionally or permanently associate within
projects that result with creative products.
Moreover, creative industry is among the most innovative industries in the economy.
Their business models are developed through new innovative ideas and the transformation of
these ideas into commercial products for their customers. Innovation and new creative products
in creative industry are usually a result of collaboration, flexible business networks and project
co-operation between enterprises (EC, 2016). The specific structure of the “creative” market, is
characterized by co-operation between business competitors, business networks and clusters,
directly affects the sector's innovation and innovation processes. The so-called Functional
Networks allow creative enterprises to continuously produce and absorb fresh ideas (Falk et al.,
2011). Furthermore, the innovation of creative sector is also influenced by the fluid labour
market and the high level of worker mobility (networking of creative professionals around the
world). Business-to-business (B2B) is another important wheel in knowledge transfer and spill-
over to other sectors (Bakhshi et al., 2008). As well, it was found that cultural and creative
industries were shown as industries resistant to the changes caused by economic crisis and, in
even in recession showed growth trends (Bestvina Bukvic et al., 2017). One of the reasons for
this advantage of these industries could be new forms of innovation processes, such as design
thinking, open design and open innovation are characterised by creative industry. Design is not
used in the innovation process just to create new products and services, but design-thinking
methods can also be applied in the process of creating new business models and organizational
innovations (EC, 2013a). They also encourage innovations and cause spill-over effects across
the entire value chain: encourage innovation in client companies ("forward linkage effects"), but
they also require more innovative products and services from their suppliers ("backward linkage
effects"). Creative enterprises also help their clients to introduce innovations by finding new
ideas, supporting entry into new markets and the implementation of new products, or designing
new products (Rammer et al., 2008). According to European Commission (EC, 2018d), the
innovative potential of “the cultural and creative sectors is essential for the European economies
and societies, because it generates well-being and cohesion, shapes the public space used by
millions of Europeans, modernises industries and business sectors with new creative input and
methods, provides meaning and a feeling of belonging, upgrades urban and rural areas, designs
our products and services, produces and digitises content, enriches our visual experiences and
provides content for debates”. In the addition to spill-over effects of creative innovation, the
main focus of cross-sectoral innovation is how to better use the innovation potential of the
cultural and creative sectors for other parts of the economy and society as a whole. These sectors
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are able to generate positive influence to other economic sectors by connecting industries.
Further, user-driven innovation base their innovation on existing technologies or develop new
business models or services driven by users or suppliers. So called, co-creation is the process by
which groups of people with different backgrounds getting together with the same goal to create
value through improving or developing services, processes and products. The aim of user-driven
innovation process is to create value for users and to increase the chances of product and market
success. Furthermore, effects of innovation in the cultural and creative sectors that take place in
defined geographical areas like cities or regions are known as place-bound innovation.
Innovation provided by art galleries, museums or cultural festivals boost the attractiveness of
societies and places. At the same time providing economic growth in and around such cultural
and creative locations.
The creative industry is perceived as the "forerunner of the new digital society" as they
are the ones often the first users of new services and technology. Cultural and creative sectors
were among the industries where transformation processes were caused by digitalisation -
influencing the business, consumption patterns and production processes (Lhermitte et al. 2014).
Through the digitalisation creative sector benefit from lower production costs, new distribution
channels, new business models and the development of new markets, products or services (Tera
Consultants, 2010). Further, adaption to rapid changes in consumer expectations driven by new
technological opportunities and loss of revenue due to piracy in digital form is another challenge
creative sector is face with (Tera Consultants, 2010).
Internationalisation and exports are key elements of successful creative industry.
According to Horvat et al. (2018) creative industry contributes to economic development in
general, has an export potential and is based on knowledge, science, technological and art
innovation, development of talents and preservation of national cultural heritage through its
implementation into contemporary products and services. Small and medium enterprises are
essential in requiring for support in order to expand on international markets. Therefore, smart
internationalisation and export promotion policies are needed. As far as exports to third countries
are concerned, numerous tariffs and non-tariff barriers prevent the presence of European creative
enterprises on the markets of third countries. The export intensity differs among the creative
sectors: cultural goods account for 1.6% of total EU exports, fashion-related products account
for 12.3%, and high-end industries account for 18% of total EU exports (EC, 2016).
Due to their form of intangible assets, Intellectual Property Rights (IPR) represent a
major challenge in creative industry, particularly in the modern era of digitalisation and internet.
(EC, 2016). Intellectual property rights promote innovation and creativity, which in turn
generates jobs and improves competitiveness. Intellectual property rights enable authors, artists,
designers, inventors and other IPR users to benefit when others use their creations and inventions
(EC, The Protection of Intellectual Property). According to The Innovation Policy Platform,
“innovations in creative industries are often a collective process involving many heterogeneous
individuals and informal knowledge communities that have very specific IP needs. These actors
often combine different types of intellectual property rights, including copyrights, patents, and
trademarks”. Overall, “IPR-intensive sectors account for around 42% of EU GDP (worth some
EUR 5.7 trillion annually), generate 38% of all jobs, and contribute to as much as 90% of EU
exports. As companies increasingly compete on innovation, creativity and quality in the global
economy, the protection of IPR is essential for them, particularly for SMEs who do not have the
same level of resource” for protection of Intellectual rights as large enterprises (EC, 2017).
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3. ANALYSIS OF ENTREPRENEURIAL AND INNOVATIVE
POTENTIAL OF CREATIVE INDUSTRY According to European Commission, cultural and creative business are characterised by
predominance of small and micro enterprise size (EC, 2012). In general, the vast majority of
enterprises in creative sector (96%) are micro-enterprises with less than 10 employees. Though,
the structure of the enterprise size differs between the sectors: the proportion of One-Person –
Enterprises (OPEs) is highest in design and visual arts as well as performing arts and artistic
creation (83% each), followed by architecture (75%), advertising (72%) as well as software and
games (71%). In the sectors radio and TV (15%), books and press and software and games (6%
each), the proportion of larger enterprises employing 10 persons or more is particularly high.
Further, high-end industries are characterised by large companies and multi-national brand
groups on the one hand, as well as small scale manufacturers as part of supply chain (Figure 1).
Figure 1. Enterprises by size class for selected sectors in %, 2013.
Source: EC, 2016.
According to Eurostat (2018a), in 2015, there were 1.2 million cultural enterprises in the EU,
representing 5% of all enterprises in the non-financial business economy. Cultural businesses
accounted for 2.8% of total value added in the EU, generating 200 billion Euros of value added
and 80% of people employed in the cultural sector in the EU worked in a small or medium-sized
enterprises. The cultural sector’s turnover (the total value of market sales of goods and services)
was around EUR 475 billion, which represented 1.7% of the total turnover of the non-financial
business economy. Further, the only Member States with over 150 000 cultural enterprises in
2015 were France and Italy, accounting for around 15% of all cultural enterprises in the EU,
each. Along with Germany (with around 130 000 enterprises) and the United Kingdom (100
000), represented nearly half of the total number of cultural enterprises in the EU. All those
countries, with the exception of Italy, were above the 5% EU average of cultural enterprises in
the total economy. But the Member States with the most share of cultural enterprises Sweden
with 7.6%, followed by the Netherlands with 7.3%, Belgium with 6.5%, and Slovenia with 6.4%.
72 75
93
83 83
47
71
24 22
0
16 15
38
23
4 3 61 2
15
6
0
10
20
30
40
50
60
70
80
90
100
Advertising Architecture Books and
press
Design and
Visual arts
Performing
artistic
creation
Radio and Tv Software and
games
%
1 employed 2 to 9 employed 10 or more employed
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Figure 2. Number of cultural enterprises as % of total business economy, EU-28, 2015
Source: Eurostat, 2018.
Note: Confidential data for Ireland; Unreliable data for Spain and Malta.
In 2017 around 8.7 million people in the EU were working in a cultural sector or occupation,
accounting for 3.8 % of the total number of employment (Table 1).
Table1. Cultural employment, 2011-2017 (% of total employment)
2011 2012 2013 2014 2015 2016 2017
European Union - 28 3,6 3,8 3,8 3,7 3,7 3,7 3,8
Belgium 3,8 4 3,8 4 4 3,9 4,3
Bulgaria 2,5 2,6 2,7 2,6 2,8 2,8 2,7
Czechia 3,6 3,8 3,9 3,8 3,7 4,1 3,9
Denmark 4,6 4,7 4,7 4,5 4,6 4,4 4,3
Germany 4,1 4,3 4,2 4,1 4,1 4 4
Estonia 5,1 5,8 5,6 4,6 5,3 5,3 5,5
Ireland 3,5 3,5 3,7 3,8 3,6 3,7 3,5
Greece 3,1 3,5 3,5 3,2 2,9 3,2 3,2
Spain 3,1 3,1 3,2 3,4 3,4 3,5 3,6
France 3,4 3,3 3,5 3,4 3,2 3,3 3,5
Croatia 3,6 3,7 3,4 3,8 3,4 3,1 3,5
Italy 3,5 3,6 3,5 3,5 3,5 3,4 3,6
Cyprus 2,9 3 3,3 3,1 3,4 3,5 3,5
Latvia 3,4 3,6 3,9 3,9 4 4,5 4
Lithuania 3,6 3,7 3,8 4 4 3,6 3,7
Luxembourg 5,2 5,3 5,2 6 5 5,1 4,6
Hungary 3,7 3,7 3,9 3,7 3,7 3,6 3,3
Malta 3,9 3,9 4,2 4,4 4,3 4,2 4,7
Netherlands 4,4 4,5 4,7 4,6 4,6 4,5 4,5
Austria 3,8 4 4,2 4 4 4,1 4,1
Poland 3,2 3,2 3,2 3,2 3,3 3,4 3,5
5
7,6 7,3
6,5 6,45,9
5,5 5,5 5,3 5,2 5 4,9 4,9 4,8 4,6 4,5 4,5 4,4 4,4 4,4 4,2 4,23,8
3,4 3,12,7
0
1
2
3
4
5
6
7
8
EU
-28
Sw
eden
Net
her
lan
ds
Bel
giu
m
Slo
ven
ia
Den
mar
k
Fra
nce
Lit
hu
ania
Ger
man
y
Au
stri
a
Un
ited
Kin
gdo
m
Lux
emb
urg
Hu
ng
ary
Ital
y
Est
on
ia
Cze
chia
Cro
atia
Cy
pru
s
Pola
nd
Fin
lan
d
Gre
ece
Lat
via
Port
ugal
Ro
man
ia
Bu
lgar
ia
Slo
vak
ia
Irel
and
Spai
n
Mal
ta
%
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Portugal 2,8 2,8 2,9 3 3,1 3 3,1
Romania 1,4 1,5 1,4 1,5 1,5 1,6 1,6
Slovenia 4,3 4,6 5 4,7 4,5 4,6 4,7
Slovakia 2,6 2,6 2,2 2,6 2,5 2,5 2,9
Finland 5,2 5 4,8 4,8 5,1 4,8 4,7
Sweden 4,7 4,8 4,8 4,7 4,7 5 4,8
United Kingdom 4,3 4,5 4,5 4,5 4,6 4,6 4,7
Source: Eurostat, 2018.
According to Eurostat (2018), analysing each Member State, the percentage of people employed
in culture in 2017 varied from 1.6% in Romania to more than 5% in Estonia (Figure 3). The
share of cultural employment in the total employment between 2012 and 2017 varied among EU
Member States. In the majority of countries there was a slight increase or stagnation of cultural
employment, while in some other countries (Luxembourg, Denmark, Germany, Estonia, Greece,
Hungary and Finland) a slight decrease was observed. Further, with around 155 000 more
cultural jobs in 2017 than in 2012, the United Kingdom accounted for almost 30% of the total
increase in cultural employment in the EU, followed by the Spain with 22%. Spain was observed
as country with the largest relative increase in the share of cultural employment, from 3.1% in
2011 to 3.6% of total employment in 2017.Regarding Croatia, the percentage of employed
people in culture varied from 3.6% in 2011 to 3.8% in 2014 and then decreased to 3.1% in 2016.
Compared to surrounding countries, such as Slovakia, the percentage is much higher, but
compared to Slovenia, Croatia is just around EU average with no significant increase, like
Slovenia. This could indicate a lack of developing economic measures on the state level
encouraging small and medium-sized businesses, especially in cultural and creative industries.
As well, it could also be an indicator of unfavourable economic environment for
entrepreneurship development in the countries shown at the bottom of the list (Figure 3).
Figure 3. Self-employment in cultural employment and in total employment (%), 2017
Source, Eurostat, 2018
Note:(¹) Low reliability for cultural employment
0
5
10
15
20
25
30
35
40
45
50
Culture Total
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Moreover, among the labour characteristics available for analysis, self-employment take a
significant part for cultural employment (Figure 3). At EU level in 2017, one third of cultural
workers were self-employed (33%), against 15% observed for total employment. In other words:
the percentage of self-employed in the cultural employment is over twice as much then in the
total employment.
4. CONCLUDING REMARKS
Cultural and creative sector trough sub-industries of creative industry contributes directly to
employment, economic growth and social cohesion. This paper is aimed to provide recent data
on creative industry among EU Member States enterprises, focusses on its entrepreneurial and
innovative potential. Despite the lack of data, the analysed research, however, proves that this
industry is fast growing along with its entrepreneurial and innovative potential. On the other
hand, the lack of secondary data resulted in reduced scientific interests and open space that
allowed uneven interpretation of available data as well as multidisciplinary analyses and
interpretations. This can be justified by the fact that this industry is in the process of
institutionalization, but also and due to absence of unified model by which the creative industry
and its sub-industries would be defined. Although the interest in creative industry is growing as
well as number of scientists and scientific research in this field, it is necessary to highlight its
multi disciplinarity and existence of collaboration between different scientific fields. The study
found that there is a strong imbalance in the development of cultural and creative industries in
different EU countries. In order to reduce the negative effects of these differences it is necessary
to create development measures at the level of the Member States but also on the regional level
that would reduce the inequalities in development of cultural and creative industries and as well,
the economies of the Member States as a whole. The Recommendations for future research are
arising from the data limitations of the research, hence it is necessary to conduct more
comprehensive primary research by analysing creative employment, both for the creative
industry and its sub-industries in order to identify key similarities and differences in this
heterogeneous industry.
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