Creative Clusters, Nov 12th to 14th 2007, London

Creative Clusters is the annual shindig of global cultural and creative policy makers. It’s where the good and the great of critical thinking, research, policy and exponents of hot air in the sector get together to sing glorious the unrestrained growth of global creative industries, and ask where it’s all going.

I did originally question ‘why London?’. Newcastle/Gateshead in 2006 was great to see world-class regeneration in action, but we all know London (and some of us regional types also question why London needs creative industries investment, given that it inevitably sucks in the best of the regions we spend so much time and money nurturing. More on that later). Or do we know London? I actually saw some interesting new aspects of the city – Rich Mix in Shoreditch, a sort of multi-cultural cinema venue, was a relaxed place for Day 2, and BFI/South Bank was a pretty spectacular place for day 1.

A tour of Oxford Street/Soho on day 3 also made me think about the unique problems of central London – land rents, traffic, lack of expansion, fragmented property ownership – but also the same problems, trying to ‘upgrade’ retail, build in creativity and persuade the best to stay.

As always, far too much going on and Simon Evans, Conference Director is doing his ‘trendy vicar’ (his words) bit to hold the many threads together. This year’s themes were The Creative Quarter, Creative Economy, World Creative Hubs and Creative Crowd. Although you can add the word creative to just about anything nowadays. Four sessions to choose from meant lots of missing out, as did an epic hangover (c/o guys from Inspiral, cheers, this is turning out to be an annual binge!).

Split venues on day 3 (Soho and Kensington) not great from a networking point of view – in fact Day 3 never seems worth sticking around for. Still, maybe you can’t get too much of a good thing. And the conference handbook gives you an overview of what you’ve missed (or another useful doorstopper).

My highlights:

- Kevin Spacey bares all and gets back to basics about the power of theatre and getting bums on seats. (probably a misleading juxtaposition of Kevin Spacey, bares all, and bums there – sorry ladies!)

- Jude Kelly takes the debate up a gear and asks when we will stop banging on about growth and economic impact and take responsibility for reinvesting in nurturing creativity and the arts.

- A Daily Mail hack wiping the floor with the outgoing Arts Council CEO on the lies, lies and damn statistics that is Labour’s creative industries policy.

- Re-emphasising the role of creative brokers and insightful intermediaries that help industry take control of public policy.

- Are creative cities in danger of becoming clone towns?

- Money can’t buy you creativity? Think again – Abu Dhabi’s $2.7 billion “Happiness Island” cultural development includes the Middle East’s Guggenheim and Louvre.

My footlights:

- Creative Economy Green Paper. Now merely a policy document. In the post with your Christmas card. Or maybe New Year. Or Valentine’s. Worth waiting for?

- Will Hutton, DCMS and London dragging us back down to mere growth numbers, economics (but are they even believable?), but we wonder if what’s good for London is good for the UK.

- A statistician’s playpen. Too many numbers. 10101000100. We. Cannot. Take. Them. All In.

- The division between arts/culture and commercial/economic creative industries still runs too deep.

- Ken Livingstone’s ‘cultural advisor’ saying she’s ‘concerned’ about BBC moving jobs to Manchester and how London will suffer (claws bared from the regions).

- Zhandra Rhodes – dressed in some kind of metallic outfit that Klaus Nomi rejected. Great speech (‘did I forget anything, luv?’) followed by middle age men ogling scantily dressed models. All in the name of fashion, dahhling.

- The circus entertainment. What was that woman with the snakes doing?! I’ve never seen an audience watching with such intense concentration, wondering ‘is this bad or bloody awful?’

My daily highlights:

12 Nov, Queen Elizabeth Hall

Keynote speaker: Jude Kelly, Director of South Bank Centre

Jude Kelly asks: Is our approach to the creative industries sustainable? In this age of globalisation, are the creative industries feeding excessive consumerism and undervaluing the role of ideas?

The saint of creativity is Tim Berners Lee, the inventor of the world wide web. Contrary to the popular vision, creativity rejects ego and creates cohesion. Anarchy is self-centred.

We must take collective responsibility for the good and the bad – for slavery, for winning the World Cup – and for creative regeneration.

There is selfishness in the UK succeeding globally in the creative industries – there is too much “I want more – on my own terms”. Both good and social injustice is happening as a result of the UK creative industries (e.g. encouraging rampant consumerism). We must take responsibility for giving back more if we are doing so well – returning economic gains back into regenerating the arts and creativity.

Keynote speaker: Charles Landry, The Creative City

Creativity is like a rash.

Everyone is now in the creativity game. Creativity has become a mantra of our age endowed almost exclusively with positive virtues. At the last count, over 80 cities called themselves creative: from Creative London to Manchester, from Toronto to Vancouver to Cincinnati or Tampa Bay.

Of the top 25 global cities (London being the only one in UK), several are city states – Dubai, Singapore and Hong Kong. Perhaps the success of a creative city is in its containment rather than sprawl?

Is creativity an industry – or just people doing creative things?

Has New York reached its creative capacity? Both land and property prices and political change mean the creatives are moving out. Is Chicago now more imaginative and edgy?

High quality artists give a quality of thinking and a quality perception to the creative city – yet arts is a journey with an unclear destination.

Beware of reading too much into data – clusters can have strange patterns – Love Hotels are clustered next to cemeteries – re-birth and death entwined?

Include science as part of creativity – Florida’s “Creative Class” account for a third of all USA workers. Today’s classic was yesterday’s innovation e.g. Eiffel Tower.

Government’s risk policy removes both risk and opportunity. A creative city is a jazz jam session more than a symphony – we all need equality and an opportunity to perform.

We need to reduce the creative bureaucracy, away from rules and regulations to a social, flexible model – less risk and more partnerships, participation and enablers.

We need to combine the different insights of the opposing partners, e.g. economic development versus the arts. Think of the software of the city as well as the hardware – take a holistic view.

‘Chaos’ and ‘Pain’ are two key international graffiti tags. The creative city is a contradiction – Istanbul has mannequin shops next to mosques.

Cities measures of success:

1. Innovation and creativity
2. Networks and connectivity

The creative city is not a factory but a centre for enquiry. Avoid clone cities – always think – ‘what can we only do here?’

Art, Science, Industry Session – BFI

Simon Stevens, Enable Enterprises

Simon has cerebral palsy, but in Second Life he’s a gifted entrepreneur, providing disability consultancy services and running a nightclub for the disabled. And in Second Life, like the real world, he’s in a wheelchair.

There are more wheelchairs in Second Life than in the real world. There are difficulties here too for users:

- Many questions and assumptions, hostile reactions from users – ‘Why are you in a wheelchair?’

- Accessibility of Second Life software

- Accessing buildings and the environment in a wheelchair. Possible need for anti-discrimination legislation in constructing the Second Life environment?

Second Life is not what it is yet, but it presents an opportunity for things to come. Marginalised people can take centre stage, but how can this democratisation translate back into the real world?

Terry Trickett, Trickett Associates, Advisor to the Wellcome Trust

Terry described four Sci-Art projects funded by Wellcome Trust, all of which are starting to have research or commercial applications:

- Modified photographs of phantom limbs of amputees

- Artworks made of decomposing grasses (can computerise traditional plant research)

- Researching a painter’s hand-to-eye co-ordination

- Kinetica interactive art – Millie the Neural Net Starfish (application in hotels, nightclubs, screensavers)

Sci-Art is cross-disciplinary – mixing people from diverse disciplines to enrich each other’s thinking and research. It holds up a mirror to the future. Sci-Art ideas may be as powerful as the industrial revolution.

Arantxa Mendiharat, Disonancias

The Disonancias project, in San Sebastian, Spain, brought research companies into contact with international artists to create new products or innovation processes. It encouraged deviations and dissonances away from regular thought. Issues included difficulties in understanding and commercialising IP. Learning from the programme – many findings are commercially sensitive (a valid means of public investment?). Now, artists are emerging from their ivory tower, embedding in the real world, and learning from it.

The Artists as Property Developer, Queen Elizabeth Hall

Mubarak al Muhairi, Abu Dhabi, Tourism Development

A presentation about Saadiyat (“Happiness Island”), Abu Dhabi’s landmark $2.7 billion 670 acre cultural district with infrastructure designed by world’s leading brands and architects: Guggenheim Abu Dhabi designed by Frank Gehry, Louvre Abu Dhabi by Jean Nouvel and a performing arts centre by Zaha Hadid alongside luxury hotels, 150,000 residents and ten causeways connecting it to the mainland. It will attract an estimated 500,000 visitors. The development will ripple to provide economic opportunities and creative skills to those in neighbouring communities. High spend, high impact. Who says money can’t buy in creativity?

Eddie Berg, BFI

Changing his presentation from UK’s under-activity in film to a more personalised dialect about cultural cities, Berg discussed his view of the changing face of Liverpool from the first day of its Cultural City status. FACT (Liverpool’s digital media centre he was formerly the director of) was embedded as a local connection in the community, and a long time in gestation. The new BFI film centre aims to provide an openness, café culture, as part of a £25 million development and to be fit for the digital age when film-making is no longer the preserve of the privileged.

Dawn Austwick, Esmee Fairbairn Foundation

A discussion of the development of a number of UK modern cultural landmarks and institutes:

- Millennium Bridge, Southwark – official were at one point ‘afraid’ of people from Southwark “crossing over” the bridge to enter the city and St Paul’s.

- Shakespeare’s Globe Theatre, South Bank – would it have faired so well without the rest of the South Bank regeneration? It succeeds not only in restoration but in innovation – it is a platform for new playwrights.

- Middlesbrough Institute for Modern Art (MIMA) – the art press said you can’t translate magnificent architecture into alien territory. But it succeeded – there is a relationship between place and content.

- Baltic/Sage, Gateshead – a platform for the community with challenging programming within the community and education. North East’s cultural regeneration enabled by Peter Davies, a serving Arts Council Officer – the small can influence the large.

- Whitechapel Art Gallery – established in 1901 to bring high quality arts to East Londoners. Never part of regeneration, but community’s cultural enrichment. Today, it’s still part of the cutting-edge – the first gallery in UK to show Rothko.

- Arcola Theatre, Dalston – serves and entertains the local community, e.g. Turkish and Kurdish drama group, Pay What You Can nights. Rather than a regenerator itself, it may be regenerated by new transport links to Hackney, which may in turn give sustainability to the theatre.

Success lies in the right people at the right time with the right attitude and inspired leaders – Southwark County Council underwrote the purchase of Tate Modern site to make it happen there and then.

But…

Art as regeneration – when did modern art become so safe and dull?

Arts organisations are obsessed with their buildings – the Lottery exacerbates this.

The future matrix for arts: a higher volume of smaller public and cultural spaces suitable for local or specialist communities.

Micro-communities (e.g. Facebook groups) creates a dichotomy with the need for large scale gatherings (e.g. Glastonbury) – Bristol’s ‘Cube’ Cinema versus Odeon or BFI.

When the 19th century industrialists had earned their fortunes, they turned their money and time to social responsibilities e.g. model villages and communities like Saltaire and Bournville. How does this responsibility translate into the 21st century?

Creative City Regions, Purcell Rooms

My session, investigating creative regions outside the capitals (or the obvious) was an interesting sandwich of Sweden, Philadelphia and Bristol.

Anders Sjostedt, Swedish Experience Industries

The ‘experience industry’ is used in Sweden as a collective label for practitioners with a creative approach – it includes the creative industries, along with tourism and gastronomy. This ‘experience industry’ accounts for five percent of Swedish GDP.

Anders gave a typically laid-back, Nordic overview of his approach by putting policy into the hands of business – not a top-down model of national policy with regional branches but creating policy from what is already happening.

The approach is called F.U.N.K - an intriguing Swedish acronym: research, education, business, culture – all needing to be interlinked. Top down policies are boring! FUNK stems from the talent/entrepreneur, making it viral – effective and cheaper. It’s low budget: 1.3 million euros for eight regional hubs, but with lots of activity.

The method was expanded into the main regions: Stockholm, Gothenburg and Malmo. But there are gaps on the map – many parts of country not engaged as some industries lack activity.

National strategies need regional approaches, but regional strategies need national ambition to avoid becoming provincial. Give the regions responsibility for key strands specific to their specialisms and they will rise to the international challenge.

The creative industries are knowledge-intensive, constantly changing and depend on the arts for innovative, non-commercial input. We need neutral agents to bring together research, education, business and culture.

Kelly Lee, Innovation Philadelphia

- At the other side of the world, Innovation Philadelphia, working with both creative and knowledge/design industries (e.g. engineering, product design) in the Philadelphia state region, carried out a mapping of their ‘regional assets’ to identify and demystify what their key strengths were.

Linking for-profit and non-profit organisations, they formed a ‘round table’ of 62 leaders with one common strategy, to try and identify the gaps e.g. employers who have more jobs than the talent to fill it, and recognising that more art school graduates start their own business than business school grads.

Personally, the idea of trying to get 62 people to agree on anything – particularly with a whack of the heavy hand of the public sector – requires nerves of steel, moral courage, and utter compromise and dilution. But maybe it can work in Philly more than the English provinces, and they can create a collective altruism.

Susi O’Neill, South West Regional Development Agency

Then me. The last time I stood on the Purcell Rooms stage was for John Peel’s Meltdown in 1998 with a post-rock industrial ensemble. I discussed South West RDA’s investment in Watershed Media Centre to create an endowment fund to benefit creative businesses in the city for the next 112 years (a real investment of up to £50 million). More on that here.

There was even a charming write up in Design Week, name-checking me next to Jude Kelly and Charles Landry (The fame! Oh for lazy journalism!). And also an interview with me in the less celebrated Exeter Echo talking about creative investment in South West England.

Interestingly, although we all represented very different parts of the western world, our approaches had two similarities:

- Putting industry in the driving seat – letting initiatives become less top-down and more bottom-up and seeing what happens.

- The need for intermediaries – ‘honest brokers’, creative connectors who can link the economic or public sector with the arts or creatives – the need is more acute now than ever before.

Keynote speaker: Kevin Spacey

As the ladies in the house swooned, we learnt that other than Hollywood housewife’s choice, Kevin Spacey is also the artistic director of the Old Vic Theatre in London (doh! Cultural ignoramus!) . Spacey’s talk was easily the most inspiring and honest of the week – an in depth discussion of how Spacey’s team transformed the theatre from cultural ivory tower to an intrinsic part of the community.

He described how his career was developed by those who took a chance on him – producers, directors and writers. He got his break doing Shakespeare in the Park in Central Park, New York, playing several bit parts including a rock. But his secret passion since his teenage years was to open a theatre.

He reminds us:

- The classics of yesterday were once new works

- To develop talent involves encouraging the risk to forge an original identity

- Film is a director’s medium, but theatre is the actor’s medium

Old Vic has done a lot of outreach, getting 26,000 young people and 3,000 from local community through its doors. Old Vic, New Voices project led to 45 productions at Edinburgh.

The Old Vic has no public subsidy at all, relying on sponsors and philanthropy. Spacey’s links and industry contacts (not to mention his celebrity status) have bought favours in terms of donors and relationships – American Associates is a new writing co-production between the Old Vic and Broadway, and they are establishing a trans-Atlantic company with Sam Mendes, playing a double bill in USA and Old Vic.

A survey of people living adjacent to Old Vic (based on the request of Spacey to the Education Manager go door-knocking) showed 98% had never been into the theatre. He set out to show it was not an island just for the rich in this rough estate.

(Cosby Show moment..)

- When asked why he wanted to take on this role, Spacey spoke of the need to ‘send the elevator back down’, as Jack Lemon once advised him to do. If you’ve succeeded – challenge yourself to do something outside your comfort zone.

- Often, good ideas get throw over the wall.

- A negative attitude is too easy and achieves little.

- But…it doesn’t matter what floor you’re on, you can always ‘send the elevator back down’.

Leadership qualities:

- Don’t be too content – and don’t take your foot off the gas.

- Bring people together, and chose the right elements.

Spacey believes the English are too shy about fundraising and asking for money.

There isn’t a digital response to theatre – people have to go to the theatre to appreciate it, but young people shouldn’t be in the heavens but at the front of the stalls – youth and zeal also spurs the actors on!

Inspiring stuff, but we couldn’t help questioning afterwards (during a bizarre fashion show with Zhandra Rhodes), that Spacey’s celebrity status may buy Old Vic more than any mere ordinary arts leader, and when he goes, will also the generous patrons? I was just plain confused. I thought George Clooney was doing the keynote, and thought he looked very different in E.R

Creative Clusters, Tuesday 13th November, Rich Mix, East London

DCMS: Creative Economy

The moment all of us happy folks in RDA land have been salivating for…
But sadly, not worth the wait.

Brian Leonard, Head of Industry at DCMS, spoke about the ‘long journey’, three years so far from its inception, of the Creative Economy Programme. Now at destination: station shed. No longer a Green Paper (with potential for change to white, i.e. legislative change) and now a policy document. Worth the wait? Well, maybe it was all about the journey – the relationships and the dialogue.

The Programme emphasised the special relationship between infrastructure and the creative industries, and how infrastructure nurtures talent. By infrastructure we mean ‘stuff’ – buildings, institutes, public places and facilities e.g. Tate Modern, Watershed or Workstation. Infrastructure needs to be useful for youth and talent development.

There will be a cross-departmental ‘cradle to grave’ approach with schools, families, education, business to new creative approaches. But government is risk averse to collaborating inter-department. There is a mooted rumour of a major event.

When asked what he thought, Brian Leonard responded: ‘my opinion is not important’ i.e. ‘I couldn’t possible comment’. The ever-devout civil servant.

Will Hutton, The Work Foundation

Will Hutton, the dour author of ‘Staying Ahead’ (thought to be ‘off’ creative industries after a long tenure writing the paper), said he was originally commissioned to write a “State We’re In” for the creative sector.

The creative economy tries to show the links between all 13 sub-sectors and their relationships. UNESCO states the UK is the world’s biggest cultural exporter, and the knowledge economy employs 45% of UK’s workforce.

Hutton’s approach as a non-fiction author is to link the real and fictitious strands of history, philosophy, heritage and economics – a collaboration of serendipity, not just focused on all things creative. Perhaps there are parallels here with how the creative sector needs to integrate with the rest of the cultural sector and the wider economy?

Creative industries’ IP derives from copyright – not from patents but from a clear blue sky. But this creates a higher uncertainty in creative than other industries. The sector need to learn to manage this uncertainty and risk – and learn how to exploit the potential and successful parts of each businesses portfolio.

Creative Commons increases the flow of creativity – but there needs to be a balance between Creative Commons and copyright in the digital age, as there has been in the pre-digital age.

The blogosphere allows for too much free comment and hiding behind anonymity. There is no comeback and it can breed prejudice and extreme views.

Other sectors want to be part of the creative industries: ceramics, engineering, financial services. They have their noses pressed to the glass looking in (or, cynically, are they sniffing out the subsidies?)

There is a need to ‘crowd in’ creativity into design and other sectors.

But the language is moving away from subsidy to investment across the sector.

Creative regeneration needs to:

- Delight residents

- Create jobs (creative industries are good at doing this)

- Be stimulating and exciting

- Build in creativity to all public infrastructure investment e.g. good design

But cities don’t know how to do it with a unique approach (echoing Charles Landry’s idea of ‘clone cities’). There are 46 medium-size cities and eight core cities in the UK. They all need to have a good art college and good residential accommodation to grow as creative places.

But…there are problems for the creative sector:

- Arethe terms of trade fair for the many small players?

- Are we too white, too middle class – as Greg Dyke once said of the BBC?

John Sorrell, Cabe

Creative industries are new – only defined in 1998. Yet the sector is now singing the praises of ministers with non-cultural/creative portfolios e.g. Blair, Brown and Darling.

The sector is typically more working class and less formally qualified, an artisan sphere (not born out by the numbers of graduates in film, TV and software - the most graduate rich of all industries) who find it harder to speak up to government.

Creative diplomacy could be a way of creating a dialogue between nations.

Discussion:

Creative has not had its fair share of the pie?

- £800 million invested in new apprenticeships – none for creative sector

- Enterprise Capital – some investment, but mainly new media

As invigorating as the talk was, I was disappointed. After Monday’s writing in the sand by Jude Kelly, the focus again shifts back to metrics – economic success, growth and back-patting. Is it even believable? How does this benefit the roots of the cultural sector? Or does creativity not need the arts? Discuss.

London – World Creative Capital?

A heated session which raised an interesting question from the floor – it may be good for London, but is it good for the rest of the UK?

Jude Woodward, Mayor’s Advisor, Culture, Creative Industries and Tourism

London is the most international city, a ‘world in one city’. It’s the finance epicentre – the Stock Exchange is the major global financial force. It’s situated in the middle of the major western time zones.

- 50% of Londoners are born outside London

- 33% of Londoners are born outside the UK

- 300 languages are spoken daily

We are a creative nation. ONS figure claim the UK spends 50% more on creative products than on food.

Yet Jude committed the heinous M25 faux pas of critiquing her regional rivals – claiming she was ‘concerned’ about the BBC’s move of five departments to Manchester, whether Manchester would cope with this, or actually another city may steal London’s thunder through dissipating what is strong, collective and co-located in London – the immediacy of interaction, inspiration and face-to-face stimulation operating on a global scale. London is the engine – loss of skills or jobs to regions may mean other nations benefit more than other UK cities.

An interesting consideration, but wrong I think. Making the regions stronger will make the UK stronger. Make London strong, conversely, I think can make the regions weaker. It’s complicated.

Alan Freeman, GLA Economics

2001-2 showed a mini-recession in the sector, but there has been a continual rise in creative product growth. (Although James Heartfield did make the scandalous suggestion that GLA Economics had been told to lie and subvert data to re-write their research because the story of creative decline was not what the leaders wanted to hear).

London and the South East has one third of the UK’s population, but contains nearly two thirds (58%) of the creative sector – double the density (note: interesting rhetoric here.  To be pendantic – 58% is closer to half than two thirds). Two thirds of all global industries have headquarters in London. This breaks down:

Creative jobs location:

London – 32%
South East – 26%
Rest of UK – 42%

Yet London’s creative jobs are more volatile than other sectors, and private sector jobs are more vulnerable here than in other regions.

Creative product sales are 58% to consumers, 42% to businesses.

Creative infrastructure is demand-led – but if you lose it, you won’t get it back.

Tom Campbell, London Development Agency

LDA has a budget of £500 million and employs 400 people to grow and regenerate London’s economy.

London is the biggest but it still has capacity to grow:

- 77% of the UK film industry is in London. Film London’s ‘film friendly’ policy increased filming in London boroughs by 42%.

- Frieze Art Fair – one of biggest UK art fairs, £55 million of art sales and 50,000 visitors.

Future LDA projects: Tate 2 extension; National Film Centre (BFI); more live music infrastructure; Ravensbourne College relocation; Diversity works diversity programme (though there are equality and diversity targets for all LDA projects).

Discussion:

Tom describes artists as the ‘shock troops’ of regeneration – going into an area, and starting the improvement. But I would question – how do the artists benefit? Everyone talks about the importance of arts to the creative commercial sector, but no one wants to put hand in pocket to give more to the arts (apart from a minor inflation-busting Arts Council settlement).

Economics usually asks the question – ‘how do we stimulate growth?’ Creative industries has growth, so perhaps the question is ‘what kind of growth do we want?’

Need to address diversity – not just the public school, white middle classes ascending.

But…you can’t make a meal by cutting up the pie.

Wednesday 14th November, Soho Theatre

Creativity and the Economy

Now the gloves came off.

James Heartfield – How creative is the creative city?

Easily the most controversial and engaging rant of the week – Heartfield continues his lonely diatribe exposing, guerrilla style, the ‘lies, lies and damn statistics’ of the fallacy of the creative economy.

Calling the Cox Report ‘creative accounting’ and Gordon Brown the latest leader to be ‘seduced by the mantra of creative Britain’.

Why not to invest in creative industries:

1. He claims advertising is ‘parasitic’ to the failings of other industries, rather than contributing to their growth.

2. The creative city is a policy ‘template’ on a desktop. Zurich described its creative city as “weak” – whoops, must have hired the wrong consultant.

3. Blair described Britain as the ‘design workshop of the world – leading a creative revolution’, but “Staying Ahead” reveals the poorly disguised cracks in definition and decline of sector: ‘the DCMS recognises the imperfection of the definitions’ ‘sectoral boundaries may be re-written’ and its ‘just a snapshot’. DTI Business Clusters in the UK (2001) states: “for most of the creative industries, any regional presence must be considered embryonic”.

4. Statistics are all hogwash, addressed to the arts not to economists or real businesses. GLA Economics cover up the huge decline in creative workers.

5. The creative city is promoting a culture of clone towns – everywhere is creative, ergo nowhere is creative. Charles Landry’s ‘toolkit’ creates homogenisation. “Replace one name city with another you would not know the city” (Creative City, p. 43)

6. Work Foundation and DCMS – they are like Enron and their accountants – if they were in industry, they would be in prison.

7. It’s all lies to create jobs for their friends.

8. It encourages subsidy of something that is not worth developing.

9. Sheffield Museum of Pop – a drain to the city’s economy, not an enhancement.

10. Hoxton as a template does not translate outside Hoxton. Manchester and Scotland – creative industries is not what they are known for.

Phew….beat that….

Peter Hewitt, Chief Executive, Arts Council England

There are less failures in public sector capital investment than in private. The cost of £800K for Angel of the North (Gateshead) against its value by people is far higher. The regeneration of Gateshead is valued at £1 billion.

Arts Council invest where the private sector never would, but there are commercial spin-offs, e.g. subsidised theatre feeds the commercial theatre. Alan Bennett’s The History Boys was funded by a £200K initial investment and has subsequently become commercial and toured.

Creative Partnerships project is proven to develop creative thinking skills for all subjects.

The Sultan’s Elephant – had an economic impact of £1 million for London and was a commercial-free spectacle for all to enjoy and see their city in a new light.

Dan Atkinson, Mail on Sunday

More spouting on the fantasy of the creative economy from the author of ‘Fantasy Island’, a critique of Blair’s ‘legacy’. Atkinson asks: how long can the hot air last?

The benefit of the arts and creativity is evident – but is it an economy?

Creative industries were part of the seven “daydreams” of Blair’s Britain e.g. “Cool Britannia”.

Science (1970s) was a Labour vision, technology (1980s) a Tory one.

China was once seen as marginal and ‘arty’, whereas Britain was the industrial powerhouse – now, China is the centre of manufacturing and UK is proud to be arty.

Germans: great at precision engineering.
The French: food and drink.
Scandinavians: mobile phones.
Americans: movies, aircraft, computers.

What is UK Plc’s USP?
Talk.
PR, advertising, writers, politicians.

June 2007: a £22.3 billion deficit in trade, down from £18 billion a year before.

Britain is a servant economy: four million employed is service, the same as 1860s Victorian society and three times that of creative industries. But this isn’t the right rhetoric for the government.

Lord Puttnam: Britain is “an island of creativity surrounded by a sea of understanding”. Or is it just a fantasy island? Or just an island, surrounded by sea?

The film industry is in trouble, the television industry is in trouble and the music industry is in trouble. The creative industries were in a better states when Wilson and Callaghan were in office.

Martin Smith, Ingenious Media Plc

A discussion of private investment in the creative sector. Ingenious have invested £5 billion in media since 1998.

But competition is tough: France offers tax breaks to games developers in spite of EU State Aid rules.

The UK is a ground for creativity not it is not great for competitiveness. Film, music and video games are consumer-driven and unpredictable both ways – both unprecedented gains, but also unprecedented losses.

There are three types of creative businesses:

- Creative content – IP and ideas

- Creative processes

- Creative distribution – e.g. broadcasting

All have low levels of skills and lack MBAs. Investment success is marrying the creatives with the business talent.

Risk management is investing in a slate (e.g. film slate) and not a standalone product.

Digital opportunities and threats:

- The digital threat is diminishing value with distribution and the attitude that content is free, creating investor uncertainty.

- But content is king still – there is a premium on high quality content.

- Opportunities are the proliferation of platforms, the long tail, and quality becoming more valuable over commodity.

Future value lies in rights ownership/management. The sector needs more sustainable investment to protect individuals and to not sell of ISP too cheap.

But it needs to be credible to the city – investment needs a portfolio and high quality management approaches to create a virtuous circle of investment.

Creative industries need to be taken seriously to gain investment. In economic terms – there are too many small companies who lack capacity – do we head down the drain? Or rise to the challenge – create internationally competitive companies?

There is a shortage of risk capital in media – it’s OK at start-up but it lacks the knowledgeable capital – investors who understand the sector well.

Raising £10 million for a film is hard – much is invested by wealthy individuals or the creators, but it’s a too risky approach.

In the US, $15 billion is raised from Hedge Funds to invest in a slate of 35 to 40 Hollywood blockbusters.

Discussion:

Creative industries does not work as a sector – take out digital and the sector is growing slower than the rest of the economy.

Fine art auctions are successful at growing sales, but not investment in new art production.

The creative industries are over-subsidised and under-productive.

The Arts Council have created a blurring between public good and commercial return which confuses businesses. The UK arts are not as competitive as the USA or China.

Creativity is the ‘Emperor’s New Clothes’ – we are more creative than other nations, but not good at selling it to others.

The UK exports its best talent – fashion to New York and Milan, video games and film to Los Angeles.

And so…to the bar…