Advertisement

Why Do Governments Financially Support the Creative Industries?

  • Kazuko GotoEmail author
Chapter
Part of the Creative Economy book series (CRE)

Abstract

This chapter discusses the reasons why governments financially support the creative industries, both from the point of view of cultural policy and economic theory. Cultural policy reasons for financial support of the creative industries include the furtherance of excellence , innovation , and access ; recognition and celebration of national, regional, or local identity ; promotion of continuity; and furtherance of diversity. Economic policy reasons include the contribution of the creative industries to the economy; perceived positive externalities ; the desire to redress free rider behavior; the difficulties some creative industries face for increasing productivity when costs increase; and the desire to reduce the negative effects of the cost structure of many creative industries, where there is a combination of high sunk and fixed costs and low marginal costs .

Keywords

Cultural policy Economic policy Innovation Identity Diversity Market failures Externalities Free rider behavior Public goods Impure public goods Baumol’s cost disease Sunk costs Fixed costs Marginal costs Economies of scale 

References

  1. Baumol WJ, Bowen WG (1966) Performing arts: the economic dilemma. The Twentieth Century Fund, New YorkGoogle Scholar
  2. Baumol WJ (2011) Application of welfare economics. In: Towse R (ed) A handbook of cultural economics, 2nd edn. Edward Elgar, Cheltenham, pp 9–18Google Scholar
  3. Baumol WJ (2013) Reining in those unstoppably rising cost. In: Towse R, Handke C (eds) Handbook on the digital creative economy. Edward Elgar, Cheltenham, pp 20–25Google Scholar
  4. Caves RE (2000) Creative industries: contracts between art and commerce. Harvard University Press, CambridgeGoogle Scholar
  5. Office for the Arts (1994) Creative nation: Commonwealth cultural policy. http://apo.org.au/node/29704. Accessed 6 Sept 2016
  6. Shapiro C, Varian Hal R (1998) Information rules, a strategy guide to the network economy. Harvard Business School Press, BostonGoogle Scholar
  7. Throsby D (2010) The economics of cultural policy. Cambridge University Press, CambridgeCrossRefGoogle Scholar
  8. Towse R (2010) A text book of cultural economics. Cambridge University Press, CambridgeCrossRefGoogle Scholar
  9. UNCTAD (2008) Creative economy report 2008. http://unctad.org/en/docs/ditc20082cer_en.pdf. Accessed 17 Sept 2016
  10. UNCTAD (2010) Creative economy report 2010. http://unctad.org/en/Docs/ditctab20103_en.pdf. Accessed 17 Sept 2016

Copyright information

© Springer Science+Business Media Singapore 2017

Authors and Affiliations

  1. 1.Faculty of EconomicsSetsunan UniversityNeyagawaJapan

Personalised recommendations