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Abstract
As an emerging industry, creative industries provide high value-added, knowledge-intensive producer services and consumer services. Based on the value chain smiling curve, this paper has first proposed a wave curve which reflects the basic value chain of creative industries. The new value chain links is increased from 3 to 4 by adding a cultural resource conservation link, focusing on the two high value-added links-R&D and marketing. This study provides a basis to further enhance the added value of the industry. Keywords: Service Economy; Creative Industries; Value Chain; Industrial Chain; Smiling Curve
1 INTRODUCTION
The DCMS Mapping Documents in 1998 was first officially defined the creative industries as those industries which have their origin in individual creativity, skill and talent as well as a potential for wealth and job creation through the generation and exploitation of intellectual property [1]. In recent years, the development of creative industries in the scale and extent has become an important indicator of the level of a country or regional comprehensive competitiveness. As an emerging industry, creative industries provide high value-added, knowledge-intensive producer services and consumer services. Based on the value chain smiling curve, this paper studies the basic value chain of creative industries, providing a basis to further enhance the added value of the industry.
2 A RESEARCH REVIEW
Creative industries research is abroad mainly focused on such areas as definition, industry characteristics, creative class and creative cities. The most representative concept of creative industries came from two American scholars, Caves and Howkins, whose opinions on this subject are at opposite poles. Caves major delineation of this concept is inside the two areas, the arts and the media [2], while Howkins has a more broad definition, including copyright, patent, trademark and design industries, covering all aspects of science, engineering and technology sector [3]. The idea of the existence of a creative class is assumed as a determinant resource in territorial competitiveness with respect to its crucial role in the development and urban regeneration processes in many cities [4]. Geographic concentration is considered an important feature of creative economy [5]. Domestic researchers closely follow the progress of the latest research abroad, research from the perspective of the interpretation of the concept to the successful experiences and so on, and then gradually deepen and expand it. [6-7]. The concept of value chain was first proposed by Porter [8], referring to the process of value added activities between and within manufacturers for the production of the final transaction of the product or services. Value chain theory is that the core competitiveness of enterprises in the value chain is essentially on the advantages of a particular strategy, which completely subverts the traditional bucket theory. To sum up, the current research on the creative industries has just started. Because of the different environment of the researchers, the creative industries do not have a universally acceptable concept. The research remains mostly qualitative phase analysis and the very few models quantitative analysis. There is little research on the value chain of creative industries.
horizontal, the number of links determines creative industries that have a long span of chain.
Cultural Resources Preservation & Development Content Creation Production Marketing & Promotion
Consumption
3.5 Consumption
The end of the entire value chain is consumers who play an important role in the marketing process, even of feedback and interaction with the entire value chain. To stimulate consumers new desire and potential purchase that is the market basis of new ideas, so the growing consumer demand for the creative industries will be the final decision part of value chain. In the new knowledge economy, daily changes require all aspects of the value chain to take innovative approaches, including the new market participants, the new profit model, industry chain cross and integration, and even major changes in the whole chain.
Value chain of creative industries has very significant value-added (mainly cultural added value) through the creative input. This section will use the wave curve to explain how the value-added activities occur.
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FIG 2 FORDISM INDUSTRY VALUE CHAIN CURVE FIG 3 SMILING CURVE - MODERN INDUSTRY VALUE CHAIN
5 CONCLUSIONS
As a source of creative industries, creative drives other value chains as content creation, production and marketing, bringing up one input-multiple output industry value chain. That is the value spread oriented, which is the core value of enterprises creation, spreading to the surrounding industries, forming long-term production capacity, expanding the value of output, through such forms as joint development, technology, or copyright transfer. Creative industries are of originality, with knowledge characteristics and a high degree of cultural contents which produce economic benefits from cultural and creative originality through scale and industry, and creativity as the core transforms the abstract culture directly into industries with high economic value. Within the creative industries constitute a high degree of associated industries. Through integration and value-added industrial value chain, creative industries form a highly connected group within them through value-added chain integration.
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Obviously, taking the creative industries as the backbone, a knowledge-based tertiary industry based on creative activity is by substances of low or non-polluting and high value-added industries, and high-cultural connotation of innovation-based industries. The development of this industry will turn the creative ideas into enormous economic, cultural, social wealth. It will be our best choice to promote the city and nation by building a resource-conserving society, to take an innovative path of sustainable development, to greatly enhance the city and national comprehensive competitiveness.
ACKNOWLEDGEMENT
This research was supported by the China University of Political Science and Law Science Research Projects, research on the creative industries and creative class.
REFERENCES
[1] [2] [3] [4] [5] [6] [7] [8] [9] Creative Industries Mapping Document 1998 [Online], London: DCMS. Available at: http://www.culture.gov.uk Caves R, Creative industries: contracts between art and commerce[M], Cambridge, Mass: Harvard University Press, 2000. Howkins. J, The creative economy: how people make money from ideas[M], Allen Lane: The Penguin Press, 2001. Florida R, The rise of the creative class[M], New York: Basic Books. Landry C, The creative city: A toolkit for urban innovators[M], London: Comedia Earthscan, 2000. Li Wuwei, Wang Ruzhong, Miu Yong, Supporting the development of creative industries to improve the comprehensive Urban competitiveness of Shanghai[J], Social Sciences Shanghai China, 2005(01). (Chinese) Sheng Lei, Creative industry development of Beijing about strategic meaning, advantage and counter-measures[J], Social Science of Beijing, 2005(03). (Chinese) Michael Porter. Competitive advantage[M]. Beijing: Huaxia Publishing House, 2003(Chinese) Shi zhengrong, Acer recycling: create, grow and challenge[M], Beijing: CITIC Publishing House, 2005(Chinese)
AUTHORS
1Da
Deng, Ph. D in management, Associate Professor, works in the School of Business, China University of Political
Science & Law, Beijing, China. Teach Principles of Economics, Modern Economic Theory and Project Management as undergraduate, graduate and MBA courses. Major Field of study is creative industries and industry economy. A large number of Research results have been published, such as Project Management of Modern Cultural Industry, Beijing, China Machine Press, 2004, Creative industries Under national innovation strategy, Beijing, Culture and Art Publishing House, 2010
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