{"id":1865,"date":"2021-05-10T10:51:18","date_gmt":"2021-05-10T08:51:18","guid":{"rendered":"https:\/\/masterplan.creativehubfrankfurt.de\/?page_id=1865"},"modified":"2022-05-02T12:18:46","modified_gmt":"2022-05-02T10:18:46","slug":"creative-economy","status":"publish","type":"page","link":"https:\/\/masterplan.creativehubfrankfurt.de\/en\/creative-economy\/","title":{"rendered":"CREATIVE ECONOMY"},"content":{"rendered":"\t\t
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CREATIVE ECONOMY<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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The Creative Industries as a Mirror of Society and Part of the Solution for Future Economic Development<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Dr. Fr\u00e9d\u00e9ric Martel & Claudio Bucher<\/strong>
Zurich Centre for Creative <\/strong>Economies – ZCCE,<\/strong><\/a><\/span>
Zurich University of the Arts(ZHdK)<\/strong><\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Both financial and economic capital of Germany as well as major technological hub, the city of Frankfurt tends to underestimate its strengths and discount latent opportunities in the cultural sector, in creative industries, and in the creative economy more broadly. Indeed, this \u201cdynamic\u201d city is inclined to overlook the opportunities lying dormant in its midst. As such, this contribution to the Master Plan Creative Economy aims to make plain the opportunities and, at times, the accompanying weaknesses of the Frankfurt ecosystem. In doing so, it intends to encourage public and private actors to take the untapped wealth of opportunity into consideration and to act on the extant potentials. Finally, it endeavors to present a series of ambitious proposals to support elected officials and decision-makers in their desire to make Frankfurt one of the creative capitals of Germany by 2026.<\/p>

\u00a0<\/p>

Frankfurt at the Crossroads.<\/strong>
Strengths, Opportunities, Weaknesses<\/strong><\/p>

Almost 760,000 inhabitants live in Frankfurt and 5.8 million in the Frankfurt Rhein-Main region. The city is well known as the economic and financial capital of Germany, the seat of the European Central Bank, a rich center for financial services, and a technology hub \u2013 and especially for the so-called \u201cfintech\u201d sector. More than 200 local or international banks and a large number of financial startups are present in the city \u2013 360T, e.g., was bought by Deutsche B\u00f6rse for $800 million in 2015. However, Goethe’s birthplace also harbors unanticipated resources in the creative industries. Frankfurt is undoubtedly already equipped with many advantages that stem from its fairs and biennials (including the internationally reputable Frankfurt Book Fair), its dozens of thousands of students, and its creative class, e.g., in publishing, design, electronic music, and now in fashion by cause of its own Fashion Week. It is estimated that 41,000 people already work in the cultural sector, \u2013 here, the word \u201cculture\u201d is understood in its broad sense \u2013 and the income pertaining to the cultural economy exceeds six billion euros.<\/p>

It is important to understand that a fair, a \u201cfashion week\u201d, or a festival generates an economic outcome much greater than itself. As our studies show, the creative economy works in concentric circles: the first circle represents \u201ccultural\u201d costs and revenues in the strict sense of the term (e.g. festival revenues); the second circle allows a whole ecosystem of activities \u201crelated\u201d to cultural activity to thrive (e.g. recording and translation companies, reprography, rental of studios and microphones, etc.); the third circle is unrelated to culture but benefits from it: hotels, restaurants, airports, transportation, tourism, even security companies, IT, and all sorts of suppliers. This demonstrates why cultural and creative industries are essential for the economic development of a city. Therefore, the corresponding leverage effect must be calculated precisely. Based on existing studies, however, we can hazard the assumption that each euro invested achieves a return of three to five times the initial outlay.<\/p>

Yet, we can see that Frankfurt’s economy is changing. While existing data confirms that the city continues to attract banks and financial services in the wake of Brexit (about 32 new banks from 15 countries have set up in Frankfurt and at teast 17 have increased their presence there), the digital transition has also induced job redundancies at scale. Economist Daniel Cohen predicts that 50% of jobs in the financial services industry will disappear in the coming years. Still, Frankfurt will surely remain the financial capital of Germany and Europe, albeit most likely not without the surrender of a large number of jobs in the years ahead.<\/p>

Moreover, these processes are accelerated in the short and long term by a double phenomenon: the COVID crisis and the ecological transition. These challenges entail repercussions such as remote work, people leaving cities, ecological concerns, the disintermediation of services and banks, nomadism, and so forth. Ultimately, the entire economic fabric of the city and its jobs are on the brink of being radically, massively, and permanently transformed.<\/p>

What will happen \u201cafter the banks\u201d? What will become of Frankfurt if its financial engine remains but with fewer and fewer employees and less and less office space? If neo-banks are no longer the exception but the norm? If the employees are no longer \u201cin-house\u201d but \u201cremote\u201d, \u201cnomadic\u201d, or perhaps freelancers? These are the questions for which answers must be devised.<\/p>

The creative economy may then represent one of the solutions for the future economic development of Frankfurt.<\/p>

\u00a0<\/p>

The Great Transformation of the Creative and Cultural Industries<\/strong><\/p>

Since the 2000s, the creative and cultural industries have experienced an unprecedented transformation: First the internet, then social networks, and finally the smart phone have completely altered the sector. Reviewing the launch dates of some of the major actors involved, the acceleration seems staggering: Google (1998), Facebook (2004), YouTube (2005), Twitter (2006), first iPhone (2007), Instagram (2010). Even Amazon, so dominant today, only dates back to 1995.<\/p>

This transformation is reflected in major trends, retold here in broad terms and a few bullet points:<\/p>

  • For a long time, the \u201cindustrial\u201d model dominated \u201ccultural\u201d content. Today, the consequential term in the expression \u201ccultural industry\u201d is no longer \u201cindustry\u201d but \u201cculture\u201d. At the same time, we have moved from \u201ccultural industries\u201d (dear to the tradition of the Frankfurt school) to \u201ccreative industries\u201d (expansion to all creative content, especially digital).<\/li>
  • The cultural industries created \u201cproducts\u201d and \u201ccultural goods\u201d (CDs, DVDs etc.); they now produce \u201cservices\u201d, \u201cstreams\u201d, \u201capplications\u201d, or \u201cformats\u201d (streaming, Netflix, etc.). The nature of the value generated therein has shifted from product to \u201ccontent\u201d.<\/li>
  • Yesterday, this \u201ccontent\u201d was attached to a specific medium or broadcast. Today, it is generally independent of the \u201cmedium\u201d and has a life of its own (application, site, \u201cglobal\u201d content, etc.).<\/li>
  • In the past, the owners of the means of production chose the culture they produced (again, an idea associated with the Frankfurt school). Today, neither Sony, Universal, nor Paramount are in charge of the content. Instead, they are a bank conglomerate of sorts, which claims copyright ownership in exchange for the provision of a budget.<\/li>
  • Yesterday, creative talents were full-time employees loyal to a single studio. Today, the business model is independent and based on the individual \u201cproject\u201d (contract, Work for Hire, etc.). The writer (or \u201cshowrunner\u201d for a TV series) crucial to the creation process.<\/li>
  • The \u201cstart-up\u201d model has become the norm. It is no longer the case that a single \u201cmajor\u201d corporation is in command. Instead, a \u201cconstellation of actors\u201d is involved.<\/li>
  • Film studios, music groups, and publishing conglomerates were once cultural producers; they are now financial services. The \u201cmajor\u201d players call on independents or \u201cspecialized units\u201d to create their products (mini studios in cinema and video games; printers in publishing; labels in music, etc.).<\/li>
  • Today, the digital dominates all of these sectors \u2013 if the digital industry were a country, it would already be the fourth largest economy in the world.<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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    Action 1:
    Why Creative Economy Matters (Global Trends)<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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    Some of our previous studies show that global cultural capitals (Berlin, London, Los Angeles, Milan, New York, Paris, San Francisco, Tokyo, Tel Aviv, etc.) and regional capitals (Beirut, Hong Kong, Miami, Tallinn, etc.) almost always assemble the same constituent elements. All of them have common singularities that provide a favorable environment for creation:<\/p>

    • A virtuous ecosystem which is first and foremost based on reliable economic and legal conditions:
      – secure banks, several banking systems,
      – legal system\/rule of law, quality law firms,<\/li>
    • protection of copyright and patents, freedom of enterprise, etc.<\/li>
    • A dynamic ecosystem of art schools and universities (e.g. film schools such as USC, UCLA, and CalArts near Hollywood, or Stanford University near Silicon Valley, etc.).<\/li>
    • Modern technological and digital infrastructures as well as high-quality internet\/broadband networks (backbone, data centers, cloud, speed, etc.).<\/li>
    • An \u201cenvironment of possibilities\u201d: an abundance of projects, a vast mix of ideas, a multiplicity and diversity of creative people.<\/li>
    • A mature advertising market with strong creative agencies and (even more important) agencies that conduct purchasing of media space.<\/li>
    • A media environment capable of creating a global \u201cbuzz\u201d around a city, owing to a network of (television) broadcasters, media companies, and international correspondents (in particular Variety, Hollywood Reporter, Billboard, etc.). All of this aids the creation of an enticing global aura for a city.<\/li>
    • An environment favorable to the freedom of creation: freedom for artists, women, gays, etc.<\/li>
    • The existence of a great urban counterculture, a bohemian neighborhood, a city for the \u201cpo\u00e8te maudit\u201d, for neo-hippies, etc..<\/li>
    • Expansive geographic interconnectivity (transportation, airports, highways, etc.)<\/li>
    • A network of supporting businesses and a highly skilled, specialized workforce (studios, audiovisual capabilities, technicians, rental of material\/equipment, start-ups, etc.)<\/li>
    • and, finally, ample cultural diversity.<\/li><\/ul>

      \u00a0<\/p>

      These criteria explain why Miami is a significant cultural capital and Caracas is not; why Beirut (despite the crisis) is and Riyadh or Cairo are not. This is why Hong Kong is so important, and why Shenzhen will struggle to become China\u2019s new southern cultural capital.<\/p>

      The strengths and weaknesses of Frankfurt should be reviewed in light of this set of criteria. <\/p><\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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      Action 2:
      The Mayor Role of Universities<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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      Existing studies show that universities are essential to the creation process in the US creative industries. In film, publishing, and music, as well as in the field of the digital and gaming, R&D, experimentation, and the corresponding workforces at universities are precious assets. Silicon Valley most likely would not have existed without Stanford and, in part, Harvard, MIT, and Berkeley. Hollywood has its R&D done at the University of Southern California, CalArts, UCLA, and the Tisch School. Similarly, Broadway is based on the system of experimentation otherwise found in universities and non-profit theaters. Moreover, the American publishing world is frequently renewed thanks to authors discovered by a university publisher (for instance, an author at MIT Press would subsequently move to Bloomsbury), etc. The role of universities is very often underestimated in the cultural and creative industries. The Master of Fine Arts (MFA) is becoming the benchmark diploma for all \u201ccreatives\u201d. Therefore, this dimension should be encouraged.<\/p>

      Concurrently, Frankfurt is an important city for students. It has several prestigious art schools and dedicated training courses in visual arts, music\/dance, cinema, design, but also in the history of art or cultural management. As such, it is particularly well prepared to succeed in this area.<\/p>

      The focal point here is not so much the parallel existence of creative industries and art universities (this constellation exists everywhere) but well-articulated interrelationships and interactions between the two.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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      Action 3:
      Intelligent, Urban & Sustainable City<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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      There are many definitions, models, and constituent elements that characterize a \u201csmart city\u201d. Expressed as a \u201cmot-valise\u201d or a catchphrase, it serves policies of various kinds, often good, sometimes not so much. The term invariably involves a technological element and, increasingly often, an ecological dimension. The \u201csmart city\u201d seemingly makes possible the optimization of traffic and public transportation, improved garbage collection, more efficient and green energy distribution, etc. Conversely, enthusiasm for smart cities diminishes when its association with large corporations or state surveillance becomes apparent. Companies such as IBM, Cisco, Google, Microsoft, Vinci, and Accenture have developed comprehensive plans to make cities \u201csmart\u201d. In their search for new modes of storytelling, corporates occasionally speak of the \u201csmart city 3.0\u201d, \u201c4.0\u201d, even \u201c5.0\u201d …<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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      Beyond the technological dimension, the question of smart cities entails the issue of the territory actually concerned (city, urban agglomeration, region, etc.). In Germany, mistrust of \u201cbig data\u201d, facial recognition, and AI also play a role in civic mobilization against surveillance and, therefore, against smart cities.<\/p>

      The city of Frankfurt, which has already opened an office dedicated to smart cities and appears to be particularly well prepared for future developments (thanks to its interconnections with Germany as a whole), could distinguish itself with regard to the overall movement by rethinking the notion of the \u201csmart city\u201d, renewing the idea by reconceiving its space and territory, organizing its civic reappropriation, and introducing a collaborative and humanist dimension. Security is essential, and both energy and public transportation must become \u201csmart\u201d. Nonetheless, a city can only become truly \u201csmart\u201d if it cares for its citizens. Instead of working on smart cities, we need to work on smart citizens! (To this end, we could work on data\/mappings for smart city criteria using both established data sources, such as Eurostat, as well as new online data sources).<\/p>

      Since they act as a mirror of society and its future, the creative and cultural industries will increasingly be challenged to represent this society in terms of diversity and ecology.<\/p>

      The cultural and creative industries sector is one of the domains most adept at addressing environmental concerns. Some exemplary cases may be found in supply chain transparency (Canopy), appropriate prosthetic technologies made of recycled plastic (Circleg), smart energy systems, and a foldable staircase (Klapster, winner of the Frankfurter Gr\u00fcnderpreis 2020), etc..<\/p>

      Frankfurt already has countless assets in the ecological field. It is a \u00ab human-sized \u00bb city in which all urban areas can be reached within 30 minutes by car, from the airport (only 12 km from the city center) to the outlying districts (millions of inhabitants within a radius of about 30 km by car). <\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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      Action 4:
      Positive Economy & Resilience<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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      A so-called \u201cpositive economy\u201d (an expression coined by the French poet Arthur Rimbaud) has always been a necessary quest for every artist. How can the time to create and find one\u2019s voice be reconciled with securing the means to continue living and eating? Indeed, the success of artistic careers depends, in part, on the answer to this question.<\/p>

      Meanwhile, the very term \u201cartist\u201d is vague: cultural services in cities tend to restrict its applicability to the visual and performing artists, neglecting the vast number of \u201cartists\u201d engaged in the creative industries and the digital world. Therefore, one should not view the term \u201cartist\u201d as a narrow category, instead broadening it to include the entire creative and artistic group. At 5,1% of the workforce (30.444 employees in 2019) and 6% of total turnover, this class represents a sizeable segment of a city like Frankfurt. For the same reason, the \u201ccreative\u201d must be understood not only by departments for cultural affairs but likewise by departments for economic development.<\/p>

      Furthermore, artists have always learned to be \u201cresilient\u201d and to adapt to all contexts. They have multiplied jobs (the \u201cgig economy\u201d is central to this sector); their modes are fluid; and they are highly adaptable. The Covid crisis has further augmented these difficulties and trends. Faced with the collapse of income models, particularly in the performing arts and music, several European governments have come up with vast schemes for financial aid akin to the New Deal (France, Germany, etc.).<\/p>

      To effectively support artists, it is important to know how to attract and work with them. Artists are risk-takers and work at the innermost core of society\u2019s creativity. Concurrently, it\u2019s important to remember that artists consistently live with their share of doubt, permanent questioning, the fear of jumping into the void, personal tensions, and needs. Likewise, artists know how to take risks, manage failure, as well as organize and engage with failure over time. An artist lives according to values which differ from those of others.<\/p>

      In the short and medium term on the one hand and in the long term on the other, it is necessary to support artists and creatives in helping themselves. In order for them to survive and persevere, we must help them retain their \u201cresilience\u201d. <\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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      Action 5:
      Immigration, Diversity, and Cultural Economy<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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      All the studies we have conducted or consulted in the past confirm the decisive role of diversity in cultural development. At the beginning of the 20th century, most of the founders of the major Hollywood studios were immigrants; by the end of the 20th century, two-thirds of the founders of the major Silicon Valley start-ups were first- or second-generation immigrants.<\/p>

      According to the available data, Frankfurt itself is a city of immigration. Approximately 50% of its inhabitants are said to have a \u201cmigratory background\u201d, i.e., either they themselves or a parent (first or second generation) are of foreign origin. In addition, about one-third of Frankfurt’s population is said to hold foreign citizenship. Christianity is the dominant religion, but Muslims, and Jews are also very present. Thus, Frankfurt is already a diverse city.

      Particularly in the creative and digital sector of the economy, immigration is an asset. Provided that dynamic programs and successful policies for (social) integration are built upon, migrants may well be at the center of Frankfurt\u2019s future.<\/p>

      Moreover, artists have long been ahead of their time regarding the representation of women, homosexuals, and gender issues, particularly in the United States. While works of art and books reflect these concerns, female artists nevertheless remain under-represented in this field. <\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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      Action 6:
      Innovation: Science + Technology + Arts + Citizens<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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      Frankfurt is the international hub and \u201cPendlerhauptstadt\u201d of the polycentric metropolitan region Frankfurt-Rhein-Main. A center of competence with international standing that acts as a local nucleus for the creative economies is still missing in Frankfurt, the core of the metropolitan region. Knowledge transfers throughout the region can be expected to stem not only from innovation potentials across technology, economy, arts, and culture (cultural and creative spill-overs; the \u201cfusion of skills\u201d between arts and science; outreach and education to prompt awareness for the creative industries), but also from the development of innovative, sustainable entrepreneurial models in an experimental process. Protagonists of the creative economies can also provide valuable impulses on a societal level (new work, prototyping, affinity for technology, formation of clusters and enhancement of regional identity, product development and conception, or innovative solutions in the field of ecology, among others).<\/p>

      An extension of the \u201dhouse of-\u201c concept pursued by the Hessian Ministry of Economics is proposed. This concept is based on the triple helix model of economy, science (research), and politics (public policy), with a strong emphasis on interdisciplinarity. An extension thereof may be envisioned as a semi-virtual concept for a \u201cHouse of Creativity & Innovation\u201d, which could be conceived as a network structure oriented towards a human-centred quadruple helix model. Thereby, the existing model is enhanced to include aspects of, e.g., arts-based innovation and the democratic knowledge of civil society. Not least, such an expanded model features added potential to foster an international profile at the interface of arts and technology. Based on the flexible working structures of the creative industries, such a \u201chouse\u201d could be designed in a semi-virtual way with, e.g., co-working spaces or \u2018satellites\u2019 at the \u2018peripheries\u2019, a state-of-the-art workspace with an AI makerspace, and fablabs in the center (exemplary cases: Steamhouse, Birmingham or Taiwan Contemporary Culture Lab, Taipei, a center for artistic, technological and social innovation spanning seven hectares, spearheaded by the Ministry of Culture, the Ministry of Science and Technology, and the Ministry of Economic Affairs).<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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