The creative economy

How people make money from ideas

Oshadi Mohottiarachchi.

Jignaben Patel.  

Contents

Introduction to creativity

Creativity and science

Up the ladder of desires

Learning by doing

Six characters in search of an audience

Rider concept

Seven principles of intellectual property

The creativity

The creative economy refers to the various industries and activities that revolve around the generation and monetization of ideas. In this modern era, creativity has become a valuable asset in the business world, as individuals and organizations strive to find innovative solutions and create unique products and services. The core creative industries, which include advertising, design, fashion, film, music, and publishing, play a crucial role in this economy. Managing creativity is no easy task, as it requires balancing the need for structure and organization with the freedom and flexibility that creativity thrives on. The creative economy encompasses a wide range of industries, including advertising, architecture, design, fashion, film, music, publishing, and software development as mentioned before. Each of these industries relies on the innovation and ideas of individuals to generate revenue. However, managing creativity in these industries can be a delicate balancing act. On one hand, there is a need for structure and organization to ensure efficiency and productivity. (Hawkins, 2001, x)

Moreover, managing creativity is a skill that can greatly enhance an individual’s ability to monetize their ideas effectively and make a creative product. It involves harnessing one’s imagination and translating it into practical and marketable solutions. By understanding the target audience and market trends, creative entrepreneurs can tailor their ideas to meet the needs and desires of potential customers. Additionally, strategic planning and organization are essential in ensuring that the creative process is efficient and productive. (Hawkins, 2001, xi)

Strategic planning plays a crucial role in the creative process within the context of the creative economy. By carefully mapping out the steps and objectives, individuals can navigate the often-unpredictable nature of generating income from ideas. From identifying target audiences to developing effective marketing strategies, strategic planning provides a framework for success. Furthermore, it allows for the efficient allocation of resources and the ability to adapt to changing market demands. The creative economy is not only about generating income from ideas, but also about the organization and management required to bring those ideas to fruition. In order to effectively capitalize on creativity, individuals and businesses must understand the core creative industries and how they operate. These industries, such as design, advertising, and media, play a vital role in shaping the creative economy by providing platforms for artists, writers, musicians, and other creative professionals to showcase their work. However, managing creativity can be a delicate balance between allowing for free expression and maintaining structure and discipline. (Hawkins, 2001, xi)

According to john Hawkins research The creative economy is driven by the production and consumption of creative products, which are goods or services that originate from individual creativity and possess economic value. These creative products encompass a wide range of industries, including art, design, fashion, media, and entertainment. In the art industry, for example, individuals can generate income by selling their paintings, sculptures, or other artistic creations. Similarly, in the fashion industry, designers can monetize their unique apparel designs by selling them to consumers. (Hawkins, 2001, x)

Creativity and science

Continuing our exploration of the creative economy, it is important to recognize that creativity flourishes equally in the world of science, particularly in research and development. Many breakthroughs and innovations have stemmed from individuals applying creative thinking to scientific pursuits. This intersection of creativity and scientific inquiry not only drives advancements in various fields but also opens new doors for individuals to generate income from their ideas. Managing creativity in this context becomes crucial, as it requires balancing the need for experimentation and out-of-the-box thinking with the structured approach necessary for scientific progress. (Hawkins, 2001, xi)

The creative economy is a unique and multidimensional concept that encompasses both arts and science. It delves into the realm of imagination and seeks to describe the nature and meaning of reality. By merging the worlds of creativity and business, individuals can harness their ideas and transform them into valuable commodities. The core creative industries play a pivotal role in this process, as they provide the necessary infrastructure and platforms for creative individuals to thrive. (Hawkins, 2001, xi)

Up the ladder of desires

There are powerful reasons why the creative economy will be the dominant form in the 21st century. The first, and most compelling, is the way we evolve as physical and social beings. It is in our nature to seek out new experiences, constantly pushing the boundaries of what is possible. The creative economy taps into this innate desire for exploration, offering individuals the opportunity to express their unique ideas and perspectives. (page xiv) Our first needs are air, water, and food. When these are satisfied and if the environment is hostile for shelter and safety, next come our social needs and belonging and love. In the context of the creative economy, individuals are driven by their desire to satisfy these social needs and fulfill their sense of belonging. The core creative industries play a pivotal role in meeting these needs by providing opportunities for individuals to express their creativity, connect with others, and contribute to the larger creative ecosystem. (Hawkins, 2001, xv)

Market economies are skilled at meeting consumer needs, especially in the field of entertainment where consumer needs are so passionate and evanescent. These core creative industries, which encompass sectors such as film, music, publishing, fashion, and design, thrive on the innovative ideas and artistic expressions of individuals. They harness the power of creativity to create products and experiences that captivate and resonate with audiences worldwide. Managing creativity within these industries is a delicate balance of nurturing artistic talent while also considering the demands of the market and the need for sustainable profitability. The creative economy is not only about generating income from ideas, but also about managing creativity within the core creative industries. It is a delicate balance of nurturing artistic talent while also considering the demands of the market and the need for sustainable profitability. In today’s fast-paced and competitive world, creatives need to navigate the intersection of art and commerce in order to thrive. Understanding how to harness creativity and transform it into a viable business model is vital for individuals and organizations alike. (Hawkins, 2001, xv)

Learning by doing

Learning by doing is a major key factor in fostering creativity within the creative economy. By actively engaging in practical application and hands-on experience, individuals are able to fully immerse themselves in the creative process, allowing for experimentation, risk-taking, and continuous improvement. This experiential learning approach enables individuals to develop their skills and knowledge while gaining valuable insights into market dynamics and audience preferences. Moreover, learning by doing empowers individuals to explore their creativity in a supportive and interactive environment, fostering innovation and pushing boundaries. The creative economy is a fascinating and dynamic field that encompasses a wide range of industries. It is a space where individuals can turn their ideas and talents into profitable ventures. In this realm, there is a delicate balance between thinking and not thinking, learning and not learning. This delicate balance is applicable to art, science, literature, business, and everything in between.  (Hawkins, 2001, xvii)

Six characters in search of an audience

Creativity plays a vital role in the economy, as it is the driving force behind innovation and the generation of new ideas. There are six characteristics of creativity that are necessary for its successful implementation. Firstly, creativity stems from the basic elements of life, such as imagination and curiosity. These fundamental traits enable individuals to think outside the box and come up with unique solutions to problems. (Hawkins, 2001, 10)

In the creative economy, individuals have found innovative ways to transform their ideas into profitable ventures. From artists and writers to musicians and filmmakers, people are leveraging their talents to generate income. However, beyond individual talent, there is another key element that plays a significant role in driving creativity: universal talent. This refers to the ability to draw inspiration and insights from various disciplines and cultures. (Hawkins, 2001, 11)

Continuing on the discussion of creativity in the economy, another important characteristic is the element of fun. Incorporating enjoyable experiences into the creative process can greatly enhance productivity and innovation. When individuals are engaged in activities, they find pleasurable, the brain releases dopamine, a neurotransmitter associated with motivation and reward. This increase in dopamine levels can inspire individuals to think more creatively and approach challenges with enthusiasm.  (Hawkins, 2001, 12)

The fourth important characteristic is a sense of competition. In a competitive marketplace, individuals are motivated to innovate and differentiate themselves from others in order to gain an edge. This competition fosters an environment where new ideas are constantly being generated and improved upon. Additionally, competition encourages individuals to push the boundaries of what is possible, leading to breakthrough innovations that drive economic growth. (Hawkins, 2001,13)

The fifth important characteristic is the personality traits exhibited by creative individuals. As they engage their creative talents, they tend to possess several recognizable traits that contribute to their success. For example, Creativity often goes hand in hand with a high level of openness to new experiences. This openness allows individuals to explore unfamiliar territory, embrace different perspectives, and seek out novel ideas. By stepping outside of their comfort zones, individuals are able to challenge existing norms and push the boundaries of what is considered possible. This willingness to embrace the unknown is what sets creative thinkers apart and allows for the generation of groundbreaking concepts and innovations. (Hawkins, 2001,13)

The last key element to creativity is the element of surprise. It is the unpredictable and unexpected nature of creativity that sets it apart from other aspects of life. Unlike routine and predictable activities, Creativity does not follow a predetermined path or adhere to strict rules. It evades most categories and defies conventional thinking. Instead, it thrives on exploration, uncertainty, and the willingness to take risks. By breaking down barriers and challenging traditional norms, creativity opens up new possibilities and propels innovation forward. (Hawkins, 2001,14)

RIDER CONCEPT

John kawkins analysis of the creative process is a five-fold mix of dreams and analysis, intuitive jumps spelled out in a list which he called “RIDER”

R – Review

I – Incubation

D – Dreams

E – Excitement

R – Reality check

In the creative process, review is important as it allows individuals to take stock of their ideas and assess their progress. Reviewing work helps to identify strengths and weaknesses, enabling artists, entrepreneurs, and innovators to refine and improve their creations. Whether it is a written manuscript, a design prototype, or a musical composition, the process of review provides an opportunity for critical evaluation and fine-tuning. By engaging in this reflective practice, creators can ensure that their work meets their own high standards and resonates with their intended audience. (Hawkins, 2001,16)

In the realm of the creative economy, one aspect that plays a vital role is the process of incubation. Incubation refers to the nurturing and development of creative ideas to their full potential. It serves as a crucial stepping stone in transforming abstract concepts into tangible products or services. The incubation period provides creators with the necessary space, resources, and support to refine their ideas, test prototypes, and explore innovative approaches.  (Hawkins, 2001,16)

Dreams are unconscious wanderings, the explorations and testings of myth and symbol and magic and stories, which is important in the creative process. They allow our minds to wander freely and explore endless possibilities without the constraints of reality, it allows our ideas to percolate and take shape in ways we may not have considered before. In dreams, we have the opportunity to tap into our deepest desires, fears, and emotions, often uncovering hidden truths about ourselves. This exploration of the subconscious realm is an essential source of inspiration and innovation for those in the creative economy. Such as Artists, writers, and innovators have long recognized the power of dreams as a source of inspiration and creativity. (Hawkins, 2001,17)

Excitement is the adrenaline that powers intuitive jumps and half-calculated sideways movements, which is crucial for creativity. When we feel excited about an idea or a project, it ignites a fire within us that propels us forward with passion and enthusiasm. This excitement fuels our creativity by pushing us to think outside the box, take risks, and explore uncharted territory. It allows us to embrace the unknown and embrace the possibilities that lie beyond our comfort zones. (Hawkins, 2001,17)

Creativity is a fundamental aspect of human experience, allowing us to envision new possibilities and push the boundaries of what is considered possible. It is through creativity that innovative ideas are born, leading to new products, services, and technologies that shape our society. However, while the pursuit of creativity is undoubtedly important, it is equally crucial to ensure that our dreams and intuitions have not taken us too far away from reality. That is why reality check serves as a necessary grounding force, helping us evaluate the feasibility and practicality of our ideas. (Hawkins, 2001,17)

7 principles of intellectual property.

Property

First, it is important to recognize that intellectual property is indeed property. In a world where ideas hold value, it is essential to provide legal protection for those who create and innovate. Intellectual property encompasses a wide range of intangible assets, including inventions, literary and artistic works, symbols, names, and designs. By granting ownership rights to individuals and organizations, intellectual property laws encourage the creation and dissemination of new ideas, fueling economic growth and fostering innovation. (Hawkins, 2001,23)

Intangibility

The creative economy is a thriving sector where individuals generate income from their ideas and intellectual property. However, it is important to acknowledge that the ideas themselves can be difficult to possess and maintain due to their intangible nature. This unique aspect of the creative economy presents both challenges and opportunities for creators and innovators alike. As the next paragraphs unfold, we will delve deeper into the intricacies of intellectual property and explore how individuals navigate this complex landscape to protect and monetize their ideas. (Hawkins, 2001, 23)

Government

It is important to note that intellectual property only exists within the boundaries set by governments and law courts. This means that the value and legitimacy of these ideas are determined by the legal systems in place. (Hawkins, 2001, 25)

International conventions

Fourth, the ease and quickness with which creative products travel and can be copied or used in another country have encouraged governments to establish international conventions to protect their national intellectual property wherever it may be traded. These conventions aim to safeguard the rights of creators and innovators, ensuring that their ideas and works are not exploited without permission or proper compensation. By setting up a framework of mutual respect and legal obligations, these conventions create a level playing field for creative professionals in the global marketplace. (Hawkins, 2001,26)

Justification

The justification for intellectual property can be summarized under four key aspects: incentive, reward, disclosure, and human rights. Intellectual property rights provide individuals and organizations with the incentive to invest time, energy, and resources into the creation of new ideas and inventions. By granting exclusive rights, such as patents or copyrights, creators are rewarded for their efforts and motivated to continue their creative endeavors. (Hawkins, 2001,27)

Property contract

The sixth basis of all intellectual property law is called property contract. This legal framework provides individuals and organizations with the ability to protect their ideas and creations, giving them exclusive rights to use and profit from them. Property contracts, also known as licensing agreements, allow for the transfer of intellectual property rights from one party to another, typically in exchange for financial compensation. By establishing clear terms and conditions, property contracts help foster a fair and equitable environment for creators, ensuring that they are rewarded for their ideas and efforts. (Hawkins, 2001,28)

Opting out

The creative economy has transformed the way people make money, as it heavily relies on ideas and innovation. In this context, there are many creative people who do not enter the marketplace at all and do not sign contracts. They opt out of the traditional ways of monetizing their creativity and instead choose to pursue their passions independently. These individuals believe that true artistic freedom comes from rejecting the constraints of the commercial world and embracing a more unstructured and authentic approach to their craft. (Hawkins, 2001,31)

The creative economy has transformed the way people make money, as it heavily relies on ideas and innovation. In this context, for all the six principles mentioned above, patents are a major clear example. Patents provide legal protection for inventors and creators, allowing them to have exclusive rights to their ideas and inventions. By granting patents, society acknowledges the importance of intellectual property and encourages inventors to share their creations without fear of theft or infringement. (Hawkins, 2001,32)

References  

(Hawkins. J, 2001, the creative economy how people make money from ideas)