The Role of the Creative Industry in Economic Development

Journal of Environmental Treatment Techniques

2020, Volume 8, Issue 1, Pages: 268-271

J. Environ. Treat. Tech.

ISSN: 2309-1185

Journal web link: http://www.jett.dormaj.com

The Role of the Creative Industry in Economic

Development

Wifl Ihani *, Heppi Syofya , Avid Leonardo Sari , Widyatmike Gede Mulawarman ,

Sriyanto Sriyanto⁵

¹Universitas Negeri Medan, Medan, Indonesia

Sekolah Tinggi Ilmu Ekonomi Sakti Alam Kerinci, Indonesia

Universitas Islam Negeri Sunan Gunung Djati, Bandung, Indonesia

Universitas Mulawarman, Indonesia

Social Studies Department, Universitas Muhammadiyah Purwokerto, Indonesia

Received: 02/08/2019

Accepted: 29/10/2019

Published: 20/02/2020

Abstract

For the growth of economic it can consider as the driver to creative industries and culture industries. For the development of

particular region from last decade, it tries to link the large intensity of these industries with the research. The term creative

economy includes publishing arts, design, audio-visual products, new media, performing arts and visual arts. In term of export

earnings, job creation and income generation it is not only the factor of growth of world economy but it is also very

transformative.

Keywords: Economic, Creative industries, Growth, Arts, Income generation

creativity. The creative industry is based on economy that

is required to be knowledge-based.(1)

Introduction

Industrial development is necessary for modernisation

The sum of all kind of creative industries that is

including production, trade and labor can be introduced as

creative economy. Today, the creative industries are among

the most powerful parts on the planet economy giving new

chances to forming nations to jump into developing high-

development regions of the world economy.(2)

of agriculture. In India, agriculture is traditional and

backward. The cost of production is high and productivity

is low. We need tractors, threshers, pump sets and

harvesters to modernise agriculture. To increase

productivity, we need chemical fertilizers, pesticides and

weedicides etc. These are all industrial products. Without

industrial development, these goods cannot be produced.

Agricultural products like jute, cotton, sugarcane etc. are

raw materials. To prepare finished products like flex,

textiles and sugar etc. we need industrialisation. So

industrial development is necessary for modernisation of

agriculture.

The term creative industry include publishing, music,

performing arts, advertising, fashion, computer games,

photography, architecture, computer games, software, arts

and crafts, research & development and TV and radio are

the major function of creative industry in economic

development. It can see that they are considered as

significant source of cultural and commercial value.

The creative economy does not have any one definition.

It can defined that creative economy is can be an evolving

concept which it make a interplay between technology,

intellectual property, knowledge and idea of human

Figure 1: Creative indusrty fedeartion

Literature Review

.1 In context of an Innovation networks of creative

industries

In 2002 Florida, in 2006 Pratt, in 2006 Scott, in 2010

Felton et al., in 2014 Yu et al., defined that The geological

grouping of organizations is regularly seen as a significant

driver of economic development, especially with regards to

Corresponding author: Wifl Ihani, Universitas Negeri

Medan,

Indonesia.

E-mail:

wiflihani@unimed.ac.id.

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2020, Volume 8, Issue 1, Pages: 268-271

systems administration and information sharing for little

and medium business (3).

3.4 Importance in

Industrialisation plays an important role in the

promotion of trade. The advanced nations gain in trade than

countries who are industrially backward. The

underdeveloped countries export primary products and

import industrial products. Agricultural products command

lower prices and their demand is generally elastic. While

industrial products command higher values & their demand

is inelastic. This causes trade gap. To meet the deficit in

balance of payments we have to produce import substitute

products or go for export promotion through industrial

development.

Systems not just form associations with existing or

potential customers yet in addition organizations with other

imaginative enterprises organizations. This thusly makes an

imaginative enterprises cooperative energy. Such

collaborations happen as intended when "gatherings of

people, regularly from various organizations, meet up for a

constrained timeframe to attempt explicit errands before

exchanging binds and being reassigned to different

activities" defined by Reimer et al., in 2008 (4-6).

At the core of the co-area discussion is whether

geographic bunching really makes inventive enterprises

progressively productive in creating local economies. There

is additionally banter on whether enormous metropolitan

groupings of inventive enterprises will keep on developing

while local center stays vague in 2008 by Reimer et al. In

3.5. Use of Natural Resources

It is a common saying that India is a rich country

inhabited by the poor. It implies that India is rich in natural

resources but due to lack of capital and technology, these

resources have not been tapped. Resources should be

properly utilized to transform them into finished industrial

products. The British people took India’s cheap raw-

materials for producing industrial goods in their country.

India was used as a market for their industrial products. So

India fought with poverty and England gained during

industrial revolution. Hence industrialisation plays

important role for proper utilisation of resources.

2015 Rowe and Collits (2015) contend that local organizers

regularly don't have an unmistakable thought of how their

economies work and even less thought regarding how to

fuse imaginative ventures in territorial monetary

arranging(7).

Result and Discussion

Industrial development encourages the development of

science and technology. The industrial enterprises conduct

research and develop new products. Ethanol in the form of

biofuel is an example of industrial development. Industry

conducts research on its wastes and develops byproducts

like biodiesel from Jatropha seeds. Due to industrialisation,

we have made progress in atomic science, satellite

communication and missiles etc.

.6 Alleviation of Poverty and Unemployment

Poverty and unemployment can be eradicated quickly

through rapid industrialisation. It has occurred in

industrially advanced countries like Japan. The slow

growth of industrial sector is responsible for widespread

poverty and mass unemployment. So with fast growth of

industrial sector, surplus labour from villages can be put

into use in industry.

3.1 Capital Formation

Acute deficiency of capital is the main problem of

.7 Main Sector of Economic Development

Industry is viewed as leading sector to economic

Indian economy. In agricultural sector, the surplus is small.

Its mobilisation is also very difficult. In large scale

industries, the surplus is very high. By using external and

internal economies, industry can get higher profit. These

profits can be reinvested for expansion and development.

So industrialisation helps in capital formation.

development. We can have economies of scale by applying

advanced technology and division of labour and scientific

management. So production and employment will increase

rapidly. This will bring economic growth and capital

formation.

.2 Industrialisation and Urbanisation

Urbanisation succeeds

.8 Fast Growth of National and Per Capita Income

Industrial development helps in the rapid growth of

industrialisation.

Industrialisation in a particular region brings growth of

transport and communication. Schools, colleges, technical

institutions, banking and health facilities are established

near industrial base. Rourkela was dense forest but now is

ultra modern town in Orissa. Many ancillary units have

been established after setting up of big industry.

national and per capita income. The history of economic

development of advanced countries shows that there is a

close relation between the level of industrial development

and the level of national and per capita income. For

instance, the share of industrial sector to national income

was 26% and the per capita income in year 2000 was

6,240 dollar in USA.

In 1994 DCA, the term of creative industries is

.3 Self-reliance in Defence Production

To achieve self-reliance in defence production,

introduced in Australia, and it use for the eceonomic

development. It can also refered to as creative and cultural

industries, creative sector or creative industry.

industrialisation is necessary. During war and emergency

dependence on foreign countries for war weapons may

prove fatal. Self-reliance in capital goods and industrial

infra-structure is also necessary. Atomic explosion at

Pokhran (Rajasthan) and Agni Missile are examples of

industrial growth.

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2020, Volume 8, Issue 1, Pages: 268-271

comprehensive practical development. On the off chance

that well-supported, the inventive economy can be a

wellspring of auxiliary financial change, financial

advancement, work creation and advancement while adding

to social incorporation and reasonable human improvement.

Basically Cultural and creative industries (CCI) are

comprehensive. Individuals from every single social class

from the indigenous to the tip top take an interest in this

economy as makers and customers. Work in the segment

will in general support youth and ladies contrasted and

different divisions

Table 1: Examples of Creative Industries

Figure 2: GDP in core industries (8)

The term creative industries have numerous definitions.

The most as a rule refered to are DCMS(British Department

of Culture Media and Sports) and UNCTAD (United

Nations Conference for Trade and Development). The term

'creative industries' started to be utilized around twenty

years back to portray a scope of exercises, some of which

are among the most established in history and some of

which just appeared with the coming of advanced

innovation. A significant number of these exercises had

solid social roots and the term 'cultural industries' was at

that point being used to depict theater, move, music, film,

the visual expressions and the legacy division, in spite of

the fact that this term was itself questionable the same

number of craftsmen felt it belittling to consider what they

did as being, in any capacity, an 'industry' (12-14).

The creative economy is one of the most unique

divisions of the worldwide economy with an amazing

transformative power for financial advancement. The

innovative economy manages the interface between

economy, culture, innovation, and social viewpoints.

Having inventiveness as the primary driver, the area is

focused around items and administrations bearing

innovative substance, social worth and market goals.

Inventive merchandise and ventures are flexible items for

they depend on thoughts, learning, aptitudes and the

capacity to take advantage of new lucky breaks.

.1 Creative Industries evolution

After twenty years, the idea of the 'creative industries',

and their significance, is perceived by pretty much every

administration on the planet and is starting to offer path to a

significantly more comprehensive thought of a more

extensive 'creative economy'. Obviously, the longing to

characterize explicit enterprises as 'creative' endures, and

will no uncertainty keep on being so. In certain nations the

definitions rotate intently around human expressions and

culture.

3.2 Cultural and creative industries can

power human development

Creative and cultural industries, which incorporate

expressions and artworks, promoting, structure, excitement,

design, books, media and programming, have turned into a

fundamental power in quickening human advancement.

They enable individuals to take responsibility for possess

advancement and invigorate the development that can drive

Figure 3: Creative Economy (9)

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2020, Volume 8, Issue 1, Pages: 268-271

Table 2: Creative Industry Evolution (10)

5. Baum S, O'Connor K, Yigitcanlar T. The implications of

creative industries for regional outcomes. International Journal

of Foresight and Innovation Policy. 2008 Dec 19;5(1-3):44-64.

Jayne M. Culture that works? Creative industries development

in a working-class city. Capital & Class. 2004 Nov;28(3):199-

10.

Gibson C, Klocker N. Academic publishing as

creative’industry, and recent discourses of ‘creative

‘

economies’: some critical reflections. Area. 2004

Dec;36(4):423-34.

Hracs BJ. A creative industry in transition: the rise of digitally

driven independent music production. Growth and Change.

012 Sep;43(3):442-61.

Galloway S, Dunlop S. A critique of definitions of the cultural

and creative industries in public policy. International journal

of cultural policy. 2007 Feb 1;13(1):17-31.

0. Tepper SJ. Creative assets and the changing economy. The

Journal of Arts Management, Law, and Society. 2002 Jan

;32(2):159-68.

1. Boldrin M, Levine D. The case against intellectual property.

American Economic Review. 2002 May;92(2):209-12.

2. Coombe RJ. Intellectual Property. The International

Encyclopedia of Anthropology. 2018 Jul 25:1-1.

3. Foord J. Strategies for creative industries: an international

review. Creative Industries Journal. 2009 Jan 1;1(2):91-113.

4. Towse R. Creativity, copyright and the creative industries

paradigm. Kyklos. 2010 Aug;63(3):461-78.

Figure 4: Enterprenureship in creative industry (11)

Conclusion

The term creative economy includes publishing arts,

design, audiovisual products, new media, performing arts

and visual arts. In term of export earnings, job creation and

income generation it is not only the factor of growth of

world economy but it is also very transformative. The

creative industry is based on economy that is required to be

knowledge-based. The sum of all kind of creative industries

that is including production, trade and labor can be

introduced as creative economy. Today, the creative

industries are among the most powerful parts on the planet

economy giving new chances to forming nations to jump

into developing high-development regions of the world

economy.

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