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A Proposal for a Standard With Innovation Management System

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Elissaveta Gourova, Ivan Draganov and Kostadinka Toteva<br />

3. Challenges <strong>for</strong> CCI environment in Europe<br />

3.1 Facilitating CCI growth in Europe<br />

Despite their specificity, CCI encompass enterprises which need targeted support <strong>for</strong> their<br />

development and growth like other enterprises from high-tech industries. It is acknowledged that the<br />

entrepreneurial per<strong>for</strong>mance could be fostered by targeted measures linked to: access to capital,<br />

technology and R&D, entrepreneurial capabilities, market conditions, regulatory framework and an<br />

entrepreneurial culture (HKU, 2010). Generally, appropriate support policies and coherent industrial,<br />

cultural and trade policies are necessary to establish an environment that will encourage the<br />

development of CCI.<br />

In fact, many European countries already considered CCI as a priority of their economic policy.<br />

Several policies and strategies on CCI have been recently developed (e.g. UK, Germany, Denmark,<br />

Estonia, Finland, etc.). This has contributed to economic growth not only in countries with traditions in<br />

the sector, but also in countries with much smaller national markets, however, with targeted<br />

programmes <strong>for</strong> CCI development (Tomova et al. 2011; UNESCO, 2010).<br />

It is generally accepted that the economic development of CCI depends on the availability of funding<br />

and support systems that respond to their needs. Synergy between financial and creative inputs along<br />

the value chain (development, production to distribution and marketing) determines success or failure<br />

in creative industries (Cunningham et al., 2008). The lack of financing is impeding the growth of the<br />

sector, even in developed economies. The capital required <strong>for</strong> the development and implementation<br />

of promising ideas is frequently lacking. Creative businesses get sometimes funding from sources like<br />

personal investments, grants <strong>for</strong> promoting creativity or <strong>for</strong> business start ups, private R&D spending,<br />

tax deductions, loans, etc (UNIDO, 2010).<br />

� In the UK, <strong>for</strong> example, creative services industries (design, architecture, advertisement) are<br />

mostly self-financed, whereas creative experience providers (art, visual arts, music) are<br />

subsidised. A medium position takes the audiovisual sector where public subsidies are mixed with<br />

self-funding opportunities.<br />

� An Austrian report considers the promotion of creative clusters and observes that their future<br />

depends on: the supply of ‘creative products’; marketing, together with tourism; regional<br />

development; innovative inspiration and transfer of know-how (IKM, 2003).<br />

� In London, a ten-year action plan supports CCI, including funding to facilitate business growth and<br />

provide venture capital. Ten creative hubs in London provide flexible workspace, training,<br />

mentoring, exhibition, showcasing, marketing and networking facilities, and services like creative<br />

property advice; legal support <strong>for</strong> IPR; marketing <strong>for</strong> the attraction of investment; etc.<br />

Structural Funds have a particular role <strong>for</strong> CCI – <strong>for</strong> preserving national heritage, building cultural<br />

infrastructure (theatres, museums), increasing the visibility of culture and the attractiveness of local<br />

centres or regions. The main priorities set by the European Commission (EC) in Operational<br />

Programmes focus on raising the regional competitiveness, employment and social cohesion, and<br />

balanced territorial development. CCI activities are funded if linked to protection and preservation of<br />

national cultural heritage or raising the regional attractiveness, rural and cultural tourism development.<br />

There are evidences that many EU countries (Greece, Portugal, Italy, France, etc.) have explored the<br />

funding opportunities <strong>for</strong> cultural infrastructure and preserving national heritage, as well as developing<br />

cultural sites attractive <strong>for</strong> tourism. Except the revitalisation of the cultural sector, the funding<br />

contributed also to higher employment and in some places to higher growth of many creative<br />

companies (CSES, 2010).<br />

In last decades the development and stimulation of CCI in Europe became one of the EU priorities.<br />

Following the recent Europe 2020 strategy, the European Commission (EC) faces a challenge how to<br />

promote CCI and how to harness culture and creativity <strong>for</strong> innovation and growth. In order to move<br />

<strong>for</strong>ward, there is a need first to understand creativity as a driver of innovation and then to look <strong>for</strong> the<br />

contribution of innovation in CCI to smart growth, entrepreneurship, employment and wellbeing.<br />

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