CEPP NETWORK - Creative Economy

Unveiling the Creative Economy

Creativity refers to the generation of new ideas, while innovation concerns the application of those ideas, creating new strategies. Although creativity has no economic value in isolation, its combination with innovation and new technologies can generate sustainable solutions and be used as a strategic tool for development.

The creative economy is defined as activities resulting from individual creativity, with the potential to generate wealth and jobs through the exploitation of intellectual property. It is an economic sector that uses human creativity as the driving force behind the creation of new products and services, encompassing both tangible and intangible values. Thus, UNESCO (2005) classifies the activities of the Creative Economy as “Cultural Industry” or “Cultural Economy,” since most of these activities are related to the cultural sphere, such as music, painting, theater, media (newspapers, magazines, cinema), performing and visual arts, design, the trade in antiques, tourism, and museums (Caiado, 2008).

Beyond the cultural sphere, the Creative Economy also encompasses activities in the sectors of Innovation, technology, software, and Research and Development. Miguez (2007) defines the Creative Economy as activities related to goods and services based on texts, symbols, and images, as a distinct set of activities grounded in individual creativity, talent, or skill, in which intellectual property products range from traditional handicrafts to complex industrial production chains.

The creative economy encompasses the impact of creative goods and services on other sectors and economic processes, promoting socioeconomic development by reorganizing resources and distributing economic benefits (Hartley, 2005; Reis, 2008). Trovão and Nunes (2021) emphasize that the combination of creativity and technology energizes economic activities and reinvents them as symbolic content, enabling creative industries to face crises that affect traditional industry.

To learn more

Economic Impact of Creativity

Creative industries, in addition to being economically valuable, act as catalysts of intangible values across various economic sectors (Reis, 2008). According to UNCTAD (United Nations Conference on Trade and Development), the creative economy accounted for approximately US$ 1.5 trillion in global trade in 2020. It is one of the fastest-growing sectors, even in times of crisis.

UNCTAD’s 2024 research reveals that the creative economy contributes between 0.5% and 7.3% of GDP in 36 surveyed developing economies, employing between 0.5% and 12.5% of the workforce.

In Brazil, in 2019, the Creative Economy recorded a 3.87% growth in jobs generated compared to the previous year, accounting for 8.17% of formal and informal employment in the country (FIRJAN, 2019; Itaú Cultural, 2020).

Creative Territories: Where Innovation Meets Culture

Creative Territories are understood as places endowed with social capital, where the relationships established among agents (tourists, artists, merchants) promote socioeconomic development based on tourism and the consumption of cultural goods, forming an experience economy (Ashton & Emmendoerfer, 2014).

Main characteristics of a Creative Territory:

Concentration of creative agents: companies, artists, startups, studios, cultural spaces, and collectives.
Innovative and collaborative environment: partnership networks among creators, investors, universities, and the public sector.
Valorization of local identity: the culture, history, and lifestyle of the territory are strategic elements.
Inclusion and diversity: promotion of spaces for different audiences, ethnicities, genders, and cultural expressions.
Urban regeneration: many creative territories emerge in previously degraded areas, transforming them into vibrant hubs.

Integration with public policies: government support through funding programs, capacity building, and infrastructure.

The division of creative territories into macro, meso, and micro levels reflects the spatial and functional organization of the creative economy in cities. At the macro level, the designation of Creative City is the most well-known and widely disseminated; succinctly, it refers to the urban space where Creative Economy production takes place. According to Reis (2011), these are cities characterized by continuous innovation processes, based on connections, and with culture as a major source of creativity and a social, economic, and urban differentiator. At the micro level are Creative Districts, privileged locations for economic development and knowledge sharing, as well as facilitators in accessing factors of production (social capital, inputs, and experienced and skilled labor) for enterprises, thereby reducing their transaction costs (Sanfelici, 2021).

UNESCO and the Creative Economy Worldwide

By identifying the vast potential of the creative economy, several institutions, countries, and organizations- such as the United Nations Educational, Scientific and Cultural Organization (UNESCO) - have become interested in understanding this new dynamic and creating policies to promote a more balanced and sustainable global economy.

UNESCO defines seven creative fields for the Creative Cities Network: Crafts and Folk Art, Design, Film, Gastronomy, Literature, Media Arts, and Music. These areas are considered important for promoting culture and sustainable development, as pursued by the network of cities.

Crafts and Folk Art: Includes the production of handcrafted objects, folk crafts, and traditional cultural expressions.
Design: Encompasses product design, graphic design, fashion design, interior design, and other creative fields.
Film: Covers the production and distribution of films, documentaries, and other cinematic forms.
Gastronomy: Includes regional cuisine, local ingredients, restaurants, and gastronomic festivals.
Literature: Encompasses writing, publishing, and reading books, poetry, and other literary genres.
Media Arts: Includes digital arts, games, animation, and other forms of digital expression.
Music: Covers the composition, production, performance, and dissemination of music across different styles and genres.

The creative economy is considered “a strategic driver for achieving the 2030 Agenda,” as it fosters inclusive economic growth (SDG 8), promotes innovation (SDG 9), values cultural diversity, and reduces inequalities (SDG 10). Creative sectors also contribute to quality education (SDG 4), gender equality (SDG 5), and the strengthening of more sustainable and culturally rich cities (SDG 11). Supporting it as a public policy is strategic for addressing global challenges such as unemployment, social inequality, and climate change.

The UNESCO Creative Cities Network is an initiative aligned with the 2030 Agenda for Sustainable Development through culture. It seeks cooperation among cities that recognize creative activity as one of the strategies for economic, social, cultural, and environmental development.

To participate in the UNESCO Creative Cities Network, the application must be led by the local government (municipality) and is exclusive to cities; applications from countries or regions are not permitted. In Brazil, the process is initially submitted to the Ministry of Tourism (MTur), which works in coordination with the National Commission for UNESCO. The process involves submitting a letter signed by the mayor, completing an official UNESCO questionnaire, and preparing a four-year action plan. The submitted documentation is evaluated by experts and by cities already participating in the Network. The selection considers criteria such as the contribution of creativity to sustainable development, supporting public policies, community participation, and potential for international cooperation.