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Summary articles week 1-3 (grade 9)
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Summary of all articles of week 1-3 of cultural industries for business
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WEEK 1Article 1: Modeling the cultural industries (D. Throsby, 2008)
Cultural industries are regarded as those industries that combine the creation, production and
commercialization of contents, which are intangible and cultural in nature (typically protected by
copyright).
Culture can be interpreted in an anthropological sense (share values, customers, way of life, etc) or in a
functional sense (activities such as the practice of arts). Cultural goods and services share the following
characteristics:
1. They require some input of human creativity in their production.
2. They are more than utilitarian goods in their production.
3. They contain some intellectual property.
Creative goods extend beyond cultural goods, and can be seen as commercial products, which involve some
level of creativity in their production.
Due to different combinations of industries included in each model, estimates of the size and economic
contribution of the cultural industry sector to the national economy will differ significantly between the
models. If cultural policy is interpreted in economic terms, policy will aim to target the sectors creating the
highest rate of growth in employment and value of exports and imports. If policy is directed towards
reaching a government’s cultural objective’s a different group of core activities will be used.
What would happen if the concentric circles model was used instead of WIPO?
Total revenues would go down, because instead of including all industries who are directly or indirectly
involved in creating, manufacturing, distributing and broadcasting copyright works which is at the
foundation of the WIPO, the concentric circle model would only include those industries who are at the
core of cultural industries (sound, text and image).
In order of economic impact from low to high:
Concentric circles -> Symbolic text -> WIPO
Different economic analyses of the cultural industries can be made.
1. Industrial organization theory: the most basic form of economic analysis is simply to measure
the standard economic variables for which data are routinely collected for all industries by statistical
agencies: gross value of production, value added, fixed capital formation, levels of employment of
different categories of labor, business concentration and so on. This analysis is primarily relevant to
those models oriented towards the commercial production of cultural goods and services.
,2. Value chain analysis: production chain with value adding stages from initial idea, the production
of goods or services, their marketing and distribution, until consumption. This approach is often
used by firms to analyze performance in different stages of the production cycle.
3. Inter-Industry analysis: output from one industrial sector as input to another sector (spillovers).
This approach is used to evaluate the economic impact of cultural policy.
4. Locational analysis: demand side and supply side. Firms tend to cluster in urban and regional
settings. This approach is often used by governments to attract firms and develop (cultural)
industry clusters.
5. Contract theory and property rights: complex creative industries depend on the existence of
contractual arrangements at all stages of the value chain. This approach is often used by firms to
develop optimal contracts with (value chain) partners.
6. Trade and development: theory of comparative advantage to explain specialization of production
in different countries. Free trade maximizes world welfare. This approach is used to explain the
specialization of countries and to eliminate trade barriers such as quotas.
, Article 2: An individual Business Model in the Making: a chef’s quest for creative freedom (S. Svenjova, M.
Planellas and L. Vives, 2010)
The article demonstrates that business models are not only organizational devices that reveal a company’s
logic for creating and capturing value but are also useful in identifying triggers and mechanisms associated
with changes.
Individual business models as sets of activities, organizing, and strategic resources that individuals employ
to pursue their interests and motivations, and to create and capture value in the process.
We identified four distinctive periods in the evolution of Adria`’s business model - which we have labeled
‘employee’ (1983-1989), ‘owner-manager’ (1990-1996), ‘entrepreneur’ (1997-2002), and ‘leader’
(2003-2008) - during which his role, as well as the triggers of and mechanisms for business model change,
have differed (see Figure 1 for an overview), the ‘lower boundary’ of each stage representing critical events
that signified substantial business model transformations.
Period 1: Employee pre-stage - can be seen as a ‘pre-stage’, where Adria` starts to develop his own business
model in outline, while discovering his vocation and contributing to changing elBulli’s value proposition;
Period 2: Owner-Manager - now the restaurant’s owner-manager - he engages in shifting its value
proposition more radically by developing his own style of cuisine based on creativity, and starts to build his
own brand equity;
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