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Enumerating the role of incentives in CCI production chains

Clémentine Daubeuf; Pratt, Andy; Elisabetta Airaghi; Teodora Pletosu

In the market dynamics of cultural and creative industries, incentives play a major role. This report analyses the various types of incentives in support of these industries in Europe and explores the needs that motivate their existence. This analysis is framed by the Global Production Network approach. Within such approach, an incentive is a policy instrument (or a measure) taken to stimulate the creation, production, dissemination or exhibition of cultural and creative goods and services, as well their reception, and transmission to and consumption by an audience – or the participation of such audience in their final realisation. Within each of these phases of the production networks of cultural and creative industries, incentives can take the form of public subsidies (e.g. grants, vouchers, loan guarantees), regulatory incentives (e.g. tax policies or copyright rules) or incentives leveraging private investment. The presence of incentives at certain phases of the production networks shows where the emphasis is put in terms of investment. We find that incentives quite generously focus on the production phase, mainly because of supposed positive externalities and spillovers onto other sectors of the economy. Yet, we also find evidence of a lack of understanding of cultural value chains by
policymakers. This could lead to considerable damage, as has been witnessed in the European game industry, where production capacity was lost to Canada. With our emphasis on the production networks, we highlight the interdependence between production stages and therefore the need to better connect production with distribution to maximise effects of incentives, which remain important mechanisms in the European CCI economy in the face of new challenges.

This report is produced within the context of the H2020-funded CICERONE project. It is part of a series of reports of six reports resulting from the project's 3rd work package (WP) called “Policy, regulatory and governance matrix of the CCI”. This WP aims at exploring the policy and regulatory environment for the CCI and assessing to what extent these are appropriate to the challenges of new and emergent organisational and governance forms of the creative economy. For more information on the CICERONE project, please visit www.cicerone‐project.eu. The scientific reports resulting from the project are publicly disclosed in its dedicated Zenodo community on https://zenodo.org/communities/ciceroneh2020.

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