Introduction far as one agrees, rendered as so-called “creative

 

 

 

 

 

 

Introduction

Cultural and creative industries with foreseeable
development prospects have become important indicators of urban economy. The
statistical data of culture and creative economy also reflects the life in modern
cities. The Federal Republic of Germany lies at the heart of Europe and is a significant
example of the successful development of the cultural industry.1 Berlin, its capital, is also
considered as the cultural center of Germany for its various cultural and
creative industries. Its economic structure was gradually reformed and
optimized after the reunification of East Germany and West Germany, and
achieved remarkable results since war. Its diversified demographic composition
and unique historical background provide prerequisite conditions for their development.
These industries have become an important thrust of the city’s economic
development in the past 25 years. In this essay, I will start with the
definition of the term cultural economy. Then the development of Berlin’s cultural
industries after reunification will be discussed with vertical comparisons in
last five years. Moreover, I will show the employment statistic in the cultural
industries and Berlin’s cultural industries compared to other industries and
other European countries to illustrate their crucial roles in Germany’s
economy.

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The
definition of cultural economy

The controversy of the defining the term
“cultural economy” regards to the question of whether cultural
production was a commercial business in the first place. Unlike the giant multinational
cooperation, most components of the cultural industries are micro studios and
small teams. Also, all cultural and creative economic activities had been, as
far as one agrees, rendered as so-called “creative
act”. However, in this essay, I will leave that controversy aside, and
consider these artworks as commercial works
of art (Caves, R. E. 2002) simply for the great profits they produce in the
cultural industries. I will also not address the clear distinction between creative industry and cultural industry
either,2
but to discuss them as a whole. In order to do so, I am applying the
Europe-wide uniform classification of the cultural and creative industries of the first European cultural economy report3 for the length of this essay.

 

“Cultural
and creative industries include those cultural and creative enterprises that
are predominantly economically oriented and that deal with the creation,
production, distribution and / or media distribution of cultural creative goods
and services.”4

1. Publishing / music
industry

2. Film industry
including TV production

3. Broadcasting industry

4. Group of Performing
Arts, Fine Arts, Music and Literature

(here mainly group of
independent artists)

5. Journalism and news
offices

6. Museum shops, art
exhibitions

7. Retail sale of
cultural goods (bookstores, music retailers, art dealers) 8. Architects’
offices

9. Design industry
(industrial, communications, graphics, other design) Creative industries

10. Advertising

11. Software / Games

12. Miscellaneous dance
schools, libraries / archives (private equity), botanical and zoological
gardens, as well as amusement parks and amusement parks

Cultural economy is a
comprehensive term that consists of the upper branches, not only for the
reasoning below, but also for the statistical data in the course of the work.

 

Berlin after
reunification: the development of cultural industries

German reunification was the starting point for the transformation
of the economy in Berlin. The Gross domestic product (GDP) of Germany rose from
€ 65.739 million to € 109.186 million from
1991 to 2013. Berlin’s 1991 GDP was
1,699,000 and 1,788,000 in 2013.5
Growth impetus came from a combination of additional demand for products and
services from West Berlin and the catching-up process in East Berlin. In the
second half of the 1990s, the economic situation changed into stagnation and
negative growth rates, and lasted until the new millennium. Fourteen years
after reunification, in 2004, economic output was below the economic level of
1991. Yet the cultural and creative
industries brought the Berlin economy back on tract from 2005 onwards, even the
global financial and economic crisis in 2009 did not cease the development6.
Berlin transformed rapidly from a traditional industrial city to a dominant
service-sector metropolis, where the so-called “soft” factors, such
as art and culture, and capacity of
innovation, tolerance and cultural attractiveness are becoming increasingly
important7.
Economic output fell by only 1.3% in Berlin, while it fell by 5.1% in Germany.
In the period of 2005 to 2013, Berlin recorded much stronger economic growth at
18.8% than Germany at 11.6%.8

Recent
development: vertical comparison in the last five years

Revenues
of the cultural and creative industries in Berlin over time (2009- 2013)9

The estimates for the cultural and creative industries
are based on national accounting data.

Annual income of the
music industry has increased by several hundred million euros since 2011.
Although the table below applies another new statistical methodology (see note
chart), the music industry continues to grow in the face of digitalization, the
software and gaming market is expected to increase by 12%. The tendency to maintain
the growth is strong in the national market of the cultural and creative
industries. Yet the losses in the film and radio industries are minor, it might
due to the fact that not adapting to the ever-changing digital challenges of
the new millennium.

Employment
within the cultural industries

In 2014, the employment agency offers 218,086 jobs
positions in the cultural industry. This includes socially insured employment, secondary
and independent activities. The employment figures have been steadily increasing
since 2008, which is particularly attributable to the software / games market.
At 66%, this represents the largest share of employees of the cultural
industry. In other markets, the average percentage is 40%. The proportion of self-employed in cultural
industries is enormously high at 53%.

 

In Berlin, which is perceived by many as a city of
arts and culture, the share of employees in the cultural industry is only about
9% above average. Yet knowing that Berlin has a population of 3,470,000 in 2015,
the percentage does not stand out for a reason. Looking at the absolute figure,
Berlin has a large number of 61,754 employees in the cultural industry.10

 

Cultural
compared to other industries

The total sales of cultural and creative products are considered
and their significance for regional economic performance. Berlin is currently
divided into so-called sales tax statistics 10 part of the overall economy of
the country. In this graph, the cultural industry is in sixth place with 15.6
billion euros. The sales are about as large as those of the construction
industry, and account for almost 6% of all revenue taxable income of Berlin. Therefore
in Berlin, the creative industries are an important factor for growth and
employment.

 

Berlin
compared to other cities in Germany

The HWWI / Berenberg-Kulturstädteranking measured the
cultural offer (cultural production) and the cultural demand (cultural
reception) of the 30 largest cities of Germany by quantitative criteria. The
results show that the share of the cultural industry in the overall economy, Berlin
has the highest percentage of around 17%. Munich and Cologne occupy the 2nd and
3rd place respectively.

 

Berlin has the highest number of artists in Germany
and also Berlin has the highest density of artists. With regard to the absolute
number, 69,299 artists live in the four million cities of Germany (Berlin,
Hamburg, Munich, Cologne). This is almost 67% of all German artists. Thus, the
concentration of artists in Berlin facilitates personal contact on the spot. It facilitates local interaction and
promotes specialization so that space-dependent external economies of scale,
which favor cultural economic activities, emerge.11

 

 

Conclusion

 

In the Federal
Republic of Germany, the city seems to have found a new role. It became a place
of the avant-garde of cultural industries. On the one hand, a special
department in the Senate Department for Economics, Labor and Women has been
working for years at the policy level to promote companies in this
forward-looking segment of the local economy. In 2005, it published the first Berlin cultural economy report.12
This report has made it clear that cultural and creative industries in Berlin (including
software and telecommunications industries) are crucial for the city, and at
the same time are of considerable importance for the labor market. More and
more highly qualified young people from Europe and even from all over the world
come to Berlin in search of new perspectives and development opportunities that
enrich the creative potential of the city with their ideas. Berlin has been and
will be dependent on this influx of talent for its recent and future economic
development.

 

Bibliography:

Bai, Y. &Ling, J. (2013) Culture and Creative
Industrial in Austrian.

Beijing: Zhongguowenlian Press.

Caves, R. E. (2002). Creative industries:
contracts between art and commerce. Cambridge, MA: Harvard University Press.

Chmielak, A. (2007). Towards unification of Europe:
culture and economy. Bialystok: Univ. of Finance and Management.

Heilbrun, J., & Gray, C. M.
(2010). The
economics of art and culture. Cambridge: Cambridge Univ. Press.

Huntington, S. P. (2011). The clash of civilizations
and the remaking of world order. New York: Simon & Schuster.

HWWI/Berenberg Kulturstädteranking
(2014)

03.07.2014 Hamburgisches
Weltwirtschaftsinstitut GmbH (HWWI)

Kra?tke, S. (2011). The creative capital of cities:
interactive knowledge of creation and the urbanization economics of innovation.
New York, NY: Wiley.

Publicity Department of the Communist Party of China.
(2010) A View of Cultural Economics in German, Bejiing: Zhonghua Book Company.

Scott, A. J. (2008). Culture, Economy, and the City.
Social Economy of the Metropolis, 84-109.
doi:10.1093/acprof:oso/9780199549306.003.0005

The economy of culture in Europe. (2006). Bruxelles:
KEA European Affairs.

Ulrich F., (1987), The Importance of the Capital of
Culture for Local Cultural and Economic Development, Culture and the Economy: A
Lucrative Connection.

Weckerle, C. (2008).
Kulturwirtschaft Schweiz—Ansätze und Perspektive. DisP – The Planning Review,
44(175), 7-16. doi:10.1080/02513625.2008.10557019

Wang, Y. M. (2007) Analysis of the Importance of the
Protection and Development of Cultural Industries for the EU. Journal of German
Studies, Vol. 22, No. 2, pp. 51-57.

Yu, X. M. (2005) “To Merge Culture and Economy under
the New Trend Economic Development – the Example of the State of North
Rhine-Westphalia.” Journal of German Studies, Vol. 20, No. 2, pp. 55-59.

1 Chmielak, A. (2007). Towards unification of Europe: culture and
economy. Bialystok: Univ. of Finance and Management.

2 Scott, A. J. (2008). Culture, Economy, and the City. Social Economy
of the Metropolis, 84-109. doi:10.1093/acprof:oso/9780199549306.003.0005

3European Parliament. Cultural Industries and Employment in The
Countries of The European Union: Summary (Education and Culture Series EDUC
104A) OL/ DB. URL: http ://www.europa.eu.int.

4Söndermann, M (2009): Guide to
the creation of a statistical data base for cultural industries and a
transnational analysis of cultural data, URL:
http://kreativgesellschaft.org/assets/files/dokubox/4/Leitfaden_zur_Erstellung_einer_statistischen_

Datengrundlage_fuer_die_Kulturwirtschaft_2009.pdf,
16.02.2015, S. 5.

5 Office of Statistics Berlin-Brandenburg and
Federal Employment Agency (2015), o. S.

6 The Governing Mayor of Berlin, Senate Chancellery – Cultural
Affairs, (2008), The creative industries in Berlin, Berlin.

7 Ulrich Fuchs, (1987), The Importance of the Capital of Culture for Local Cultural and
Economic Development, Culture and the Economy: A Lucrative Connection.

8 Data source: Results of the Working Group National Accounts of the
Länder (AK VGRdL), Calculation status August 2013 / February 2014. As there
were no revised long regional VGR series after the 2014 revision at the time of
preparation of this brochure, results of the preceding data were used.

9 Office of Statistics Berlin-Brandenburg and
Federal Employment Agency (2015), o. S.

10 Office of Statistics Berlin-Brandenburg and Federal Employment
Agency (2015), o. S.

11 HWWI/Berenberg Kultur-Städteranking
2014—Die 30 größten Städte Deutschlands im Vergleich.

12 Kulturwirtschaft
in Berlin – Entwicklungen und Potenziale. (2005, December 04). Retrieved May
24, 2016, from
https://www.berlin.de/rbmskzl/aktuelles/pressemitteilungen/2005/pressemitteilung.47401.php