FOUR APPROACHES TO THE CREATIVE ECONOMY: GENERAL OVERVIEW

. The article presents the concept of the creative economy as a new economic phenomenon in the globalized environment. Four approaches on the new occurrence are presented. According to John Howkins theory, the fifteen creative industries (listed by the author) are the core of the creative economy. Both creativity and economy aren’t new, but brand new are its interaction and scope. A wide definition of creativity has formed Richard Florida’s theory of the developing crea - tive class, which is a group of professionals, researchers and artists whose presence creates socioeconomic and cultural dynamism in cities especially. Richard Caves characterizes creative industries on the basis of seven economic properties and presents an idea that creative industries as such aren’t unique but the sectors of creative industries driven by creativity generate new approaches to business processes, the demand-supply chain and covers both economic and social indicators of the country development. Charles Landry has proposed a creative city concept, which states that cities are dependent on one resource only – its people. Creativity changes place, natural resources, market access, and becomes the key to dynamism of city development. A creative city defines a metropolis with variety of cultural activities glued to urban economical and social functioning. Key activities highly influencing rapid growth of the creative industries worldwide are related to both technology and economy. Digital revolutions and economic environments where revolutions took place, changes in technology and communications altogether have formed new conditions for development of creative economy as a new economic phenomenon.


Introduction
Creative economy has emerged from economic environment of the 21st century and is based not on plain consumerism made of utilitarian demand consumption, but on sophisticated symbolic consumerism constructed of elaborate higher social demand consumption.Strazdas et al. (2006: 89) accentuates that the present period is a period of major changes that take place all over the world.According to Karnitis (2006: 96), economy becomes based on innovation and the creativity in jobs, on new labour methods and relations.Development of a society becomes dependent on knowledge, which, according to Melnikas (2010: 524), is the society characterized by values of the predominance of creativity and creative activity, and key issues that require strategic decisions are to be considered as issues of creation of the knowledge-based economy (Melnikas 2005: 87).As stated by Ginevičius and Čirba (2009: 191), the best way to success is through adapting to constantly changing market conditions as future economic development is bound to technological progress, high level of future uncertainty, etc. (Ginevičius, Krivka 2009: 192).Nowadays, consumers of the developed western world are constantly and surprisingly changing their characteristics, which are slowly moving from functional towards neither intellectual nor moral satisfaction in the context of everyday consumption.According to Levickaitė (2010: 172), the second half of the 20th century was challenging in terms of both political environment and technological innovations.Entertainment in its broadest sense and lifestyles create challenges for both -service and industrial -foundations of the economy: automation of production, decreasing demand of human resources in service industries accordingly form the new environment -the Millennials become full-fledged participants of the creative economy in the consumption, supply, and observation chains.Sharp market changes challenge communication, technology and invention spheres.According to Ginevičius (2009: 70), nowadays, environment becomes more and more complicated, dynamic, and drowned in information.Along with these transformations, specific changes -which are the core of the creative economy -in the creative industries appear.The context of the creative economy experiences constant changes in symbolic consumerism; those changes consist of sudden bursts and just as sudden sags.Growing expenditure on "pleasure services" dictates new approaches to fashion, software, tourism and entertainment industries.The scope of the creative economy grows and increases creating new workplaces, forming new market requirements and, at same time, reacting to the market expectations.
The creative economy is based on the capital of ideas rather than the physical capital; it is developed on the basis of information and communication technologies.The new content of information and digital technologies opens up new spaces and is flexible in lowering the costs.One of the most important qualities of the creative economy is the use of information while creating its content.Another feature -the growing demand for interaction with the author of the creative product and its consumer in constant interaction with each other.Fill has named this process engagement (Fill 2009: 5).The greatest effect of the creative economy is represented not through traditional creative industries but rather through practice of skills, entrepreneurship and business models, and creation of organizational value, both managing intellectual property.According to Alas (2008: 289), in the midst of an economic transformation, the challenge has been to internalize a new type of organizational behaviour in order to operate successfully under unfamiliar conditions.Organizations become more dependent on creativity.It is caused by withdrawal of traditional physical materials and integration of intangible materials and intellectual stock.

The creative economy: fifteen creative industries (John Howkins)
J. Howkins (2007), in his first edition of The Creative Economy released in 2001, has stated that creative industries are the core of the creative economy.According to Howkins, the world has been divided by digital technologies and at the same time creativity is dividing the world, though not in terms of people being creative but their talent to express creativity through marketable products.Howkins has systemized creative industries into fifteen sectors and the list became one of the most popular standards of evaluating and expressing economic values in the global, national or local environments both in developed and developing countries.The creative industries -differently defined -are already significant components of advanced economies (Hartley 2005).Howkins (2007) qualifies each creative industry according to its input to national economy, added value, and difference from traditional industries and their businesses.Table 1 represents fifteen creative industries sectors and areas listed by Howkins (2007), and their description.(Howkins 2007), and their description Sector / Area Description

Advertising
The opportunity is to widen advertising work beyond the traditional display media, press, TV and outdoor into new relationships, both high-tech and low-tech, by which organizations now reach their customers, inserting logos, brand names and slogans into areas that have been ad-free.Advertising is moving from being a copyright business to both a copyright and a trademark business.National growth rates vary according to economic output.Whereas changes in spending in the arts and other creative industries generally follow broader economic trends, changes to advertising spending precede them.

Architecture
Architecture is a copyright business as opposed to a patent or trademark business.
It has the distinction of being the most truly international of the fifteen industries, partly because it does not rely on words and partly because it has achieved its own global iconography that is dependent on any single nation or culture.The size of a country's construction market reflects its national economy.However, architect practices will flourish disproportionally in countries that have a flourishing private sector and private capital, and sensitivity to corporate or civil pride.

Art
The art market is unusual as it deals only in original works that are unique or rare.Whereas most industries try to multiply and sell as many new copies as possible, the art dealer's objective is to emphasize scarcity.Overlapping, these markets comprise the stately world of museums and galleries, which provide repositories and archives of high-quality or specialist art.Their main business (with some exceptions) is to guard heritage and celebrate new work.

Crafts
Crafts flourish in two separate markets; in the art market, where they are exhibited in art galleries and sold in auction, and also in the much larger tourism and leisure markets.In the art market, artists work in the same way as in other media, and with the same imaginative skill.In the mass market, people make and buy crafts without much regard to authorship or formal aesthetic, and value them by price and utility as well as quality.

Sector / Area Description Design
The Industrial Designers Society of America defines industrial design as the "creation and development of concepts and specifications that optimize the function, value and appearance of products and systems for the mutual benefit of users and manufacturers" (IDSA 2010).Since 2000, UK industry revenues have declined further.The market for industrial design has also declined in most of other European countries and America but increased in Japan and China.

Fashion
Designer fashion is a small but intensely competitive business: a volatile mix of art, crafts, design, manufacturing, retailing and publicity.It is the most visible tip, with an influence disproportionate to its size, of the global textile and clothing industry.In practice, fashion designers rely mostly on trademarks, trade secrets and other forms of protection (including tight security).Fashion is often quoted as an example of an industry that is wonderfully and endlessly inventive without any need to use copyright.

Film
The industry consists of four main sectors: American production (Hollywood and independent); other national production (notably in Australia, Brazil, Britain, Canada, France, Germany, Italy, India, China and Honk Kong as well as, to a lesser degree, in some other 20 countries); American-owned global distribution companies; and thousands of local companies that own cinemas, TV channels, and DVD outlets.A film is a qualifying work, protected by copyright.Most laws interpret the "author" quite widely to include the author of the screenplay, the producer, the director and others as well as giving separate protection to the costumes, the design, etc.Once made, a film's rights are sold or licensed to distributors within each territory, each medium (cinema, broadcast, etc.) and each language.
Music Music is the most intangible of creative products.It is also, together with publishing, one of the most pervasive.The industry has four main sectors: composition; performance; publishing/licensing; and sound recordings.

Performing arts
The performing arts include all kinds of on-stage and site-specific performances.
They involve the management of some of the world's largest and best-known landmark buildings as well as many small local venues.Their activities include the skills of writing, producing, casting, directing and performing; design, lighting and sound; set-making; marketing; and administration.

Publishing
The industry is based on a simple and universal process of direct copying; however, over time, it has evolved into numerous different formats and business processes to meet specific design needs and local cultural habits.In recent decades, while the local creative inputs of writers and editors have changed little, the technology of design and illustration have changed dramatically, as have the back-office functions of finance and marketing.As a conveyor of human achievements from the awesome to the trivial, the book has no equal.People appreciate the book not only as a package of content but for its diversity of designs and for its solidity and respectability.The number of titles and copies sold increases remorselessly, although the margins and profits on sales are ever tighter.

Research and development
This section describes the scientific and technical R&D activities carried out by companies, universities and research organizations.It does not include academic research on non-scientific and non-technical subjects.R&D is a patent business.Not all R&D leads to a patent, but almost all patents grow out of R&D or need an element of R&D to prepare a successful application.The sector can be measured in several ways: the two most commonly used are expenditure on R&D; and the number of patents granted.

Continued Table 1
Sector / Area Description

Software
The design and writing of computer programs is clearly creative.It might make sense to include each kind of software in the relevant category; so the making and selling of software for an industrial process would be included in R&D and computer-aided design (CAD) would be included in design.They certainly produce intellectual property even if many programmers prefer to make their code freely available.Computer programs are recognized as a literary work of worldwide.

Toys and games (excluding video games)
Toys and games design, manufacturing and sales are affected by the growth of computer games.A toy or a game is an object of several properties of the intellectual property.Its name might be a brand, but the design and artistic elements might be prevented by copyrights.

TV and radio
In technical terms of the object, broadcasting is a specific and somewhat simple business consisting of sound and view transmission to the audience.Future development of television depends on the increase of conduit throughput, possibility to integrate traditional and Internet broadcasters, and create new products that could integrate all medias.These updates are expense-intensive but on the other hand they ensure fast return on investment.

Computer games
This industry consists of three sectors: device-based game with its software, universal CD or DVD games, and Internet games.With developing game devices, increasing speed, and access to the Internet, personal computer game sector has decreased.
According to Karnitis (2006: 98), highly qualified specialists become the strategic potential of any country, but creativity (including science, R&D, innovation, ability to suggest ideas, which can be used in commercial terms) becomes a major driving force of growth in any area of human activity.Strazdas et al. (2010: 97) states, that conception of innovations has recently expanded.According to Howkins (2007), some creative industries are variable, as music and design; at present, rapidly growing industries are architecture, arts, research and development.Some industries have a tendency to grow faster than others, and depend on creativity of people and development of new technologies, whereas new products generate more profit.

Seven economic properties of the creative industries (Richard Caves)
The second approach referring to the creative economy has developed the following ideas of Harvard professor economist researcher of the creative industries -Richard Caves (2000).According to him, creative industries can be characterized by seven economic properties (Table 2).

Nobody knows principle
There exists the demand uncertainty; consumer reaction to a creative product is neither known beforehand, nor easily understood afterward.

Art for art's sake
Creative workers are concerned about originality, technical and professional skills, harmony, promises of creative products and are willing to settle for lower wages rather than take a banal job.

Continued Table 1
Properties Characteristics

Motley crew principle
Diversely skilled inputs are required for creation of relatively complex creative products.Each skilled input must be present and perform at some minimum level to produce a valuable outcome.

Infinite variety
Different creative products might be differentiated by their quality and uniqueness; each product is a distinct combination of inputs leading to an infinite variety of options.

A list/B list
Artist's skills are differentiated; artists are ranked by their skills, originality, and proficiency in creative processes and/or products.Therefore small differences in skills and talent may yield huge differences in (financial) success.

Time flies
Time is of the essence when coordinating complex projects with diversely skilled inputs.

Ars longa
Refer to the aphorism by Hippocrates Ars longa, vita brevis (Eng.art is long, life is short).Some creative products have durability aspects that invoke copyright protection, allowing a creator or performer to collect royalties.
The theory of seven economic properties developed by Caves was met controversially.Towse (2000) has criticized and described them as too rigid as it wouldn't be fair to describe all creative workers as purely driven by Art for art's sake.The Ars longa property also encompasses certain non-creative licensed products.The Time flies property, for example, also might include large construction projects.Creative industries are therefore not unique, but they score generally higher on these properties relative to non-creative industries.

Creative class (Richard Florida)
The third approach is associated with the theory of new creative class and entrepreneurs.According to Zabielavičienė (2008: 262), innovativity of employees depends on such characteristics as creativity and entrepreneurship.Broad interpretation of creativity led to the theory of an evolving society by Richard Florida (2002), i.e. the creative class, which is a group of professional, scientific and artistic workers performing under the economic, social and cultural dynamism, especially in urban areas.More specifically, the creative class is composed of people working in science and engineering, architecture and design, education, science, music and entertainment, whose economic function is to create new ideas, technology or creative content.According to Jankauskas et al. (2007: 131), the notion of social capital has gained the increased attention in the social science during the last decade.In Florida's view, the creative class consists of business, financial and legal professionals as well.Artists or engineers, musicians or computer experts, writers or entrepreneurs -these people have a common creative ethos, i.e. they are valued for creativity, individuality, diversity and talent.In short, they are people who create the economic value through creativity.The creative class values are individuality, meritocracy (authority of talented), diversity and openness.Florida has presented historical estimates of various classes (Table 3) 2 for his work, for example, for the range of occupational categories used in defining the creative class being too wide.Despite of that, he was recognized as a researcher who significantly contributed to the public discourse on evolving creative economy.At the same time, the concept of creative entrepreneurs and creative cities emerges to describe successful and talented business people who can transform their creative ideas into products or services provided to the public.

Creative cities (Charles Landry)
The fourth approach is the creative city concept.In his famous work on the creative city concept, Charles Landry (2000) argues that cities have the single most important resource -its people.Creativity substitutes location, natural resources and access to the market, becoming the key driver of the dynamic growth of the city.Landry explains that "today many cities in the world are going through transition periods, which often are evoked by renewed vitality of globalization.These transitions vary from region to region.In areas such as Asia, cities grow, and elsewhere, such as Europe, the old industries are declining and cities added value does not depend on what is produced, but rather on the intellectual capital, that is used for products, processes and services" (Landry 2006).
The idea of creative economy is widely used in urban economies.It led to the concept of a creative city.This term defines a city where varied cultural activities are an integral part of the city's economic and social functioning.These cities often are created on a strong social and cultural infrastructure; they have relatively high level of employment in the creative sectors and try to be attractive to inward investment due to its good cultural infrastructure.According to Navickas et al. (2008: 249), to achieve quality improvement in the business environment, effective cooperation between enterprises, governmental, research and development institutions is essential.
Creative cities use their creative potential in different ways.Some act as hubs, providing cultural experiences for visitors and residents of the city, presenting their cultural heritage, or cultural activities (performing and visual arts).As stated in The Creative Economy Report (2008), some cities such as Beirut, Edinburgh or Salzburg are creating their identity through festivals.Others take care of larger cultural and media industries, which provide employment and income, thus trying to become the regional growth centres.In other cases, the important role of culture in the creative city is associated with arts and the ability of culture to promote the city's well-being, social relationships and cultural identity.
The contribution of the creative sector to the economic vibrancy of cities can be assessed by a direct sector contribution to output, added value, income and employment, as well as indirect and additional results.Specialization also attracts highly qualified professionals, and is a perfect niche for innovation processes and activities (Navickas, Malakauskaitė 2009: 256).The latter occurs, for example, in case of visiting tourists who want to experience the culture of the city and therefore incur expenses.In addition, the cities with active cultural life can attract inward investment from other industries seeking to get located in the centre.This provides a pleasant and stimulating environment for their staff.London is a unique example of a creative city, where creative industries are the second largest sector in the economy of London. In London in 1995-2001, creative industries were growing faster than other major industries (excluding the financial and business services) during this period, and employment increased from 20 to 25 percent (The Creative Economy Report 2008).
The UNESCO Creative Cities Network, established in 2004, reflects the changing perception of culture and its role in society (UNESCO 2010).This Network was based on the idea that even though many cities in the world realize that the creative industries play an increasingly important role in their local economic and social development plans, they obviously do not see how they could use this potential or recruit suitable staff for this development.
The main goal of this Network is to facilitate the development of cultural groups around the world -to exchange technical knowledge, experience, examples of successful activities and promote local economic and social development through creative industries.To achieve better development results, the cultural industries must be divided into separate subsectors so the Creative City Network has been divided into seven thematic networks.Cities can choose one area, in which to focus their efforts.Cities with the recognized creative products of literature, film, music, folk music, design, information technology (new media) and gastronomy can connect to the network.Cities are encouraged to focus on those areas that have the greatest economic and social development potential.
While working on The Creative Economy Report (2008), Montreal was chosen as the first object of study to investigate the progress of joint design and development of cultural areas, typical to the other parts of the world.Design concept has become the full-fledged urban planning strategy.In Montreal, design refers not only to wealth creation, but also to improve the quality of human life.Canadian government invited architects and designers to recreate an open-space design (functionality), to rediscover and renew the abandoned parts of Montreal in order to make them much more attractive to urban residents.The Project "Montreal Trade Design" invited designers (architects) to work with the appearance of commercial areas and the atmosphere, redesigning many shops and restaurants.
The second object of study is Popayan city in Colombia, which was appointed as first Popayan city in Colombia, which was appointed as first city in Colombia, which was appointed as first UNESCO City of Gastronomy.The development model was completely different.While legalizing an informal urban gastronomy industry, Popayan city council has made a big Popayan city council has made a big city council has made a big step.By simplifying the space and other infrastructure, introducing mandatory standards of hygiene and publishing reviews of restaurants and meals, even the smallest food shops, city council of Popayan revived the city economy, providing employment and income for many people, consciously supporting sub-sectors of the creative industries.The newly discovered formality and openness to the world, individual, families and communities in Popayan has given them the opportunity to meet and discuss different recipes, ingredients, manufacturing processes and participate in international forums.
The Creative Cities Network was initiated and developed on the basics of arts and main cultural industries such as literature, music and folklore.An economic evaluation problem has appeared and later solutions have led to the network model, which is based on more innovative and market orientated attitude rather than on elite arts and their advantages.

Conclusions
There is no sole definition of the creative economy.This is a subjective concept still under development.The United Nations Conference on Trade and Development has provided four main factors to investigate the creative economy and also offered a definition of the creative economy as an emerging concept based on creative capital, with the ability to generate economic growth and development.
The term creative economy appeared in the study by John Howkins on the relationship between creativity and economics.According to Howkins (2007), neither the creativity nor the economy are new, but new is the nature of the relationship between them and the way the two are bound to create a special value and wealth.Howkins uses the term creative economy in the broad sense, which includes fifteen creative industries, ranging from arts to wider scientific and technological spheres.However, the main creative industries are converging and the total interaction between the individual countries as well as at the international level are becoming stronger.Howkins has identified fifteen creative industries (advertising, architecture, art, crafts, design, fashion, movies, music, performing arts, publishing, research and development, software, toys and games (excluding video games), TV and radio, and computer games), which, according to the author, are the basis of the creative economy.
Broad interpretation of creativity has led to theory by Richard Florida (2002) on the creative class emerging in the society.Creative class is a group of professional, scientific and artistic workers performing under the economic, social and cultural dynamism, especially in urban areas.Florida's creative class and creative entrepreneurs are different from the traditional theory as it argues that the objective of the creative class is the talent management and it serves the economic growth.
Richard Caves (2002) characterizes creative industries by seven economic properties: Nobody knows, Art for art's sake, Motley crew, Infinite variety, A list/B list, Time flies, Ars longa.Creative industries themselves are not unique but the creative industries sectors -which are driven by creativity -generate new approaches to business processes as well as new product supply and demand, both in terms of economic and social indicators of the national economic development.
Charles Landry (2000) has developed the concept of a creative city.The author argues that for the cities there is the single most important resource: its people.Creativity changes the location of natural resources and access to markets, becoming the key to urban growth dynamism.The idea of creative economy is widely used for economies of cities.This led to the concept of a creative city.This term defines a city with varied cultural activities integrated into the city's economic and social functioning.
The main factors behind the extremely rapid growth of the creative industries worldwide are connected both with the technology and the economy.Digital revolution and economic environments, in which this revolution took place, have merged giving rise to conditions for the growth and development of the new economy.
using U.S. data of Historical Statistics of the United States, Colonial Times to 1970 and the U.S. Bureau of the Census, Statistical Continued Table

Table 1 .
Sectors and areas of the creative industries

Table 2 .
Economic properties of the creative industries(Caves 2000)