The objective of this study is to identify cultural production innovations and explore the related innovation necessary for further development in creative sectors. From our exploratory case study, we find that many innovations in the creative industries are not captured in terms of technological innovation alone, nor are the product/process distinction a sufficient basis for proceeding. Innovative puppetry firms develop cultural production innovations based on a unique combination of three sets of interrelated management development practices: new organizational development, new client interface and optional technology application. This paper proposes insights that contribute to theoretical and practical discussions on how firms build competitiveness through industrial innovations. Specifically, we propose a conceptual framework that offers a wider perspective on innovation within the creative industry. The conclusions suggest that policymakers might vary the degree of strength with which they relate to either market orientation or historical identity.
Keywords: cultural production innovation; case study; innovation management; creative industries; puppet show; cultural content
Creative industries now form a distinct economic sector in which the creation, production, and marketing of goods and services are combined. Defined most influentially by the Department for Culture, Media and Sport's (DCMS) Creative Industries Taskforce in 1998, creative industries are based upon activities that have their origin in individual creativity, skill and talent (Department for Culture, Media and Sport [DCMS], 1998). Moreover, they have the potential for wealth creation through the generation and exploitation of intellectual property and content. According to this definition from the DCMS (1998), creative industries include the following sectors: the performing arts, advertising, architecture, the art and antiques market, crafts, design, designer fashion, film and video, interactive leisure software (such as computer games), music, publishing, software and computer services, and television and radio. The growth of creative industries has been facilitated in part by the growing popularity of leisure and entertainment activities in advanced industrial economies. By providing an 'experience', creative industries represent a new and growing source of value in many economies (Aoyama, 2007). Such industries produce consumer goods that convey lifestyles and values with both informative and entertainments functions, and produce creative services that cover intangible activities, such as the promotion of the performing arts, films, and values.
Culture has become an important source of economic growth and job creation, particularly within advanced urban economies (Currid, 2007a, 2007b; Kloosterman, 2004; Pratt, 1997). This has raised questions as to the objectification of culture for economic purposes, particularly as the policy discourse around creative industries shifts from a cultural to an innovational perspective (Garnham, 2005). Our preference is for the term 'creative industries', which allows us to take a more product and process-oriented approach towards this issue (Pratt, 2007). Hence, innovation and creativity are not only the prerogative of high-tech firms, but are also very much part of such high-concept activities as producer services, consumer services and creative industries (Brandellero & Kloosterman, 2010). Moreover, the rapid pace of technological change in creative industries has had a significant impact on how they operate and will continue to do so. In particular, the massive development of digital media and the digital convergence of previous creative works have rendered some traditional sector boundaries partially obsolete. For example, in the UK's creative economy, a challenge for the performing arts sector is how to exploit the opportunities offered by broadcasting and other new technology (DCMS, 2007a, 2007b). …