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DOI: 10.12731/2218-7405-2013-7-59
THE STATE OF CREATIVE ECONOMICS IN CHUVASHIA
Ukolova M.S., Kuzmin M.K.
The main condition of developing of «economics of science» is now represented by creative industries, that synthesize creative and business activities. Advertisement, architecture, design, fashion, software development, cinema and videogame industry and many others are considered as creative industries. They characterized by innovations, humanitarian orientation and digital distribution channels. In Eastern countries the role of creative economics as social, cultural, geological and economic factor is understood well, but in Russia we only find the beginning of study this question. This work is not exception.
The purpose of this article is to represent the common state of creative economics in Chuvash Republic.
Methodology of this paper - elements of specific cart analyzing method (BOP Consulting), based on statistic data about activity of creative branches in Chuvash Republic in 2009 - 2011 years.
Results: Creative industries plays important role in regional economics structure: make region more investement attractive, create new workplaces, contribute to upgrade living standards, forming cultural diversity and positive image of republic. By the way it cannot be said about wide development of creative industries in Chuvashia: their percentage is too small; out-turn and salary is low, their product is not demanded by the community. The reasons lie in specific for each branch and common reasons. As common reasons we can point: from consumers -community does not have free resources for buying creative product, conservativity, low level of education; from creative leaders and companies - low professional
qualification, bad mobility, orientation on a secondary creative activity; from creative space - creative institutional infrastructure is not developed enough.
Practical implications: results can be used by academic community in studies of creative economics in other regions; applied in developing cultural politics and economic planning in Chuvashia.
Keywords: creative economics; creative industries; creative industries in Chuvash Republic.
СОСТОЯНИЕ КРЕАТИВНОЙ ЭКОНОМИКИ В ЧУВАШИИ
Уколова М.С., Кузьмин М.К.
Важнейшим условием становления «знаниевой экономики» сегодня являются креативные индустрии, которые синтезируют творческую и предпринимательскую деятельность. Творческими индустриями считаются реклама, архитектура, дизайн, мода, программное обеспечение, кино- и видеоиндустрия и другие. Они характеризуются инновативностью, гуманистической направленностью, дигитальными каналами распространения. Если на Западе хорошо понимают роль креативной экономики как социокультурного и геоэкономического фактора, то в России нарастание исследовательского интереса к этой области лишь намечается. Не является исключением и данная работа.
Цель статьи - представить самую общую картину состояния креативной экономики в Чувашской Республике.
Метод или методология проведения работы - элементы специфического метода картирования (BOP Consalting). Материалом явились статистические данные о деятельности креативных отраслей в Чувашии за 2009 - 2011 гг.
Результаты. Творческие индустрии играют определенную роль в экономике региона: делают его инвестиционно привлекательным, создают новые рабочие места, способствуют повышению уровня жизни населения, формируют культурное многообразие и положительный имидж республики. Между тем в Чувашии нельзя говорить о широкой развитости креативных индустрий: их доля крайне мала; выработка и уровень зарплаты низки, продукция не востребована у общества. Происходит это по специфическим для каждой отрасли и по общим для всей креативной сферы причинам. Среди последних можно назвать: со стороны потребителей - отсутствие у населения свободных активов для приобретения творческой продукции, консервативность общества, низкий уровень образования; со стороны креативных лидеров и компаний - невысокий уровень профессиональной квалификации, неповоротливость, ориентацию на вторичную творческую деятельность; со стороны творческого пространства - неразвитость институциональной инфраструктуры.
Область применения результатов: могут быть использованы академической общественностью при изучении состояния креативной экономики в других регионах; применены в разработке культурной политики и экономическом планировании Чувашии.
Ключевые слова: креативная экономика; креативные индустрии; творческие индустрии в Чувашской Республике.
Modern economical and socio-cultural statement in regions of Russia can be characterized as unstable and able to transform. Previous economical paradigm is ending, and the step by step new one is rising "knowledge economy" (P. Drucker), "economy of symbol interchange" (A. Dolgin). Experience of many progressive countries shows, that the main condition of new economical relationships is creative technologies. Culture oriented mind, creativity and innovations - are the main mechanisms of moving from industrial to fully postindustrial economy. Science
community, government managers begin to pay attention on importance of creative industries in this process. In Russia regions this conclusions made intuitively, but in eastern countries it made rationally: researching the creative economics, made in Great Britain in 1998, 2001, 2003 showed that "creative industries not only developed faster than other economy sectors, but also creates work places two times faster" [9, p.23]. There is also in our country need to analyze statement and potential of creative branch and to produce further development strategy and tactics, in order to harmonize all economy in all regions. Such Russia city as Ekaterinburg, Krasnoyarsk, Moscow, St.Petersgerg are leading in study this questions. Unfortunately, Cheboksary and Chuvash Republic are not is this row, and our work is aimed to handle this.
Presented investigation is a part of comprehension of actual state of creative economics in Chuvash Republic. Some results of our work were already tested [8], in actual paper we view detail analysis of statistical material and some conclusions are made.
Object of our investigation is a cultural industry as a factor of sociocultural and geoeconomical development. We based our work on list of creative industries, issued by Department of Culture, Media and Sport UK, that we modified due to specifics of studied economic region:
1) Advertisement, including public relations;
2) Architecture;
3) Arts and antique, including art museums, exhibition halls, galleries, activity of private agents and agencies;
4) Arts and crafts, including "textile production, pottery, wood, metal, glass, leather craft, graphics" [5, p.14];
5) Design, including graphic and industry design;
6) Fashion;
7) Cinema- and videoindustry - cinema studios and casting agencies, cinema centers, that produce, broadcast and distributing videproduction;
8) Music, including performing and releasing music products;
9) Art performing and arts;
10) Publishing and printing;
11) Software development - creating, producing and supplying of software products and applications, web-design; and entertaining interactive applications (video- and computer games, education and reference programs);
12) Television and radio broadcasting - producing and broadcasting tv and radio shows.
We will consider innovation sector of economy, that is characterized with synthenticity, full merge of business-processes and creative activity as a creative industries. Merge property defines specifics of their structure, functionality and development: L. Kuzovnikova says that "that is not pure culture, and not a pure business. This is "business in culture area". We mention that creative industries is a such business, that done in the way, that has humanity (other words it is human- and socioriented business), innovativity and manufacturability, digital broadcasting as a main value. First of all, definite creative leaders, and some small and middle (usually non-government) organizations, acting in these sectors, are moving in avangard of creative industry. The most mobile and able to change due to time demand, they win in the larger competitors.
In that way creative industries play important roles: 1) forming new workplaces and activate new production areals; 2) make economy more investment attractive, and, correspondingly create good economical atmosphere; 3) supply regional cultural diversity, saving, and sometimes creating cultural identity; 4) provide other economical sectors with tested methods and models of business activity; 5) orient all economical system on a human and a community, so they perform culture saving and culture transmission mission, so they make live standard higher.
Creative economy in its ideal state is an etalon of development, that should and have to be used as an orient, especially in a crisis situation, specific for many regions.
John Newbigin says that "the future of our planet relies on creative industries": "Actually oil reserves are not indefinite, other natural resources are alse finite, but only our creative potential is able to increase. And it won't be only willable component of economic activity, but also a key in our adaptation as a species" [9, p.19]. Unfortunately, this statement looks like a hyperbola (this also mentioned by investigator), but it sounds truly and progonostically for regions with low resources, or regions with ending natural resources. Chuvash republic is one of such regions in Russia, so this experience of using potential of creative industry could be a model for other regional economics. Cause of this fact, our investigation is especially actual, allowing not only create common picture of development of creative industries in republic, but also to define threats and variants of further evolution.
Actual work based on materials of Territoral Department of Federal State Statistic Service in Chuvash Republic - Chuvashia about activity of organizations, working in creative economy of Chuvashia (in 2009-2011): 1) amount of registered businesses and organizations (including branches and representative offices), mentioned in Statistic registry of business objects of Chuvash Republic, in accordance with declared code of economy activity, classified by NACE; 2) shipment of goods produced, works and services on their own on the net economic and economic activities 3) "net" proceeds from the sale of goods, products, works, services (thousands rubles) 4) the average number and gross wages and salaries of employees organizations by economic activity for the period 2009 - 2011.
By the way, while collecting, processing and analyzing statistical data we encountered some problems, that possibly can affect on results of investigation. First of all, many business and organizations declare not one, but two or more adjacent kinds of economical activity, so one organizations can be counted by two different parameters (e.g. 92.2 and 92.20), this fact makes difficult to objective estimate quantity of businesses, working on economical territory of Chuvashia.
Other side, data provided by of Territoral Department of Federal State Statistic Service in Chuvash Republic - Chuvashia on proceeds, unfortunately provide not
equal quantity data for 2009 - 2010 and 2011 (organizations without small businesses), so objective profitability estimate may not be done. Cause defininite part of creative industries sector is consisted of small businesses, so data about their proceeds for 2011 year is not counted by us.
Third point is that make investigation basing only on statistical data is impossible: reasons are that businessmen in Russia are trying to make their business partly non-transparent, to hide or not to provide information fully. This reason makes total picture of creative industries in region a quite "mosaic".
Also sometimes there is no official information about business-subjects and business-processes in creative economy sphere. This point has oriented us to study definite examples, surveying experts and other persons, acting in creative economy. This task will be done in future, in order to make main conclusions about current state and perspectives of creative industries of Chuvashia, and provide them at the end of 2013 to community. In this case we would have possibility to talk about full application of our mapping method, developed by British consulting company BOP Consulting, including "reviewing the literature, analyzing data from official sources, businesses' reference books, practice examples" [5, p.43]. In actual paper we principally show results of analyzing creative industry statistics of Chuvash Republic.
In spite of some positive dynamics in economical data, region is one of outsiders in Volga Federal District. So, Gross Regional Product in Chuvash Republic was 152489.6 million Rubles in 2010 year, and in current prices increased on 9,0% above 2009 year. But in 2010 year, on per capita rate of Gross Regional Product, Chuvash Republic took same 12th place as in 2009 in Volga Federal District [1]. In fact, Chuvashia belonged and belonges to secondary sector of economy and lies at same level with developing countries.
Region principally exists basing on industry, agrarian, energy, and retail businesses. This is proved by produce data of GRP in 2010: "Manufacturing activity" occupied 27.2%, "Wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods for personal use"- 14.7%, " Construction" - 9.1%,
"Agriculture, hunting and forestry economy"- 7.9%, "Transport and communication" - 7.7%; "Real estate, renting and business activities" - 7.5%; "Production and distribution of electricity, gas and water" - 7.0% [1].
There are some other problems in regional economy. So, in republic inhomogeneous distribution of the economic sectors is observed: agricultural economy based in republic districts, but industry economy based principally in Cheboksary, Novocheboksarsk, Kanash, Alatyr cities and other municipal centers. Production of the republic hardly focused on foreign economic activity. According to the Customs Administration of the Volga Federal District, the bulk of exported products accounted for the machine-building, chemical and electrical enterprises of Chuvashia.
It should be noted that the above the level of the average monthly wage in the Volga Federal District, Chuvashia also holds a leading position, ahead of only Mordovia, Mari El, the Kirov region. Also Chuvashia characterized by sectoral differentiation in terms of wages. The highest level is peculiar to its financial sector, the least well - agriculture (in 2010 - 41.8% lower than the average) and the activities, recreation and entertainment, culture and sport (down 38.7 -35.2%).
Thus, even a cursory look at the state of the economy in the country gives a general idea about the existing problems: low GRP and heterogeneity of production, targeted on the industrial and agricultural sectors, and the recessive non export oriented development of other sectors of the economy, the low rates of wages in the republic, and more.
The economic performance of the region largely determine the nature of the social barriers of the republic: a low standard of living of the population, a sharp differentiation in the "urban" and "rural" population, lack of education and, as a result, inertia, conservatism, poor adaptability to changing conditions.
How creative industries can exist in these conditions? How are they characterized? What are their strengths and weaknesses?
These and some other questions we can answer, citing the analysis of statistical data on the most advanced sub-sectors of creative economy: advertising, publishing and printing business, film and video, television and radio, software-development. Unfortunately, such as arts and crafts, performing arts and art, music, fashion, and others practically falls of the range of statistical research, what certainly indicates the specificity of these industries and the need for a different approach to the study of the aforesaid areas.
Advertising. As it said by analysts of Western Europe, the advertising is one of the most advanced and popular areas of the creative economy. In the Chuvash Republic, this sub-sector is a presented by large number of companies, that has no significant fluctuations for 2009 - 2011 years. (Table 1), but has some growth in the number of employed workers (Table 3). It is important to note that all the advertising companies and organizations in the region are small businesses. Revenue and average monthly wages in this area are low compared to other creative industries (Table 2 and Table. 4), although the volume of services provided is average for the region level.
Table 1
The number of companies and organizations registered in the Chuvash Republic
Years Advertise ment Publishing and printing business Film and video industry television and radio broadcasting Softwaredevelopment
2009 219 154 / 78 26 16 180
2010 221 152 / 73 28 17 192
2011 225 137 / 68 30 18 200
Problems of advertising industry could be stated as following:
1) Direct proportionality of economy of Republic, businesses of that have no enough budget resources to create not only large, but also middle-size marketing actions;
2) Technological literacy and/or inability to use the professional technical and technological resources and the latest developments in the field of advertising and
PR, for example, in conditions of active development of Web 2.0, social media marketing (promoting products and services in social networks);
3) Use of outdated stereotypes, small creative nature of the creators and distributors of advertising;
4) Some of fluctuations in the tastes and preferences of the Task audience, especially the young, that are not tracked by "clumsy-hand" industry.
Publishing and printing. Analyzing this industry we added to a classic British version of "publishing activities" the study of printing activities (NACE respectively). This allowed us to compare the two adjacent industry, the first of which is more connected with the creativity, the creation of intangible products, and the second - to the process of material production. Interesting fact is that, according to statistics, the first sub-sector enterprises in the Chuvash Republic is greater than the second (Table 1), but the revenue and production of printing greater than the same indicators publishing business. So, in 2009, revenues in printing activities were 1.59 times higher than in the publishing industry in 2010 - in 2.03 (Table 2). This fact is confirmed by the companies themselves. Thus, the State Unitary Enterprise "IPK Chuvashia" holding "leadership position" in the industry in the region, said: "Above them [the main activities of] the main part - 95% - is printing, the remaining 5% comes from the book trade and publishing activities" [2]. Shipment of the goods and services of own production in the business of publishing and printing industry also demonstrates the superiority of the latter industry, which is, unfortunately, is difficult to call creative. There is a tendency to reduce the number of enterprises, especially in 2011, but for organizations engaged in the publishing and printing of newspapers, journals, book-bindery and finishing operations, making printing plates numerical are remained almost unchanged. However, the number of publishing companies times bigger than similar quantity for printing ones, for example, newspaper publishing employs 43 organizations, and the printing of newspapers - only 4.
Problems publishing and printing industry in Chuvashia are following:
1) Explicit focus on the publishing periodicals (newspapers and magazines, many of which are regional variations of large nationwide companies). In full it cannot be considered a problem of the sub-sector, but it is an indicator of the transition to a post-industrial economy, when speed of communications is very important. Book business loses in this "game". In addition, the publication of books is closely related to the literary and artistic, scientific and journalistic creativity which, apparently, is not sufficiently developed in Chuvashia.
2) Technological backwardness and low technical equipment of printing companies, principally related to the government sector. In addition, these organizations are often reluctant to accept the requirements of customers, that is negatively affects the amount of services performed, and revenue, and the company's image;
3) Conservative and as a result, the publishing products are unpopular in community, who mainly basing on receiving audiovisual, media information, but not reading.
Table 2
Revenue enterprises, thousand rubles
Years Advertisement Publishing and printing Film- and video
2009 924G6 225587 / 358164 124G58
2010 65612 203428 / 412635 864G9
2011 (without small businesses ) No data 90621 / 315468 No data
Film and video industry. The current situation in the film and video industry sub-sector in Chuvashia resembles the all-Russian. As well as throughout the country, the market is not focused on the film industry, and film screening, and this orientation eliminates creativity in this business. Despite the fact that companies and organizations registered as producing movies are presented in region, profitability in this kind of activity is negligible in comparison with the profit derived from the
cinema: in 2009, net revenues from film screenings to 47 times higher than the revenue from film production (Table 2). Mostly the foreign movie is shown in cinemas, the Russian film production loses this fight, as evidenced by the numerous data: "The results of a study conducted by Movie Research, showed that only the first half of attendance Russian films decreased by 31%, and fees - 12.5% . At the same time fees from foreign films are growing. Imports of foreign products for the period 2002 - 2008 years. increased by 4.6 times and amounted to 682 million dollars. USA ... At the same time, imports exceed exports by 2.6 times ..." [4].
Problems of film and video in Chuvashia denoted as follows:
1) Lack of competent professionals and full cycle businesses in film production industry;
2) Foreign film production is dominant in theatrical activities;
3) Regional film industry dependence on total Russian market, which is experiencing noticeable difficulty in this area;
4) Repressed creativity of the sub-sector, based on the mechanical reproduction "foreign" material.
Television and radio broadcasting. This area of the creative economy, judging by the statistics, is underdeveloped in Chuvashia: a small number of relatively stable businesses, primarily related to the field of small and medium-sized businesses (Table 1), low output and revenue (see Table 2), the average, but seeks to to improve the level of monthly wages (Table 4). Of course, television and radio are looking for ways to create more original material for the growth of technological competence.
With all the prospects and development in the world and Russif, TV can not be attributed to a strong creative industry in our economy the region. It has a lot of difficulties. Just some of them:
1. The number of recording media, such as newspapers only in 2011 is 2.39 times bigger than the total number of TV and radio broadcasting organizations. It is clear that competition in the printing is much stronger than competition in Chuvash industry, the lack of a "live" struggling between companies affects the quality of
produced products. Also, the TV and radio broadcasting in the republic are not the winner in the competition with the all-Russian media stream and the information feed rate of the Internet. This situation does not provide a strong position for the analyzed industry in our economic region.
2. It is known that the TV and radio broadcasting, there are principally exists due to the placement of advertising materials. You can often see their "dominance" in television and radio programs, reducing consumer interest in this area of the creative economy and undermines the image of television and radio industry.
3. The lack of original products, oriented to the needs of the target audience is probably one of the key challenges for this sub-sector in the region. Most programs have a secondary creative character, repeating the already existing templates or informing auditory with outdated information.
Table 3
The number of employees in organizations, persons
Years Advertis Publishing and Film and Television Software
ment printing video industry and radio broadcasting development
2009 517 562 / 1185 127 202 1616
2010 550 576 / 1150 105 174 1787
2011 607 544 / 901 213 176 2254
Software development - one of the most promising industries in the world and in Russia. In Chuvashia this sector of creative economy is also highly developed, as evidenced by processed statistical data. First, the number of enterprises engaged in software, in Chuvash republic is sufficiently large and comparable, for example, with advertising and marketing organizations (Table 1). Secondly, the volume of services delivered and developed products is impressive when compared with those of other industries in the country. In 2010, the performance of the shipment of goods and services related to business economic activities in the fields of software, IT consulting exceeded, for example, 2.77 times these quantitative indicators in the film and video industry. By the aggregate statistics, software production volumes are
leading, the development, promotion and support of databases and websites is on the second place. Third, revenue in this area is significant: in 2009, it is calculated 644495 thousand rubles, in 2010, grew up, already reaching 824,897 thousand (Table 2). In comparison with other creative industries the average monthly salary is also high. One can't not to note the sharp decline of these indices (2.46 times) in the field of software development. However, even keeping in mind this fact, the average monthly salary in the software development industry is much higher than in other creative fields of Chuvashia (Table 4). It is determined, in our opinion, by the nature of activity that requires highly skilled professionals, broad knowledge of the rapidly changing technology, significant intellectual mobility.
Meanwhile, this industry faces a number of challenges and difficulties:
1) Weak competitiveness of goods and services, the inability to compete with world and Russia large companies and holding companies;
2) Poor marketing supportof entertainment software, computer and online games. Without a doubt, such products are manufactured in the territory of Chuvashia, but mainly at the level of an amateur, not for mass sale;
3) Absence of strong communication links within the community of programmers, web-designers, game makers (about this issue we talk with experts in this field). The software market is now mainly working "single", this is winning in today's competitive, but losing in the long-term, because without their active cooperation volume and quality of the intellectual product cannot be increased.
In our opinion, having a large potential in the industry of software, with scarcity of natural resources in the Chuvash Republic, one should make a big stake on the creative economy sector, to fully support the small and medium-sized enterprises and individual entrepreneurs in this field, send money to retraining and re-training of specialists.
Table 4
Average month salary, roubles
Years Advertise Publishing and Film and TV and radio Software (i.e.
ment printing video broadcasting software development, consultin in this area)
2009 9033,8 13350,8 / 9562,5 10563,3 10896,9 29093,5
2010 10642,9 14252 / 11462 12102,4 12169 38135,9
2011 8833,6 15155,4 / 11569 11456,3 13750 39202,6
Interim conclusions about the state of the creative industries that we have made above represent in the most general form the state of the creative economy. A true leader is a sub-sector of the "Software", that is able to attract more investment to the republic. An intermediate position is occupied by the film and video industry, television and radio broadcasting, publishing, printing and advertising. The areas of creative economy that are associated with the primary (original) creativity, such as music, art and performance art, fashion are "suffering". Unfortunately, there not enough skilled professionals, there is no developed market for goods and services, there is no layer of the creativity of consumers in republic. For example, it cannot be said about developed gallery and antique business in the Chuvash Republic, although there is some progress in this area: in 2010 - 2011 years additional educational program "manager Art Gallery" (Head - Associate Nikonova G.L.) acted in at the Department of Cultural Studies and world culture of the Chuvash Chuvash State Pedagogical University them. I.Y. Yakovlev, which was intended to reducee lack of qualified professionals in this field.
Because we are limited by volume of one article, and we understand inability to show the whole picture of the lighting creative economy in Chuvashia, let's just summarize. In this case, it would be advisable to rely on triple scheme (J. Klouda) [6] that statesthe basic conditions for the existence of the creative industries: consumers, labor, the creative space. Creative economy consumers: population of the republic has no available assets to purchase goods and services of the creative sector. In
addition, level of education, especially in the "rural" environment is low. Society is conservative, immobile, not focused on new media channels, innovative products. As for the labor force, considerable difficulties experienced by creative economy also are because of the lack of highly skilled professionals. This is directly linked to the poor quality of higher and vocational education in the country. Under such constraints, it should be noted that the space for the development of highly advantageous. Chuvashia - a region with a very tolerant population, for it is characterized by low anomie and trends in discrimination on different grounds. Meanwhile, the institutional infrastructure is not harmoniously developed. Financial failure of the region is also important. We believe that these difficulties can be overcome, and if community will keep in mind the necessity and importance of the creative economy in the Chuvash Republic, the creative industries will have a promising future in the region.
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DATA ABOUT THE AUTHORS
Ukolova Marina Sergeevna, associate Professor of the Department of Cultorology and arts, Candidate of Philosophy Sciences
Chuvash State Pedagogical University
38, Karl Marx Street, Cheboksary, Chuvash Republic, 428000, Russia e-mail: ukolova-marina@rambler. ru Kuzmin Mikhail Kronidovich, President
«Sodruzhestvo» Foundation
3, 50 let Oktyabrya Street, Cheboksary, Chuvash Republic, 428000, Russia e-mail: michaelkuzmin@mail. ru
ДАННЫЕ ОБ АВТОРАХ
Уколова Марина Сергеевна, доцент кафедры культурологии и мировой художественной культуры, кандидат философских наук
Чувашский государственный педагогический университет им. И. Я. Яковлева ул. К. Маркса, 38, г. Чебоксары, Чувашская Республика, 428000, Россия e-mail: ukolova-marina@rambler. ru SPIN-код в SCIENCE INDEX: 8473-2394
Кузьмин Михаил Кронидович, президент фонда регионального развития «Содружество»
Фонд регионального развития «Содружество»
ул. 50 лет Октября, 3, г. Чебоксары, Чувашская Республика, 428022, Россия e-mail: michaelkuzmin@mail.ru
