Three arguments against ‘soft innovation’: towards a richer understanding of cultural innovation

This paper critiques recent research on innovation in the cultural and creative industries. In particular, this paper examines Paul Stoneman’s idea of ‘soft innovation’ as a jumping off point for discussing theories of cultural innovation more broadly. Three critiques are advanced. Firstly, soft innovation is a theoretical perspective that has developed from neoclassical economics, and is therefore vulnerable to criticisms levelled at neoclassical explanations of economic behaviour. Secondly, the theory of soft innovation can be criticised for being contin- gently inaccurate: the observed reality of cultural industries and marketplaces may not reflect the theory’s premises. Thirdly, because soft innovation defines the significance of an innovation in terms of marketplace success, it implies that only high-selling cultural products are significant, a difficult claim to substantiate. This paper concludes by arguing that our understanding of innovation in the cultural sphere can benefit from a multi-disciplinary approach grounded in the full gamut of human creativity.

Australian cultural and innovation policies: never the twain shall meet?

 In recent years, Australian cultural policy-makers have begun to pay more attention to innovation policy. Several of the Australian states specifically address issues of innovation in their formal cultural policies, and the Australia Council for the Arts has published an Innovation Strategy which purports to constitute 'a coordinated approach to supporting creativity as one of Australia's most valuable assets' (Australia Council 2006).

However, despite this prima facie policy commitment to supporting and fostering innovation in the arts and cultural industries, there remains a disconnect between cultural and innovation policies in Australia. On the one hand, cultural policies in Australia are confused and incoherent in their approach to cultural innovation, and many policy settings as they apply to cultural industries are antithetical to the aims of fostering innovation and R&D. Meanwhile, innovation policies continue to pay only marginal attention to the creative arts and cultural industries. This disconnect will be briefly examined in three fields of cultural policy: arts and cultural funding; copyright and intellectual property policy; and broadcast media policy.

It is argued that rather than promoting innovation, existing policy frameworks in all three areas, when not specifically framed around the protection of vested interests, are often contradictory and inimical to the disruptive influence of innovative artists, technologies and firms. Possible reasons for the disconnect include pragmatic matters of busy ministers and low policy priorities, and conceptual confusion over the status and value of culture.

Cultivating mangement? Managing culture?

Jean Battersby, the founding executive officer of the Australia Council of the Arts from 1968, delivered a lecture in May 2005 which bemoaned a situation in which the focus and funding of the arts appears to have more to do with managers than with artists. Cultural policy and cultural economics have become the staple of the day, so much so that the thought of an economist actually proposing an Arts Council protected from political manipulation and scrutiny—‘with antennae sensitive to public opinion or political advantage’ and ever ready to apply the ‘child of three’ test (Battersby, 2005: 2)—seems an absurdity. Yet, in July 1945, Maynard Keynes proposed that Britain have an Arts Council without government and its bureaucracy intervening in the relationship between artists and their public. The task, as Battersby records it, ‘is not to teach or to censor, but to give courage, confidence and opportunity’ without prescription (2005: 6).

Social intervention or market intervention? A problem for governments in promoting the value of the Arts

The research design for this paper is based on the critical need for greater emphasis by Australian arts organizations on relationship marketing as a means of achieving sustainability. Recent injections of government funds into the performing arts in Australia, to meet a "crisis" in financial viability and audience development, highlighted the dependence of arts organizations on government funds in building audiences. A hypothesis was developed through an analysis of the literature on relationship marketing, cultural economics and value measurement, and an analysis of the long-term outcomes of government strategies for the funding of arts marketing. The hypothesis is that while social intervention is acceptable (even desirable and necessary), and achieves the social goals of governments, market intervention reduces the benefits of relationship-building and the exchange of values between arts organizations and their audiences.

Analysis of government documents and primary research in audience development proved the hypothesis. Empirical research resulted in the development of a theory and model that describe the limits of market intervention and in the development of a definition of values in the continuum of government activity from social to market intervention. The model could be useful for governments in developing arts policy with regard to audiencebuilding. It could also be useful in demonstrating to arts managers that sustainability results not from government funding but rather from relationship-marketing strategies.

Creative economy strategies for regional cities: the case of Geelong, Australia

Creative economy approaches to regional development are gaining increased favor from policy makers as there is a shift towards a more wholistic approach to development. By fostering a creative economy a region may benefit not only in purely economic terms, but also become more enriched socially and culturally. Using the regional city of Geelong as a case in focus, the presentation will explore strategies that both harness existing creative capacity through the arts and cultural production and also to further expand and intergeate creative enterprise into the local economy. As regional centers like Geelong continue to grow the need to ensure appropriate development that is both sustainable and enriching to improve residents quality of life becomes paramount.

The relationship between pre-sale price estimates and the hammer price for Australian paintings sold at auction

Realized price for paintings auctioned can systematically differ from prior estimates. We need to understand why experts get it wrong. This paper uses an econometric approach to investigate how pre-sales price estimates are formed and the impact that they have in determining auction prices for Australian paintings.

Better off dead? Prices realised for Australian paintings sold at auction

Using auction sales data on Australian paintings over the period 1995 and 2003 we investigate the relationship between artists‟ living status and the price of paintings sold at auction. For deceased artists we consider the time since their death and for living artists their conditional life expectancy. Hedonic regression analysis is applied separately to the data on Indigenous and non-Indigenous paintings. Comparing the modelling results across Indigenous and non-Indigenous paintings we see evidence of two different patterns of response to an artist‟s living status. Both yield non-linear impacts but for Indigenous paintings these are quadratic and for non-Indigenous they are quartic. Thus the response to living status in the more recent market for Indigenous paintings is different to the more established market for non-Indigenous paintings. Whilst the responses differ for the two types of paintings, in answer to the question posed and in terms of the price of a painting at auction an artist is better off long dead or close to death.

Australian films at large: expanding the evidence about Australian cinema performance

International markets have in recent years become a critical component of the business model for Hollywood cinema, opening up a renewed interest in the global dimensions of film diffusion. Smaller film-producing nations such as Denmark have similarly emphasised global distribution as a key component of the industry's success. Typically, however, claims for Australian film industry success rely almost exclusively on a film's domestic box office performance. This paper considers the possibilities for an expanded approach to measuring success and failure in the Australian film industry. Adopting analytic methods from cinema studies, cultural economics and geo-spatial sciences, this paper will examine the international theatrical circulation of Australian films using a unique global database of cinema showtimes. This data set captures all formal film screenings in 47 countries over an 18-month period ending 1 June 2014 and enables detailed empirical study of the locations visited by Australian-produced films. In conjunction with relevant box office data and contextual critical commentary, we propose a revised and expanded ‘film impact rating’ for assessing the reported performance of Australian films.

Counting the cost: the impact of cinema ticket prices in Australia

The authors discuss the change in cinema ticket price and its effect on audience perception on cinema attendance in Australia. Topics discussed include the comparison of ticket prices in Australia to countries such as the U.S., Japan, and New Zealand, the reason of high ticket prices in Australia such as high wages in theatre operation and piracy, and the drop of cinema admission as result of high ticket prices. They mention the social equity issues raised by the high cost of cinema tickets.

Indigenous Australian accountants : why so few? A historical and cultural perspective

At a time when there is a growing call for Indigenous Australians to become self-sustainable and self-governing (Smith, 2002, Dodson & Smith, 2003, Martin, 2003) the very small number of Indigenous Australians in the accounting profession raises the question "why so few?" The number of Certified Practicing Accountants and Chartered Accountants of Australia is approximately 150,000 and to date only nine (9) qualified Indigenous Australian accountants have been located, representing 0.006%. This paper analyses the barriers faced by Indigenous Australians within the context of theories of cultral identity and colonisation of Australia. These theories are propounded as a means of exploring why there are so few Indigenous Australians represented in the accounting profession. An overview of colonial rule implemented by the British government from settlement of Australia in 1788, through to modern day Australia will be forwarded in an effort to draw out the implication of colonial rule on the development of Indigenous Australians whilst paying particular attention to the cultural identity of Indigenous Australians and the influence this has had on their career choices.