Empirical research on cultural creative industries relevancy in beijing

Economic Management Journal April 2013, Volume 2, Issue 2, PP.38-41

Empirical Research on Cultural Creative Industries Relevancy in Beijing Da Deng, Yijiang Zhou, Siwen Zhang Business School, China University of Political Science and Law, Beijing, 102249, China #

Email: dengdadengda@sina.com

Abstract This paper tries to reveal the degree of relationship, radiation effect and spread between the cultural creative industries of Beijing and each industry in national economy by means of calculation and analysis on direct correlation effect and enterprise spread effect. The first quantitative determination has showed strong industry association in Beijing, which is suitable for cluster development. Creative industries are significantly relevant to almost all leading industries in the city, inevitably playing an important strategic role in the city's economic development.

Keywords: Creative Industries; Cultural Creative Industries; Industry Relevancy; Input-Output Method; Empirical Analysis

INTRODUCTION From year 2005 to 2010, the added value of cultural creative industries in Beijing has increased from 6.741 billion Yuan to169.77 billion Yuan, regional GDP proportion increased from 9.7% to12% as well; which means the average annual growth rate is as high as 20.3%. [1] Cultural creative industries has become one of the three pillar industries in service industries propelling the economic development of Beijing. This article will utilize the input coefficient, induction degree coefficient, influence coefficient in input-output method, to calculate and analyse degree of industry chain and enterprise spread degrees of the creative industries in Beijing. All basic data used in this paper are derived from input-output table of 42 departments released in 2007 by Beijing municipal bureau of statistics. [2]

1 DATA CALCULATION AND ANALYSIS 1.1 Direct correlation effect analysis 1) The Intermediate demand of Creative industries TABLE 1 DIRECT CONSUMING COEFFICIENT TABLE OF BEIJING

Industry

Primary industry

Secondary industry

Tertiary industry (without creative industries)

Creative industries

Primary industry

0.34

0.02

0.01

0.00

Secondary industry

0.17

0.61

0.18

0.36

0.08

0.11

0.25

0.14

0.04

0.02

0.05

0.15

Tertiary industry (without creative industries) Creative industries

From table 1, The intermediate demand for the primary industry, secondary industry, tertiary industry (in addition to the creative industries) and creative industries itself respectively are basically 0, 0.36, 0.14, and 0.15. It can be seen that the correlation between creative industries and the industry production technology is insignificant, but creative industries is in strong demand for the material and technical base of the secondary industry. Creative industries’ - 38 -

demand for itself is 0.15, lower than that of the primary industry, secondary industry and tertiary industry; which means creative industries has reduced the demand for their own, existing and developing in concentrated form in practices, proving the comprehensive and rapid development of creative industries.

2) Input coefficients of the various departments within the secondary and the tertiary industry to creative industries From table 2, the highest input coefficient for creative industries in the secondary industry in Beijing is communication equipment, computers and electronic equipment manufacturing, and the second is general equipment manufacturing, then paper printing and educational sports manufacturing follow.

It is shown that these industries in the form of intermediate input given the great support to the creative industries, are necessary elements input to carry out creative activities. However, for metal, nonmetal, oil, timber and food manufacturing, all show a lower input coefficient, small technical correlation, and mutual impact is also small.

TABLE 2 INPUT COEFFICIENT OF THE SECONDARY INDUSTRY TO THE CREATIVE INDUSTRIES IN BEIJING department

input coefficient

department

input coefficient

Metals Mining and Dressing

0.000000

Fabricated metal products industry

0.020145

Nonmetal Minerals Mining and Dressing Food production and tobacco processing industry

0.001244

Paper printing and Educational and Sports Goods manufacturing

General and special equipment

0.000235

manufacturing Transportation equipment manufacturing industr

industry

0.002331

Communication equipment, computer 0.024119

and other electronic equipment

industry Non-metallic mineral products

0.044458

0.163300

manufacturing industry 0.003926

Metal smelting and rolling processing industry

0.004645

TABLE 3 INPUT COEFFICIENT OF THE TERTIARY INDUSTRY TO CREATIVE INDUSTRIES IN BEIJING department

input coefficient

department

input coefficient

0.074214

Accommodation and catering industry

0.022062

Comprehensive technical services

0.039709

Transportation and warehousing

0.023065

Wholesale and retail

0.038543

Leasing and business services

0.025941

Information transmission, computer services and software

From table 3, in several major departments with the highest impact on the creative industries in the tertiary industry, information transmission, computer services and software industry, integrated technical services belong to the industry sector, while other departments are wholesale and retail, leasing and business services, transportation and warehousing, accommodation and catering industry. It is expected that, with the continuous development of creative industries in Beijing and the increasing demand for talents and capital, intermediate demand among departments will turn to financial services, education and other industries.

3) Directly forward and backward correlation effect of creative industries Based on the classification standard put forward for industry by means of input-output method, table 4 shows that the forward correlation of the creative industries LF ( i ) is small, and then the backward correlation LB ( i ) is slightly larger, belonging to final demand-based industries, driven by which other industries are developed .

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TABLE 4 FORWARD AND BACKWARD CORRELATION COEFFICIENT DIRECTLY OF CREATIVE INDUSTRIES IN BEIJING Department

Directly forward correlation coefficient

Directly backward correlation coefficient

rankings

coefficient

rank

coefficient

32

0.4441

10

0.8022

creative industries

1.2 Industry spread effect analysis According to the input and output method, potential leading industry exists in the department with sensitivity coefficient and influence coefficient both greater than 1. In this paper the two coefficients has been selected to analyse spread effect. Table 5 displays the sensitivity coefficient and influence coefficient of creative industries in Beijing which both are greater than 1, showing that the two coefficients affected by other industries are sensitive to economic growth, and have significant impact on other industries.

TABLE 5 SENSITIVITY COEFFICIENT AND INFLUENCE COEFFICIENT IN 42 DEPARTMENTS IN BEIJING Department

Influence

Sensitivity

coefficient

coefficient

Department Gas production and

Influence

Sensitivity

coefficient

coefficient

0.4822

0.3967

1.0574

0.3272

0.8341

2.2659

Cultural creative industries

1.2064

1.9057

Agriculture & Farming

0.9391

1.0466

Textile industry

0.9648

0.8177

0.6226

1.4265

financial industry

0.6455

0.8719

1.0845

2.7599

real estate industry

0.5947

0.5444

1.1722

0.9882

education

0.8248

0.3681

1.1263

0.6701

0.9397

0.2972

Oil processing and coking and nuclear fuel processing industry Metal smelting and rolling processing industry Fabricated metal products Instruments, culture, office machinery manufacturing industry

supply industry Water production and supply industry Transportation and warehousing

Health, social security and social welfare

2 CONCLUSIONS Based on analysis, in terms of industry associations of the creative industries in Beijing, we will see: Creative industries in Beijing have a close relationship with other industries. Specific performance in: creative industries has very strong demand for material and technical basis in the secondary industry; creative industries also closely associate with the tertiary industry, one of the highest correlation between several departments in the creative industries which contribute significantly, and as the increasing demand for talents and capital, intermediate demand among departments will turn to financial services, education and other industries.

The spread effect on creative industries in Beijing is significant than that on the overall average of industry, increasing with the rise of its industrial output year by year. Creative industries affected by the other industry,are sensitive to economic growth, at the same time significantly affect the other industry. In the period of rapid development, creative industries have become the strategic sectors of national economy.

Through industry associations, the creative industries with the dominated status influence the overall economy of Beijing, especially in the industrial structure. Creative industries and its closely relation with major industrial sectors, almost constitute all departments in the dominant industry of Beijing.

The empirical result reveals the dominance of the cultural creative industries and associated characteristics in Beijing.

In order to better play the industry's leading role, the cultural creative industries should learn lessons from the - 40 -

development experience of high and new technology industry, further improve the market system by means of the promotion of the construction of concentrated area, as well as the system environment of industry development, including the complete intellectual property rights, strengthening of the cultivation of creative talents, the construction of a mature capital operation system, etc.

REFERENCES [1]

Pu Changting. Creative Idustries Annual Income Reached More than A Trillion [J], Legal Evening News.2012.4.25. (in Chinese)

[2]

Statistical Information Network of Beijing, input-output table of 42 departments in 2007[EB /OL], http://www.bjstats.gov.cn/ [Log in on 2012/02]

[3]

Su Dongshui. Industry Economics [M]. Beijing: Higher education press. 2000, 246-279. (in Chinese)

[4]

Caves R. Creative Industries: Contracts between Art and Commerce [M], Cambridge, Mass: Harvard University Press, 2000.

[5]

Howkins. J. The creative economy: how people make money from ideas [M], Allen Lane: The Penguin Press, 2001.

[6]

Yusuf S. Nabeshima K. Creative Industries in East Asia. Cities, 22(2)(2005)

[7]

Hall P. Creative cities and economic development. Urban Studies, 37(4) (2000)

[8]

Creative Industries Mapping Document 1998 (EB /OL), London: DCMS. Available at: http://www.culture.gov.uk/[Log in on 2012/02]

[9]

Landry C. The creative city: A toolkit for urban innovators, London: Comedia/Earthscan (2000)

AUTHORS 1

Da Deng, Ph. D in management, now

Yijiang Zhou, master candidate, study on industrial economics

is an associate professor in business

in business school, China University of Political Science and

School of China University of Political

Law.

Science & Law. Teach Principles of

Siwen Zhang, master candidate, studies on industrial

Economics, Modern Economic Theory and

Project

Management

economics in business School, China University of Political

as

Science and Law.

undergraduate, graduate and MBA courses. Major Field of study is creative industries and industry economy. A large number of Research results have been published, such as Project Management of Modern Cultural Industry, Beijing, China Machine Press, 2004, Creative industries Under national innovation strategy, Beijing, Culture and Art Publishing House, 2010.

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