The Benefits of the Creative Economy: Definition of Kinds
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The Benefits of the Creative Economy: Definition of Kinds

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The Benefits of the Creative Economy: Definition of Kinds

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The benefits of the creative economy at this time are huge for a country’s economic development, including Indonesia.

On the other hand, in a digital era like now, the term “creative economy” has often been heard. The word creative economy is also commonly abbreviated as “ekraf.”

The creative economy has become a big part of community development. History in Indonesia, this creative economy has been developed since 2006—precisely during the administration of President Susilo Bambang Yudhoyono—and continues to be maintained until now.

To understand the creative economy more deeply, below will be described in full the definitions, types, and their incredible benefits for the economy.

What is the Creative Economy?

What is the definition of the creative economy? In general, the creative economy is an economic process that includes the production and distribution of goods and services in it, which requires innovative ideas and intellectual abilities to build them.

The creative economy can also be interpreted as a continuation of the economic concept, but with the addition of creativity, which includes production activities and how to use raw materials and innovation of technology in it.

In short, the creative economy is a field that has a close relationship with creativity, ideas, and human resources, which are then combined with the digitalization of the modern era.

Experts and state institutions/institutions also have various definitions of the creative economy, with details as follows.

  • Institute For Development Economy and Finance (INDEF)

According to INDEF, the creative economy is a process of increasing added value resulting from the exploration of intellectual property, which includes creativity, expertise, and individual talent, to become a product that can sell.

  • Ministry of Trade of the Republic of Indonesia

The Ministry of Trade of the Republic of Indonesia defines the creative economy as an industry originating from individual creativity, skills, and talents to create prosperity and employment opportunities through creating and utilizing the individual’s innovative and creative power.

  • Simatupang

Simatupang defines the creative economy as an industry that focuses on creating and exploiting intellectual property works, such as art, film, games, and fashion design, as well as inter-company creative services, such as advertising.

  • Howkins

According to Howkins, the creative economy includes advertising, architecture, arts, and crafts, design, fashion, film, music, performing arts, publishing, research and development (R and D), software, toys and games, television and radio, and video games.

  • United Nations Conference on Trade and Development (UNCTAD)

UNCTAD’s definition of the creative economy is a developing economic concept referring to creative assets that have the potential to generate economic growth and development.

  • Indonesian Ministry of Trade (Kemendag RI)

The Ministry of Trade of the Republic of Indonesia defines the creative economy as several sustainable economic development efforts through a variety of creativity with a competitive economic climate and also has reserves of renewable resources.

Creative Economy Characteristics

Several characteristics can describe the creative economy sector, namely as follows:

  • Have Intellectual Creation

What is meant by intellectual creation here is the need for creativity and other skills in each type of sector.

  • Easy to Replace

The point is that a type of innovation in the creative economy must constantly be developed by economic activity. Thus, the existing creations and innovations are expected to be easily replaced to adapt to the market and be well received by consumers.

  • Direct and Indirect Distribution

One of the characteristics of the following creative economy is that there is direct and indirect distribution. It is based on existing policies within the company and by taking into account the needs of consumers.

  • Requires Cooperation

In every field of work, cooperation is an important thing that is always present. In the creative economy sector, for example, cooperation between entrepreneurs and the government that regulates policies is essential for the smooth running of the ongoing process.

  • Based on Idea

In the creative economy, ideas are also the main thing to prepare. As for the ideas of each head, of course, they will be different, so the idea must develop to create innovation and creativity in the creative economy.

  • Has No Limits

This next feature can be interpreted that the innovation and creativity of everyone involved in creating a product in the field in question do not have a definite limit.

  • Types of Creative Economy

The creative economy field currently runs consists of several types of work sectors. At least 14 industrial sectors are types of the creative economy. The following is a review.

  • Advertising

In the creative economy, advertising is an activity that includes all one-way advertising/communication services that utilize several media.

This field is responsible for creating, producing, and distributing the resulting advertisements.

This advertisement will be displayed in various forms of media. Advertising in the form of print media, for example, can be in the form of newspapers, magazines, pamphlets, to brochures.

Meanwhile, in the form of electronic media, this advertisement can be audio-visual, which is displayed on television and radio.

  • Craft

It is an activity with various creations, production, and distribution of products from artisans.

Most of the products marketed have high aesthetic value. Generally, a number of its products come from materials made from leather, rattan, natural fibers, gemstones, glass, porcelain, wood, bamboo, clay, marble, and others.

  • Art market

This field includes all creative activities related to the trade in unique, rare, authentic, and high-aesthetic items.

Usually, a number of these art items are sold through auctions, galleries, and the internet. Meanwhile, various products traded can be musical instruments, handicrafts, paintings, and documentaries.

In the creative economy, architecture can be in services, design, cost planning, construction, or construction supervision.

The same is valid for construction from the macro level, such as urban planning, urban design, and landscape architecture, and at the micro level, such as construction detailing, garden architecture, and interior design.

  • Design

Design in this creative economy includes all creative activities related to design, be it graphics, interiors, products, industry, or plan for product marketing.

In this field, ideas and a high value of creativity are needed.

  • Mode

Fashion, in this case, includes the entire creation of the production of clothing, footwear, and several other fashion accessories.

The fashion sector in the creative economy does not only produce but also includes consulting and distribution of fashion products.

  • The film, video, and photography

The following field is quite large.

The various processes in it also include film script writing, voiceover, cinematography, and film exhibitions.

  • Interactive games

This field includes creating, producing, and distributing several video games with various themes.

The purpose of creating this video game is primarily as a medium of entertainment and education.

  • Music Industry

Within the music industry, various activities and processes are involved in the creation, reproduction, and distribution of sound recordings and songs.

The industry comprises world music figures, ranging from singers and songwriters to composers.

  • Dramatic art

This field in the creative economy includes a wide range of activities in the performing arts of drama.

The people involved in this field include content developers, performance producers (drama, traditional music, theater, opera, etc.), and stage, costume, and lighting designers.

  • Publishing and printing

This creative economy sector has a close relationship with the world of books. The publishing and printing process usually includes publishing books, journals, newspapers, tabloids, news agency activities, and news seekers.

Not limited to books, several sub-sectors in this field can also be in the form of photo publishing, engraving, postcards, painting printing, banknotes, passports, and airline tickets.

  • Computer services and software (applications)

The following field consists of various activities related to information technology development, such as data processing, systems integration, software development, and systems analysis.

  • Radio and television broadcasting

In the creative economy ecosystem, this field of radio and television broadcasting includes creating and producing several television programs, such as game shows, quizzes, variety shows, and infotainment.

In addition, it also includes the activities of television stations and radio in general.

  • Research and development (R&D)

The research and development referred to here include the activities of scientific and technological discoveries and their various applications, which aim to create products and improve product quality.

Research does not only cover the technology field because it can also be related to the humanities, for example, in the development of language and literature.

What are the Benefits of the Creative Economy?

Holding the principle that the industry seeks to meet market needs by prioritizing creativity and intellectual ability, the creative economy has several benefits.

  • Innovation Development

Innovation is the primary key to the development of a business or the economy of a country. One of the benefits of the creative economy here is the opening of various new ideas to compete competitively between one company and another.

In this regard, every business must be able to read market trends carefully to adapt to using innovation.

  • Opening New Jobs

The creative economy can also pave the way for new jobs, one of the benefits.

More new products will be produced with more innovation and creativity from people who open businesses.

This will make more and more labor required in the manufacturing process.

  • Pressing the Unemployment Rate

The presence of a creative economy can also suppress the unemployment rate. The reason is that the creative financial industry sectors will continue to develop over time and absorb more human resources.

Well, that’s what will be able to suppress alias and reduce unemployment.

  • Economic growth

The benefits of the creative economy, in principle, are to hoist the economic growth of a country.

The Global Talent Competitiveness Index (GTCI) conducted research, as released by INSEAS, that countries with many entrepreneurs and entrepreneurs tend to have more robust financial capabilities than countries with very few entrepreneurs.

  • Reduced Poverty Rates

The creative economy’s goals and significant benefits can be felt by reducing poverty.

The opening of opportunities to open new businesses makes the creative economy an effective option to provide an opportunity for someone to change their fate for the better.

  • Providing Business Opportunities for Everyone

The creative economy can also pave the way for new changes for those who want to start a business without pocketing significant funding capital.

Different from conventional business segmentation that requires significant funds, industries with a creative economy base will usually be more lenient in terms of capital.

This is why many young entrepreneurs with bright ideas but whose intentions are restrained because they do not have sufficient capital flow can make the creative economy sector the best option.

  • Improve Quality of Life

When the basis for the benefits of the creative economy is fully assimilated into the life of the wider community, positive impacts, and improved quality of life, will also be felt.

It is widely believed that this one goal and benefit will have a significant social impact. Thus a complete review of the creative economy, starting from the definition, types, and gifts. Stay tuned for other latest articles about the crypto world only at Indodax Academy.

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