Between theme park & creative district:
the beneficiaries of
in
Shenzhen, China.
RESEARCHER Lauren Bruijning || SUPERVISOR dr. M.A. (Marco) Bontje C O-TUTOR C. (Ching Wen) Yang MSc
CONTACT lauren.bruijning@gmail.com CONTACT m.a.bontje@uva.nl
DATE June 2016 c.w.yang@uva.nl
Master thesis Human Geography: Economic Geography
MSc Human Geography: Economic Geography
University of Amsterdam| Graduate School of Social Sciences
In collaboration with INTI International New Towns Institute June, 2016
Between theme park & creative district:
the beneficiaries of OCT-Loft in Shenzhen, China.
An analysis of the benefits of a creative district in Shenzhen for different creative actors
Author: Lauren Bruijning Student#: 10971068
Contact: lauren.bruijning@gmail.com
Supervisor: dr. M.A. (Marco) Bontje Co-tutor: C. (Ching Wen) Yang MSc
Abstract
In recent years, the role of the creative industries as key driver for innovation has been increasingly recognized. This potential for fostering economic growth and welfare has led to changes in the policies of city regions around the world to facilitate and enhance its creative industries in order to create a competitive advantage. As a result, governments have focussed on attracting and retaining human capital to seize growth opportunities and herewith increase welfare. In this manner, culture has become a powerful tool for both city-branding, attracting the high-educated and tourism purposes.
With the emergence of the new economic geography and the creative economy, there has been a change in interest in the importance of location for economic activities. Clustering has been identified to be highly beneficial for creative industries as the spatial agglomeration of related industries enhances the productivity of creative industries through networks. These networks are beneficial because of the opportunity to share risks and knowledge which can keep costs associated with risks low and therefore can help foster innovation. These networks can be referred to as the soft infrastructure or intangible agglomeration economies of clustering. The benefits of this soft infrastructure has been emphasized in enhancing innovation and creativity.
Moreover, the environment in which creative actors operate can be identified as important incubator for creative industries. A qualitative environment for creative actors is assumed to be a diverse, tolerant and open-minded place with a distinct lifestyle in which new trends can proliferate. These features contribute to the place identity of an environment which can be the source of inspiration for creative actors. Hence, the concept of creative clustering creates several benefits for creative actors. This shift from a manufacturing economy towards the creative economy, combined with the widely assumed benefits of clustering has led to the development of creative districts.
The Shenzhen city government has appointed and supported the development of several creative districts. This research analyses a creative district in Shenzhen in the context of new economic geography, cluster theory and theories concerning the creative industries. By incorporating these theories, an attempt has been made to identify the attributes of the soft infrastructure of a creative district in Shenzhen for creative actors. Soft infrastructure is understood as intangible agglomeration economies which can be identified as place identity and networks. The potentials of creative clustering for different actors in Shenzhen are analysed through the case study of OCT-Loft. Furthermore, this research uses a mixed-method approach. By incorporating interviews, ethnographic observation and a literature study, an endeavour is made to gain deep insight in the networks among actors in the creative district and the way they construct place and give meaning to it. By gaining a more thorough understanding about the relationship between networks, environment and creative actors, recommendations can be formulated to improve and strengthen the potentials of creative clustering in the creative districts in Shenzhen.
Key concepts: ‘creative economy’, ‘creative clustering’, ‘creative actors, ‘place identity’, ‘location decisions’ and ‘networks’.
Creativity comes from a conflict of ideas
- Donatella Versace
The chief enemy of creativity is 'good' sense
- Pablo Picasso
Preface
Before you lies the final product after an intense year of studying Economic Geography at the University of Amsterdam and the great experience to immerse myself in Chinese culture. The chance to do research in China was one I couldn’t resist. Since I was 12 years old I’ve been fascinated with Southeast and East Asia and have been focussed on these regions ever since. After living in Taipei for half a year and travels throughout Asian countries, I’m happy I could experience Shenzhen in an again entirely different manner. I think that living in a metropolis for seven weeks in a culture which is so different than your own, is the best way to gain a deeper understanding about Chinese soci ety and cultural differences. It brings opportunities and experiences that you wouldn’t get when travelling and makes you cross paths with all kinds of interesting people.
From the advent of this research, I was sure I wanted to focus on the creative ind ustries in Shenzhen. This partly is a result of my visit to the Beijing 798 Art District in 2011. Moreover, during my study period, I’ve discovered my interest in not only geography but also in culture, art, communication and society. But most of all, this thesis is inspired by my interest in the importance of place. This research is my own personal attempt to fuse these i nterests in one overarching work.
There are some people that I would like to thank for this experience to immerse myself in Chinese culture and who supported me while writing my thesis. First of all, I would like to thank the University of Amsterdam – special thanks to Marco Bontje and Ching Wen - and International New Town Institute for the chance to involve in this project and the introduction program in Shenzhen which taught me another way of looking at urban planning and city development. Moreover, I would like to thank the respondents and especially the Chinese students from the University of Shenzhen and the Peking University of Shenzhen (Stacey, Becky, Marissa, Killian and Yang), for their help and commitment with translating during fieldwork. Just as I would like to thank them for our amazing KTV-experiences. Our conversations also helped me gaining a better understanding of cul tural differences between Dutch and Chinese culture. Next to that I would like to thank Gee Coffee Roasters for their daily coffees, great service and working space in OCT-Loft. And of course, I would like to thank my fellow students that were involved in the Shenzhen project for all the fun, chopsticks failures, bacon and egg sandwiches, but also for the conversations and discussions about Chinese society and Shenzhen in particular.
Last but not least, I would like to sincerely thank my parents Rogier Bruijning and Marlous Hermans for both their financial support during my entire study period and their ongoing interest in my study, including both critical feedback and support when needed. Max, for supporting me during my (in some cases frustrating) attempts to reach the right respondents for this research and tackling my insecurities with your motivating incentives. And of course, I would like to thank my sister Silvie and my dear friends - special shout out to Juul, Marleen, Charlotte, Esmeralda, Annemieke, Afra, Elmer & Senna - for listening to my frustrations, constructive feedback and their support in going to China and not joining them on multiple occasions. 謝謝你們!
Lauren Bruijning June 2016
Index
ABSTRACT 5
PREFACE 9
INDEX 11
LIST OF FIGURES AND TABLES 15
1| INTRODUCTION 17 1.1 PROBLEM STATEMENT 18 1.2 ACADEMIC RELEVANCE 18 1.3 SOCIETAL RELEVANCE 19 1.4 RESEARCH OBJECTIVES 20 1.5 READING GUIDE 20 2| THEORETICAL FRAMEWORK 22
2.1 THE ADVENT OF THE CREATIVE INDUSTRIES 22
2.1.2 THE CREATIVE INDUSTRI ES 22
2.2 RICHARD FLORIDA: THE CREATIVE CLASS AND QUALITY OF PLACE 24
2.2.1 THE CREATIVE CLASS 24
2.2.2 QUALITY OF PLACE 24
2.3 COGNITIVE-CULTURAL ECONOMY AND THE URBAN ENVIRONMENT 25
2.3.1 ALLEN SCOTT: COGNITIVE-CULTURAL ECONOMY 25
2.3.2 CREATIVE INDUSTRIES I N THE URBAN ENVIRONMENT 26
2.4 CLUSTER THEORY AND AGGLOMERATION ECONOMIES 27
2.4.1 KNOWLEDGE SPILLOVERS 27
2.4.2 THE SPATIAL DIMENSION AND THE FUNCTIONING OF CLUSTERS 28
2.5 SOFT INFRASTRUCTURE: PLACE IDENTITY AND NETWORKS 28
2.5.1 THE CONCEPT OF PLACE AND PLACE IDENTITY 29
2.5.2 THE NATURE OF NETWORKS: FORMAL AND INFORMAL 30
2.5.3 FORMAL NETWORKS: HORIZONTAL AND VERTICAL LINKAGES 30
2.5.4 INFORMAL NETWORKS:STRONG AND WEAK TIES 31
2.6 CONCLUSION 31
3| RESEARCH QUESTIONS AND CONCEPTUAL MODEL 33
3.1 RESEARCH QUESTIONS 33
3.2 CONCEPTUAL MODEL 33
4| SHENZHEN AND THE CHINESE CONTEXT 35
4.1 REFORM AND DEVELOPMENT OF SHENZHEN 35
4.1.1 CONSUMER REVOLUTION 35
4.2 CREATIVITY AND THE POLITICAL SYSTEM OF CHINA 37
4.2.1 COLLECTIVISM, HIERARCHY AND CONFUCIANISM 37
4.2.2 FREEDOM OF CREATIVITY 37
5| RESEARCH DESIGN AND METHODS 39
5.1 METHODS 39
5.1.1 INTERVIEWS 39
5.1.2 ETHNOGRAPHIC OBSERVATION 40
5.2 THE SELECTION OF CASES 40
5.3 UNITS OF ANALYSIS 42
5.4 SCOPE AND LIMITATIONS 43
5.4.1 CULTURAL DIFFERENCES 44
5.4.2 LANGUAGE BARRIERS, COMMUNICATION AND I NTERPRETATION 45
5.5 RELIABILITY AND VALIDITY 45
6| DESCRIPTIVE STATISTICS 49
6.1 RESPONDENTS CHARACTERISTICS 49
6.1.1 GENDER 49
6.1.2 NATIONALITY 49
6.1.3 CAREER PHASES AND JOB VARIETY 50
7| SHENZHEN, THE CREATIVE INDUSTRIES AND OCT-LOFT 51
7.1 THE DEVELOPMENT OF OCT-LOFT 52
7.1.1 THE DEVELOPER:OCTGROUP 52
7.1.2 URBAN REGENERATION AND ESTABLISHMENT 53
7.1.3 DESCRIPTION OF OCT-LOFT 54
7.1.4 DESCRIPTION T-STREET WEEKEND MARKET 57
7.1.5 DESCRIPTION T-STUDIO 58
7.2 F518IDEA LAND,NANHAI E-COOL AND IDTOWN 58
8| PLACE IDENTITY AND LOCATION DETERMINANTS 61
8.1 ATTRACTION AND SELECTION OF CREATIVE FIRMS 61
8.2 PLACE IDENTITY AND LOCATION DECISIONS 63
8.2.1 CREATIVE PROFESSIONALS: REASONS TO LOCATE I N OCT-LOFT 63
8.2.2 CREATIVE ‘OTHERS’: REASONS NOT TO LOCATE IN OCT-LOFT 65
8.2.3 CREATIVE EXPATS AND EXPERTS: REASONS NOT TO LOCATE IN OCT-LOFT 67
8.3 REASONS TO VISIT OCT-LOFT 68
8.4 COMPARISON TO THE LITERATURE 69
9| NETWORKS AND COLLABORATION 71
9.1 NETWORKS: GUANXI RELATIONSHIPS 71
9.1.1 CONTRASTING STORIES: CREATIVE PROFESSIONALS AND THEIR VIEWPOINT ON GUANXI 72 9.2 NETWORKS AMONG CREATIVE ACTORS AND OCTGROUP 73
9.3.1 VERTICAL LINKAGES 74
9.3.2 LACK OF SHARING AMONG CREATIVE FIRMS 75
9.4 CREATIVE ‘OTHERS’: NETWORKS AND COLLABORATION 76
9.5 COMPARISON TO THE LITERATURE 76
10| CRITICAL ANALYSIS: CASE OF OCT-LOFT 79
10.1 CONSUMPTION CULTURE AND BRANDING 79
10.2 THE FUNCTIONING OF OCT-LOFT 80
10.3 IDENTIFIED CONSTRAINTS 80
10.4 GOVERNANCE: INSTITUTIONAL LOCK-IN 81
11| CONCLUSION 83
11| RECOMMENDATIONS 87
11.1 RECOMMENDATIONS FOR POLICY 87
11.2 RECOMMENDATIONS FOR FURTHER RESEARCH 88
REFLECTION 89
REFERENCES 91
APPENDIX 95
APPENDIX A OFFICIAL REQUEST INTERVIEW 97
APPENDIX B TOPIC LISTS 98
B1 TOPIC LIST CREATIVE ACTORS 98
B2 TOPIC LIST PROJECT DEVELOPERS 99
APPENDIX C OVERVIEW AND JUSTIFICATION OF LONG INTERVIEWS 101
APPENDIX D CODING LIST AND CATEGORIZATION 106
D1 OVERVIEW OF CODES 106
D2 CODING AND CATEGORIZATION OF RESPONDENTS (LONG INTERVIEWS) 106
D3 CODING AND CATEGORIZATION OF RESPONDENTS (SHORT INTERVIEWS) 106
E| NON-RESPONS 108
List of figures and tables
Figure at cover: OCT-Loft creative park (OCT-Loft, 2015) List of figures
Figure 1: Conceptual model 34
Figure 2: The location of Shenzhen in the Pearl River Delta province 35
Figure 3: Location of creative districts in Shenzhen 42
Figure 4: Distribution of respondents based on nationality 50
Figure 5: Distribution of respondents based on job sector 50
Figure 6: northern part of OCT-Loft 55
Figure 7: southern part of OCT-Loft 55
Figure 8: Spatial distribution of economic activities in OCT-Loft in 2012 56
Figure 9: T-Street weekend market 57
Figure 10: Seminar T-Studio 58
Figure 11: Chaihuo makerspace 58
Figure F1: Map with property rights OCT-Loft 109
Figure F2: OCT Group office 110
Figure F3: GIGA competition held in OCT-Loft. 111
Figure F4: Painting workshop OCT-Loft 111
Figure F5: Design shop and firm located in OCT-Loft 112
Figure F6: Old Heavens bookstore (famous bookstore in OCT-Loft) 112 Figure F7: Coffee store and meeting place of Old Heavens bookstore in OCT-Loft 113
Figure F8: Fieldwork at T-Street market with interpreters 113
Figure F9: Impression T-Street market 114
Figure F10: Goods sold at T-Street market (1) 114
Figure F11: Goods sold at T-Street market (2) 114
Figure F12: Entrance towards T-Studio 115
Figure F13: Entrance Art Corridor (T-Studio) 115
Figure F14: Interviewing creative actors in Shenzhen 115
List of tables
Table 1: The creative districts involves in this research 41
Table 2: Categorization of respondents 44
Table 3: Code scheme interviews 46
Table 4: Distribution of respondents based on gender 49
Table 5: Distribution of respondents based on nationality 49
Table 6: Indication of estimated rent prices in different creative districts 64
Table D2: Coding and categorization of respondents (long interviews) 106 Table D3: Coding and categorization of respondents (short interview) 107
1|
Introduction
In 2011, the Huffington post posted an article concerning the importance of developing creative clusters in order to meet challenges and competition in the new economy (Eger, 2011). Since the United Nations Conference on Trade and Development (UNCTAD, 2010) in the 1990s it has been widely recognized that the creative industries are key incubators for economic growth and welfare (Florida, 2002; Landry, 2000). Since the 2000s, the fast growing economy in China generated a large consumer market with increasing demands for cultural consumption (Bao, 2015). For policymakers, the creative industries were perceived as the means to gradually shift China’s economic structure from factory of the world towards the ‘new’ economy that competes based on higher valued -added services and innovation (Banks & O'Connor, 2009; Chang, 2008; Keane, 2009). Together with this trend, the need for urban environment to facilitate these industries has been widely recognized and facilitative environments in the form of creative districts have sprung up in many city regions (Bao, 2015).
Hence, the advent of the so-called Creative Age has led real estate agents and city government to turn their attention to the development of creative districts. The Shenzhen city government has appointed former industrial areas to be developed into commercial, business and entertainment districts due to the relocation of manufacturing. This urban regeneration involves a transformational process in which cultural facilities and shopping are used as a tool to upgrade the areas and offer a new range of quality features. These areas are perceived to create opportunities to develop a creative economy, as they are regarded as breeding grounds for entrepreneurship and innovation (Zacharias & Tang, 2010).
There has been an upward surge in the development of creative districts in China, responding to the success of Beijing’s 798 and Shanghai’s Tianzifang. These top-down implemented ‘creative clusters’ often involve highly planned areas with state-of-the-art infrastructure, but are questioned for their exhibition of creativity (Chang, 2008; Keane, 2009). The label ‘creative’ suggests the prevalence of creative industries and related facilities in these districts, while reliable data is not available (Bontje, 2014). Moreover, different authors have pointed at the underperforming of designated districts in terms of fostering creativity and developing a creative economy. It has been argued that creative districts are in fact developed with a different objective; to foster gentrification in order to gain revenues from leasing land. Gentrification essentially entails the reappraisal and upgrading of the social, economic and cultural dimensions of a neighbourhood or district. The term has been associated with the new middle class with an associated urban lifestyle. However, although gentrification can upgrade a district, it also creates new segregation due to rising land values (Atkinson & Bridge, 2004). Nonetheless, the process is set in motion by project developers by developing creative districts. From this perspective, a creative district doesn’t necessarily have to foster productivity or innovation in the creative industries, but can be regarded as successful when it leads to gentrification which boosts real estate markets (Bontje, 2014; Keane, 2013; Wu & Gaubatz, 2013; Zacharias & Tang, 2010). These developments raise questions about the actual nature of creative districts and to what extent these areas support different creative actors.
The Chinese reform has spurred a consumer revolution and the development of upscale commercial areas. These trends, together with the hierarchical governance and dominance of certain players in urban planning raise questions about the creative districts in Shenzhen. Assuming that the districts are developed for the creative industries in order to develop a creative economy, how are
these areas perceived by different creative actors? Is creativity and innovation being encouraged or sustained? The development of creative districts necessarily involves the agglomeration of businesses that involve creative industries or can somehow be regarded to as ‘creative’. However, as the National Endowment for Science, Technology and the Art (NESTA) pointed out:
“The case studies also show that the mere existence of a creative agglomeration is not enough for the benefits from clustering to emerge. The other crucial ingredient is connectivity between firms within a cluster, with collaborators, business partners and sources of innovation elsewhere... and finally, with firms in other sectors that can act as clients, and as a source of new and unexpected ideas and knowledge. These three layers of connectivity are underpinned by a dense web of informal interactions and networking” (Eger, 2011).
This quote points to the importance of formal and informal networks for a creative district to function as a cluster. Moreover, this research emphasizes that the place identity of a creative district is important for creative actors to be attracted to a certain place. Also, the institutional framework in terms of governance has to be taken in account, as this can pose opportunities and constrains for different creative actors. In short, it is clear that Shenzhen is branding itself as ‘creative city’ but there is no clear analysis yet about the nature of creative districts and the extent to which these developments create an attractive and supportive environment for creative actors.
1.1 Problem statement
Shenzhen represents a diverse range of creative districts. This research investigates whether creative cluster theories can help explain the nature of creative districts in Shenzhen. To gain more insight in the creative clustering in Shenzhen, this research focusses on the attractiveness of creative districts for creative actors. This relates to the perception of creative actors or place identity of the creative district which is identified as an important feature for location decisions of cre ative actors (Drake, 2003). Hence, this research focusses on the intangible agglomeration economies or ‘soft infrastructure’ of creative districts. This also comprises the formal and informal networks between creative actors in a creative district and throughout Shenzhen, as it is assumed that these are crucial to reap the benefits of clustering. The importance of these networks has been highlighted in academic research since they are determinant for innovation and creativity in the ‘new’ economy (Scott, 2010). Therefore, they are regarded as key ingredients for creative clusters to enhance regional economic performance (Eger, 2011). Furthermore, attention is paid to the governance of creative districts or institutional framework which composes the context in which creative actors operate. Hence, this research focusses on the place identity, location decisions, networks and collaboration and governance in creative districts in Shenzhen.
1.2 Academic relevance
The overarching theme of this research is the development of the creative economy in Shenzhen through the establishment of creative districts. With this research, an attempt is made to analyse the development of creative districts through urban redevelopment projects. First of all, not much research has focused on the creative industries in China. Authors mainly have considered the advent of the creative industries and the freedom of creativity within China. Michael Keane has analysed the
development of creative districts and has written about the hie rarchical system of China which is reflected in the supervision of creative districts by government officials. Moreover, Bontje (2014) has argued that although Shenzhen has focused on creative initiatives and has highly invested in developing creative districts, there hasn’t been an evaluation yet of the effectiveness of the se initiatives. This research intends to help to fill this gap, in terms of contributing to knowledge about how creative actors benefit from their location in creative districts. Furthermore, related research has mainly focused on investors and government policies regarding the creative industries in China. This research attempts to contribute by incorporating the perceptions of different creative actors, such as creative professionals and entrepreneurs as well as artists. Next to that, attention is paid to the project developer and government objectives which can provide insight in the opportunities and constraints for different creative actors in Shenzhen.
Secondly, Comunian, Chapain, and Clifton (2010) identified a knowledge gap concerning the micro-interactions of creative actors and firms within a certain local context. Moreover, relatively little research has analysed the concept of creative clustering in the Chinese context (Lazzeretti, Boix, & Capone, 2008; Lin, 2001). It’s untenable to simply assume that theories based on Western cities are transferable in interpreting the process of urban transition in China (Kong & O'Connor, 2009; Lin, 2001). Therefore, the endeavour is made to evaluate the relevance of several theoretical assumptions that originate from Western scientists to the Chinese experience of urban restructuring through developing creative districts as catalyst for economic growth and prosperity. By relating the concept of creative clustering to creative districts in Shenzhen, this research tries to analyse the opportunities that networks, place identity and urban environment can create for creative actors. In this manner, this research can contribute to the understanding of the operation of creative industries in China and its position in society, as well as create insights in consolidating the creative economy by facilitating urban space for creative industries.
1.3 Societal relevance
By identifying the potentials of creative clustering and the extent to which these are being utilized in Shenzhen, (policy) recommendations can be identified for both urban planners in city government and project developers in facilitating creative industries. To develop a creative economy and facilitate creative actors, policymakers should focus on the promotion of efficiencies within clusters and developing more high-value added creative industries (Hong, Yu, Guo, & Zhao, 2014). Moreover, the project developer that is managing the creative district might be solely focussed on real estate prices while this company might also benefit by supporting networks and a more open atmosphere for creatives (Zacharias & Tang, 2010). By incorporating the perceptions of different actors, this research can help shed light on the functioning of OCT-Loft as a cluster, and how the area can attract and retain more creative actors. Findings can possibly be used to address challenges and improve the creative community and community attachment in OCT-Loft. Improving the community might improve innovation within OCT-Loft and herewith regional economic growth.
Furthermore, this research provides insights in how actors construct place and perceive the environment of creative districts. This focus on the perceptions of actors can help identify how creative districts can be improved in terms of creative actors’ preferences and needs, and how creativity can be fostered through networking and place making. With this focus, this research strives to link community attachment to economic development and thus incorporate the users of space in urban development.
1.4 Research objectives
“The case studies also show that the mere existence of a creative agglomeration is not enough for the benefits from clustering to emerge. The other crucial ingredient is connectivity between firms within a cluster, with collaborators, business partners and sources of innovation elsewhere” (Eger, 2011). From this quote can be drawn that the spatial agglomeration of creative industries doesn’t necessarily entail the functioning and benefits of a cluster. Therefore, the main research objectives are to understand the perception of different creative actors of creative districts and their functioning as a cluster. This is analysed by assessing to what extent place identity is important for creative actors and if and in what way, networks are present. Herewith this research contributes to an understanding of the development of creative districts within the context of creative clustering . Additionally, by analysing the soft infrastructure (place identity and networks) possible benefits of creative districts in Shenzhen for different creative actors can be identified.
1.5 Reading guide
This research consists of several chapters. First of all, the second chapter provides a brief introduction about the context in which this research takes place. Herewith a short historical outline of Shenzhen is presented. An overview of the academic literature concerning the topic is provided in chapter three. In this chapter the creative industries are defined and attention is paid to the application of these theories to the Chinese context. In Chapter 4 the research questions are constructed and the conceptual model is drawn which intends to show the relationships between the identified concepts, in this case the relationships between networks and place identity. Chapter five provides the research design and methodology that is used for this research. After that, the findings are described in Chapter 6 to 9. The next chapter entails a critical analysis of the findings and presents the identified opportunities and constraints of OCT-Loft for different creative actors. Finally, the last chapter entails the conclusion where an answer is provided to the research questions and possible recommendations for policies and further research are given.
2|
Theoretical framework
In this chapter, first of all the major ideas and theories concerning the creative economy and creative industries, will be discussed. After that, attention is paid to Richard Florida and Allen Scott, which have analysed the relationship between the creative industries and the urban environment. After that, to be able to take a closer look at the development of creative districts, the cluster concept and the its soft infrastructure (place identity and networks) are elaborated. Lastly, attention is paid to the creative industries in the Chinese context.
2.1 The advent of the creative industries
The changing nature of the economy has been defined in several ways; knowledge economy, new economy, post-Fordist economy, creative economy or cognitive-cultural capitalism (Scott, 2010). In one way or another, all over the world there is an increasing interest in the relationship between human capital and economic growth (Liu, 2015). Economies have increasingly shifted away from the production of goods towards a focus on services and industries based on knowledge and innovation (Kloosterman, 2010; Scott, 2012). The definitions creative economy and cognitive-cultural capitalism differ from the others because of the emphasis on culture. Cultural or creative industries are in these theories regarded to contribute to the experience economy which is becoming more important in cities around the world. Moreover, arts and culture are widely recognized for their potential for consumption and economy in terms of economic growth (Kong & O'Connor, 2009). As a result, governments have focussed on attracting and retaining human capital to sustain economic growth and welfare.
Besides, governments tend to be supportive to localizing creative industries because of their reputation in urban regeneration. In this manner the clustering of creative industries is expected to revitalise old derelict factory areas (Liu, 2015). Moreover, the creative industries are generally regarded as incubators for innovation (and herewith contribution to economic development) and the building of social inclusion (UNCTAD, 2010). The industries are expected to raise urban creativity, increase employment rates and promote sustainable development (Liu, 2015). Moreover, the Chinese government regards the creative industries as more high-value added industries, which can contribute to the development of a post-industrial economy. Moreover, by incorporating the creative industries in the 11th 5-year plan, the government attempts to change its current image of ‘factory of
the world’. This objective can also be drawn from the corresponding slogan: ‘From Made in China to Created in China’ (Bontje, 2014; Costa, 2013; Keane, 2013). To what extent the creative industries exactly contribute to economic growth and generate benefits for Chinese society, is beyond the scope of this research. This research focuses on the manner how creative actors perceive the development of creative districts and thus the spatiality of creative industries.
2.1.2 The creative industries
More clarification is needed in order to justify the use of the term creative industries in this research. One widely mentioned definition originates from the Department of Culture, Media and Sport of Britain, in which the sector is identified as:
“activities which have their origin in individual creativity, skills and talent, and which have the potential for wealth and job creation through the generation and explo itation of intellectual property” (DCMS, 2001; Drake, 2003).
This definition points to the important link between human capital (individual creativity, skills and talent) and profit making that is emphasized in ‘creative economy’ theories and Florida’s theory of the creative class. Although this definition provides some clarity in defining the creative industries, it can be criticized because every sector in one way or another can be regarded ‘creative’. Therefore, an important aspect of the products and services of the creative industries is considered to be the aesthetic or expressive value. This can be related from the following definition of the sector:
“All those sectors of the modern economy specializing in the production of goods and services whose consumer appeal is derived pre-eminently from the fact that they transmit non-utilitarian aesthetic and semiotic signals” (Scott, 2010).
However, some people such as marketeers or artists may work in sectors which fall outside the cognitive-cultural economy. The creative industries thus comprise an inaccurate term with little consensus about the meaning of the term, resulting in conceptual vagueness and lack of methodological clarity (Drake, 2003; Kloosterman, 2010). The definition is partly problematic because new industries are still developing (Bao, 2015). As a result, the creative industries have been interpreted and used in different ways in scientific papers, policy documents, as well as newspapers and on the Internet. Researchers from Europe and East Asia tend to use different definitions of creative and/or cultural industries (Bao, 2015). Keane (2009) argues that creative industries in Asia are more extensively defined; incorporating economic activities such as theme parks and furniture manufacturing. From a European perspective, the creative industries definition is less comprehensive and incorporates arts related activities, advertising, media, architecture and design. Since the 11th
Five-Year plan however, the general definition in China has changed into the ‘cultural and creative industries’ which connects better to western definitions (Bao, 2015).
Furthermore, although definitions may differ among countries and governments, it’s important to recognize the increased importance of these industries in the current economy. According to Banks and O'Connor (2009) the term creative industries has proliferated from the cultural industries since the 1990s with the trend towards the creative economy. It should be noted that with the transition from an industrial to a post-industrial economy, the meaning of creativity and the sectors to which it is applicable has changed: while the emphasis used to lie at the development of new ideas, the creative industries should be understood more within the context of the market economy (Costa, 2013). The new term puts more emphasis on the economic value of products and hence the commodification of artistic activities (Kong & O'Connor, 2009; Liu, 2015). Therefore, in this research the creative industries are perceived to be closely related to their productiveness and value they have for the market.
Lastly, because the boundaries of creative industries are hard to define, in this research the creative industries are rather considered as a continuum which entails a broad spectrum of activities such as arts, cultural heritage and more market-oriented industries. Without attempting to provide a comprehensive definition it is assumed that the creative industries can be roughly organized in a continuum along upstream and downstream activities. Upstream activities are considered to be the more ‘traditional’ cultural industries. These entail for example the performing and visual arts, while
downstream industries refer to more ‘market-driven’ creative industries. This refers to the more supporting industries such as design, advertising, publishing and media (Costa, 2013; UNCTAD, 2010).
2.2 Richard Florida: the creative class and quality of place
2.2.1 The creative class
To refer to people that relate to the creative industries, Richard Florida’s definition of the creative class is probably the most well-known. The author argues that creative workers are highly mobile and are attracted by locations because of leisure life, community and atmosphere rather than the availability of employment (Florida, 2002). Florida’s creative class is divided in two groups: the super-creative core that develops new ideas and knowledge (scientists and artists) and super-creative professionals which he defines as knowledge-intensive creative executors that independently make assessments of complex issues in their work field.
The creative class theory has been widely debated and can be regarded as controversial (Liu, 2015). In part because it assumes that the creative class is the key driver for economic growth based on data while there is also statistical evidence that counters this argument. Herewith, this assumption neglects the extent to which investments in facilities or the development of a high quality environment contributes to economic growth. Moreover, Florida considers the creative class as high-educated, flexible and highly footloose. Moreover, the assumed hedonistic lifestyle and the high income of the creative class suggests a group which consumes and spends money which stimulates the economy (Florida, 2002; Liu, 2015). This definition suggests a very mobile and homogenous group that is always ready to locate, and should be regarded as short-sighted Moreover, Kong and O'Connor (2009) have argued that Florida’s concept of the creative class is highly confusing when applied to the context of China. As an example, Liu (2015) pointed out that the average level of income among creatives is similar to the average level of income in China. Hence, apparently the creative class in China doesn’t necessarily obtain a high income as was assumed by Florida.
Furthermore, Florida´s definition based on occupations is broad and includes the bulk of white-collar workers. This has been criticized, whereas the inclusion of some occupations within this sector can be questioned while other occupations that are excluded could be regarded as creative. Simply can be stated that every occupation can be regarded as creative to some extent, which is not only applicable to the higher-educated but also to the lower-educated workers (Markusen, 2006). As an example, some artists are low-educated while they are in fact creative. Considering the widely criticized creative class, the term creative actors is preferred in this research, which emphasizes the creative practices of people or firms. The term should therefore be understood as the people that work and operate in the creative industries without stating any preliminary distinctions within this group. This does not entail that creative actors are assumed to be a homogenous group. However, it is assumed that possible differences among creative actors, can be distilled after analysing perceptions and behaviour, rather than making prior assumptions about possible subdivisions. 2.2.2 Quality of place
Richard Florida emphasized the trivial terms quality of place and authentic places to refer to the concern to create an attractive environment for the creative class as he regards them as exceptional consumers of place (Bontje, 2016). Florida (2002) has argued that the creative class is the key determinant for economic growth and is attracted to areas depending on the Global Creativity Index or 3 T’s; Talent, Tolerance and Technology. These three T’s should be regarded as interdependent
and essentially determine, Florida argues, the innovativeness of a certain place. In this distinction, with ‘Talent’ the author refers to the high-educated population or creative class. With ‘Tolerance’ the author emphasizes the importance of a heterogeneous and open-minded environment to attract creativity. Lastly, Florida argues that a sufficient technological infrastructure (‘Technology’) is needed in order to promote entrepreneurism. Moreover, Florida emphasizes the importance of Street Level Culture, where actors are surrounded by creativity in a lively, open-minded and diverse environment. Furthermore, the creative class is argued to prefer areas close to the city centre and consists of active participants in the environment and tend to blur the boundaries between visitors, creatives and other actors (Florida, 2002).
However, Florida has been widely criticized because of his use of hard to grasp terms (quality of place, authentic places). Also, the policy implications of his theories have been discussed by a wide variety of authors (Bontje, 2016; Scott, 2006). Furthermore, the data on which Florida’s theoretical assumptions were based has been challenged as well as contradictory data has been presented. Moreover, his Global Creativity Index can be criticized because of the focus on metropolitan areas and the so-called North American bias. This unit of analysis tends to blur socio-spatial variations which can be profound in metropoles such as Shenzhen. Therefore, the quality of place in this research is interpreted as the importance to create a qualitative urban environment in order to facilitate and sustain ‘creativity’ within a creative district. During research the key determinants for the quality of place in this context will be identified.
Furthermore, in the context of this research, Florida can be criticized because he doesn’t explain how the cultural potential and entrepreneurship of creative actors can be mobilized or maximized (Scott, 2006). Additionally, when applying Florida’s theories to the Chinese context, a few things have to be noted. With Tolerance Florida referred to the presence of a wide variety of people based on nationality, lifestyle and sexual orientation. This assumption has been widely debated, and is difficult to translate to the Chinese context, where society tends to be less multicultural in comparison to Western countries. Moreover, Chinese tend to be less accepting and open to people from different backgrounds or with different preferences, although Shenzhen is considered more open and is home to many migrants. Additionally, the assumption that openness is needed for creativity and for progressive ideas to prosper, is controversial in the case of China because of its hierarchical and communist political system (Friedmann, 2006; Keane, 2009). The Chinese context is further elaborated in Chapter 4. The next paragraph describes a theory which is considered more useful for this research.
2.3 Cognitive-cultural economy and the urban environment
2.3.1 Allen Scott: cognitive-cultural economy
An important contributor to theories of urban transformation processes and the spatiality of creative industries is Allen J. Scott. This author has criticized Florida’s definition of the creative class because of its assumption of a ‘boundless’ creative class, which he assumes will locate in the ‘most attractive’ environment. This idea can be related to neoclassical economics in which individuals are assumed to make rational decisions and which supposes a perfect fluidity of capital and labour across sectors. However, this is rarely the case because there are multiple features that determine location decisions and it doesn’t take into account local contexts.
Scott (2012) explains the spatial agglomeration of creative (in his words cultural) industries by the changing nature of capitalism. This entails the shift from an industrial economy towards an
economy focused on high-tech industries, (financial) services and the creative industries. Capitalism has turned from a focus on mass-production to a focus on flexible specialization, or in other words, the transformation from a Fordist to a post-Fordist economy. Flexible specialization can be explained by increasing competition and the development of consumerism, as people choose goods and services more depending on their lifestyle. This has created a more deferential attitude of firms towards consumers, offering them more choices and personally-tailored products. By addressing the specific wants and needs of every individual a more personal customer relationship can be developed. This shift towards flexible specialization evolves in increased diversity in society. With these trends, culture is more and more incorporated in the capitalist system and subject to market forces. In this manner, Scott identified the increasing commodification of culture. The changing trend in capitalism is called cognitive-cultural capitalism by Scott which he uses to explain the structure and composition of geographic space and the development of the creative economy. Scott (2012) argues that the development of the creative industries (and the creative economy) is most evident in metropolitan areas. Moreover, he argues metropolitan regions around the world are connected in complex relationships of collaboration, competition and social interaction.
2.3.2 Creative industries in the urban environment
The relational and evolutionary theories within economic geography can contribute to the understanding of the spatial configuration of newly emerging industries. The first relevant concept of windows of locational opportunity entails that the emergence of new industries can be explained by either problems or opportunities. In the first phases of an industries’ development, companies have substantial locational freedom. The windows are ‘open’ for the development of new industries. Next to that, these authors argue that institutions that relate to the new sector often co-evolve with the emergence of a new industry. This concept of co-evolution can help explain how the development of an industry and developments of institutions mutually influence each other (Berg & Hassink, 2014).
Scott (2012) analysed the spatiality of the creative industries by taking a look at the production system, incorporating the spatial concentration of firms, the networks and the institutional framework in which they are embedded (Kloosterman, 2010). This intertwining of these features determine the path-dependency of the development of the creative industries which underscores the relational character of Scott’s theory. This entails that the development of a creative cluster often organically develops based on the presence of related knowledge and skills in an area that can contribute to the development of a new industry. Moreover, the concept of path-dependency assumes that spatial patterns are for a large part irreversible because these evolve as a result of the history of an area (Berg & Hassink, 2014). The resulting spatial agglomeration sustains a more specialized division of labour and the establishment of related institutions (Scott, 2012). The co-evolution of firms and an institutional framework makes it a complex process to purposively develop a ‘new’ creative cluster. Path-dependency seems to be related to bottom-up initiatives, and is therefore more difficult to apply when analysing more top-down planned creative districts. However, the localized path-dependent development can be regarded as a sustainable competitive advantage of firms within an agglomeration. Additionally, it entails that the outcome of cognitive-cultural or the creative economy in a certain place is dependent on the local context and existing structure.
2.4 Cluster theory and agglomeration economies
The cognitive-cultural economy entails the agglomeration and concentration of related firms (Scott, 2000, 2012). Hong et al. (2014) have noted that academics widely agree that the agglomeration of creative industries and creative actors positively contributes to local productivity and employment growth, which in turn has a positive effect on regional economic growth. Terms such as local production system, cultural cluster, cultural district or quarter and industrial district have been widely debated in academic circles and adopted by policymakers (Lazzeretti et al., 2008). The cluster concept has first been mentioned by the economist Alfred Marshall and defined as:
“The concentration of specialized industries in particular localities” (Marshall, 1920).
However, the spatial concentration of industries entails only the formation of a cluster. This agglomeration should only be perceived as a cluster when the firms in the agglomeration are interconnected with each other. This can be understood as embeddedness which refers to the extent to which firms within a cluster have relationships with other firms, institutions and the labour market (De Pater et al., 2011; Kloosterman, 2010). Hence, it refers to how economic activities of firms are embedded in a certain place. As an example, it can be assumed that an actor which occupies a centralized position in the cluster network, has more influence in the network. Additionally, embeddedness involves some protection of firms from competition.
Furthermore, the cluster concept can be understood by the underlying concept of agglomeration economies or in other words the competitive advantages that occur in a cluster. Cluster theory essentially entails that the spatial concentration of industries creates competitive advantages on cost or quality for firms or actors that are part of the cluster. As a result, firms an enhance their productivity by declining costs, which in turn fosters economic prosperity and growth (Lazzeretti et al., 2008; Porter, 2000). These agglomeration economies develop because of the embeddedness of firms, which involves the sharing of local production features. This refers to the presence of a local labour force, the presence and sharing of specialized suppliers, services and related institutions, and the know-how that develops among firms (Kloosterman, 2010).
2.4.1 Knowledge spillovers
The clustering of actors involves a high density of human capital which can improve the actors’ competitive edge when knowledge spillovers occur (Hong et al., 2014; Scott, 2006). This entails the diffusion of information, insights and knowledge across firms, industries and institutions that contributes to the continuous development process within the cluster (Marshall, 1920). This relationship between clusters, development and innovation explains the widespread government support for cluster development through financial incentives and tax benefits. The importance of knowledge spillovers can be drawn from the following citation:
“a positive spill-over effect will certainly be reflected in higher levels of employment generation, increased opportunities for strengthening innovation capabilities and a high quality of cultural and social life” (UNCTAD, 2010).
Hence, if there are no spillovers and innovation doesn’t occur in a cluster, the cluster can be expected to fail in the market place because firms need to develop and respond to market forces. If they don’t, at a certain point they will have to compete based on price, which is very difficult (De
Pater et al., 2011). Hence, clusters are sometimes referred to as learning regions and should be understood as evolving entities. The notion of path-dependency again becomes apparent here; for example, the occurrence of knowledge spill-overs and networks can be related to trust, which differs per industries and local context.
Moreover, Michael Porter (2000) contributed to Marshall’s theory by emphasizing the key feature of proximity for the functioning of networks among firms in a cluster. Additionally, he contributed by describing the conditions for successful clusters and by emphasizing that the local competition within a cluster improves productivity and rapid innovation. According to this author, the rationale behind cluster theory is that firms operate in a highly competitive environment in which firms must survive by enhancing their innovative performance. The local competition in a cluster thus creates a competitive advantage which contributes to the innovative performance. The proximity of related firms can enhance productivity and cluster participation among firms. Consequently, this author argued the competitive advantages of locating in a cluster are the result of increasing competition, encouragement and cooperation (Porter, 2000).
2.4.2 The spatial dimension and the functioning of clusters
Cluster theory has also been criticized as the competitive advantages of clusters are not applicable when the assumed importance of the spatial dimension changes. Some critics have argued that globalization leads to more homogeneity among regions and that technological advancements in ICT and tele-communications have decreased the significance of the spatial dimension. However, proximity remains important for face-to-face contact and knowledge spill-overs while a solid institutional framework is identified as important for fostering and sustaining competitiveness (Kloosterman, 2010). Hence, the spatial location remains important, as is reflected in metropolitan areas which constitute the centres of innovation and prosperity in the current economy (Scott, 2012).
Furthermore, the spatial agglomeration of related firms doesn’t necessarily entail the effective functioning of a cluster due to embeddedness. As an example, a cluster cannot function effectively when there is too much supervision in terms of regulations and policies. If the institutional framework is too comprehensive, firms within clusters are less flexible in responding to market forces. This can create an institutional lock-in in which firms not respond effectively to market changes. This can also be spurred by a collective confidence in firms’ capabilities which can entail a conservative viewpoint to the development of industries. In that case, not enough attention is paid to innovation. This can also result when firms are constrained by powerful actors within the cluster. These constraints can result from governance by government or lead firms which are too concerned with their own interest, rather than focussing on development and innovation (De Pater et al., 2011). Hence, for an effective functioning of a cluster, the right balance has to be found between competition and collaboration. There has to be a sufficient institutional framework for certain protection but this should not be too comprehensive.
2.5 Soft infrastructure: place identity and networks
From a neoclassical perspective, clustering leads to tangible cost savings and revenue increases because there is less competition within a cluster which results in higher profits. The presence of a steady customer base and of related industries such as suppliers contribute to this (Porter, 2000). Moreover, creative firms can benefit from locating in a creative district by the facilities and services that are offered (Dutch Creative Council, 2015). These factors can be regarded as more conventional
advantages and often relate to the spatial organization of related industries or clustering (Drake, 2003). These factors can be understood as the hard infrastructure of a cluster. These factors can be enhanced by the government by improving infrastructure and accessibility, or by providing financial incentives such as tax reductions.
As a result of using Allen Scott’s theory, this research incorporates a relational perspective to clustering, in which the local production networks that develop are regarded as important determinants for economic growth through innovation. Therefore, this research focuses on the soft infrastructure of creative districts which can be understood as the more intangible features. These are identified as the place identity and networks within a cluster. Place identity has long not been recognized as important by economists and can be regarded as a contribution of economic geographers. Moreover, the uncertainty of the value of products and services that evolve from the creative industries creates an industry that can be characterized by high risks. To spread and minimize these risks, it is remunerative to cooperate with other creative actors as it provides opportunities to benefit from each other. Therefore, this perspective underscores the possible dynamic learning effects in creative industries that can occur because of the proximity to related firms or organizations (Hong et al., 2014).
2.5.1 The concept of place and place identity
The concept of place can be referred to as both subjective and objective; it entails a ‘real’ environment, but is subjectively constructed by individuals in different ways. Some creatives may feel emotionally related to a place and therefore construct place in a different way than others, relating to their individual beliefs and perceptions (Drake, 2003). This interpretation is partly influenced by the ‘collective identity’ of a place, but also by personal history and relationships that people may have with a place or ´individual identity´. As a result, creatives may consider a certain place as an inspirational environment because of their interpretation of place, while others don’t. These different constructions of place can be considered as an input for creativity (Drake, 2003).
Furthermore, the creative industries have the potential to improve the quality of place. This is assumed because creative industries attract and support the establishment of facilities such as food and beverage services. Additionally, it is argued that the presence of unique stores and firms contributes to the improvement of the quality of place which can in turn attract more high-educated workers (Florida, 2002). As a result, the development of creative districts is adopted as an urban regeneration strategy to foster gentrification. As mentioned in Chapter 1, this concept has been widely embraced by policymakers in order to upgrade and revitalize urban districts. However, gentrification also leads to segregation as the accompanied rising land values push people with low-incomes to different parts of the city (Atkinson & Bridge, 2004).
A wide array of researchers has determined the importance of place for the development of a creative economy due to its distinct character (Drake, 2003; Florida, 2002; Landry, 2000; Scott, 2000). Drake (2003) has analysed the potential of place to be generated as an input for creativity and innovation. An inspirational environment can foster creative ideas which means that the distinct nature of a district might play a role in the spatial organization of economic activities. Scott (2006) points to the close relationship between creative industries and place because of the place identity that is inherent in creative goods and depends on the specific context or environment of place.
Kong and O'Connor (2009) argue that place identity is related to cultural capital. Places with high cultural capital are often identified as vibrant and interactive environments in which identity is continuously reconstructed through social interaction. This cultural capital refers to the reputation of
creative industries or activities in an environment, which shapes its identity. This place identity or reputation can create a competitive advantage or protection for firms that are located there. The extent of this protection is larger when the place identity adds some value to the product (Scott, 2000). For example, watches made in Switzerland are partly protected because of the prevailing view of qualitative Swiss watches. Other examples could be design from Stockholm, fashion from Paris or anime from Tokyo. In this manner, the presence of highly respected creatives or creative organizations of prestige can attract other creatives that seek to benefit from their reputations. Hence, place identity can best be understood as a collective, shared identity among different actors that participate in a creative district and involves the recognition of informal norms and values. A strong common identity involves trust and mutual connectedness which Putnam (2000) refers to as a civic-minded society. Hence, this mutual recognition can favour the development of networks and hence be identified as an incubator for prosperity (Putnam, 2000). This mutual connectedness provides a frame of reference in comparing different creative clusters.
2.5.2 The nature of networks: formal and informal
The exchange and sharing of tacit knowledge (non-codifiable knowledge) within highly specialized firms is more prevalent between creative actors which are in close proximity to each other. This mutual dependency suggests that location choices are crucial for the success of creative firms (Banks & O'Connor, 2009). The importance of proximity can be explained by the ease of exchanging knowledge and developing trust through face-to-face contact (De Pater et al., 2011). Networks among creative actors can range from inter-firm contractual arrangements or projects between firms (formal networks) and networks between people (informal networks).
2.5.3 Formal networks: horizontal and vertical linkages
Formal networks can benefit different actors because of the combining of different skills and knowledge which can lead to better practices, new ideas and innovation (Banks & O'Connor, 2009). The agglomeration of firms can be regarded as a production system, which involves both vertical and horizontal relationships between firms and actors. The emergence of horizontal and vertical linkages within a cluster entails the subsequent monitoring of other firms’ activities which creatives incentives for innovation (Bathelt, Malmberg, & Maskell, 2004; Porter, 2000).
Horizontal relationships or linkages involve links between related firms producing similar products. This would for example entail architectural firms that compete with each other in the market place. The presence of these linkages foster the production of distinct practices and conventions. Vertical linkages can be understood as relationships between for example artists and galleries or venues (supply and demand). Competition in this case is less important because galleries or venues can cater for several artists. As a result, clusters promote the process of differentiation which involves the emergence of suppliers and services that cater the specific needs in the production system. Competition is less important in this interaction because the suppliers don’t compete for the same customers but each cater for a certain part of the production system. Moreover, these specialized services and facilities can gain from economies of scale in a cluster, because their proximity to their customers cuts distribution costs (Bathelt et al., 2004).
Moreover, the networks among vertically linked firms are highly important, as is assumed that if information is freely shared up and down the value chain, firms can respond more rapid and effectively to changes in the market. This entails the needed presence of the entire value chain within a cluster, in order for this competitive advantage to function (Porter, 2000). However, Marshall’s theory can be criticized because it lacks to explain what sort of linkages are needed among
firms. More insight is needed about the nature of the needed linkages to find out how firms should be connected in order to benefit from agglomeration economies.
2.5.4 Informal networks: Strong and weak ties
The informal networks among creative actors can be referred to as local buzz which occurs internal within the cluster. This involves informal interaction and gossip about the newest trends and in this way provides access to new ideas. To be able to keep up with trends and in the quest for innovation, creative actors benefit from locating in each other’s geographical proximity. Within the creative industries, local buzz is highly important as it can help diffuse new styles, attitudes, and perceptions. To facilitate local buzz as a mutual learning process, Scott (2000) argues certain trust is needed among creative actors. In this sense the occurrence of local buzz can be related to the existence of a certain lifestyle or common language among creative actors in a certain place. On the other hand, Bathelt et al. (2004) points to the spontaneous nature of this sort of communication which assumes that mutual trust is not needed for local buzz to occur. However, local buzz is sustained and supported by the diversity of functions in an area, as clubs, bars and other facilities provide space where people can share their ideas, information and projects (Clare, 2013). Hence, place matters for the creative industries, as the networking and social density that it involves is important for the production within the industries, which again refers to the concept of place identity.
To analyse what would be the best conditions for local buzz to occur within a cluster, another theory can be applied. Granovetter (1983) has developed a network theory in which a distinction is made between weak ties (acquaintances) and strong ties (close friends). The social structure of a group with strong ties is denser than a group with weak ties. However, as every individual has his or her own group of strong ties, a weak tie between two individuals can be regarded as a bridge that connects two dense groups of strong ties. Hence, an individual with a large amount of weak ties, gains information from different social structures while an individual with relatively few weak ties is more isolated because he or she gains information from only a small group. Therefore, an individual with more weak ties can be regarded as more advantaged because he or she can gain and diffuse information more quickly (Granovetter, 1983).
This theory is applicable to cluster theory, whereas in a cluster with few weak ties entails a fragmented community in which new information spreads slowly. Therefore, a successful cluste r where ideas and information are easily shared, is comprised of a large amount of weak ties. Hence, if there is the right combination of strong and weak ties within an agglomeration, firms can mutually benefit from each other through knowledge spill overs. Additionally, Bathelt et al. (2004) argues that knowledge creation in a cluster can be fostered not only by local buzz but also by global pipelines. This author that besides local buzz, knowledge and information can also be gained from external relations (global pipelines). The combination of local buzz and global pipelines can possibly diminish the chance of lock-in, as flows of information outside of the cluster are considered. These external relationships can be understood as the relationships that actors within a cluster have with actors outside of the cluster. Therefore, it can be assumed that if there is a substantial amount of weak ties among these actors, this contributes to the sharing of knowledge which can in term foster innovation.
2.6 Conclusion
As explained in this chapter, the definition of creative industries is much debated and entails a broad spectrum of activities. Therefore, this research refrains itself from the appeal to define the creative
industries, but rather considers the creative industries as they are perceived in Shenzhen. Moreover, this research incorporates Allen Scott’s theory concerning the spatial agglomeration of creative industries and cluster theory. By including cluster theory in this chapter, it is assumed that the clustering of creative industries in a creative district has positive externalities for firms located within this cluster. Creative firms spatially concentrate in a particular place due to the advantages they can gain from co-locating.
Furthermore, this research entails a relational approach, due to the concept of path-dependency. The path-dependent process of creative clusters explains that the nature, functioning and extent of agglomeration economies differs for every cluster. Therefore, a brief introduction of the Chinese context is taken in account with a focus on urban redevelopment and the political system. Additionally, the importance of embeddedness is identified which refers to the extent firms, organizations and institutions are interconnected within a cluster. As a result, the institutional framework has to be incorporated when analysing creative cluste rs, which is referred to as the governance of a creative cluster. Finally, this research focusses specifically on the attributes of the soft infrastructure (place identity and networks) of a creative cluster which can be beneficial for creative actors. These concepts and their attributes are further elaborated in the conceptual model (paragraph 3.2).
