While the UNESCO web site does not currently have a current classification of what sectors cultural and creative industries consist, EY’s report delineates 11 sectors: advertising, architecture, books, gaming, music, movies, newspapers and magazines, performing arts, radio, TV, and visual arts. The report also states that the top revenue-driving sectors are television, visual arts, and newspapers and magazines. Across the five defined market regions of Asia-Pacific, Europe, North America, Latin America, and Africa and the Middle East, the Asia-Pacific is the largest market, generating USD 743 million of revenue (33% of global revenue) and 12.7 million jobs (43% of worldwide jobs).
The State of Taiwan’s Cultural and Creative Industries
This research will focus on Taiwan, one of the countries within the burgeoning Asia-Pacific market. Taiwan’s cultural and creative industries are defined as “those industries that have their origins in innovation or cultural accretion, and which have the potential to create wealth or create jobs through the production and utilization of intellectual property, and which can help to enhance the living environment for society as a whole” (Small and Medium Enterprise Administration [SMEA], 2004). Thus, these industries are inherently defined as having a positive influence on society both economically and environmentally.
Unfortunately, literature in English on Taiwan’s cultural and creative industries’ early development is not readily available; yet in tandem with China’s establishment of the
industries in the current millennium, Taiwan’s data is more accessible. In Taiwan’s Ministry of Culture’s latest annual report on the cultural and creative industries in year 2016, the total number of industry companies was 63,339, a growth of 0.72% over the previous year, generating total sales revenue of TWD 807.25 billion, 88.53% domestic and 11.47%
overseas. This revenue contributed 4.72% of the nation’s total nominal GDP, while industry employment comprised 2.25% of Taiwan’s total employment. While these numbers are not large, a U.K. study noted in the report proposes that “the overall economic contribution of Cultural and Creative Industries is 2.64 times of their direct production value…the total number of jobs generated is thus 2.44 times that of the actual employment within the
industries themselves.” The report also shows that most companies (84.58%) are considered micro-enterprises, producing less than TWD 5 million. This indicates that many are
considered SMEs (Small and Medium Enterprises) and may require assistance from Taiwan’s
3 Small and Medium Enterprise Administration in order to succeed. Furthermore, 30.05% have been in existence for 5 years or less, meaning that they are relatively young and need support mechanisms to continue to exist and grow.
The cultural and creative industries in Taiwan, as of late, are experiencing a slowdown with 0.46% revenue growth in 2015 and 3.42% decline in 2016, indicating that more government backing is necessary. The Taiwanese government uses the U.K.’s
industries as a global benchmark, stating that it has “the most highly developed cultural and creative industry of any country in the world” (Ministry of Culture, 2017b), and South Korea as a regional benchmark for its developmental ambitions and impact on Taiwanese industry.
The annual growth data from these countries has a one-year lag, only including data from 2011-2015, as opposed to 2016. Since each country also has a different currency, growth rate percentages are used as a point of comparison.
Table 2.1.
The data shows that Taiwan’s growth is slower than each of the benchmark countries’; even in 2015, as Taiwan’s growth only slowed to 0.46% over 2014, the other benchmark countries experienced even more rapid growth. The 5-year CAGR (Compound Annual Growth Rate) for Taiwan from 2011-2016 is only 1.01%, as opposed to 4.71% in the U.K. and 4.91% in South Korea. This also indicates that Taiwan has opportunity for growth and can look to these benchmark countries as models for promotion of the cultural and creative industries.
Table 2.2.
Annual Business Growth
2011 2012 2013 2014 2015 2016 5-year CAGR
Taiwan -2.91% 2.54% 2.29% 0.46% -3.42% 1.01%
U.K. 6.46% 5.24% 6.64% 4.80% 7.01% N/A 4.71%
Korea 13.16% 5.19% 4.51% 4.10% 5.83% N/A 4.91%
Annual Export Growth
2012 2013 2014 2015 2011-2015 CAGR
Taiwan -25.96% -8.59% 5.53% -0.50% 1.01%
U.K. 11.32% 3.47% 10.94% 7.19% 8.18%
Korea 7.19% 6.76% 7.12% 7.35% 7.11%
4 In terms of annual export growth, Taiwan is learning from its past and beginning to export more of its goods again, with a positive CAGR of 1.01% from the period of 2011 to 2015, while the U.K. and Korea both have positive annual export growth at 8.18% and 7.11%
CAGR over the same time period. Most interesting to note is the negative export growth experienced in years 2012 and 2013, which may be attributed to the European economic crisis leading to less demand of Taiwanese exports. Nevertheless, if Taiwan is to become a key export power in the Asia-Pacific region, Korea may be an example to follow.
Note. Adapted from “2017 Cultural and Creative Industries Development Annual Report,” by Ministry of Culture. 2017. Retrieved from https://stat.moc.gov.tw/Research.aspx?type=5.
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Specifics of Taiwan’s Cultural and Creative Industries
Administration
The supervision for these industries is mainly divided between two ministries within the Executive Yuan (executive branch of Taiwan), the Ministry of Economic Affairs and Ministry of Culture, depending on the specific segment. Of specific note is that the Small and Medium Enterprise Administration is housed within the Ministry of Economic Affairs, which means that many businesses in the cultural and creative industries will need to cooperate and deal with multiple governmental bodies for funding and support. Each ministry has its own specific policies and grants, the latter of which companies must adhere to strict guidelines and criteria in order to receive funding.
Regulations
From the Ministry of Culture’s website, there are a host of initiatives and regulations that support the cultural and creative industries, including the “Law for the Development of the Cultural and Creative Industries” in 2010 (Appendix A), “Strengthening Investment in Cultural and Creative Industries Trust and Investment Management Plan” in 2011, which uses “a private-public cooperative administered company to implement source-case
development, investment estimates, investment examination, post-investment management and other business services,” as well as bank funding and ministry-subsidized loans.
As part of the “Law for the Development of the Cultural and Creative Industries,” the Ministry of Culture had originally planned to develop a “Cultural and Creative Industries Development Research Institute” to address the needs of the industries, but, as of March 3 of this year, will instead develop the “Cultural Content Institute” to address issues of
collaboration between the government and private sectors as well as between industries, so that the cultural and creative industries can work more effectively with manufacturing, technology, and science industries. A total of TWD 6 billion is earmarked for this endeavor under the new “Cultural Content Investment Project,” by the National Development Fund, while the Ministry of Culture has already earmarked another TWD 4 billion under the existing “Cultural and Creative Investment Program,” totaling TWD 10 billion to revitalize the cultural and creative industries. The goal is to encourage economic growth, especially through exports, so as to create external awareness of Taiwan’s cultural characteristics.
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Promotion Spaces
Examples of locations where cultural and creative industries have promotion space as a manifestation of these policies are Taiwan’s “Cultural and Creative Parks,” which are
“Taiwan's answers to Los Angeles' Third Street Promenade and Shanghai's Tianzhifang,”
with their “provision of exhibition spaces, creative store fronts, rehearsal rooms, performance venues, workshops, and indoor theaters” (Ministry of Culture). These five national-level parks are Huashan (northern Taiwan), Taichung (central Taiwan), Hualien (eastern Taiwan), Chiayi (western Taiwan), and Tainan (southern Taiwan).
Subsectors
The fifteen subsectors of the cultural and creative industries, as defined by the government, include:
1) Visual arts
2) Music and performing arts
3) Cultural asset applications and performance/exhibition facilities 4) Handicrafts
5) Film
6) Broadcasting/television 7) Publishing
8) Popular music and cultural content 9) Advertising
10) Product design
11) Visual communication design 12) Branding and fashion design 13) Architectural design
14) Creative lifestyle 15) Digital content
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CHAPTER III MOTIVATION/
RESEARCH METHODOLOGY
The author’s interest in the cultural and creative industries in Taiwan stems from his current employment at a brand design and consultancy firm, TotalBrand+TotalDesign, supervising English copywriting and translation duties. His work experience encompasses over two years as of publication date. Through his experience at this company, he has seen the company’s collaboration with other companies from various industries, including manufacturing, hospitality, and even fashion, and wants to more deeply explore what processes and resources TotalBrand+TotalDesign employs for successful partnership.
Thus, this paper will investigate the concepts of “partnership” and “collaboration” in the cultural and creative industries, specifically in Taiwan. As small- and medium-sized companies in this sphere pursue growth in size and revenue, pursuing projects with other companies will increase experience and enhance visibility. Consequently, this requires
“partnership,” which refers to having two or more parties sharing management responsibilities and profits in business operations.
“Collaboration,” however, is a more difficult concept to define, with varying ideas as to what it really means. However, the definition provided by former SVP of Cisco, Carlos Dominguez, is quite comprehensive: “Collaboration is highly diversified teams working together inside and outside a company with the purpose to create value by improving innovation, customer relationships and efficiency while leveraging technology for effective interactions in the virtual and physical space” (2011). His definition focuses on the resulting value that arises from collaboration, including one key concept that is often highlighted this day and age, that of innovation.
In understanding how cultural and creative industries in Taiwan function, the author will look at both quantitative and qualitative data. Quantitative data will be government-provided data on the growth and revenue produced by the cultural and creative industries in Taiwan. The author will use also use government-provided qualitative data to understand how the government funds companies as well as gives them opportunities to showcase their work. Specific examples from the real world will also supplement the qualitative data. These examples include Liuli Gongfang, a homegrown artistic glassware company that has
expanded quickly into the international stage through its collaborative efforts, bringing Taiwan’s name into public view. Furthermore, he will interview industry participants and
8 business owners to see how collaboration is fundamental to goal realization. Questions will include the nature and scope of the business, current collaborative projects, and future plans for growth and development. This will include efforts between small business owner Andre Chen’s design studio and specific marketing channels, as well as those between the
researcher’s firm, TotalBrand+Total Design, and HYC (Hsin Yong Chien, Ltd.), with the goal to comprehend how firms utilize resources for successful results.
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