International Journal of Mechanical Engineering and Technology (IJMET)

Volume 10, Issue 12, December 2019, pp. 160-173, Article ID: IJMET_10_12_017
Available online at http://www.iaeme.com/ijmet/issues.asp?JType=IJMET&VType=10&IType=12
ISSN Print: 0976-6340 and ISSN Online: 0976-6359
© IAEME Publication

ORANGE ECONOMY: STUDY ON THE

BEHAVIOR OF CULTURAL AND CREATIVE
INDUSTRIES IN COLOMBIA
Luz A. Gaviria Roa
Facultad de Ingeniería, Fundación Universitaria Panamericana
Bogotá D.C., Colombia

Harvey Gómez Castillo and Holman Montiel Ariza

Facultad Tecnológica, Universidad Distrital Francisco José de Caldas
Cll 68 D Bis A Sur No. 49F – 70, Bogotá D.C., Colombia.

ABSTRACT
The Orange Economy in Colombia is a government bet to direct the economic
policy, where the primary resource is in creativity, art, culture and entrepreneurship.
The objective of this research is to analyze the behavior of the Colombian Cultural
and Creative Industries during the period 2014-2018, and how the selection and
inclusion of activities related to this type of industries considerably affects the
statistics presented by the Culture and Orange Economy Satellite Account of the
Administrative Department of National Statistics DANE.
Keywords: Economy and Culture, Orange Economy, Creative Economy, Cultural and
Creative Industries
Cite this Article: Luz A. Gaviria Roa, Harvey Gómez Castillo and Holman Montiel
Ariza, Orange Economy: Study on the Behavior of Cultural and Creative Industries in
Colombia. International Journal of Mechanical Engineering and Technology 10(12),
2019, pp. 160-173.
http://www.iaeme.com/IJMET/issues.asp?JType=IJMET&VType=10&IType=12

1. INTRODUCTION
With the advent of the 21st century, the cultural and creative industries have received
attention from the UN, UNDP and UNESCO, based on the research carried out in the United
Kingdom by John Howkins in his iconic work on the "creative economy" [1], a term that has
been gradually incorporated to account for those sectors in which the value of their goods and
services revolve around intellectual property. The resizing of these companies and their
inclusion within the productive sector of each country makes it possible to identify them as
industries that contribute to economic growth, to the diversification of economies, as sources
of employment generation, and even as a powerful vector of economic, social and cultural
development [2].

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 Orange Economy: Study on the Behavior of Cultural and Creative Industries in Colombia

In the case of Latin America, the Inter-American Development Bank (IDB), from 2013
onwards, promotes the denomination of "Orange Economy", to account for a set of
intertwined activities that are transformed into goods and services, the value is determined by
the content of intellectual property (copyright), where the cultural economy, creative
industries, conventional cultural industries, and areas of creativity are part of this type of
economy [3]. For Buitrago and Duque, coordinated support activities, in creativity, design,
new media, software, arts and heritage, make it possible to establish a creative value chain,
based on "creativity, art and culture" as the essential raw material, together with innovation
and entrepreneurship, constitute mechanisms to establish an orange economy [3]. For IDB
experts, the orange economy encompasses the creative, cultural economy and its associated
industries [4].
In Colombia the correlate of "creative economy" is the orange economy, although it is true
that the cultural industry has a long trajectory, in fields such as: scenic arts, architecture,
visual arts, discographies, editorials, press, cinema, advertising, radio and television, crafts,
fashion, festivals, among others, it is only in the last decade that the institutionalization of
these sectors by the Colombian State has begun to become evident. Examples include
document CONPES 3659 which establishes the national policy for the promotion of cultural
industries in Colombia [5]; the 2011 law on shows, for the regulation, formalization, and
promotion of the public performing arts industry [6]. However, the arrival of the orange
economy in Colombia is evidenced by Law 1834 of 2017, the orange law [7] for the incentive
development and promotion of creative industries, which also establishes the guidelines for
the integral policy of the creative economy, guidelines that become part of the National
Development Plan 2018-2022. Beyond the normative and planning framework, the orange
economy is under the direction of the Ministry of Culture, in charge of developing five
policies (Training, articulation, research, knowledge, circulation) of entrepreneurship and
cultural industries. Likewise, the "National Council of Orange Economy" was created to
develop functions ranging from the establishment of new sources of creative economy,
sources of financing, strengthening of entrepreneurial capacities and enterprises of the sector,
as well as the expansion of economic measurement [8].
At the level of the Colombian economy, the city of Bogotá-Cundinamarca region is
characterized by being the largest market in the country, contributing 31% of GDP and
accounting for 29% of the country's registered companies. By 2018, the city-region had
590,000 companies, of which 499,050 are in Bogotá, with an increase of 75,836 new
companies compared to 2017 [9]. It is also the largest labor market in Colombia, with 4.3
million employees, where 78% of employment is in services, 15% in industry and 6% in
construction [9]. Bogota has consolidated in recent years as the most attractive city for foreign
investment in Colombia, in the last decade doubled the number of companies with foreign
capital, went from 677 companies to 1500, at the level of Latin America, Bogota is ranked as
the fifth city for business and the fourth most attractive to invest [9]. In this economic
scenario, the "Bogotá-Creative Region" [10] is being promoted as a productive bet. The
Bogota Chamber of Commerce (CCB) highlights the number of companies belonging to the
creative economy that by 2017 was made up of 74,513 companies, equivalent to 17% of the
total number of companies in the region, 3 technological development centers, 264 research
groups, 118 postgraduate programs, 92 university training institutions and 859 pre-graduate
training programs [10].

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 Luz A. Gaviria Roa, Harvey Gómez Castillo and Holman Montiel Ariza

2. MATERIALS AND METHODS

2.1. Investigation Considerations
The objective of the research is to analyze the behavior of the CCIs during the 2014-2018
period, the production and dynamics of the areas, segments and sub-segments (activities
linked to the orange economy) of the so-called creative sector, based on the classification
made for the Culture and Orange Economy Satellite Account COESA. Defined as a mixed
research, because it brings together quantitative and qualitative characteristics, the research
analyzes coherently ordered numerical or statistical data which express measurable traits,
additionally analyzes qualitative data to establish the implications of the selection and
inclusion of activities in the statistics presented by DANE.

2.2. Theoretical Exploration

Linking culture as a factor of productivity is not new since the emergence of the so-called
cultural industries [11], this link has been strengthened by more than eighty, however what is
new for the twenty-first century is to make creativity a productive chain with potential to be
linked as a development strategy at the global level [3], and particularly in policies and
economic development plans at the local-national level, under the name of Creative Economy
or particularly for the Colombian case under the slogan of Orange Economy. This situation
requires a theoretical approach to determine what is referred to when these terms are assumed.
2.2.1. Orange economy Creative Economy Similarities and Differences
Based on the definition shared by some authors who publish for the IDB that they consider
the Orange Economy (OE) as "Chained activities that allow ideas to be transformed into
cultural goods and services, whose value is based on intellectual property" [3,12-13], where
the "orange universe" would be made up of the cultural economy, and creative industries;
conventional cultural industries, and areas of support for creativity [3]. For this perspective,
the approach used is that of "cultural economy", although it is the broadest approach for
analyzing the economic relations of culture, it allows us to account for how culture is linked
to the economic world through the production, distribution and consumption of goods and
services [14], in addition, it allows us to configure cultural sectors that can be economically
exploited, which must attend to consumer demands for entertainment, ornamentation, self-
affirmation, social ostentation and others [15]. This approach provides the theoretical basis for
addressing traditional artistic activities, conventional cultural industries, activities related to
cultural heritage as an economic factor.
Creativity as the engine of innovation for the "transformation of ideas into cultural goods
and services" [12], has relevance in the constitution of creative value chains, which is nothing
more than the cyclical process that goes from creation to the consumption of content [3], in
other words, it is what allows cultural creations to be led along the path that leads from supply
to demand. Two more traits end up configuring the formula proposed for the orange economy,
intellectual property that determines the value of cultural creations, and entrepreneurship,
considered as the transversal sector of the orange economy, which should allow the
construction of multidisciplinary teams, and the development of skills that allow innovation in
unimagined sectors [12].
Creative Economy can be considered as a complex hybrid, for several reasons: it is
catalogued as an interface between creativity, culture, economy and technology [16-17]; it
mixes individual creativity, cultural heritage and public policies [18]; it crosses the areas of
art, business and connectivity [16]. In addition, although it acts in a fragmented manner, it is
expected to function as an integrator, allowing social inclusion, cultural diversity and human
development [18]; to promote innovation and new business models [16], and most

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 Orange Economy: Study on the Behavior of Cultural and Creative Industries in Colombia

importantly in economic terms, to develop the capacity to create and circulate intellectual
capital with the potential to generate income, jobs and exports [18].
No matter how complex and changing the concept of Creative Economy (CE) may seem,
a series of features can be established that allow a theoretical approach, where the historical
link, cultural creativity as an economic factor, the location in cities, the protection of
intellectual property and the CCIs Cultural and Creative Industries can determine the
characteristic features. The CE could not be understood without taking into account that its
main input comes from historical links and cultural traditions [14], anchored in the
idiosyncrasy of peoples and communities whose manifestations are expressed through cultural
ways of doing, expressions and products, but which are energized through creativity.
Creativity becomes the fundamental economic factor of CE, the complexity of the system, and
the economic value depends on this primary resource [19], however, creativity that is typified
goes beyond traditional artistic creativity, that which involves imagination and the capacity to
generate original and novel ideas [16], incorporates aspects of what is considered economic
creativity as dynamic processes oriented to innovation, commercial practices and marketing
[16], this redimensioning of creativity, will place CE in cities, its place par excellence.
Creative activity will be associated with urban economic development and city planning,
constituting the so-called creative cities [20], cities where cultural activities are the
fundamental economic component, with solid social and cultural infrastructures, consolidating
networks to foster cultural experiences, where the center of cultural activity is linked to
creativity. These factors, together with the ability to attract foreign investment, are evidence
of an active economic life in the city [16]. The organizational culture that promotes creativity
based on cultural diversity [21] allows for the creation of creative communities and
entrepreneurs, whose dynamics must respond quickly and just in time to the demands [22].
Cities can be built into creatives from art and cultural infrastructure, because they are related
to the creative economy, because they possess a strong creative class, or because they foster a
culture of creativity [16].
Intellectual property (IP), and the pursuit of international agreements for the protection of
creations of the mind: inventions, literary and artistic works, as well as symbols, names and
images used in commerce" [23], is another feature of the CE. Beyond protection, IP must
enable the identification of the source of value of the goods and services sectors, as well as
enable individual creators and creative communities to benefit, and enhance the local
development of culture [14]. In addition, it must be the driving force that allows the passage
from creative activity to the creative industry, constituting the cornerstone of the Creative
Economy [18]. The adoption of CE leads to the strengthening of intellectual property rights
systems, the search for new ways of managing, and rigorously controlling intellectual
property, and with it the very heart of the CE creative industries [16].
Beyond being able to determine distinctive features of the orange economy relative to the
creative economy, in this part of the Western Hemisphere, indiscriminate use is made of the
two terms to mean the same thing: "Chained activities that allow ideas to be transformed into
cultural goods and services, value based on intellectual property"[24]; or sometimes the term
creative economy is used to "encompass all references to the cultural sector from the
economic dimension, cultural and creative industries, cultural industries, creative industries
and orange economy"[25]. Thus, the orange economy from the conceptual point of view is no
more than the tropicalization of the creative economy, but from the use of the term it forms
more of a political strategy promoted by the IDB, for some Latin American countries
including Colombia than to achieve deep differences with respect to the creative economy,
what it causes is orange confusion.

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 Luz A. Gaviria Roa, Harvey Gómez Castillo and Holman Montiel Ariza

2.2.2. Cultural and Creative Industries (CCIs)

The Frankfurt School in the 1940s used the term to refer to the techniques of industrial
reproduction in the creation and mass dissemination of cultural works [11], and this School of
Thought was also credited with the first criticisms of the commodification of art and mass
culture and the emergence of a popular cultural industry [11]. The changes throughout the
twentieth century, taking on different nuances, begin at a time when the term culture and
industry was totally opposed [16]; at another time it was considered a threat of
homogenization of culture; to become the object of study with a view to analyzing the
implications of the concept; already in the late eighties the concept will be positivized [14].
However, today, although greater consensus has been gained, it tends to be used as a synonym
for cultural economy, and has been assumed as those sectors of capitalism that attend to the
demands of the cultural consumer, for its great symbolic value instead of the purely utilitarian
one [15-24]. According to UNCTAD, Cultural Industries can be characterized on the basis of
the cultural goods and services they produce (although they belong to creative goods and
services, they do not include a level of creativity), they must possess a cultural value added to
the commercial, with aesthetic, traditional or cultural identity aspects, but they must not be
entirely quantifiable monetarily [14]. For UNESCO, it extends to the creation, production and
marketing of abstract cultural content, protected by copyright, in order to promote and
maintain diversity [14].
Within the framework of the Creative Economy, cultural industries are merged with
Creative Industries as CCIs, and will be defined by UNESCO as "sectors of activity whose
main object is creativity, production or reproduction, promotion, dissemination and marketing
of goods, services and activities having a cultural, artistic or heritage content" [25]. Thus, the
recommendation of this organization is that it should not be assumed exclusively from the
industrial dimension but should be taken into account as an organization of culture, so that
goods, services and activities with cultural, artistic or heritage content reach the public or the
market, beyond dealing only with the production of cultural content, it should also include
activities related to reproduction and duplication; technical support and support equipment;
promotion, dissemination, circulation, sale and distribution; conservation; communication,
information and training [25].

2.3. Methodology
The macroeconomic statistical information of the Culture and Orange Economy Satellite
Account (COESA) comes from two sources called by DANE "other economic sources" and
"Micro-businesses". The first, provides data at the level of each area, segment and sub-
segment that make up the culture and orange economy; the second, quantifies and
characterizes the economic units with up to 10 people employed in the economic activities of
the culture and orange economy, this source provides information at the level of the three
study areas [26], but does not disaggregate the information, presenting consolidated by year,
for this reason for the statistical analysis of the behavior of both segments and sub-segments
(activities), only makes use of data provided by "other economic sources".
The DANE expresses the production of CCIs with results at current prices and linked
volume series with reference year 2015, for three types of data production, intermediate
consumption and gross value added. In this respect, the statistical data presented in the
chained series of volume, with reference year 2015, are taken, this selection is due to several
reasons: because they are closer to the "true value" than a fixed base index [27], the growths
do not depend on the year taken as base (the base year is not fixed), and the values are
expressed from the previous year, thus, the growth of the aggregates is not deflated, and the
statistical data on supply and demand of the aggregates are more exact and more updated [28].

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 Orange Economy: Study on the Behavior of Cultural and Creative Industries in Colombia

It is also understood that the use of the chained series methodology by DANE results in the
emergence of "statistical discrepancy" and "economic discrepancy", the effect of which is
manifested when the sum of supply sectors and demand aggregates do not coincide with the
value of GDP, because this methodology is not additive [27-28].
The Gross Added Value GAV is also taken, since it expresses the total value created by
the sector minus indirect taxes and intermediate consumption, thus avoiding duplications. In
short, this magnitude expresses the final value of the production (output) minus the value used
to produce it (inputs) and makes it possible to determine with greater precision the annual
variation rates.
For the analysis of the behavior of the CCIs, in the period 2014-2018, use is made of the
annual variation rate with base year 2014, and it is carried out from the calculation of the
relative variation, expressed by the equation (1) [29]:

(1)

3. RESULTS AND DISCUSSION

The DANE since 1999, initiates the first diagnosis of sectorial investigation, on the cultural
industries, that in 2002 under the directives of the Convention Andrés Bello concludes with
the emergence of the satellite account of culture. In the last measurement of the CCIs 2018,
on the part of this organism, a series of adjustments are made aimed at achieving more
specific measurements within the framework of the "orange law", a first criterion that is
modified has to do with the delimitation of copyright to trademarks and patents, linked only to
activities previously considered cultural and creative. A second aspect has to do with
classifications for economic activities (see Table 1), defining three areas: Arts and Heritage,
Cultural Industries and Functional Creations; 11 segments, which in turn are subdivided into
32 activities of total inclusion in the Orange economy [30], although the national accounts
record 33 activities [31], called sub-segments.

Table 1 Creation of the Culture and Orange Economy Satellite Account

AREA SEGMENTS SUB-SEGMENTS
Visual Arts Visual Arts Activities
Visual Arts Photography Activities
Performing Arts Theatrical creation
Performing Arts Theatrical activities
Performing Arts Live music show activities
Performing Arts Other live entertainment activities
Material Heritage Libraries and archives activities
Activities relating to the operation of museums, the
Material Heritage
Arts and conservation of historic buildings and sites
Heritage Activities of botanical gardens, zoos and nature
Material Heritage
reserves
Material Heritage Amusement park and theme park activities
Cultural and Creative
Education Basic and secondary education
Cultural and Creative
Education Higher education
Cultural and Creative
Education Education for work and human development

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 Luz A. Gaviria Roa, Harvey Gómez Castillo and Holman Montiel Ariza

Publishing Literary creation

Publishing Book Publishing
Publishing of newspapers, magazines and other
Publishing
periodicals
Publishing Other editing work
Phonographic Industry Sound recording and music editing activities
Phonographic Industry Musical creation
Activities of production of cinematographic films,
Audiovisual videos, programs, commercials and television
commercials
Post-production activities of cinematographic films,
Audiovisual videos, TV shows, commercials and television
Cultural commercials
Industries Distribution activities of cinematographic films,
Audiovisual videos, programs, commercials and television
commercials.
Audiovisual Motion picture and video exhibition activities
Programming and transmission activities in the
Audiovisual
sound broadcasting service
Audiovisual Television programming and transmission activities
Audiovisual Subscription TV (**)
Audiovisual Audiovisual Creation
News Agencies and other
Information Services Activities of News Agencies
News Agencies and other
Information Services Other information service activities N.E.C.
Digital Media and Content
Software Edition of computer programs (software)
Manufacture of jeweler, costume jewelry and
Design
Functional related articles
creations Design Manufacture of musical instruments
Design Manufacture of games, toys and puzzles
Design Specialized design activities
Advertising Advertising
Source: [30-31].

3.1. Analysis of the behavior of CCIs in Colombia

The analysis shows cultural industries with a 46% share, followed by the area of functional
creations with 29%, and arts and heritage with a 25% share. According to the rate of variation,
the area of arts and heritage increased by 2015 (1.81%), in 2016 the year of greatest increase
(4.6%), by 2017 decreases (2.79%), and in 2018 the decrease was notable (0.55%.) The
cultural industries present a downward trend, 2015 (-3.76%,) 2016 (-1.10%), 2017 (-6.02%),
2018 (-7.82%). Functional creations present similar behavior, although less accentuated, 2015
(-1.57%), 2016 (-2.84%), 2017 (-2.84%). and by 2018 decrease of -4.40%. (see Table 2).

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 Orange Economy: Study on the Behavior of Cultural and Creative Industries in Colombia

Table 2 Aggregate value and annual variation rate in areas of culture and orange economy 2014-2018
Arts and Heritage Cultural Industries Functional creations
YEAR Gross Value Variation Gross Value Variation Gross Value Variation
Added rate Added rate Added rate
2014 2.587.227 0 5.282.713 0 3.163.539 0
2015 2.633.940 1,81% 5.084.074 -3,76% 3.113.758 -1,57%
2016 2.702.653 4,46% 5.224.862 -1,10% 3.073.739 -2,84%
2017 2.659.388 2,79% 4.964.920 -6,02% 3.073.836 -2,84%
2018 2.573.112 -0,55% 4.869.436 -7,82% 3.024.279 -4,40%
Source: Gross value added in millions of pesos [31-32]

Arts and Heritage Area: The performance of the four segments that make up this area is
characterized by the large participation of cultural and creative education ECC, with 78% of
the total, followed by Performing Arts 13%, Material Heritage 6% and Visual Arts 3%. About
CCP, cultural activities in basic and secondary education account for 55% of the total area,
followed by higher education with 16%, and cultural activities for work and human
development, with 7% of the total being located among Performing Arts and slightly above
material heritage (see Table 3). Likewise, the Performing Arts are configured as the best
performing segment with a variation rate of 30%.

Table 3 Aggregate value and annual variation rate - segments area Arts and Heritage 2014-2018
ECC Basic and ECC Higher ECC Education
Performing arts Visual Arts Tangible heritage
Middle Education education for Work
GVA
YEAR Vr GVA Vr GVA Vr GVA Vr GVA Vr GVA Vr

2014 1.394.480 0 421.847 0 175.461 0 287.267 0 141.664 0,000 167.323 0

-
2015 1.309.421 459.760 8,99% 152.571 -13,05% 418.195 45,58% 120.862 -14,68% 173.131 3,47%
6,10%
2016 1.496.992 7,35% 435.417 3,22% 139.377 -20,57% 378.524 31,77% 73.424 -48,17% 178.919 6,93%
2017 1.505.023 7,93% 465.923 10,45% 200.129 14,06% 328.272 14,27% 46.037 -67,50% 112.209 -32,94%
2018 1.439.238 3,21% 398.776 -5,47% 196.220 11,83% 368.365 28,23% 45.762 -67,70% 124.594 -25,54%

Source: Gross value added in millions of pesos [31].

However, when reviewing the specific activities that make up the Performing Arts
segment, it is found that during the period 2014-2018, Theatrical creation contributes 3% of
GVA, with a variation rate of 10%; Theatrical activities, participate with 20%, but present a
notable decrease (-29%); The activities of live musical shows, contribute 67% of GVA, with
an increase of 54%; Other activities of live shows, contribute the remaining 10%, with a
variation rate of 123% (see Table 4). In this sense, it can be established that the activities that
provide dynamics and volume are related to live musical, cultural, recreational and sports
shows.

Table 4 Added value and variation rate - Activities segment Performing Arts 2014-2018
2015-2018
Performing Arts-Activities
Gross Value Variation
Segment Participation
Added rate
Theatrical Creation 55.532 3% 10%
Theatrical activities 363.964 20% -29%
Live music show activities 1.182.710 67% 54%
Other live entertainment activities 175.383 10% 123%
TOTAL 1.777.589 100% 40%

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 Luz A. Gaviria Roa, Harvey Gómez Castillo and Holman Montiel Ariza

Source: Gross value added in millions of pesos [31]

Area of Cultural Industries: it is made up of four segments, which during the same
analysis period behaved as follows: the audiovisual industry contributed 66.6%, followed by
the publishing industry with 26.7%, news agencies and other information services 3.8% and
the phonographic industry with only 2.8% participation. The audiovisual industry requires a
special analysis, since the activities defined by the DANE refer on the one hand to the
production, post-production, distribution of cinematographic films, videos, programs,
commercials and television commercials; on the other hand, to the activities of exhibition of
films and videos. Broadcasting services activities concerning programming and transmission,
the same as those selected for television; it includes additionally subscription television and
finally Audiovisual creation. In this segment, subscription television contributed 44.26%,
television programming and transmission 26.38%, film and video exhibition 14.28%,
production, post-production, distribution of cinematographic films, videos, programs,
commercials and television commercials with 5.85%, and finally audiovisual creation with a
participation of 0.41% (see Table 5).

Table 5 Added Value -Audiovisual Industry Segment-Activities 2014-2018

Audiovisual Industry-Activities Gross Value Variation
Participation
Segment Added rate
Production activities 810.936,60 4,77% -27,25%
Post-production activities 54.344,21 0,32% -3,91%
Distribution activities 129.060,57 0,76% 59,89%
exhibition films and videos 2.427.479,69 14,28% 55,01%
programming and transmission of sound
1.500.050,32 8,82% -9,78%
broadcasting
television programming and
4.484.166,97 26,38% -13,20%
transmission
subscription television 7.523.406,35 44,26% 18,55%
Audiovisual creation 69.865,86 0,41% 38,41%
TOTAL 16.999.310,57042 100%
Source: Gross value added in millions of pesos [31]

Among the fastest growing sub-segments are musical creation (67.40%), literary creation
(62.43%), distribution of motion pictures, videos, programs, commercials and television
commercials (59.89%); exhibition of motion pictures and videos (55.01%); audiovisual
creation (38.41%); and the most significant activity in the area of cultural industries,
subscription television, increased by 18.55%, and became one of the most significant
activities in the culture and orange economy satellite account with a total of 7,523,406.35
million pesos.
Area of Functional Creations: it is subdivided into three segments, which behave as
follows: the segment with the greatest participation has to do with activities related to
advertising with 86.53% being configured in the activity with the greatest contribution of the
three areas; Design provides (10.16%), digital media and content software (3.31%). (see
Table 6) The most dynamic activities have to do with the manufacture of musical instruments
with an average growth of (171.48%), and the edition of computer programs (software) with
140.37%. Manufacture of games, toys and puzzles, although it does not have a dynamic as
strong as the two activities mentioned above, if it presents a gradual growth year after year,
2015 (-0.96%), 2016 (7.21%), 2017 (27.43%), 2018 (20.41%). The remaining segments show
a downward trend, Advertising, 2015 (-3.29%), 2016 (-5.34%), 2017 (-6.71%), 2018 (-
8.06%); specialized design activities, increase in the first two years, 2015 (9.46%), 2016

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 Orange Economy: Study on the Behavior of Cultural and Creative Industries in Colombia

(27.48%), with a resounding downward trend in the following two years 2017 (-29.43%),
2018 (-47.88%).

Table 6 Added Value - Segments Area Functional Creations 2014-2018

Segments Area Gross Value Variation
Participation
Functional Creations Added rate
Digital Media and
511.322,8803 3,31% 140,37%
Content Software
Design 1.569.862,0766 10,16% 0,50%
Advertising 13.366.825,1502 86,53% -5,85%
TOTAL 15.448.010,1072 100%
Source: Gross value added in millions of pesos [31].

The activities of the Orange Economy (CE) that contributed the most during the five-year
period were advertising with 24.74%; cultural and creative education with 18.86%, and
subscription television with 13.93%. Three activities out of 32 defined as total inclusion in the
CI account for 57.53% of the total. Placing these activities in the light of three of the most
important measurement models, such as the Convenio Andrés Bello CAB-2015 model, the
UNESCO Framework for Cultural Statistics MEC-2009, and the European Statistical System
Network on Culture ESSnet-2012 [33], is important in determining whether they are typified
as cultural and creative activities. The case of advertising can be found in the design sector, in
CAB-2015 and UNESCO-2009. With regard to cultural and creative education, just as
advertising is found in two measurement models, in the CAB-2015 in the education sector, in
the group of activities called cultural education, but as non-formal cultural training, primary
and secondary artistic training, and artistic training at university; it is also found in UNESCO-
2009 with the same previous denominations, but in the group of activities education and
training. Subscription television is a separate case, since it is not even taken into account in
the first Orange Economy report of 2019, nor in the 32 total inclusion activities, nor in the 69
activities defined as partial inclusion [30], but if it is found in the statistical information taken
into account for the preparation of this report by DANE [31], it does not appear in any of the
three measurement models.
Among the nine (9) fastest growing activities of the orange economy (see Table 7), two
(2) have to do with live shows, musicals (54.42%), Other activities (122.86%); two (2) related
to services in the audiovisual industry, such as the distribution of cinematographic films,
videos, Tv shows, commercials and television commercials (59.89%), and the exhibition of
cinematographic films and videos (55.01%); two (2) activities directly linked to creativity,
musical creation (67.40%), literary creation (62.43%); One activity linked to cultural heritage,
operation of museums, conservation of buildings and historical sites (390.88%); two related to
design, manufacture of musical instruments (171.01%); two activities related to design,
manufacture of musical instruments (171.01%); one activity related to the operation of
museums, conservation of buildings and historical sites (390.88%); two activities related to
the production of musical instruments (171.01%); one activity related to the production of
musical instruments (171.01%); one activity related to the operation of museums, the
preservation of historical sites (390.88%); two activities related to the design, manufacture of
musical instruments (171.01%).48%) and software publishing 140.37%.

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 Luz A. Gaviria Roa, Harvey Gómez Castillo and Holman Montiel Ariza

Table 7 Higher growth activities of the Orange Economy 2014-2018

Gross Value Variation
Subsegments-activities
Added rate
Functioning of museums, conservation of
48.952,831 390,88%
historic buildings and sites
Manufacture of musical instruments 24.013,042 171,48%
Edition of computer programs (software) 511.322,880 140,37%
Other live entertainment activities 175.382,758 122,86%
Musical creation 72.557,552 67,40%
Literary creation 4.492,474 62,43%
Film and video distribution 129.060,570 59,89%
Exhibition of films and videos 2.427.479,688 55,01%
Live Music Shows 1.182.710,254 54,42%
Source: Gross value added in millions of pesos [31]

4. RECOMMENDATIONS
As the analysis aims to identify the behavior and participation of CCIs in the Colombian
orange economy, and to establish how decisions about the selection of activities and location
in the three areas defined in the satellite account, may affect the perception of the data
presented in government reports, and according to the findings the following
recommendations have been established in this direction:
 Among the activities defined by Buitrago and Duque as areas that support creativity are
R+D+i activities (creative and cultural innovation), professional and technical creative
education, governance and property rights [3], when included in the Culture and Orange
Economy Satellite Account COESA as a measurable activity, the indicator triggers and with it
the behavior of the Arts and Heritage area because the 78% that cultural and creative
education provides, gives the impression that the whole area has a significant contribution to
the economy. Like creativity, which is divided into two areas, it must be understood that, if
education is incorporated under the cultural and creative denomination, it operates as a
transversal support area, therefore, it should be referenced in the three areas, and not classified
by level of training but by the specificity of the field of knowledge and its contribution to
cultural and creative activities in a specific way (artistic education, audiovisual, software
design, etc.). Subscription television should not be considered, as it is not recognized in the
main statistical methodologies as a cultural and creative activity.
 The sectors of the Orange Economy, although they do not have a large share in GDP (1.9%)
and the findings identify a notable decrease (arts and heritage, 0.7%, cultural industries 0.17%,
functional creations 0%). The orientation of government policy should focus attention on
those activities that need to be really strengthened, which, although they do not provide a
significant volume, maintain a very good growth dynamic such as they are: In the cultural
industries, musical creation and literary creation; and in functional creations, the manufacture
of musical instruments and the publication of computer programs (software), which in the case
of the latter in the city region Bogotá-Cundinamarca has been driven by cluster initiatives
promoted by the Chamber of Commerce of Bogotá, even so, greater policy intervention is
required at the national and regional levels.
 There is great concern about the concentration of income, as a result of the dynamics of
multinational cultural and creative industries, in the environments of countries in this part of
the hemisphere, activities such as live musical shows, other live shows, distribution of
cinematographic films and videos, completely linked to international commercialization
processes, important as activities of notable growth, generate an unequal distribution. In the
Colombian case regarding live shows, a large part of the usefulness goes to the shareholders of
companies such as OCESA, subsidiaries of the Mexican company CIE (Corporación

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 Orange Economy: Study on the Behavior of Cultural and Creative Industries in Colombia

Interamericana de Entretenimiento), the cost of the intervention of these companies falls

directly on the spectator expressed in high box office costs, and exclusion of citizens for not
having financial services with certain entities [34]. In the case of theatre festivals such as the
Iberoamerican Theatre Festival of Bogotá (FITB), the mediation of financial companies has
restricted the access of both spectators (restriction of the staging of street plays) and the
marginalization of emerging local theatre groups, giving the impression that the creative
industry exclusively favors globalized artists [34]. In this sense, a governmental policy is
necessary, which allows for the participation and better distribution of income among local
artists and creatives; strategies to make local emerging artists visible, and greater regulations
so that the commercialization of live shows does not remain at the expense of the conditions
of international capital gain.

5. CONCLUSIONS
Finally, it can be demonstrated that the ways of selecting and grouping certain activities
considered creative have a direct impact on the result of the statistics presented by the official
reports, regarding the behavior of the so-called orange economy, and of the three areas
established by the COESA of the DANE, when activities with a large volume are included in
each area, Arts and Heritage-cultural and creative education, and cultural industries-
subscription television, generate a false perception of the dynamism of the CCIs.
The behavior of the audiovisual industries, which are catalogued as the strong of the
Orange economy, the trend in Colombia is subscription television, television programming
and transmission, the exhibition of films and videos. Those activities that could involve
creative work with a greater possibility of innovation, such as the production, post-
production, of cinematographic films, videos, programs, commercials and television
commercials; or individual creation, are neither a trend nor a significant contribution to the
Colombian economy.
If the creative economy at world level is oriented to sectors of society that consume a
certain level of cultural goods and services, it is understood why the growth of live shows and
musicals, but this tendency does not really contribute to the Colombian creative of culture,
since it tends to support companies that guarantee world quality shows, and in that sense the
bet will be of companies with world coverage, (not Colombian capital), and the transactions
in terms of show user are mediated by these companies.

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