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 An Analysis of the Cultural and
Creative Industries in Ireland:
Implications for Policy-Making

Edicleia Oliveira

Postgraduate Diploma in Management & Marketing

DT314A

Dublin Institute of Technology

School of Marketing – College of Business

Supervisor: Dr. Serge Basini

2018
 DECLARATION

I hereby certify that this material, which I now submit for assessment on the programme of study
leading to the award of Postgraduate Diploma in Management and Marketing is entirely my own
work and has not been submitted for assessment for any academic purpose other than in partial
fulfilment for that stated above.

Signed ............................................................................. Date ..................................................

Edicleia Oliveira
 ACKNOWLEDGEMENTS

I’d like to express my great appreciation to my supervisor, Dr. Serge Basini, for the enthusiastic
support and valuable feedback throughout the pursuit of this research. My gratitude to the
lecturers, staff and colleagues at DIT, who were part of my journey.

I’d like to thank my parents and parents-in-law, for their continued encouragement. Particularly,
I wish to acknowledge the assistance given by my husband, Niall Brady, with the proofreading
and his priceless faith on me.
 TABLE OF CONTENTS
INTRODUCTION ……………………………………………………………………………………………………………….. 1
Problem statement ……………………………………………………………………………………………………… 2
1. LITERATURE REVIEW: From the earlier subsidized cultural industry to the
entrepreneurial creative industries within the new economy ……………………………………………. 4
The cultural industry ……………………………………………………………………………………………………. 4
The information and knowledge society ………………………………………………………………………. 4
Creativity as a market asset, the big transformation ………………………………………………… 5
Creative industries, the expression of the new economy ……………………………………………… 5
Creative cities …………………………………………………………………………………………………………. 12
Creative entrepreneurship ……………………………………………………………………………………… 13
The creative arts within the cultural and creative industries ……………………………………. 14
The case of art entrepreneurship ……………………………………………………………………………. 15
Innovation at the heart of entrepreneurial and artistic processes ……………………………. 16
Cultural value versus economic value ……………………………………………………………………… 17
Firm formation ……………………………………………………………………………………………………….. 18
Funding opportunities and philanthropy ………………………………………………………………… 19
The problematic employment structure within the creative industries ……………………. 20
2. CONTEXTUALISATION: Identifying the cultural and creative industries in Ireland …………… 22
Contextualisation and scope of the cultural and creative industries ……………………………… 22
Dublin, an example of the Irish creative city ……………………………………………………………. 27
Collaboration ………………………………………………………………………………………………………………. 27
Innovation and R&D …………………………………………………………………………………………………….. 28
Funding …………………………………………………………………………………………………………………….... 29
The impact of the cultural and creative industries to the Irish economy ………………….. 29
Spillover effect ……………………………………………………………………………………………………….. 30
Funding at the EU level and within the Irish context ………………………………………………… 30
The precarious work conditions of the artist and the creative worker ………………………….. 33
3. CONCLUSION: policy implications regarding the cultural and creative industries in the
Irish context ……………………………………………………………………………………………………………………… 34
Conceptualisation of the cultural and creative industries …………………………………………….. 34
Government structure and governance reforms to accommodate a collaborative mode 36
Funding system and opportunities ………………………………………………………………………………. 38
Addressing the precarious work conditions of the artist and creative worker ………………. 40
Implications for further research …………………………………………………………………………………. 41
REFERENCES …………………………………………………………………………………………………………………….. 43
APPENDIX A: Irish Government documents, policies and reports analysed in this research
within the context of the cultural and creative industries in Ireland ………………………………….. 55
APPENDIX B: Dublin, an example of the Irish creative city ………………………………………………….. 58
APPENDIX C: Cross-collaboration within the creative industries ………………………………………… 61
APPENDIX D: The impact of the cultural and creative industries to the Irish economy ………. 63
APPENDIX E: Summary of some of the funding available in Ireland ……………………………………. 68
APPENDIX F: The precarious work conditions of the artist and creative worker in Ireland … 78
 AN ANALYSIS OF THE CULTURAL AND CREATIVE INDUSTRIES IN IRELAND:
IMPLICATIONS FOR POLICY-MAKING

EDICLEIA OLIVEIRA

Abstract

This research analyses the formation and conceptualisation of the cultural and creative

industries, identifying the key themes for policy-making that impedes the sectors to achieve

their potential. To accomplish this outcome, the academic literature is applied within the Irish

context. The material investigated comprises of academic literature, and policy documents and

reports from the Irish Government relating to the cultural and creative industries, and the

sectors within. The most pressing issue is the entanglement of the terms cultural industries,

creative industries, creative economy, and even creative arts and creativity itself, which lack of

clarity is of no help for policy-makers. Four relevant areas for policy-making are established: (1)

conceptualisation of the cultural and creative industries; (2) Government structure and

governance reforms to accommodate a collaborative mode; (3) funding system and

opportunities; and (4) addressing the precarious work conditions of the artist and creative

worker. Recommendations for policy-making are listed, pinpointing relevant issues for

implementing a policy agenda for the sectors.

Keywords: cultural industries, creative industries, creative economy, creative entrepreneurship,

art entrepreneurship, creative arts, creative city, creative cluster, creative class, creativity,

policy-making.
 INTRODUCTION

The turning of the 20th to the 21st centuries was marked by huge technological, political,
economic and societal changes. Particularly the rise of IT (Information Technology) and ICTs
(Information Communication Technologies) changed the way people communicate, relate,
behave, think and work. What was previously clearly delimited, now has its limits blurred, for
example production and consumption, or economy and culture. Everything is connected, and
at the same time the world is fragmented as never before. The creative industries rise within,
and strongly reflect this changing environment. As nascent economic industries, they connect
and blend art, culture and economy, sitting in-between the service and experiential sectors. No
theoretical definitions are fully able to describe their complexity and Government policies are
still coming to terms with them.

To better understand what is, the scope and extent of the creative industries, this research
analyses the academic literature and applies it within the Irish context. As it encompasses the
creative arts and cultural sectors, they are both investigated. The most pressing issue is the
entanglement of the terms cultural industries, creative industries, creative economy, and even
creative arts and creativity itself. This confusion is, consequently, mirrored within Government
policy documents. The lack of clarity is of no help for policy-makers, that instead rely on a
political agenda and neoliberal politics. Even though there are policies in place for individual
industries within the cultural and creative industries in Ireland, they are not coordinated under
one umbrella, lacking a coherent voice for the sectors.

Other relevant issues are discussed, such as: the creative city/cluster, cross-collaboration,
funding structure and opportunities, philanthropy, value creation, the employment structure
within the cultural and creative industries, and the role of the artist and the creative worker for
the economy and society.

In Section 1, the academic literature is reviewed, identifying the key themes within the cultural
and creative industries. Creative entrepreneurship, and particularly art entrepreneurship is
researched to clarify the relation between creativity and art and innovation, and the importance
of innovation for the economy. In Section 2, the main themes are applied within the Irish
context to have a better picture of how theory can contribute to policy-making. Policy
documents and reports from the Irish Government relating to the cultural and creative

1
industries, and the sectors within, are discussed. Finally, in the conclusion, four relevant areas
for policy-making are established: (1) conceptualisation of the cultural and creative industries;
(2) Government structure and governance reforms to accommodate a collaborative mode; (3)
funding system and opportunities; and (4) addressing the precarious work conditions of the
artist and creative worker. Recommendations for policy-making are listed, pinpointing relevant
issues for implementing a policy agenda for the sectors. Limitations within this research are
described, as well as further research implications.

Problem Statement
According to the document “European Competitiveness Report 2010” (European Commission,
2010b), the potential of the cultural and creative industries to create employment is higher than
in the overall economy. In the period 2000 to 2007, the number of jobs created grew at an
average of 3.5% per year, against 1% for other sectors in the EU economy. Creative occupations,
inside and outside the cultural and creative industries, grew around 3% per year in the EU-15
between 2002 and 2008. Additionally, the cultural and creative industries are proven to have a
significant effect on the growth rate of local GDP per capita in 10 EU countries between 2002
and 2007. The report “Priority sector report: Creative and cultural industries” (Power & Nielsén,
2010) points out the sectors employed a total of 6.5 million people in Europe, also observing
that higher prosperity rates were found in regions with high concentration of cultural and
creative industries. Another report from the UNCTAD (2015), shows that the global market for
traded creative goods grew by 81% from 2003 to 2012, pointing out Europe as the largest
exporter. However, the report also indicates that the growth of creative goods exports within
developing countries grew by 212% in the same period, led by China, contrasting with only 17%
within developed countries.

Despite the enthusiasm regarding the potential of the cultural and creative industries and how
they may contribute to the economy, in reality, Oakley (2009) argues that the expected benefits
have yet to be proven. For Howkins (2005), there is a risk of policies for the sectors becoming
irrelevant if policy-makers do not get it right. The lack of an agreed definition and framework to
conceptualise the cultural and creative industries is identified as the most pressing concern
(Banks & O’Connor, 2009; Cunningham, 2002; Howkins, 2005; Pratt, 2005; Throsby, 2008a). No
less important are issues related to employment within the industries, that aggravate social
problems of inequalities even further (Banks & O’Connor, 2009; Ellmeier, 2003; Flew &
Cunningham, 2010; Leadbeater & Oakley, 2005; McRobbie, 2005; Pratt, 2011; Rae, 2007).

2
This research proposes to analyse the formation and conceptualisation of the cultural and
creative industries, in order to understand and identify the main issues for policy-making that
impedes the sectors to achieve their potential.

3
 1. LITERATURE REVIEW: FROM THE EARLIER SUBSIDISED CULTURAL
INDUSTRY TO THE ENTREPRENEURIAL CREATIVE INDUSTRIES WITHIN
THE NEW ECONOMY

The cultural industry

The earlier definitions of cultural industry, within the Modern Era, and which delineated much
of the cultural policies rationale, was based on a critical view of mass-produced cultural goods
(Flew, 2002). In general, popular culture and all cultural products or services that was too
commercial were left out from Government policies, in favour of what was considered high
culture (Flew, 2002; Hartley & Cunningham, 2002). Garnham (2005) clarifies that in a first
moment the term ‘cultural industry’ highlighted its industrial aspect and was reflected on
discussions of class representation, cultural hegemony and control. Culture was high-jacked by
the bourgeois to control the masses and its production industrialised with the upsurge of the
big media and press corporations.

Further current definitions of the cultural industry incorporate the notions of production and
dissemination of cultural symbols as commodities (Flew, 2002). The focus has shifted to notions
of culture, in opposition to industry, and the political discussion has moved from the factories
to the home, the public spaces of entertainment (rock concert, for instance) and the classroom
(Garnham, 2005). In terms of Government policies, the target turns to the entertainment
industry, such as TV, film and music. Cultural industry becomes a synonym of national culture
(Cunningham, 2002; Hartley, 2005; Hartley & Cunningham, 2002). This favouritism in terms of
policies creates a new fissure: on the one side the creative arts and on the other, the cultural
industry. “[O]ne side is ‘honorific’, the other ‘utilitarian’ at best” (Hartley & Cunningham, 2002,
p.19).

The Information and knowledge society

The commoditisation of culture takes place within the consumer society. In this process, goods
are partially responsible in constructing one’s personal and social identities through the act of
consumption (Flew, 2002). The term ‘cultural economy’ represents the shift from a production-
oriented to a consumption-oriented economy, which also replaces the industrial economy
(Ellmeier, 2003).

4
Within this changing scenario, technology reaches a new peak inaugurating the Information
Society. Goods no longer represents the economy, giving space to services. Information,
particularly Information Technology, is the new producer of wealth, instead of goods (Hartley,
2005; Ó Cinnéide & Henry, 2007; Rifkin, 2005). Howkins (2005) defines the Information Society
as the context in which people spend most of their time and generate most of their income
handling information through technology. However, information itself cannot do much, without
integrating in a way to generate knowledge. IT expands into ICTs, so machines can communicate
between themselves and through the human interaction, knowledge is produced.

Beware that information and knowledge are distinct concepts. Knowledge creation implies the
human capacity to interpret, to judge and to understand information. Knowledge is personal.
“Creating knowledge is a human process, not a technological one” (Leadbeater, 2005, p.127).
Additionally, knowledge consumption does not extinguish it, but rather adds and transforms it.
Within the new economy, here described, the act of consumption is then interwoven with
production, blurring the boundaries between producer and consumer, consequently,
establishing a mutual relationship among them and taking the consumer experience to the next
level (Flew, 2005; Hartley, 2005; Leadbeater, 2005; Rifkin, 2005; Venturelli, 2005). Peer-to-peer
collaboration becomes the norm rather than the exception in an environment where some
neologisms make all the sense, such as ‘prosumption’ and ‘produsers’ (Cunningham, 2007b,
p.19).

Creativity as a market asset, the big transformation. It is in the context of the Knowledge
Society that creativity becomes a market asset (Aggestam, 2007; Cunningham, 2002; Fillis &
Rentschler, 2010; Flew, 2005; Hartley, 2005; Hartley & Cunningham, 2002; Rifkin, 2005; Throsby,
2008a; Venturelli, 2005). Creativity can then be understood as the capacity to transform
information into knowledge, assembling it in imaginative ways to create an infinite possibility of
content and experience (Bruin, 2007; Hartley, 2005), or even pertaining to scientific knowledge,
specifically related to experimentation and problem-solving (Throsby, 2008a). Within the
creative industry, creativity is transformed and capitalised (or monetised), and is then, produced
and consumed (Aggestam, 2007; Hartley, 2005; Howkins, 2005).

Creative industries, the expression of the new economy

Even though creativity is not only part of one specific industry, but spreads across all sectors of
the ‘new economy’ (Flew, 2002; Hartley & Cunningham, 2002; Landry, 2005), the term ‘creative
industry’ was first coined in Tony Blair’s (New Labour party) mandate and is associated with a

5
neoliberal economic agenda (Cunningham, 2007b; Flew, 2002; Flew & Cunningham, 2010;
Galloway & Dunlop, 2007; Hartley & Cunningham, 2002; Oakley, 2004; Pratt, 2005; Prince,
2010). Its mainly contributions were: (1) bringing the creative industry to the fore of the post-
industrial economy in the UK; (2) seeing the cultural sector as a contributor to wealth creation;
(3) shifting from traditional approaches of creativity as a subsidized activity to a large discourse
in issues such as intellectual property and urban development; (4) developing an eclectic and
diverse industry, including new technologies (Flew & Cunningham, 2010); and (5) mapping out
the sector in economic measurable categories (Prince, 2010).

The main demarcation of the original term, documented by the DCMS (UK. Department for
Culture Media and Sport, 2011), comprises of:

[T]hose industries which have their origin in individual creativity, skill and talent and

which have a potential for wealth and job creation through the generation and

exploitation of intellectual property [which includes] advertising, architecture, the art

and antiques market, crafts, design, designer fashion, film and video, interactive leisure

software, music, the performing arts, publishing, software and computer services,

television and radio. (p.5)

In reference to the definition above, Howkins (2005) highlights the relevance of the brain work,
in contrast to physical labour, as a preponderant characteristic. For Galloway and Dunlop
(2007), equating intellectual property with cultural goods is a mistake, as it does not take into
account the distinct properties of the latter (the symbolic meaning it carries, for instance).
However, according to Garnham (2005), the term ‘creative’ was adopted to incorporate the
software industry into the cultural sector, which ultimately justifies claims of size and potential
growth, as well as major, and dubious, policies towards copyright protection. The shift in
terminology was also an attempt to distance the policy from the old ways of production, the
agriculture and the declining manufacturing industries, to the new services sector within an
advanced capitalist society based on knowledge, creativity and innovation (Flew, 2002; Flew &
Cunningham, 2010; Pratt, 2005; Prince, 2010). In the same fashion, cultural policies moved on
from the exclusively “high culture” favouring a wider understanding of culture (Garnham, 2005).

6
The term creative industries was quickly adopted by different Governments and diffused
worldwide. It delimits the shift in focus from the problematic cultural policies and subsidised
arts, with a strong national orientation within the welfare-state, to the integration of creativity
as business, pursuing a Global economic agenda (Banks & O’Connor, 2009). Prince (2010) points
out that, considering how the creative industries were characterised within a measurable
economic framework, the dissemination of creative policies worldwide characterises the move
towards a globalised and transnational collaboration in policy-making, and its capacity to
decontextualise and re-contextualise (Cunningham, 2007a) through knowledge transfer within
social networks.

It is agreed generally that Governments saw it as an alternative to grow and stimulate local
economies (Borén & Young, 2013; Cunningham, 2007b; Hui, 2007; Pratt, 2004; Rae, 2007; Tay,
2005; Throsby, 2008a). Although, it is important to highlight that while some countries prefer
the terminology creative industries, such as the UK, New Zealand and Australia, in Europe the
majority of the countries would rather use the term cultural industries with roots in the
patronage system within the welfare-state, in which arts and cultural goods are public goods
due to market failure (Ellmeier, 2003). Some Asian countries, such as Japan, China and South
Korea, also adopt the terminology culture industries, however its scope varies greatly from one
country to another (Cunningham, 2007a; Ellmeier, 2003). In the global South, as within inter-
governmental bodies such as UNESCO and UNCTAD, the term creative industries has a strong
link with heritage, poverty alleviation and is also used to leverage support for the development
of cultural and ICT infrastructure (Cunningham, 2007a). In the US, culture has been long
considered a private matter driven by market-forces and funded partly by philanthropy
(Ellmeier, 2003; Galloway & Dunlop, 2007). According to Cunningham (2002, 2007a), the term
creative industries does not make much sense1, and there is no overarching federal department
or national cultural policy, which is deemed responsibility of the states and localities. However,
in the 1960s, the American Government set up the National Endowment for the Arts and the
Humanities, based on the philanthropic foundation model. It can be said that due to limited
Government funds and philanthropic money available, the cultural and arts sector in the US are
much more entrepreneurial than in Europe (Katz, 2006).

Hartley (2005) admonishes that the formation of the creative industries is historical, rather than
categorical. For that reason, it can be said that in the US it is consumer and market driven

1
Exception is made in the book ‘Creative Industries: Contracts between Arts and Commerce (2000), where
the author explains the unique contractual nature of the media industry in the US.

7
(Ellmeier, 2003; Galloway & Dunlop, 2007; Hartley, 2005), while in Europe it encompasses
notions of tradition, national identity and cultural citizenship. It may also vary by political
mandate and institutional context, such as Government cultural policies or, for instance, within
the private economic sector (Banks & O’Connor, 2009; Flew, 2002; Flew & Cunningham, 2010;
Throsby, 2008a). The terms cultural and creative industries are sometimes used interchangeably
(Cunningham, 2002; Flew & Cunningham, 2010; Galloway & Dunlop, 2007) and they vary
according to the context to which they have been applied, such as policy making, market
economy, humanities and arts and so forth (Flew & Cunningham, 2010).

Creative industries present distinct characteristics on which their creative inputs extend beyond
different sectors of the economy and in the social development at large (Fleming, 2007; Hartley,
2005), even though Oakley (2009) argues that it still has to be proven. It is not clear if they are
part of the primary, secondary or tertiary sector of the economy, possibly extending beyond as
an experience economy (Hartley, 2005). Rae (2007) points out the evident feature of the
creative industry regarding the shared emotions between producers and consumers creating an
emotional engagement and deep experience.

According to Hartley (2005) and Rae (2007), the sector includes a mix of micro-businesses and
SME’s, which form the biggest proportion, however it also assimilates some of the largest
corporations such as the publishing and films industries, for instance. Hartley (2005), defends
that:

The idea of the creative industries seeks to describe the conceptual and practical

convergence of the creative arts (individual talent) with Cultural Industries (mass scale),

in the context of new media technologies (ICTs) within a new knowledge economy, for

the use of newly interactive citizen-consumers. (p.5)

Throsby (2008a) sees the creative industry in terms of products and services it produces, on
which a significant level of creativity is applied on its production process. It may result in
economic and/or cultural value creation. The cultural industry is then, a sub-set within the
creative industry. The author (Throsby, 2008b) also illustrates the cultural industries as
concentric circles, as seen in Figure 1.1: goods and services with a higher cultural value are
positioned close to the core, measured by the incorporation primarily of artistic creative ideas
into its production and/or presentation. As the goods and services become less dependent upon

8
artistic creative inputs, they distance themselves from the core being placed marginally within
the cultural industries. He basically distinguishes four circles, as follows: (1) core creative arts:
literature, music, performing and visual arts; (2) other core cultural industries: film, museums,
galleries, libraries and photography; (3) wider cultural industries: heritage services, publishing
and print media, television and radio, sound recording and video and computer games; (4)
related industries: advertising, architecture, design and fashion.

Figure 1.1: Concentric circles model of the cultural industries. From “The concentric circles model of the cultural
industries”, by D. Throsby, 2008b. Cultural Trends, 17(3), p.150.

Evolving to a more conceptual definition, Potts, Cunningham, Hartley and Ormerod (2008)
describe the creative industries in terms of complex social network markets, often
technologically fuelled. Production and consumption are intrinsically embedded in and
inseparable of the network. They are based on decisions made by others in which the
entrepreneur/creative may have no input, such as taste, word of mouth, popularity and
individual preferences that feed back into the network in a constant loop. This concept allows
a more fluid approach that incorporates not only constituted firms but also organisations,
institutions and agencies akin. Also, the focus shifts from the creative or cultural industries, or
even creativity itself, placing design and media at the core because they are all “about the
interaction of human ideas with the human environment” (p.176). Novelty, uncertainty,
experimentation and creation of new resources are central features in this conceptualisation of
the creative industries, very close to the Schumpeterian definition of entrepreneurship 2. Within

2
According to Schumpeter (1983), innovation process is understood as the new combination of existing
resources, consequently destroying the current order. The concept is further explained within the sub-
section “Innovation at the heart of entrepreneurial and artistic processes”.

9
this rationale, facilitating experimentation and innovation becomes the most important factor
in terms of policy-making, shifting the approach from the top-down to the bottom-up. As such,
the authors define the creative industries as:

[T]he set of economic activities that involve the creation and maintenance of social

networks and the generation of value through production and consumption of network-

valorized choices in these networks. (p.174)

It is evident that agreement has not been reached on what creative or cultural industries are.
Howkins (2005) believes that there is a crisis identity within the sector, which is still on its
infancy. He warns it risks becoming a jargon and irrelevant, should public policy-makers not be
getting it right. Nevertheless, other authors (Cunningham, 2007b; Hartley, 2005; Hartley &
Cunningham, 2002) defend that the sector seeks to combine both notions of creative arts and
cultural industries, to transform them moving beyond established dichotomies of elite/mass,
art/entertainment, sponsored/commercial. More than that, according to Cunningham (2005,
2007), it links and converges different sectors within arts and media, moving them from the
“culturally specific non-commercial to the globalized and commercial, where generically
creative, rather than culturally specific, content drives advances” (p.284).

The broad definition and scope of creative industry is seen as problematic because of difficulties
in classifying and measuring its economic activities regionally, as well as worldwide (Banks &
O’Connor, 2009; Cunningham, 2002; Pratt, 2005; Throsby, 2008a). Consequently, it is difficult
or even impossible to compare its economic input and significance across countries, and, most
importantly, to estimate or measure the industry contribution to growth and employment as an
economic activity as a whole. Another issue is that the conceptualisation serves a political
agenda rather than stemming from clear rational assumptions (Cunningham, 2002; Pratt, 2005;
Throsby, 2008a). Additionally Oakley (2004) argues that bringing together activities, which are
fundamentally different, under one particular umbrella for policy purposes, does not do much
to recognise its distinct needs. The same is true when policies are indiscriminately applied
everywhere without considerations for specifics of place (which is the particular case of the
creative industry policies in the UK).

Figure 1.2 summarises the main definitions of the creative industries described within this
section, to allow a better visualisation of its scope in terms of breadth and depth. The breadth

10
refers to the sectors which may comprise the creative industries and depth the main ideas on
which the creative industries are defined upon.

Figure 1.2: Summary of the main concepts and scope of the creative industries.

11
Creative cities. The city is placed on the centre of this new construction, providing the
conditions for creativity (and creative entrepreneurship, for that matter) to flourish (Borén &
Young, 2013; Landry, 2005; Leadbeater & Oakley, 2005; Nijkamp, 2003; Pratt, 2004; Throsby,
2008a). Venturelli (2005) points out that cities and countries face the challenge of being creators
of innovative ideas within dynamic societies in contrast with acting as passive consumers. The
direction of cultural policies in forging the right environment for creativity to blossom will
partially determine who will be on each side.

Companies based on knowledge and creativity do not necessarily demand a huge physical
infrastructure and the entry costs are not compulsorily prohibitive. This is partially responsible
for the proliferation of micro-business, including the sole-trader, and SME’s, as well as allowing
marginal cities, regions or whole countries to develop their economies based on the creative
industry model (Cunningham, 2002; Ellmeier, 2003; Hartley, 2005; Hartley & Cunningham,
2002). Within this context, Government policies on culture and art are shifting from subsidy to
post-industrial economic development encompassing the concept of the creative cluster (Flew
& Cunningham, 2010; Rae, 2007).

Creative cities borrow from Porter (2005) the concept of industry cluster, in which cities or
regions develop a specific knowledge-based economy, thus creating an interconnected
community of knowledge (Flew, 2002). Collaboration and competition among companies within
the cluster is strongly encouraged and are defining components for the firm’s competitive
advantage. In fact, within the cluster, the competitive advantage lies partially outside the firm,
or even outside the industry, which requires a new strategic approach from management
(Porter, 2005). Leadbeater and Oakley (2005) describe it in terms of economics of proximity, in
which businesses thrive in producing specific knowledge that’s only possible within a shared
local network (Rae, 2007; Rifkin, 2005; Venturelli, 2005), which while not accessible globally, has
a global commercial appeal.

This initiative demands a coordinated partnership between public and private sectors (Bruin,
2007; Hartley, 2005; Hartley & Cunningham, 2002; Rae, 2007), and a new form of dialogue
among Government agencies, educational institutions, companies and public utilities.
Government investments in industry cluster should be a priority as they drive increasing exports
and attract foreign investments (Ó Cinnéide & Henry, 2007; Porter, 2005). It is of a crucial
importance that policy-makers recognise the interconnections, linkages and cross-sectoral
characteristics of the industry cluster, that differs radically from the traditional approach within

12
the standardised industrial classification systems (Porter, 2005). Landry (2005) asserts that this
may pose a challenge for policy-makers who still thinking in terms of sectors of the economy as
separate entities. Education is also of a crucial importance in producing and disseminating
knowledge, particularly regarding R&D, but also in the sense that it supplies, at a much higher
proportion, the creative personnel within this industry (Hartley, 2005; Rae, 2007). Within the
knowledge society, the university is the space where knowledge and innovation is facilitated, as
well as the space where knowledge transfer takes place (Pratt & Virani, 2015).

Another challenge concerns the concept of the creative city, particularly regarding how its
cultural and creative attractiveness has been used by policy-makers to brand the city (Pratt,
2011). A good example is the definition of some forms of arts as ‘mainstream’, excluding other
forms, or even making them illegal (as in the case of the graffiti in the city of Stockholm, for
instance) (Borén & Young, 2013, 2017). The notion of the creative class, a term first used by
Florida (2005) to define the creative worker within the creative industries, may be used
indiscriminately to serve the purpose of Globalisation and economic gains purely within a
neoliberal agenda. Consequently, policies geared towards the creative city, highly support the
influx of the creative class on which the city is moulded, that, ultimately, results in the
gentrification of the ‘creative quarters’ (Borén & Young, 2013, 2017; Pratt, 2011). The creative
city is the ‘hype’ and no Government wants to be left out, adopting quick-fix measures to be
part of the club. Part of the problem lies in the gap between policy discourse on creativity and
how it is understood by creative workers and practitioners, particularly the artist. One solution
is adopting a creative policy and creative approach to policy making, bringing together all the
interested stakeholders and reconciling the power asymmetries and technical language barriers
(Borén & Young, 2013, 2017). Pratt (2011) adds that a pragmatic assessment of policies followed
by necessary changes are needed if the expected economic and cultural developments are still
the desired outcome.

Creative entrepreneurship. Within the creative or cultural industries, entrepreneurship is

understood as identification and commercial exploitation of opportunities to provide cultural
products, services or experiences, applying creative ideas and discourses (Rae, 2007), the
commodification of art and culture (Aggestam, 2007), the potential of economic development
and value creation within the arts and cultural industries (Aggestam, 2007; Bruin, 2007), and
finally, the constitution of a legal firm regarding artistic and cultural enterprises (Hui, 2007). In
general, it is assumed that the cultural and creative industries are intrinsically entrepreneurial,
having economic value creation at their core.

13
Regarding the use of terminologies, similar terms such as cultural industries and creative
industries; or creative/cultural business, creative/cultural entrepreneurship; or yet,
entrepreneur, owner, cultural worker, creative worker, cultural manager, freelancer, sole
trader, are used interchangeably or with little distinction among them. The only exception is
made to the definition of art entrepreneurship exclusively under the context of the artistic field
within the cultural industry, although creative or cultural entrepreneurship may include the arts
sector (Galloway & Dunlop, 2007; Hausmann & Heinze, 2016).

The creative arts within the cultural and creative industries. It is reasonable to think that every
paradigm change is a painful process. According to Haseman (2005), this is evident in the re-
purposing of art within the creative industries. Integrating the analog and digital opens up the
possibility of a new relational and non-hierarchical form of symbolic activity where the creative
class can challenge and contribute into different sectors using their creative experience. These
new forms of creative practices differentiate themselves from the traditional creative arts and
cultural industries in their intrinsic interactivity and hybridity, with a multi-platform and cross-
promotional distribution and acknowledging their relevance in the market economy. There are
plenty of examples, such as the case of the artist who implements innovative corporate
programs, or the web designer who creates a virtual interactive platform to explore the cultural
heritage of a city or region.

Landry (2005) presents a similar view regarding the distinctive characteristics of the creative
industries and the creative professional working across sectors. Arts can be seen as more than
the aesthetic experience they provide. Taking a broader view, in terms of how culture
contributes to the development of a city, the arts can offer new visions of urban regeneration,
making sense of its aesthetic, cultural, economic and utilitarian properties. Throsby (2008a)
explains that, within the cultural and creative industries, arts now are part of the mainstream
forward-looking politics. It presents a challenge for policy-makers to integrate two such distinct
sectors: the high-growth technological industry, R&D-based, and the cultural production
associated with cultural identity and social empowerment (Cunningham, 2007b).

In contrast, Leadbeater and Oakley (2005) underline the divide between the traditional arts
sectors and cultural entrepreneurship at large. The former is still partly subsidised by
Government funds which know little about commercial operations and generally ignores the
latter. Some cultural entrepreneurs, on the other hand, are very suspicious about public funds

14
and prefer to go by themselves, typically availing of no help from Government bodies. Generally,
different departments with very distinct agendas are responsible for arts and economic
development. Rae (2007) talks in terms of a disconnection between the creative sectors, which
emphasizes “freedom of action”, in contrast to Government bodies with a strong culture of
“control and direction” (p.61). To complicate even further, the educational system prioritizes
rational knowledge in contrast to experimentation and discovery (Rae, 2007) and is too inflexible
to teach other skills needed to succeed in the market (Leadbeater & Oakley, 2005).

Throsby (2008b) advises caution, as the economic benefits promised by advocates of the
creative industries regarding their inclusion, have not yet been proven. Additionally,
Governments have yet to get the balance right between economic and cultural value, as it tends
to prioritise the former. This is especially true regarding the instrumental use of the arts in
producing both economic and social outcomes and of promoting culture in general (Banks &
O’Connor, 2009; Oakley, 2009; Throsby, 2008b). However, publicly subsidised enterprises are
still necessary to encourage more art and more artists, and to enable the dialogue between the
old and the new. Ultimately, the “creative class” (Florida, 2005) would rather live in a cultural
city (Borén & Young, 2013; Montgomery, 2005). The challenge is to reconcile the prospects of
the creative economy (full employment, for instance), with the vibrancy of the cultural
industries, in which culture and art is not only a lifestyle but also seen as an entrepreneurial
sector (Hartley & Cunningham, 2002).

The case of art entrepreneurship. Some researchers are addressing the creative or traditional
arts within this new scenario from the perspective of art entrepreneurship. They are finding
parallels between traditional entrepreneurship and the production of artistic work, with
particular interest in the cross-fertilisation between the two fields. It is believed that both deal
with issues of novelty, creativity and the intersection between the old and the new (Scherdin &
Zander, 2011).

The first definitions and academic discussions about art entrepreneurship date back to the
beginning of the 21st century, which is not a coincidence given the rise of the creative industries
(Chang & Wyszomirski, 2015; Hausmann & Heinze, 2016). Changes in society, such as digital
technologies and economic crises were also identified as triggers for a different approach to art
production, distribution and consumption (Chang & Wyszomirski, 2015).

15
Drawing from the literature, art entrepreneurship can be understood as the process of discovery
or pursuit of new ideas with symbolic value by means of artistic expression (Essig, 2015), which
requires a new combination of resources and different risk calculations (Chang & Wyszomirski,
2015). This enterprise is supported and mediated by organisational forms and entrepreneurial
behaviour, such as: opportunity alertness, social and financial capital, creativity, and specialised
knowledge. It might result in firm formation3, through the artist as sole proprietor, non-profit
organisations, cooperatives, and for-profit firms (Essig, 2015). The goal of the enterprise might
be: creation of economic, social and/or cultural value (Chang & Wyszomirski, 2015; Essig, 2015),
supporting creativity and autonomy (Chang & Wyszomirski, 2015), bringing new ideas to the
wider public, sustained artistic practice, and wealth creation (Essig, 2015).

In complement to this, Aggestam (2007) considers art entrepreneurship as a two-fold act:

“extrinsic, that is, contextual and business-driven; and intrinsic, that is, involving internal desire
to create something aesthetic and focused on a sense of personal achievement” (p.32). Bruin
(2007) adds that there are distinct levels of art entrepreneurship: individual (the ordinary artist
versus the creative entrepreneur), national (entrepreneurial Government and Government
policies on entrepreneurship) and local (city and community) levels. Art entrepreneurship, and
in a broader sense, cultural entrepreneurship, comprises not only the artist-entrepreneur, but
other professionals involved in the production, marketing and distribution processes. This
definition is more closed aligned with that of creative entrepreneurship or even the creative
city/cluster (Aggestam, 2007; Ó Cinnéide & Henry, 2007; Pratt, 2005).

Innovation at the heart of entrepreneurial and artistic processes. Innovation, or the

introduction of novelty, is one of the aspects central to both entrepreneurship and artistic
creation (Lindqvist, 2011; Ó Cinnéide & Henry, 2007). Within entrepreneurship theory,
innovation means the action taken to introduce a new product or service to the market.
Regarding artistic innovation, the meaning is restricted to its aesthetic dimension only, for
instance in the creation of a new style. Such a restriction is due to a lack of concern of art
historians with the research of art organisational forms and economic achievements (Lindqvist,
2011).

Art is the constant negotiation between established and newly constructed meanings that
defamiliarises the everyday life experience, allowing audiences to see ordinary things from a
different perspective. As new perceptions are built up upon the familiar, in the construction of

3
Firm formation is here understood as the legal constitution of a company.

16
novelty, the artist, as the entrepreneur, must challenge current representations without
seeming too unfamiliar as to pass unseen and unacknowledged (Fillis & Rentschler, 2010;
Meisiek & Haefliger, 2011; Ó Cinnéide & Henry, 2007). It is in this space that value creation
(economic, cultural or social) is established, through the renewal of meanings and the invitation
of the unexpected. Rather than being the result of a random or accidental combination, it is the
creative assemblage and juxtaposition of the old and the new that culminates in artistic
innovation. However, it has to be validated by the art industry and community at large which
ultimately acknowledge its value (Meisiek & Haefliger, 2011). This implies that not every artist
is an entrepreneur, but only those seeking to innovate (Thom, 2016).

According to Meisiek & Haefliger (2011), this position is supported by the entrepreneurship
theory of destruction, having Schumpeter (1983) as its predecessor. Within this theory, the
innovation process is understood as the new combination of existing resources, consequently
destroying the current order. It is also referred to as creative destruction (Nijkamp, 2003;
Schumpeter, 1983).

Conversely, Oakley (2009) disagrees with the concept of creative arts as intrinsically innovative,
particularly in the way innovation is defined in terms of public policy-making, fracturing the
sector between the old and outdated, and the new and trendy.

Cultural value versus economic value. Meisiek and Haefliger (2011) defend that embedding
economic value into the understanding of art entrepreneurship is one of the reasons the
concept is not easily acknowledged by artists. It is important to note the subject is barely
explored in art literature, due to resistance from both academic research and practice regarding
art in the business context (Scherdin & Zander, 2011). Paraphrasing Hartley (2015), “a landscape
with a noisy clash between culture and economics, bubbling up of adversarial rhetoric” (p.80).
The author proposes that the creative industries are best placed to discuss and resolve these
animosities. He makes a parallel between the city as a complex system of social networks, and
the place where the creative industries reside. Both the city and the creative industries are
characterised on their contemporaneity, “by their web of interconnections (information, trade,
migration, capital, etc.) as by their particularities” (p.81). He invites us to think in terms of
complexity rather than antagonism4. On the lines of Schumpeterian creative destruction,

4
Hartley (2011) brilliantly illustrates the case using the marriage metaphor as the place of differences,
where agreements and disagreements do not cease to exist, but are negotiated through dialogue and
concessions, to reach stability.

17
creative cities are innovative and evolving, due to their disruptive nature. The “clash of systems”
is indeed productive and even vital for economic development. Controversial viewpoints need
to remain in proximity to cross-fertilise (which is the main point of the cluster). It is in the
conversation of differences that new ideas appear (Hartley, 2015). One such example is the
debate on the nature of culture, and its ever-changing quality, which pervades discourses in
public policies regarding the creative industries and the artistic practice in general. It also
recognises the economic attributes of culture and the role of culture in modelling the market
(Pratt, 2005).

Cultural value may be understood via two very different interpretations: (1) aesthetic view
associated with cultural capital; and (2) neoclassical economic view focused upon the monetary
value of culture within the economy. The current view of cultural value is based on the second
definition, which makes sense when we trace the concept back to its neoliberal roots. A more
interesting approach however can be reached by their combination. Returning to the
Schumpeterian theory, the utility of the enterprise (be it a good, a service, a new organisational
form or a new market) must yield profits. Profit however has a much wider connotation,
meaning any outputs, not only monetary, embracing both notions of cultural and social
contributions. It is therefore important to consider different interpretations of cultural value
from different stakeholders, such as in our case, policy-makers, artists and creatives, the public,
private organisations (sponsors or philanthropists, for instance), and other institutions (such as
educational) (Geursen & Rentschler, 2003).

Firm formation. Firm formation is a controversial subject within entrepreneurship research,

dividing authors opinions about the relevancy and centrality of the topic regarding
entrepreneurial action (Gaglio & Katz, 2001; Gartner, 1988; Scott & Venkataraman, 2000;
Thornton, 1999). Regardless of different interpretations, artists are appropriating
entrepreneurship and business processes as a pragmatic solution to respond to market
pressures and lack of other means of survival (lack of subsidised funds, for instance). In this
manner, they are subverting the business logic in which a firm is established primarily to support
art creation (Bonnafous-Boucher, Cuir, & Partouche, 2011), or as the realisation of the network
of skills and resources (Pratt & Virani, 2015). The economic return comes as the secondary
motivation (Bonnafous-Boucher et al., 2011). It is also important to note that within the creative
industries, firms are a mix of formal and informal, and for and not-for-profit. They are generally
not stable and project-based, which partly explains their higher than average death rates (Pratt

18
& Virani, 2015). They also avail of limited, if at all, mixed funding opportunities from the public
and private sectors, which include self-funding (Pratt, 2005).

Funding opportunities and philanthropy. Raising funding in the start-up and early stage process
of the creative firm is mentioned as one of the most common problems faced by creative
entrepreneurs. Some of the reasons are based on inherent characteristics of the sector, such
as: difficulty in justifying funding for individuals (the artist-entrepreneur, for instance), lack of
management skills, the plurality of business scope, a high number of SME’s with relatively small
individual profitability and limited economic impact, and the unpredictable nature of the
business increasing considerably the risk factor. Another relevant issue is the lack of investor
readiness, which combined with the previous factors, result in market failure. It is also
interesting to note, that some cultural businesses are not ready to go to the commercial route
only and are still focused on producing artistic projects based upon the creation process, with
little concern regarding market potential. It is necessary for investors and policy-makers to be
aware where the business is in the value chain, and its potential economic value, to
appropriately establish the best investment route. Policy-makers especially should be aware of
overlapping and contradictory policies addressed by different Government bodies aimed at
different, although interconnected, economic sectors (in the traditional sense), within the
creative cluster (Fleming, 2007).

In the US, as mentioned previously, philanthropy is central to the development of the cultural
and arts sectors. According to Katz (2006), private philanthropic foundations first arouse in the
US, in an attempt to combine both organisational expertise with scientific advancements to
eradicate the ills of mankind. They were initially focused on education, medicine and public
health. Their organisational form evolved, such as in the arrival of community and corporate
foundations, but it was not until the 1940s that they started to fund arts and culture, which
coincided with a time of cultural democratisation and increasing audiences with programmes
suited to the masses. Also of relevance is the arrival of progressive tax rate deductions (Katz,
2006). In the 1980s and 1990s, changes in management theory, specifically strategic
management, were responsible for diverting philanthropic contributions to more strategically
oriented efforts in marketing and PR (Katz, 2006). However, with the advent of the Corporate
Social Responsibility (CSR) as part of the firm’s general strategy, corporate philanthropy is once
more on the rise (Thorne McAlister & Ferrell, 2002).

19
The problematic employment structure within the creative industries. Some authors would
argue that the model of creative industries and creative cities, even though seeming strong from
the outside, masks a growing system of precarious employment. Workers are spread out across
small companies or engaged in self-employment, unable to organise themselves in terms of
political lobby or class representation. It is also not uncommon to encounter portfolio careers5,
short term contracts, long work hours, multiple jobs, self-exploitation and the exclusion of
women, ethnic minorities, disabled people and people from poorer backgrounds (Ellmeier,
2003; Flew & Cunningham, 2010; McRobbie, 2005; Pratt, 2011).

Banks and O’Connor (2009) agree that, contrary to what was expected, new policies on the
creative industries, instead of having solved social and economic problems, aggravated
“inequalities of access and promotion” (p.366). While a belief exists that cultural enterprises
can act as intermediary places within a highly diversified and fragmented society, replacing what
was once represented by the workplace, religion or trade unions, it is acknowledged that they
are more often than not socially exclusive environments (Leadbeater & Oakley, 2005),
dominated by ‘club culture’ networking (McRobbie, 2005). Rae (2007) also highlights the
disconnection between creative networks and other mainstream economic sectors and
Government agencies, generating opportunity losses for the economy and society. The
implication for policy-makers is to recognise that new and different employment structure apply
and to create policies that reflect these changes (Ellmeier, 2003).

Nijkamp (2003) offers a more positive outlook, describing the creative industries as inherently a
network economy within a globalized economy. The network makes possible the mitigation of
risks throughout its members, and consequently, the democratisation of entrepreneurship. It is
important to note that he does not take into account the social marginalisation within the
creative network.

Cunningham (2005) and Pratt and Virani (2015) discuss the employment structure of the cultural
industry in Europe, based on a critical analysis of the findings on the Report “Banking on Culture”
(Hackett, Ramsden, Sattar, & Guene, 2000). The structure takes the shape of an ‘hourglass’, as
can be seen in Figure 1.3, on which employment concentrates either in a small number of big
companies on the top or, at the opposite extreme, in a big number of micro-businesses and

5
Portfolio careers are “characterized by multiple jobs across different sectors” (Flew & Cunningham,
2010, p.120).

20
SME’s. There is a missing middle, which is justified by the fact that big organisations in the top
avail of most of public support, while the majority of the micro-business and SME’s lack
propensity or investment, such as R&D, micro funding or venture capital needed to innovate
and to scale up. Policies geared up towards SME’s (including sole-proprietors and micro-
businesses) are essential if a thriving and balanced economy is desired (Cunningham, 2002;
Hartley & Cunningham, 2002). Cunningham (2004) highlights the importance of including R&D
investment in policies targeted at the creative industries as they are responsible to realise the
commercial potential within new technologies, for instance.

Figure 1.3: Hourglass shape of the employment structure in the cultural industries in Europe. Adapted from “Banking
on Culture: new financial instruments for expanding the cultural sector in Europe. Final report”, by K. Hackett, P.
Ramsden, D. Sattar, & C. Guene, Retrieved from:
http://webarchive.nationalarchives.gov.uk/20160204124325/http://www.artscouncil.org.uk/advice-and-
guidance/browse-advice-and-guidance/banking-on-culture-new-financial-instruments-for-expanding-the-cultural-
sector-in-europe.

21
 2. CONTEXTUALISATION: IDENTIFYING THE CULTURAL AND CREATIVE
INDUSTRIES IN IRELAND

There is a lot of confusion in Government documents and within Irish policies regarding the
cultural and creative industries and where they are located within the economy. Some
documents present overlapping or contradictory conceptualisations and lack clarity as to which
Government department is responsible, as well as guidelines on how to achieve established
goals. In order to shed some light on relevant issues in the context of the literature review, a
thematic approach is pursued for the current analysis, bringing together and comparing the Irish
context, at the national and local levels, as well as with that of the EU.

Contextualisation and scope of the cultural and creative industries

In order to provide guidance to EU member-states in achieving a policy for the development of
the cultural and creative industries, the report “The Economy of Culture in Europe” (KEA
European Affairs, 2006), further developing the DCMS (UK. Department for Culture Media and
Sport, 2011) definition, describes the sectors as different entities bundled together, to respond
to the needs to conceptualise the sector in one frame of reference. Figure 2.1 illustrates the
scope of the cultural and creative industries within this framework, noting that it is similar to
the concentric circles model of the cultural industries (Throsby, 2008b). As such, the framework
is described below:

[I]ts scope goes beyond the traditional cultural industries such as cinema, music and

publishing. It also includes the media (press, radio and television), the creative sectors

(such as fashion, interior and product design), cultural tourism, as well as the traditional

arts fields (performing arts, visual arts, and heritage). [It] also touches upon the impact

of the cultural sector on the development of related industries, such as cultural tourism

and, perhaps more importantly, ICT industries, and explores the links between culture,

creativity and innovation in this respect. (p.2)

22
Figure 2.1: Framework for the cultural & creative sectors. From “The Economy of Culture in Europe: study prepared
for the European Commission (Directorate-General for Education and Culture), by KEA European Affairs, 2006, p.3.
Retrieved from: http://ec.europa.eu/assets/eac/culture/library/studies/cultural-economy_en.pdf.

The quoted report (KEA European Affairs, 2006) also points out to the importance of the ICTs,
specifically with reference to new technologies, such as: the Internet, broadband connection
and mobile 3G technology, which both drives and is driven by the new content. This is in
agreement with the literature which recognises the knowledge society as the starting point of
the nascent creative industries (Ellmeier, 2003; Hartley, 2005; Ó Cinnéide & Henry, 2007; Rifkin,
2005). The necessity to localise economies through the cluster is mentioned on the report as a
competitive advantage. Cities, regions and countries are competing to attract the best talents.
The creative city with its cultural vibrant life is then best positioned to cater for the creative class

23
(Borén & Young, 2013; Flew, 2002; Flew & Cunningham, 2010; Florida, 2005; Landry, 2005;
Leadbeater & Oakley, 2005; Montgomery, 2005; Nijkamp, 2003; Porter, 2005; Pratt, 2004; Rae,
2007; Rifkin, 2005; Throsby, 2008a; Venturelli, 2005).

An early attempt made by the Irish Government to frame the sector in a new light, is described
in the report “Building Ireland’s Smart Economy: A Framework for Sustainable Economic
Renewal” (Ireland. Department of the Taoiseach, 2008). As in the academic literature, this
document acknowledges the relevance of the arts, cultural and creative industries for the overall
economy of Ireland 6, and other countries (Aggestam, 2007; Borén & Young, 2013; Bruin, 2007;
Cunningham, 2007b; Fleming, 2007; Hartley, 2005; Hui, 2007; Pratt, 2004; Rae, 2007; Tay, 2005;
Throsby, 2008a), and set up initiatives to develop the sector under the aegis of the ‘smart
economy’, pursuing a knowledge-based economic agenda (Ellmeier, 2003; Hartley, 2005;
Howkins, 2005; Leadbeater, 2005; Ó Cinnéide & Henry, 2007; Rifkin, 2005). Among other issues,
it identifies the centrality of the content creation as an economic driver (Bruin, 2007;
Cunningham, 2005, 2007b; Hartley, 2005), acknowledging that such industries differ from the
traditional export sectors (Flew & Cunningham, 2010; Haseman, 2005; Landry, 2012; Leadbeater
& Oakley, 2005; Porter, 2005), especially regarding intellectual property protection (Flew &
Cunningham, 2010; Garnham, 2005), and establishes R&D as a priority commitment
(Cunningham, 2007b; Hartley, 2005; Rae, 2007; Throsby, 2008a).

In 2015 Ireland launched a public consultation on its first “National Cultural Policy” (Ireland.
Department of Arts Heritage and the Gaeltacht, 2015), in response to the call of the EC
(European Commission, 2012, 2014), and aiming “to integrate cultural policy within broader
social and economic goals” (p.3). In particular, it should be noted that it adopts the term cultural
industries (Cunningham, 2007a; Ellmeier, 2003; Hartley, 2005), even though it includes the
creative industries in its scope, as a separate, but interrelated sector (Throsby, 2008b). The
document also acknowledges the link between the knowledge-society with the new
conceptualisation of the cultural and creative industries (Ellmeier, 2003; Hartley, 2005; Howkins,
2005; Leadbeater, 2005; Ó Cinnéide & Henry, 2007; Rifkin, 2005) and the role of creativity on
this construction (Aggestam, 2007; Bruin, 2007; Cunningham, 2002; Fillis & Rentschler, 2010;
Flew, 2005; Hartley, 2005; Hartley & Cunningham, 2002; Rifkin, 2005; Throsby, 2008a;
Venturelli, 2005), it also recognises the direct and indirect economic impact of culture in the

6
This report was written in the middle of a global economic crisis, which hugely affected the Irish
economy, as a response and in a way to reorganise the country’s economy to exit the crisis.

24
economy in general (Banks & O’Connor, 2009; Flew, 2002; Hartley & Cunningham, 2002; Landry,
2005; Throsby, 2008a). The cultural and creative industries are defined as follows:

The arts, as defined in the Arts Act 2003, which means “any creative or interpretive

expression (whether traditional or contemporary) in whatever form, and including, in

particular, visual arts, theatre, literature, music, dance, opera, film, circus and

architecture and includes any medium when used for those purposes.” The creative

industries, including film and television production, animation, broadcasting, electronic

games, architecture, design and fashion, publishing, media and advertising. Cultural

heritage, including galleries, libraries, archives and museums, built and natural heritage,

Irish language and folk traditions. It would also include new cultural diversity and

languages which have become part of Irish life in recent years. (p.5)

Notwithstanding the first efforts to design a policy that embraces the needs of a globalised
economy, a draft framework policy (Ireland. Department of Arts Heritage and the Gaeltacht,
2016) was disclosed in 2016 with a much narrower definition on its scope, namely: “the arts,
film, broadcasting, visual arts, cultural heritage, the Irish language and Gaeltacht” (p.2). The text
loses much of the richness of the previous document in insisting on a limited take on culture,
failing to recognise its changing nature and based on old paradigms (Cunningham, 2002; Flew,
2002; Hartley, 2005; Hartley & Cunningham, 2002).

It is important to note that although the cultural and creative sectors are briefly mentioned in
the draft (Ireland. Department of Arts Heritage and the Gaeltacht, 2016), it is not clear what
they stand for. No further documents were found as to understand the shift in focus, but it may
be inferred that the intention was to disentangle the paradigm of the creative industries within
the cultural policies, leaving each one of them to different policy domains and agendas, including
funding opportunities. As explained in the literature review, a Government policy should not
serve the purpose of a political agenda (Cunningham, 2002; Pratt, 2005; Throsby, 2008a), but
rather the interests of the people it serves. Finally, despite the advancement in the conversation
to foster a strong cultural sector, prioritising key areas, the draft document has not been
followed by a strategic action plan or a clear budget agenda for funding the sector, which limits

25
its effectiveness and compromises its capability. It is of no practical effect when the Government
acknowledges what to do, but do not set clear guidelines on how to do it.

This position is shared by the Joint Committee on Arts, Heritage, Regional Rural and Gaeltacht
Affairs, which followed-up the draft framework policy with a comprehensive report (Ireland.
Houses of the Oireachtas, 2017). Among the recommendations, the joint committee
understands that the main aim of the draft should be “to create a framework for legislation and
action” (p.13), incorporating into the Irish Constitution the right to arts, culture and heritage, as
it is already recognised as a human right in the “Universal Declaration of Human Rights” (United
Nations & Universal Declaration of Human Rights, 1948). Additionally, and in line with many of
the criticisms on the literature review (Banks & O’Connor, 2009; Cunningham, 2002; Howkins,
2005; Pratt, 2005; Throsby, 2008a), the document called the Minister to clearly define the terms
‘arts, culture and heritage’, and to outline the connections within and between, in an inclusive
and forward-looking fashion and in line with other definitions within the EU and the UNESCO.

The report (Ireland. Houses of the Oireachtas, 2017) suggests a broader comprehension of
culture accounting for its ever-changing nature (Pratt, 2005), integrating a diverse range of
cultures which transform, and are transformed by, Irish identity, and which replace old notions
of culture and heritage based solely on tradition. It defines art as an expression of culture,
therefore as a diversity of expressions, placing the artist, not agencies, on the centre of this
construction and acknowledging its intrinsic value, as well as its social and economic role and
potential. It also adopts the expression ‘all the people of Ireland’, sometimes replacing the term
‘citizen’ to allow a far-reaching understanding. As the date of this report (August 2018) no
further Government policies have been published regarding the National Cultural Policy.

Other documents were analysed in reference to definitions of the cultural and creative
industries in Ireland, however no evidence was found that the Government follows a clear
framework or have a coherent and holistic understanding of the sectors and their impact on the
economy. The information is fragmented and scattered among different departments and
agencies, sometimes with conflicting results. However, it is important to mention that more
detailed explanations can be found about specific sectors, such as the design industry
(Henderson & Whicher, 2015; Ireland. Department of Jobs Enterprise and Innovation, 2016c,
2016b; Ireland. Design & Crafts Council, 2017b). In order to keep this section more concise, a
summary of the findings is offered in Appendix A, describing different conceptualisations and
frameworks used in the Irish context.

26
Dublin: an example of the Irish creative city. According to the ‘The Cultural and Creative Cities
Monitor: 2017 Edition’ (Joint Research Centre. European Comission, 2017), Dublin is the 5th (out
of 34) most cultural and creative city in EU (in the group large cities with a population between
500,000 and 1 million inhabitants). It scored 1st regarding “enabling environment”, 3rd in
“cultural vibrancy”, and 10th in “creative economy”, according to the framework illustrated in
Figure 2.2. This is an indication that there is a lot of room for improvement in reference to
intellectual property and innovation, creation of new jobs in the creative sector and creative and
knowledge-based jobs. Cork won the first place in cultural vibrancy irrespective of city size.
Further analysis is provided in Appendix B.

Figure 2.2: The cultural and creative cities monitor’s conceptual framework. Source: From “The Cultural and Creative
Cities Monitor: 2017 Edition”, by Joint Research Centre (European Commission). 2017, p.15. Retrieved from
http://publications.jrc.ec.europa.eu/repository/bitstream/JRC107331/kj0218783enn.pdf.

Collaboration
Cross-sectoral collaboration is one of the foundations of the cultural and creative industries,
blurring the boundaries where one activity/sector starts and the other finishes. This is a
recurrent theme in the academic literature (Bruin, 2007; Hartley, 2005; Hartley & Cunningham,
2002; Porter, 2005; Rae, 2007; Rifkin, 2005; Venturelli, 2005), as well as within policy
documents. Strong evidence was found in this research that the Government understands the
importance of cross-collaboration, even though it is still not clear how it has been implemented

27
and its results. In Appendix C, the main themes found in this research, regarding collaboration
are presented.

Innovation and R&D

The report ‘Building Ireland’s Smart Economy’ (Ireland. Department of the Taoiseach, 2008) set
out the tone for many of the policies regarding not only the cultural and creative industries, but
also innovation within the ‘smart economy’. In the document ‘Innovation Ireland’ (Ireland.
Department of the Taoiseach, 2010b, 2010a), enterprise is placed on the centre of the
framework, linking to related areas responsible for innovation, as shown in Figure 2.3, such as:
R&D, education, public policy and institutions, finance, and tax and regulatory affairs. Some of
the key elements to support innovation and entrepreneurship were mentioned, such as:
measures to increase R&D; the importance of the product design sector for the Irish economy;
calling for a change in the cultural mindset and legal system regarding the risks incurred in
entrepreneurship action, avoiding the sense of stigma from a failed venture; and prioritising the
development of a national Intellectual Property protocol.

Figure 2.3: The innovation ecosystem. From “Innovation Ireland: Report of Innovation Taskforce”, by Ireland.
Department of the Taoiseach, 2010b, p.21. Retrieved from
https://www.taoiseach.gov.ie/eng/Publications/Publications_Archive/Publications_2010 Innovation Taskforce
Report .pdf.

The contribution of the cultural and creative industries both for innovation and as intrinsically
entrepreneurial are thoroughly acknowledged in the documents analysed (European
Commission, 2012; European Creative Industries Alliance, 2014; Ireland. Department of Business
Enterprise and Innovation, 2018; Ireland. Department of Jobs Enterprise and Innovation, 2014;

28
Ireland. Higher Education Authority, 2013; Voldere et al., 2017), as well as in the academic
literature (Aggestam, 2007; Bonnafous-Boucher et al., 2011; Ellmeier, 2003; Essig, 2015;
Hausmann & Heinze, 2016; Hui, 2007; Leadbeater & Oakley, 2005; Lindqvist, 2011; Meisiek &
Haefliger, 2011; Ó Cinnéide & Henry, 2007; Rae, 2007; Rentschler, 2003; Scherdin & Zander,
2011; Thom, 2016). The design sector, particularly, is identified as an active component within
R&D and a strong contributor to innovation, the positive effects and gains being found in the
economy as a whole (spillover effect). Specifically, SME’s can greatly benefit from investments
in the design sector (Ireland. Department of Business Enterprise and Innovation, 2018; Ireland.
Department of Jobs Enterprise and Innovation, 2016c, 2016b, 2016a; Lawlor, O’Donoghue,
Wafer, & Commins, 2015).

Funding
Funding is a controversial subject within policy despite the recognition of the role of the arts and
culture to attract Foreign Direct Investment (FDI) (Florida, 2005; Ó Cinnéide & Henry, 2007;
Porter, 2005). According to the document “Report on Culture 2025” (Ireland. Houses of the
Oireachtas, 2017), funding should be placed within the spectrum of subsidised projects to
commercially-viable funded enterprises. The report also acknowledges that it is the
responsibility of the Government to carry out relevant research in the sector: (1) mapping the
landscape, establishing network relations; (2) evaluating relevant legislation; (3) measuring
actual and potential economic value creation and contribution, establishing actual, projected
and needed investment volume; (4) measuring the hidden value of Government subsidy; and
finally, (5) establishing the value of the sector to FDI and tourism. However, it is important to
highlight, according to the document “Culture 2025: A Framework Policy to 2025 (Draft
Document)” (Ireland. Department of Arts Heritage and the Gaeltacht, 2016), the cultural sector
in Ireland suffered a huge cut back in Government provision in the last few years, following the
2008 economic crisis, representing around 40% of the sector’s budget.

The impact of the cultural and creative industries to the Irish economy. Measuring the impact
of the arts, cultural and creative industries is not an easy task, especially regarding lack of a
framework guide and lack of comprehensive data. Regardless, attempts have been made in the
last few years in order to facilitate the allocation of resources among Government bodies
directed to different sectors of the economy. A short analysis of some measurement reports
within the Irish context can be found in Appendix D.

29
Spillover Effect. The spillover effect can be understood as the overflow of concepts, ideas and
knowledge from the creative arts, the cultural and creative industries and their impact towards
the broader economy and society. They are divided into three categories: knowledge, industry
and network spillover (European Commission, 2017), as shown in Figure 2.4. Regardless of
increased usage of the term within policy, there is still a lot of scepticism in its evaluation due to
lack of demonstration of causality (Tom Fleming Creative Consultancy, 2015). No evidence was
found that it has been applied within the Irish context, apart from the report “Value for Money
Applies Also to State Expenditure on the Arts” (O’Hagan, 2017), which explains the societal
benefits of arts, citing the spillover effects in the form of direct employment, tourism and the
role of cultural infrastructure in decisions related to attract industrial investment.

Figure 2.4: Spillover effects of the CCI’s framework. From “European research partnership on cultural and creative
spillovers. Research case studies 2016-17, by European Commission, 2017, p.5. Retrieved from
http://ccspillovers.wikispaces.com/file/view/ Spillover2017.pdf/623039863/Spillover2017.pdf.

Funding at the EU level and within the Irish context. The literature recognises the particularities
of the creative enterprise and points out the lack of understanding of these specificities from
Government bodies and funding agencies (Fleming, 2007). At the EU level, the issue is also
addressed and a number of suggestions and programmes are proposed and discussed,
acknowledging the role of the Government to find new ways to improve access to, and to

30
disseminate information about financing, especially regarding SME’s (European Commission,
2010a, 2012; European Creative Industries Alliance, 2014). A noteworthy mention is in
reference to the report ‘Mapping the Creative Value Chains’ (Voldere et al., 2017) which maps
out the value chain within different creative businesses and proposes a generic framework, as
shown in Figure 2.5. Identifying where the business is positioned within the value chain is crucial
for determining the best funding route, as also suggested in the literature (Fleming, 2007).

Figure 2.5: Stylised creative value chain model. From “Mapping the Creative Value Chains: A study on the economy
of culture in the digital age – Final Report”, by I. de Voldevere et al, 2017, p. 10. Retrieved from
http://www.keanet.eu/wp-content/uploads/Final-report-Creative-Value-Chains.pdf.

Within the Irish context, funding is a hot issue, as there were huge cuts in the Government
budget during and following the 2008 economic crises. Even though the budget has been
growing steadily again in the last few years, especially in the Arts Sector it has not yet reached
the pre-recession figures (Ireland. The Arts Council, 2017; Linehan, 2017; Nialler9, 2017; RTE,
2017). Additionally, it has been established that availability of credit is a major obstacle to
growth, particularly for SMEs and within the creative industries (Ireland. Department of Foreign
Affairs and Trade, 2011).

Some proposals made by Irish Government bodies regarding funding are as follows: (1) create
and incentivise new funding mechanisms, such as philanthropy (Ireland. Department of Foreign
Affairs and Trade, 2011; Ireland. Houses of the Oireachtas, 2017), corporate partnerships and
commercial income (Ireland. Houses of the Oireachtas, 2017); (2) establish funding routes fit for
the particular needs of the sector (Ireland. Houses of the Oireachtas, 2017); (3) provisional State
intervention in the form of Seed Capital scheme to nurture a national portfolio of Business Angel
funds (Ireland. Department of the Taoiseach, 2010a); and (4) programmes fit to the level of

31
assistance needed by small firms (Ireland. Department of Foreign Affairs and Trade, 2011). In
Appendix E, a summary of available finance routes in Ireland can be found. Even though the list
of proposals is comprehensive, no evidence was found regarding if the proposals are suitable
for the cultural and creative industries in particular.

Regarding private philanthropic and sponsorship investments within the creative industries, in
2014 it accounted for a total amounted of €8,919m as shown in Figure 2.6. As seen in Figure
2.7, 19.9% of private investments were allocated to theatre organisations, followed by festivals
(13.7%) and the film industry (11.5%), which together accounted for almost half of the total
contribution (2into3, 2016). No other mentions were found within this research regarding
philanthropy for the arts and cultural sectors.

Figure 2.6: Private investment received, 2014. From “Irish Arts Sector Private Investment Report: 2016”, by 2into3,
2016, p. 5. Retrieved from http://www.artscouncil.ie/uploadedFiles/Private-Invest-Report2016.pdf.

Figure 2.7: Total private investment received in 2014 by sector/activity. From “Irish Arts Sector Private Investment
Report: 2016”, by 2into3, 2016, p. 4. Retrieved from http://www.artscouncil.ie/uploadedFiles/Private-Invest-
Report2016.pdf.

32
The precarious work conditions of the artist and creative worker in Ireland
Both the academic literature (Banks & O’Connor, 2009; Cunningham, 2002, 2005; Ellmeier, 2003;
Flew & Cunningham, 2010; Hackett et al., 2000; Hartley & Cunningham, 2002; Leadbeater &
Oakley, 2005; McRobbie, 2005; Pratt, 2011; Pratt & Virani, 2015; Rae, 2007) and documents
analysed within this report (Indecon International Economic Consultants, 2009; Ireland. Houses
of the Oireachtas, 2017; McAndrew & McKimm, 2010) acknowledge and discuss the precarious
work conditions of the artist. The major issue discussed is the power imbalance between major
companies that control the distribution system on one side, and many small content creators
scattered within a fragmented system on the other side. Based on the discussion within the
academic literature, it can be inferred that the situation of the creative worker does not differ
radically from that of the artist. Findings are discussed in Appendix F.

It is worth mentioning how Michael D. Higgins, the president of Ireland, has been very vocal
about some of the issues raised here, such as “the precariat”, characterised by workers in short-
term contracts, facing job insecurities and bogus self-employment, and also the so-called the gig
economy. He argues that innovation cannot be used as an excuse for old practices to re-emerge
(Miley, 2018). Higgins has also been questioning the role of education in teaching life-enhancing
skills and preparing children to be participative and engaged citizens, which has been reduced
to a utilitarian status to provide a labour force for the market (Downing, 2018; rte.ie, 2017).
While neoliberal politics lies on the heart of this system, resulting in a systematic power
imbalance, big corporations are allowed to kidnap the economy and monopolise the
conversation between both State and citizens. Although the tone may seem hopeless, it is above
all an invitation to a sober analysis and a call to Governments worldwide to take the
responsibility to initiate the change (Higgins, 2018).

33
3. CONCLUSION: POLICY IMPLICATIONS REGARDING THE CULTURAL AND
CREATIVE INDUSTRIES IN THE IRISH CONTEXT

Throughout the literature review, different aspects of the cultural and creative industries are
discussed, as well as the concept of the creative cities/cluster, cultural and creative
entrepreneurship, and art entrepreneurship. Several implications regarding policy-making are
identified. In the second section, an analysis is carried out on the cultural and creative industries
in the Irish context. Within this section, recommendations are presented regarding the cultural
and creative industries in Ireland in the context of Government policies, as informed by the
academic literature.

Conceptualisation of the cultural and creative industries

Within the literature review, the entanglement on the definitions of the cultural and creative
industries is identified as one of the most pressing issues, making rather difficult their overall
understanding and measurement, as well as their applicability within policy-making. The same
is found within the context of Government policies in Ireland. This issue poses a serious
challenge to policy-makers and needs to be tackled straightforwardly, whether effective policies
are desired. A holistic definition of the cultural and creative industries should be adopted, taking
into consideration the economic, social and cultural spheres.

Based on the summary presented in the first section, which defines the cultural and creative
industries in terms of breadth and depth, a framework is suggested, as shown in Figure 3.1.
Depth refers to the identification of inherent and relevant characteristics of the industries which
differentiates them from other sectors of the economy. Breadth names specific sectors,
activities and occupations within these industries, in order to facilitate its measurement.
Additionally, a model is proposed to better understand the cultural and creative industries
ecology, as shown in Figure 3.2, noting that it should be based upon the framework suggested
previously. Given these points, some recommendations are advised, as follow:

1. The Government is best suited to push this agenda forward, in defining and conceptualising
the cultural and creative industries in conjunction with interested parties.
2. The Department of Business, Innovation and Enterprise together, and in collaboration with,
the Department of Culture, Heritage and the Gaeltacht, should be responsible for
implementing such framework and model recognising the creative industries and creativity
at large as a driver of innovation in the general economy.

34
Figure 3.1: Framework for the definition of the cultural and creative industries.

Figure 3.2: Model for the definition of the cultural and creative industries ecology.

35
3. The chosen framework/model, along with all the data produced, should be shared among
all Government departments, agencies and bodies and organisations akin.
4. Regarding the National Cultural Policy, the creative industries do not necessarily need to be
specifically targeted, however the document should acknowledge that the creative arts and
the cultural industry at large are a big component of the creative industries. More than
that, the framework policy should recognise that culture pervades all spheres of society,
including the economy.

Government structure and governance reforms to accommodate a collaborative mode

There is a great need to creatively reform the structure and governance of the Government, to
attend the needs of a complex society in high-speed-digitally-connected globalised markets,
ultimately making it more creative and collaborative. Innovation should permeate all sectors of
the economy, starting from the Government leading by example. There should be no space for
‘silo thinking’ or fragmentation. As such, recommendations are enumerated below:

5. It is the role of the Government to foster cross-departmental collaboration. It cannot be

stressed enough the importance of a new understanding of culture and cultural policies,
how it intersects with other sectors of the economy, particularly with the creative
industries. Nothing works in isolation any longer as an entirely autonomous agent;
everything is connected.
6. The Government should adapt its structure and governance to the new times, freeing from
old polarised notions of culture versus economy, to one that acknowledges that the
economy shapes, and is shaped by, culture. Value creation must be understood not only
on its economic sphere, but also as having social and cultural value.
7. The Government, represented by the Central Statistics Office (CSO) and relevant
departments, together with representatives of the Higher Education Institutions (HEI),
research institutions and other EU committees working with the cultural and creative
industries should, first and foremost, establish which data is necessary to start an inventory
of the cultural and creative industries in Ireland. It should be kept in mind that to date
there is a lack of consistent data to allow a coherent measurement of the sectors.
Measurement guidelines should be established to produce evidence for policy-making. It
should be taken into account that traditional industrial activity classification does not
acknowledge the complexity of the creative sectors. They should also devise a research
agenda which supports the identification and understanding of the different dynamics of
each sub-sector within the creative cluster and how they interconnect and link to each

36
 other. That should allow a picture of the development of the sectors and how they respond
to new policies. Figure 3.3 illustrates how activities within one sector interlope with
activities from another sector in collaboration modes.

Figure 3.3: Interloping of economic activities within the creative cluster. This image is for illustrative purpose only.

8. The Government should facilitate cross-sectoral collaboration and the dissemination of

social networks. Dialogue and partnerships between public and private sectors should be
promoted. That includes R&D, education and training, and networking opportunities
outside the ‘creative club’. This collaboration should ease the participation of the artist and
creative worker in the policy-making process. The association of artists with public and
private sectors should also be encouraged in order to identify market opportunities.
9. Collaboration should be promoted and exercised not as an exception, but rather without
exception. An illustrative example is provided in Figure 3.4, to better visualise how
collaboration would work within a complex social network regarding the creative cluster.

37
Figure 3.4: Cross-collaboration between the Government, the cultural and creative industries and other interrelated
sectors of the economy. This image is for illustrative purpose only.

Funding system and opportunities

Even though a large number of funding schemes and programmes are available in Ireland, they
are not centralised under one directory and they are not designed in a way that facilitate their
access, sometimes with strict requirements. Evidence was not found regarding the applicability
of existing funding opportunities to the cultural and creative industries. It should be mentioned,
however, that the Government provides special subsidies and grants for artists and arts
organisations. The consensus is that they do not attend the needs of the sector, especially in
reference to Government cut-backs in the last few years. Some funding or grant opportunities
within design and crafts are also available, such as participation in trade fairs or upskilling
business programme. With these points in mind, recommendations are listed accordingly:

10. The Government should adopt a funding system for the cultural and creative industries
based on the creative value chain, as shown in Figure 3.5. According to this model, the type
of value creation should be considered, such as economic value or social/cultural value.
Fundamentally, different schemes should be provided in the spectrum between
commercially viable projects and subsidised projects. When assessing funding, it should be
established where the product or service is positioned on the value chain (e.g. creation,
production/publishing, dissemination/trade, exhibition/reception/ transmission, ancillary
goods and services, or support functions) and actual and potential value creation

38
 opportunities should be identified. The value chain model should be adapted for different
sectors/activities, and also for service providers who may follow a different route.
Considerations should be made in relation to how the value chain of some sectors
intertwine with others within the creative cluster, as in the case of the media industry which
delivery process interweaves with IT and Telecom industries.

Figure 3.5: Stylised creative value chain model. Adapted from “Mapping the Creative Value Chains: A study on the
economy of culture in the digital age – Final Report”, by I. de Voldevere et al, 2017, p. 10. Retrieved from
http://www.keanet.eu/wp-content/uploads/Final-report-Creative-Value-Chains.pdf.

11. Specific guidelines should be devised regarding measuring cultural/social value creation,
which includes the economic contribution to society, as well as qualitative evaluations on
the short, medium and long terms.
12. The Government together with relevant stakeholders should identify and mitigate possible
barriers and bottlenecks in the value chain that impede a product or service in following
the business cycle, from creation to reaching the market. Due to fragmentation particularly
in the creation cycle, this is especially recommended as a priority; many businesses fail due
to not having access to, or having unfair agreements with, distribution channels, which are
controlled by powerful entities acting as gatekeepers.
13. The Government should identify and delimit the areas subject to public subsidy, such as
heritage and social or community art.
14. The Government should create RD&I hubs to promote experimentation and innovation
geared up to micro-businesses, including sole-proprietor, such as for content-creation
organisations. A wider entrepreneurship policy should be pursued with an understanding

39
 of the particularities of the micro and small businesses within the creative industries, such
as fragmentation and high risk, attending to their specific needs. One way to promote
growth in such companies is simplifying Government’s procurement process.
15. The Government should investigate why micro and small business within the cultural and
creative industries do not escalate in size and clients base, either by amplifying their offer
internally or towards the international market. Programmes to mitigate such problems
should be implemented.
16. Investments in the creative cluster should be prioritised as a means of supporting a
sustainable economy, considering the short and long-term implications. Entrepreneurship
teaching should be incentivised, including within the creative arts courses and degrees.
17. Philanthropy should be heavily promoted, particularly corporate philanthropy which is
underdeveloped in Ireland (Galvin, 2015). The Government should consider the
implications of extending tax incentives to contributions towards the not-for-profit sector
as a whole. To date, tax incentives are aimed at organisations with charitable status, which
includes some Government bodies. Charities account for only 35% of the not-for-profit
sector in Ireland (Benefacts, 2018).
18. The Government should redesign and optimise the funding system, applying concepts of
human-centred design thinking. The funding schemes should be evidence-based and not
result of a political agenda. A smaller number of funding schemes with simpler route access
may be made available, without compromising the total budget.
19. The Government should provide a modern, complete and comprehensive funding search
portal, employing UX design principles across the user journey. The access to funding
information should be simplified. The directory should be made widely available to all
stakeholders.
20. The Government should periodically evaluate its funding opportunities to produce
evidence for policy change.

Addressing the precarious work conditions of the artist and creative worker
The creative industries were believed, at first, to be the saviours of the economy and praised on
its possibility to fix social inequalities leveraging social and cultural diversity. It proved the
contrary, as discussed earlier in the literature review. Does the Government have a role in
mitigating power asymmetries within a liberal economy? If so, to what extent?
Recommendations are made based on the findings within this research:

40
21. The Government should clearly understand the new dynamics which rule contractual and
employment relations in the cultural and creative industries, acting as an intermediator,
and adopting and facilitating access to a social welfare system that takes into consideration
the precarious work conditions of the artist and creative worker. The role of the
entrepreneurial firm and its contribution to the economy and society, particularly the sole-
proprietor and micro-business, should be better appreciated and ‘bogus self-employment’
rejected.
22. The Government should acknowledge the special circumstances in which the artist comes
to the market economy and their role within the creative industries, implementing policies
to incentivise their integration and full participation into the economic life, as well as
understanding their position as the intermediator between culture and economy,
contributing in equal terms to the economic and cultural value creation.
23. The Government should create policies that support sustainable artistic careers, with clear
market opportunities and pathways.
24. The Government should adopt policies which incentivise diversity and inclusion within the
cultural and creative industries, aligned with and mirroring the current cultural diversity in
Ireland.
25. The Government should adopt measures to mitigate and resist urban gentrification,
implementing policies towards ‘a city for all’, considering the needs of the large population.

Implications for further research

This research focused on a broader understanding of the key themes within the cultural and
creative industries and how it is applied in the Irish context. The intent was to gather enough
information to create a blueprint of the cultural and creative industries in Ireland as a whole,
informed by the academic literature, and to produce recommendations for policy making. The
research was not intended to provide an exhaustive analysis of the sectors. Due to extensive
fragmentation within Irish policy documents and the reach of the cultural and creative industries
into many different sectors of the economy, not all of the sectors and documents were analysed.
In particular, due to lack of time and space, Irish Government documents regarding the gaming
industry and film production, for instance, were not investigated within this research, but would
present an interesting avenue for deeper study. The policy recommendations proposed within
this research are aimed particularly to the Irish context, but similar research framework can be
applied in different countries/regions and results compared.

41
This study identified possible themes for further academic research, such as, but not limited to:
(1) exploring the concept of value creation within the Schumpeterian theory, whether and how
it can inform a new understanding of cultural/social value to be applied within Government
policies; (2) producing an inventory of the cultural and creative industries in Ireland, identifying
possible gaps in the data system; (3) comparative studies on how the cultural and creative
industries in Ireland are positioned in relation to other sectors of the economy, and to other
countries within and outside the EU; and (4) pursuit of an empirical research to analyse whether
and how the creative arts, and the artist in particular, is inserted into the economy in Ireland
and their contribution to wealth production, as well as cultural/social value creation.

42
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54
 APPENDIX A: Irish Government documents, policies and reports analysed
in this research within the context of the cultural and creative industries in
Ireland

Table A.1: Irish Government documents, policies and reports analysed within this research

Department, Agency
Document Definition
or Organisation

Building Ireland’s
Ireland. Department Smart Economy: A
Aims to support the creative industries and film/media in Ireland,
of the Taoiseach Framework for
however it fails to offer further definitions.
(2008) Sustainable
Economic Renewal

Economic
Dublin City Council development Uses the DCMS definition (UK. Department for Culture Media and
(2009) Action Plan for the Sport, 2011).
Dublin City Region

Adapt the DCMS (UK. Department for Culture Media and Sport,
2011) definition to the Irish context, classifying the creative
industries into two different levels: (1) the wider arts sector as:
Arts Council funding recipients, film and video, literature and
Assessment of
Indecon publishing, library, archives, museums, and other cultural
Economic Impact of
International activities, operation of arts facilities, and artistic and literary
the Arts in Ireland:
Economic creation and interpretation; (2) the creative sector: film and
Arts and Culture
Consultants (2009, video, publishing, advertising, software, radio and television,
Scoping Research
2011) library, archives, museums, operation of arts facilities, artistic and
Project
literary creation and interpretation, music and the visual and
performing arts, arts and antiques, advertising and fashion,
considering that craft and design were excluded from this
classification.

Mixed approach. The report uses the DMCS (UK. Department for
Culture Media and Sport, 2011) definition measuring inputs
based on traditional industrial classification. A similar definition
to the concentric circles model (Throsby, 2008b) is also used;
what they call the “creative trident”, which is occupation-based.
According to the researchers, the advantages of the latter
Dublin City Council Defining and
method is that it focus on the production of the creative goods
(Curran & Egeraat, Valuing Dublin’s
and services rather than in the final product, identifying the
2010) Creative Industries
creative input within the larger economy, or in the non-creative
sectors. They also state that the definition of the creative
industries based on the interactions and interrelations within
complex social network (Potts et al., 2008) is the most
appropriate, however measurements based on this framework is
still in development.

Economic
Indecon
Significance and
International Discusses the crafts sector, which is of importance to this
Potential of the
Economic research, but does not mention the creative industries.
Crafts Sector in
Consultants (2010)
Ireland

55
 The reports briefly mentions the contribution of the cultural and
creative industries to the economy and offers a definition mostly
Innovation Ireland:
Ireland. Department as illustrative, including the “television, online education
Report of the
of the Taoiseach provision, web design, development of assistive technologies and
Innovation
(2010) digital content” which contributes to increased “economic
Taskforce
returns from the creation of intellectual property as well as
services in areas such as marketing and advertising”(p.32).

The Living and

Report
Working Conditions
commissioned by the
of Artists in the Acknowledges the link of arts and the artists with the creative
Arts Council
Republic of Ireland industries but if offers no definitions.
(McAndrew &
and Northern
McKimm, 2010)
Ireland

(Ireland. Department The Report of the

The non-traditional creative industries is mentioned, such as
of Foreign Affairs Second Global Irish
video-gaming, but no further definition is given.
and Trade, 2011) Economic Forum

Review of the
Ireland. Higher Provision of
No definition of the cultural and creative industries is given, but
Education Authority Creative Arts
the document ostensibly discusses education within this context.
(2013) Programmes in
Dublin

Ireland. Department National Policy

of Jobs Enterprise Statement on EU Funding schemes for the cultural and creative industries is
and Innovation Entrepreneurship in mentioned, but no definitions are provided.
(2014) Ireland 2014

Defines the creative industries as: “the arts, as defined in the Arts
Act 2003, which means “any creative or interpretive expression
(whether traditional or contemporary) in whatever form, and
including, in particular, visual arts, theatre, literature, music,
dance, opera, film, circus and architecture and includes any
Ireland. Department Culture 2025: medium when used for those purposes.” The creative industries,
of Arts Heritage and Discussion including film and television production, animation, broadcasting,
the Gaeltacht (2015) Document electronic games, architecture, design and fashion, publishing,
media and advertising. Cultural heritage, including galleries,
libraries, archives and museums, built and natural heritage, Irish
language and folk traditions. It would also include new cultural
diversity and languages which have become part of Irish life in
recent years” (p.5).

An Independent
A Study of the Role
Report for the
and Importance of
Department of Jobs,
Design in Firms Discusses the design sector, while omitting any link with the
Enterprise and
based in Ireland in creative industries.
Innovation
Non Design-
(Henderson &
intensive Sectors
Whicher, 2015)

Culture 2025: A
Ireland. Department
Framework Policy
of Arts Heritage and Any definition of the creative industries is omitted.
to 2025 (Draft
the Gaeltacht (2016)
Document)

Making Great Art The cultural and creative industries are not mentioned, but the
Ireland. The Arts
Work: Three-Year document discusses the development of the arts in Ireland,
Council (2016)
Plan 2017-2019 which is relevant for the purpose of this research.

56
 Action Plan 2017:
No definitions of the creative industries are provided, but it
Dublin City Local
Dublin City Council recognises as one of its goals to “[m]aximise opportunities and
Economic and
(2017) support for the creative industries and cultural and artistic
Community Plan
sectors to develop” (p.56).
2016-2021

Report on Culture
Ireland. Houses of 2025 - Éire
The culture and creative industries are described in terms of
the Oireachtas Ildánach:
“Arts, culture and heritage” (p.40).
(2017) Framework Policy
to 2025

Design & Crafts

Ireland. Design &
Council of Ireland: Any mention of the creative industries is omitted, but it offers
Crafts Council
Strategic Plan 2017- relevant contributions for this research.
(2017a)
2020

Ireland - The Design

Ireland. Design & Island: a The creative industries are not mentioned, but for the purpose of
Crafts Council consultation paper this research the design sector is considered of a crucial
(2017b) towards a National importance.
Design Strategy

The creative industries are mentioned in one of the pillars of the

The Creative
Ireland. Department programme and defined as: “including film, TV and animation
Ireland Programme:
of Arts Heritage and production, architecture, design, digital technology, fashion, food
End of Year Report
the Gaeltacht (2018) and crafts” (p.6). The document also states that the focus for
2017
2017 is on the audio-visual (film/TV/animation) industries.

Enterprise 2025
Ireland. Department
Renewed: Building No definitions are provided, but it acknowledges the potential
of Business
resilience in the impact of the creative industries and design for the Irish
Enterprise and
face of global economy.
Innovation (2018)
challenges

57
 APPENDIX B: Dublin, an example of the Irish creative city

The ‘Economic development Action Plan for the Dublin City Region’ (Dublin City Council, 2009)
identifies the creative industries as one of the top clusters to attract investment into the city,
based on the concept of the ‘Smart Economy’ (Ireland. Department of the Taoiseach, 2008) and
in alignment with the academic theory (Ó Cinnéide & Henry, 2007; Porter, 2005; Venturelli,
2005). The document defines the creative industries in Dublin as the top priority for the
economic development of the region. As noted in Figure B.1, the collaboration among different
stakeholders on different levels is at the heart of the plan, something strongly advised by some
authors (Bruin, 2007; Hartley, 2005; Hartley & Cunningham, 2002; Ó Cinnéide & Henry, 2007;
Porter, 2005; Rae, 2007). The “Action Plan 2017: Dublin City Local Economic and Community
Plan 2016-2021” (Dublin City Council, 2017) also highlights the creative industries, with a
detailed action plan including the goals, specific objectives, responsibility and measurements,
including actions which were already achieved in the past few years or are in development.

The report “Defining And Valuing Dublin’s Creative Industries” (Curran & Egeraat, 2010)
measures the economic contribution of the creative industries within the Great Dublin area
(numbers for 2006), pointing out that they generated 59% of the total employment in the
creative industries in Ireland and 10% of the total employment in the overall Irish economy, as
shown in Table B.1.

Table B.1: Contribution of the creative industries in Ireland and in the Great Dublin area

Adapted from “Defining and Valuing Dublin’s Creative Industries”, by D. Curran & C. van Egeraat, 2010.
Retrieved from:
https://www.dublincity.ie/sites/default/files/content/Planning/EconomicDevelopment/Documents/Creative_Indust
ries_Final_Report._05.05.10.pdf

58
Figure B.1: Economic Action Plan for Dublin: developing collaborative leadership. From “Economic Development
Action Plan for the Dublin City Region”, by Dublin City Council, 2009, p.17. Retrieved from
https://www.dublincity.ie/sites/default/files/content/YourCouncil/CouncilPublications/Documents/Dublin_Region_
Economic_Action_Plan_-_Lo_Res.pdf.

Even when comparing employment within the creative industries by city, Dublin is the clear
leader. Jobs in the sector in Dublin city represent 12.4% of total employment in Ireland (not
accounting for the Great Dublin area), showing the city has a relatively larger share of
employment in the creative industries compared to other regions or to the average in Ireland.
The report also concluded that the size of the creative cluster is proportional to the size of the
city, which means that creative clusters are attracted to urban centres in contrast to more
peripheral areas or smaller towns (Curran & Egeraat, 2010).

59
The “Review of the Provision of Creative Arts Programmes in Dublin” (Ireland. Higher Education
Authority, 2013) reiterates the contribution of the creative arts education facilities in Dublin in
the process of transforming the city as a hub for the creative industries and developing a cultural
infrastructure on which the creative cluster will blossom. An example can be seen in the ‘Digital
Hub’, which brings together digital content and technology enterprises in fields such as
animation, design, learning, gaming and mobile technology.

While the “Report on Culture 2025 - Éire Ildánach: Framework Policy to 2025” (Ireland. Houses
of the Oireachtas, 2017) admonishes that the risks of gentrification should not be played down
(Borén & Young, 2013, 2017; Pratt, 2011), the European Commission (2012) adds that
Governments should encourage the formation of the cultural and creative cluster by promoting
cross-sectoral collaboration and not limiting its scope to the traditional sectoral classifications
(Landry, 2005; Porter, 2005). The European Creative Industries Alliance (2014) highlights some
of the supports available at EU level on the formation of the creative cluster.

60
 APPENDIX C: Cross-collaboration within the creative industries

These are the main themes found and discussed in the documents analysed regarding
collaboration within the cultural and creative industries:

• Strong collaboration among Government bodies in order to stimulate exchanges of

experience and to create new synergies (Ireland. Houses of the Oireachtas, 2017;
Voldere et al., 2017);
• The role of the Government to foster cross-sectoral collaboration among all sectors of
the economy, ensuring the smooth flow of products or services throughout the value-
chain, bearing in mind the fragmentation of the cultural and creative sectors, and in
order to overcome it, promoting spillovers to different sectors of the economy
(European Commission, 2012; European Creative Industries Alliance, 2014; Ireland.
Department of Jobs Enterprise and Innovation, 2016a; Voldere et al., 2017);
• Joint effort between State agencies and Higher Education Institutions to brand Ireland
as a leading innovation location to attract investments from Europe and elsewhere
(Ireland. Department of the Taoiseach, 2010a);
• Encourage the development of inter-disciplinary skills within Higher Education
Institutions and Further Education, exposing students to the concept of
entrepreneurship, business acumen and marketing, for instance, partnering with the
private sector to provide apprenticeships and work-based learning provision (Ireland.
Department of Business Enterprise and Innovation, 2018; Ireland. Department of Jobs
Enterprise and Innovation, 2016a; Ireland. Department of the Taoiseach, 2010a, 2010b;
Ireland. Higher Education Authority, 2013; Lawlor et al., 2015; Voldere et al., 2017);
• Collaboration between cultural institutions and the educational sector (Ireland.
Department of Jobs Enterprise and Innovation, 2016a);
• Strengthen partnership between the school sector and both higher education (including
universities and institutes of technology) and further education to envisage career
guidance and better pathways to education (Ireland. Department of Jobs Enterprise and
Innovation, 2016a; Ireland. Higher Education Authority, 2013);
• Encourage partnership between the education and private sectors, especially within the
cultural and creative industries, meeting the needs of business but also opening up new
possibilities for sustainable artistic practice (Ireland. Department of Business Enterprise
and Innovation, 2018; Ireland. Higher Education Authority, 2013; Lawlor et al., 2015;
Voldere et al., 2017);

61
• Making efforts to bring artists and scientists together, starting from the educational
arena, to reposition technology and innovation in the minds of the public (Ireland.
Department of the Taoiseach, 2010b; Voldere et al., 2017);
• Strengthen relationships with EU Member States whose interests are aligned with
Ireland’s (Ireland. Department of Business Enterprise and Innovation, 2018);
• Develop international partnerships to raise Ireland’s visibility in less known and high
growth emerging markets (Ireland. Department of Business Enterprise and Innovation,
2018);
• Collaboration across arts, culture and heritage sectors (Ireland. Higher Education
Authority, 2013; Ireland. Houses of the Oireachtas, 2017);
• Participation of the artistic and cultural class in defining policies (Ireland. Houses of the
Oireachtas, 2017).

62
APPENDIX D: The impact of the cultural and creative industries to the Irish
economy

Indecon International Economic Consultants (2009), established a framework linking the arts
sector to the rest of the economy, as seen in Figure D.1, allowing the measurements of their
impact into the overall economy, shown in Table D.1, which also displays the impacts of the
crafts and design sectors and the cultural tourism within the economy.

Figure D.1: Linkages between the Arts sector, the Cultural sector and the Knowledge Based Industries. From
“Assessment of Economic Impact of the Arts in Ireland: Arts and Culture Scoping Research Project”, by Indecon
International Economic Consultants, 2009, p. vii.

Because no comparative numbers were presented in the reports (e.g. total employment) it
makes difficult assessing the real contribution of the cultural and creative sectors in relation to
other or in relation to the total economy. Apart of that, the Arts Council have invested an
amount of €60.3m in 2010 in organisations and individuals within the creative sectors with a
total turnover/income of €135.1m. The investment in previous years was bigger, as was the
turnover/income. The Government cuts had a very detrimental effect on the sector in general
(Indecon International Economic Consultants, 2009, 2011).

63
Table D.1: The impact of arts, creative industries, the design sectors, the crafts sector and cultural
tourism to the economy in Ireland
Wider arts Creative Design Cultural
Crafts sector
sector (1) industries (2) sectors (4) tourism
2010 2010 2011 2010 2008
1,064m
GVA € 716m 4,704m 178m
(5)
GVA % 0.46% 3% 0.11%
5,771 to
Employment 21,328 (3) 78,900 (3) + 21,421 (6)
17,994 (8)
31,6bn
Value of exports € 124,5m
(7)
Visitors 1.9m
Visitors total
2.2bn
expenditure €
(1) Wider arts sectors: Arts Council funding recipients; film and video; literature and publishing; library, archives,
museums, and other cultural activities; operation of arts facilities; and artistic and literary creation and
interpretation.
(2) Creative industries: film and video, publishing, advertising, software, radio and television, library, archives,
museums, operation of arts facilities, artistic and literary creation and interpretation, music and the visual and
performing arts, arts and antiques, advertising and fashion; craft and design were excluded.
(3) The sum of direct, indirect and induced employment.
(4) Design sectors includes the crafts sector.
(5) The numbers were only partially available which means the impact might be higher.
(6) Total numbers of employment in the design sector were only partially available. However, more accurate
findings can be found on the average number of persons employed in design occupations in Ireland, which
was 44,992 in 2011 (23% self-employed, 77% employee).
(7) Exports increased by 33% over the period 2008-2012 (from €26bn in 2008 to €38bn in 2012).
(8) It depends on the methodology utilised.

The columns Wider arts sector and Creative industries, adapted from “Assessment of Economic Impact of the Arts in
Ireland – An update Report 2011”, by Indecon International Consultants, 2011; column Design sectors, adapted
from “The “Irish Design Footprint”: Economic Value and Characteristics”, by Ireland. Department Jobs Enterprise
and Innovation, 2016; column Crafts sector, adapted from “Economic Significance and Potential of the Crafts Sector
in Ireland”, by Indecon International Economic Consultants, 2010; and column Cultural tourism, adapted from
“Assessment of Economic Impact of the Arts in Ireland: Arts and Culture Scoping Research Project”, by Indecon
International Economic Consultants, 2009.

A report from the UNCTAD (2015) profiling the creative industries regarding exports and imports
showed Ireland had a big growth in exports from 2003 to 2012, and an even higher decrease in
imports, resulting in an overall positive balance in 2012, as show in Table D.2. Figure D.2 displays

64
the volume of imports and exports by product groups. For both export and import, audiovisuals
and design products performed much higher than any other group.

Table D.2: Creative Industries Trade Performance in Ireland, 2003 and 2012

From “Creative Economy Outlook and Country Profiles: Trends in international trade in creative industries”, by
UNCTAD, 2015, p.76. Retrieved from http://unctad.org/en/pages/PublicationWebflyer.aspx?publicationid=1595.

Figure D.2: Creative goods, imports and exports by product groups, numbers for 2003 and 2012. From “Creative
Economy Outlook and Country Profiles: Trends in international trade in creative industries”, by UNCTAD, 2015, p.76.
Retrieved from http://unctad.org/en/pages/PublicationWebflyer.aspx?publicationid=1595.

Within the design sector in particular, the spillover effects are huge, and it can strengthen the
competitiveness of business in the whole economy, as illustrated in the Figure D.3. It is also
interesting to note that designer workers are spread through all sectors of the economy, as
shown in Figures D.4 and D.5.

65
Figure D.3: The importance of design in the wider enterprise base, outside of the design sectors. From “Policy
Framework for Design in Enterprise in Ireland”, by Ireland. Department of Jobs Enterprise and Innovation, 2016b, p.
5.

Figure D.4: Make up the Design Economy: indicating the interplay of occupations and industries contributing to the
Design Economy. From “The “Irish Design Footprint”: Economic Value and Characteristics”, by Ireland. Department
of Jobs Enterprise and Innovation, 2016c, p.9.

In 2014, the number of jobs in design occupations (not only in the design sector) were of 48,000,
equivalent to 2.48% of the total workforce in Ireland, generating exports over €38bi (Ireland.
Department of Jobs Enterprise and Innovation, 2016b). Between 2011 and 2014 alone, 3,000
new jobs were created in the design sectors (Ireland. Department of Jobs Enterprise and
Innovation, 2016c). Nevertheless, 69% of Irish businesses use design only as ‘styling’ or do not
use it at all, which reveals a huge potential of growth. Additionally, it is believed the design
sector can strengthen the competitiveness of Irish companies, including the improvement of the
service experience of the users of the public services (Ireland. Design & Crafts Council, 2017a,
2017b).

66
Figure D.5: Workers in design roles are employed across many sectors of the economy. From “Policy Framework for
Design in Enterprise in Ireland”, by Ireland. Department of Jobs Enterprise and Innovation, 2016b, p. 4.

A framework policy is needed that accounts for the potential growth of the creative industries
and their particular needs. It should consider the creative cluster, which is not limited to the
creative sectors, but extrapolates over different sectors of the economy. ‘Silo thinking’ and
regulatory barriers limit the flexibility to experiment, which is crucial to the development of the
creative industries (Voldere et al., 2017).

67
 APPENDIX E: Summary of some of the funding available in Ireland

Table D.1: Summary of some of the funding available in Ireland

Scheme Recipients Description

Available to individuals,
organisations, community groups,
Creative Ireland colleges, cultural institutions and Grants from €10,000 to €70,000.
Programme NGOs, under the themes: individual
Scheme and collective wellbeing, (Creative Ireland Programme, n.d.)
innovation and connecting
communities

Offers a range of funding for the arts of between

Arts Council Arts organisations, artists and €200 to €420,000.
Funding groups working with the arts
(Ireland. The Arts Council, n.d.)

Offers a range of funding opportunities within the

Design & Crafts Designers and craftspeople, design design and crafts sectors.
Council Funding and crafts sectors
(Ireland. Design & Crafts Council, n.d.)

Used to fund a new project by raising small amounts

of money from a large number of people.

Very appealing for creative and artistic projects.

Crowdfunding Small projects
Some companies: iCrowdFund, Fundit, Linked
Finance, Kickstarter, Indiegogo

(McLaughlin, 2015)

Initial cash investment of between €30,000 and

€100,000

Additionally, NDRC provides strategic business

NDRC – National
development advice and intensive mentoring by
Development Digital startups
experts in digital enterprises, innovation, finance,
Research Council
investment, marketing and communications.

(NDRC - National Development Research Council,

n.d.)

Aim to achieve a spend-to-funding ratio across its

Audiovisual producers involved in
Irish or internationally originated
projects that undertake a
The WRAP Fund significant portion of their
production (including post-
production) in the Western Region
in Ireland
investments of at least 3:1, with a maximum of
€200,000 or 25% of the global budget (whichever is
less) available to any one project.
Productions which offer a spend level higher than
the statutory minimum of 160% of funding are likely
to have an advantage.
(The WRAP Fund, n.d.)

Funded through the television licence fee.

Sound & Vision 3 TV and radio programmes
(BAI - Broadcasting Authority of Ireland, n.d.)

68

Writers, directors and production
Screen Ireland
companies across the film,
Funding
television and animation sectors
SME Credit
Viable SME’s facing barriers to
Guarantee
access finance
Scheme 2017
Microenterprise Viable startup, newly established,
or growing microenterprises, with
Loan Fund
Scheme less than 10 employees, that do not
meet the conventional risk criteria
applied by banks
Viable micro, small and medium
Brexit Loan
sized enterprises (SMEs) and
Scheme
Small MidCap enterprises.
Micro and small enterprises
Feasibility Grants
within the Local Enterprise Offices
Micro enterprises within the first
18 months of start-up, including
Priming Grant sole traders, partnerships or
limited companies with a potential
to graduate into Enterprise Ireland
Micro enterprises after the first 18
months of start-up, including sole
Business
traders, partnerships or limited
Expansion Grant
companies with a potential to
graduate into Enterprise Ireland
Support the development, production and
distribution across the film, television and animation
sectors.
(Screen Ireland, n.d.)
The scheme operates by providing a 80%
guarantee (previously 75%) to participating
finance providers (currently Bank of Ireland and
Ulster Bank) on qualifying loans to SMEs.
Key Features of the Scheme: facilities of €10,000 up
to €1m; terms of up to 7 years; term loans, demand
loans and performance bonds.
(Ireland. Department of Business Enterprise and
Innovation, n.d.-c; SBCI - Strategic Banking
Corporation of Ireland, 2017)
Loan of up to €25,000.
(Ireland. Department of Business Enterprise and
Innovation, n.d.-b; Microfinance Ireland, n.d.)
Loans must be used for future working capital
requirements to fund innovation, change or
adaptation of the business to mitigate the impact of
Brexit.
Loan Terms: Loan amounts of between €25,000 to
€1.5m per eligible enterprise; maximum interest rate
of 4%; loan terms ranging from 1 year to 3 years;
unsecured loans up to €500,000; optional interest-
only repayments may be available at the start of the
loans; the loan amount and term is dependent on
the loan purpose.
(Ireland. Department of Business Enterprise and
Innovation, n.d.-a; SBCI - Strategic Banking
Corporation of Ireland, n.d.)
Feasibility grants are designed to assist with
researching market demand for a product or service
and examining its sustainability.
Maximum of €15,000.
It covers 50% of qualifying expenses, excluding VAT.
(Local Enterprise Office, n.d.-d)
The maximum Priming Grant payable shall be 50% of
the investment or €150,000 whichever is the lesser.
(Local Enterprise Office, n.d.-e)
The maximum Business Expansion Grant payable
shall be 50% of the investment or €150,000
whichever is the lesser.
(Local Enterprise Office, n.d.-b)
69
 Explore and develop new market opportunities. This
grants part-funds the costs that can be incurred in
investigating and researching export markets, e.g.
exhibiting at Trade Fairs, preparing marketing
Technical material and developing websites specifically
Assistance for Micro exporters targeting overseas markets.
Micro exporters
Grant Covers 50% of eligible costs (net of vat) to a
max of €2 500.

(Local Enterprise Office, n.d.-h)

Trading Online Smalls business wanting/planning Up to €2,500 grant available.

Voucher Scheme to trade online (Local Enterprise Office, n.d.-i)

Responding to the export challenges and

opportunities presented to companies, the new fund
is designed to help companies develop new
products, processes and services for new market
opportunities, enabling exporters to respond quickly
and maximise export performance.

Agile Innovation Companies in sectors with rapid Companies can access up to 50% funding, where the
Fund design cycles grant requested is < €150k (total project cost <
€300k). A bonus of up to 15% is available for projects
where there is collaboration between two
companies. However, in this case, the maximum
grant cannot exceed 50% of the total project costs.

(Enterprise Ireland, n.d.-a; Local Enterprise Office,

n.d.-a)

The review process covers all applications from new

loans or restructured credit facilities from €1,000 up
to €3,000,000.

SMEs (including sole traders and
Credit Review farmers) which have had credit
Office applications unjustly and
unjustified refused by banks
If the Credit Review Office's opinion is that the
lending could have made within acceptable risk
boundaries, the bank will be required to comply with
the recommendation or explain to the Credit Review
Office why they will not do so.

(Local Enterprise Office, n.d.-c; The Credit Review

Office, n.d.)

Allows applicants to claim an Income Tax (IT) relief of

Unemployed people, who has been
unemployed for at least 12 months
Start Your Own
before starting the business and
Business Relief
are receiving eligible State benefits
or allowances.
up to €40,000 per year, for a maximum of two years.
The scheme runs from 25 October 2013 to 31
December 2018.
(Ireland. Office of the Revenue Commissioners,
2017b)

Refund of up to 41% of the capital invested under

Recipients of PAYE-type
Startup Refunds
employment wishing to set up and
for Entrepreneurs
take up employment in their own
(SURE)
(qualifying) business
SURE. Depending on the size of the investment, the
beneficiary may be entitled to a refund of income
tax paid over the 6 years prior to year in which
she/he invest.
(Ireland. Office of the Revenue Commissioners,
2018a)

70
 Provides for tax relief of up to 40% in respect of
investments made in certain corporate trades.

The EII allows an individual investor to obtain

income tax relief on investments for shares in
certain companies up to a maximum of €150,000 per
annum in each tax year up to 2020.

Initially relief is allowed on thirty fortieths [30/40] of

the EII investment in the year the investment is
The Employment made. Potentially, this can result in a tax saving for
SMEs trading companies planning the investor of up to 30% of the investment.
and Investment
to attract equity-based risk finance
Incentive (EII) for Relief in respect of the further ten fortieths [10/40]
from individuals
companies of the EII investment will be available in the fourth
year after EII investment was made providing that
certain conditions are met. Potentially, this can
result in a further tax saving for the investor up to
10% of the investment.

A qualifying company can raise a lifetime maximum

of €15,000,000 risk finance using this incentive.

(Ireland. Office of the Revenue Commissioners,

2018b)

The relief is granted by reducing the corporation tax

payable on the profits of the new trade and gains on
the disposal of any assets used for the purpose of
the new trade.

The value of the relief is linked to the amount of

employer’s PRSI paid by the company, subject to a
maximum of €5,000 per employee and an overall
limit of €40,000. Companies with a total corporation
tax liability of up to €40,000 in a year can qualify for
Tax relief for new the relief. Therefore, a company with trading profits
Startup companies in the first three
startup subject to the 12.5% rate of up to €320,000 (and no
years of trade
companies other profits) in a year would be eligible for full
relief. Marginal relief on a tapering basis is available
where the corporation tax liability for the accounting
period is between €40,000 and €60,000. Where a
start-up company has insufficient profits to claim the
relief in a given year, any relief unclaimed in the first
three years can be carried forward for use against
future corporation tax liabilities.

(Ireland. Office of the Revenue Commissioners,

2017a; Local Enterprise Office, n.d.-g)

Provide for a tax credit for certain expenditure on

Companies within the charge to
The R&D Tax Irish tax and undertaking qualifying
Credit R&D activities within the European
Economic Area (EEA)
R&D activities, plant and machinery and buildings.
Credit is given at 25% of allowable expenditure.
(Ireland. Office of the Revenue Commissioners,
2015)

Back to Work Retain some existing welfare benefits while setting

People planning to enter self- up a new business up for a period of 2 years.
Enterprise
employment and in receipt of
Allowance (Ireland. Department of Employment Affairs and
eligible social welfare payments
(BTWEA) Scheme Social Protection)

71
 Address companies’ current and future skills needs
on the basis that training and upskilling are key
elements in keeping Irish companies competitive.

Skillnet funds groups of companies in the same

Skillnet Ireland Businesses in Ireland
region/sector, and with similar training needs,
through training networks that deliver subsidised
training to businesses.

(Local Enterprise Office, n.d.-f; Skillnet Ireland, n.d.)

Funding for specialist Sales and Marketing

consultancy support.
Micro-Enterprise looking to identify
Elevate
cross-border markets and Up to £5,000 (Incl.VAT) (Euro equivalent) worth of
Programme
customers to win new business consultancy time.

(InterTradeIreland, n.d.-b)

Business financial support worth up to £1000 (euro

equivalent) plus VAT.
Businesses in the early stage of
Trade Accelerator Professional advice, covering the following areas:
assessing the potential of
Voucher sales and marketing; export readiness assessment;
developing a cross-border business
Programme tendering; finance; taxation; Employment Law;
plan
currency; and regulation.

(InterTradeIreland, n.d.-c)

Assist businesses to source and fund the right people

Indigenous SMEs committed to the to help the company to increase cross-border export
Acumen development of new product sales and to improve knowledge of the market
Programme markets with the potential of job identifying new business opportunities.
creation
(InterTradeIreland, n.d.-a)

Each successful applicant shall be given funding for a

maximum three-year period to drive the
implementation of its work programme. A maximum
of €5m of funding per project over the period can be
provided by Enterprise Ireland under this Scheme.
Enterprise Ireland will fund up to 80% of eligible
expenditure or €5m per project, whichever is the
lesser, over the period of funding.

Regional Companies registered either as Stream One –Major regional change projects – grant
Enterprise Designated Activity Company (DAC) funding of €2m up to €5m at 80%;
Development or a Company Limited by
Fund 2017-2020 Guarantee (CLG) Stream Two – Regional change projects – grant
funding of €250k up to €2m at 80%;

Stream Three – Local and community enterprise

initiatives – grant funding of €50k up to €250k at
80%;

Stream Four – Industry Clusters – grant funding of

€50k up to €250k at 50%;

(Enterprise Ireland, n.d.-q)

Assist an early stage company or individual

HPSU Feasibility entrepreneur to investigate the viability of a new
High potential start-ups (HPSU) export orientated business or proposition.
Study Grant
50% of eligible expenditures up to €15,000.

72
 (Enterprise Ireland, n.d.-h)

Standard €5k vouchers are available to assist a

company explore a business opportunity or problem
with a registered knowledge provider.

For the co-funded Fast Track Application, the value

Innovation SMEs limited companies registered of the voucher is €5,000 and the company
Vouchers in Ireland contributes 50% of the project costs in
cash. Therefore, a company may use a Fast Track
voucher to cover project costs up to €10,000 on a
50-50 co-funded basis.

(Enterprise Ireland, n.d.-i)

Start-up companies that have the The maximum support available is €50,000 for a 10%
Competitive Start ordinary equity stake in the start-up company.
capacity to succeed in global
Fund (CSF)
markets (Enterprise Ireland, n.d.-f)

The investment decision and level of investment will

Smalls High Potential Start-ups
Innovative HPSU
(HPSU) and have been in existence
fund
for less than five years
be determined following an assessment of the
business plan and supporting evidence, up to 50% of
the investment required.
(Enterprise Ireland, n.d.-j)

A range of supports including mentoring, incubation

Entrepreneurs with innovative
New Frontiers business ideas who are planning to
Programme establish and run their own
company
space and a €15,000 scholarship payment are
provided to help accelerate the development of the
business and to equip the promoter(s) with the skills
and contacts needed to successfully start and grow a
company.
The programme is delivered in partnership with
Institutes of Technology in Ireland.

(Enterprise Ireland, n.d.-p; New Frontiers, n.d.)

Supports Enterprise Ireland clients who would

benefit from further research and the use of external
expertise in developing an action plan.

Be Prepared SMEs likely to be impacted by the Up to €5,000 in support, which can be used to help
Grant Brexit cover consultancy, travel and travel expenses
associated with researching the direction of their
action plan.

(Enterprise Ireland, n.d.-b)

To further develop the company’s strategic

marketing capability in a more structured way, the
programme is delivered by specialist sales and
marketing consultants in conjunction with
Development Advisers and in close collaboration
Strategic with Enterprise Ireland Marketing Advisers from its
Established SME’s that have international office network.
Marketing Review
successfully traded internationally
Grant The maximum daily fee payable to the consultant is
€900 inclusive of travel and subsistence and out of
pocket expenses.

Funding will be by way of a consultancy grant. The

typical cost of undertaking a Strategic Marketing
Review is €6,300. The company must pay the first

73
 €1,300 and Enterprise Ireland provides grant funding
for the outstanding cost to a maximum of €5,000.

(Enterprise Ireland, n.d.-t)

Incentivise companies to research viable and

sustainable market entry strategies in new
geographic markets.

Available across three levels:

Market Discovery Any company with a potential Level 1: Grant up to €35K
Fund export market and HPSU
Level 2: Grant greater than €35K but less than €75K

Level 3: Grant greater than €75K but less than

€150K.

(Enterprise Ireland, n.d.-o)

Support the development of new or substantially

Irish based manufacturing or improved products, services or processes which will
Research, have a competitive advantage in the target market.
internationally traded services
Development &
company which can show adequate
Innovation (RD&I) Grant rates are determined by the type of project
cash resources to implement the
Fund and the size of the company.
proposed R&D project.
(Enterprise Ireland, n.d.-r)

Help companies to access the latest skills and

Manufacturing or internationally
traded services company with an
Innovation operating base in the Republic of
Partnership Ireland that wishes to collaborate
Programme with one or more research
institutes, also based in the
Republic of Ireland
expertise from research institutes throughout
Ireland.
Provide grants of up to 80% towards eligible costs of
the research project, which will normally not exceed
€200,000.
(Enterprise Ireland, 2018)

Support companies to apply innovation in the

business to create new business models, products,
Innovation 4 services or processes that will add value to the
CEO’s and top team
Growth customers and therefore grow your profits.

Partial covering of the costs of the programme.

Support to hire Strategic Consultants to assist in the

development and/or implementation of strategic
Strategic initiatives in the SME
Manufacturing or internationally
Consultancy
traded services SME company Up to 50% of the costs incurred in hiring a consultant
Grant
to a maximum grant amount of €35,000.

(Enterprise Ireland, n.d.-s)

Provide partial funding towards the cost of recruiting

a Key Manager with skills that are critical to the
future growth of the client.
Key Manager
SMEs trading for at least two years
Support Funding will be by way of Grant. The maximum
support level will be 50% of eligible costs.

(Enterprise Ireland, n.d.-l)

74
 Large scale, extensive and holistic company
transformation programme delivered by an external
Manufacturing or eligible training team of international reputation.
LeanTransform internationally traded services
The percentage and level of funding will be
Grant large companies trading for at least
determined on a case-by-case basis by the
five years
Enterprise Ireland Investment Committee.

(Enterprise Ireland, n.d.-n)

Support short to medium term company projects

that are designed to develop management capability
and drive company efficiencies and business process
improvements.

It can be used to support one of the following

Manufacturing or eligible assignments:
Business Process
internationally traded services
Improvement Lean Plus Assignment and Green Plus Assignment:
companies trading for at least five
Grant up to 50% of eligible costs incurred to a maximum
years
grant of €50,000.

e-Marketing Improvement Assignment: up to 50% of

eligible costs incurred to a maximum grant of
€35,000.

(Enterprise Ireland, n.d.-d)

Implement a digital roadmap to drive growth.

The typical cost of undertaking a BIM-Enable

assignment is €8,400. The company pays the first
€2,100 and Enterprise Ireland provides grant funding
for the outstanding costs to a maximum of €6,300.
Building Eligible expenditure is limited to the cost of hiring a
SME’s and large companies that BIM consultant for a maximum of 7 days. The
Information
are Enterprise Ireland clients. maximum daily fee payable to a consultant is €1,200
Modelling Grant
inclusive of travel and subsistence and all out-of-
pocket expenses.

The costs for BIM-Implementation varies according

to the size of company.

(Enterprise Ireland, n.d.-c)

Provide an introduction to environmental best

practice and helps in the preparation of a formalised
environmental management structure.

The typical cost of undertaking a GreenStart

assignment is €6,300. Enterprise Ireland will provide
50% grant funding for the project (up to €3,150). The
SMEs engaged in trade at least in company must pay the balance.
GreenStart Grant
the last five years
The maximum grant funding available from
Enterprise Ireland is €3,150. If the cost of the
GreenStart assignment is less than €6,300 the
company is still required to pay the first €1,300 in
costs.

(Enterprise Ireland, n.d.-g)

Introduction to Lean concepts allowing the

SMEs engaged in trade at least in participant to gain an understanding of what the
LeanStart Grant
the last five years tools and techniques can do for the company in a
short, focused engagement.

75
 The typical cost is €6,300. The company must pay
the first €3,150 and Enterprise Ireland will provide
grant funding for the outstanding costs to a
maximum of €3,150.

The maximum grant funding available is €3,150. If

the cost of the LeanStart assignment is less than
€6,300, the company is still required to pay the first
€3,150 in costs.

(Enterprise Ireland, n.d.-m)

Assist companies to improve productivity and

Capital competitiveness through the acquisition of new
Investment SMEs engaged in trade at least in capital equipment and technology.
Initiative (CII) the last five years
Up to a maximum of €250,000.
Fund
(Enterprise Ireland, n.d.-e)

Assist companies to achieve enhanced growth

through increased employment.
SMEs engaged in trade at least in
Job Expansion Support up to a maximum of €150,000 towards the
the last two years with 10 or more
Fund recruitment of new employees over and above a
employees
company's base employment position.

(Enterprise Ireland, n.d.-k)

Enterprise Ireland manages a number of different

funds with varying investments from €13m to
Venture Capital Ambitious, fast-growing companies €211m.

(Enterprise Ireland, n.d.-u)

Funding options:

Cash advance - up to €500,000 per facility over a

maximum of 12 months. Repayments will be made
daily using a portion of what comes through
credit/debit card machine.

Term loan – up to €150,000 over a maximum of 36

Grid Finance Irish SMEs months. Repayments are fixed and made monthly.

Leasing – cost effective method of financing

business equipment. Fixed repayments out of
income.

Invoice finance – allows the company to draw cash

from the invoices raised.

(www.gridfinance.ie, n.d.)

The Classic Visa Different fees apply according to selected card type.
Any business
Business Card (business.aib.ie, n.d.)

Consultancy to assess capital.

Lucey Fund Any business
(lucey.fund, n.d.)

Dublin Business Assist entrepreneurs to start and scale, offering a

Companies based, or planning to comprehensive range of programmes specifically
Innovation Centre
be based, in Dublin designed to advance the ambitions of early-stage
(BIC)
companies, such as: investor-ready preparations,

76
 access to finance, incubation space, community &
collaboration.

(dublinbic.ie, n.d.)

Key features: flexible repayment terms to support

your business needs, borrow from €1,000 to
Business Loan - €120,000, unsecured business loan rate of 6.76%
Any business
Bank of Ireland variable.

(Bank of Ireland, n.d.)

New pilot initiative to foster and support

entrepreneurial activity among emigrants returning
or recently returned to live in Ireland. It addresses
the challenges that all early stage entrepreneurs face
Back for Business Returning Irish emigrants with a particular focus on the additional barriers and
challenges faced by those who have been out of the
country for some time.

(Back for Business, n.d.)

77
 APPENDIX F: The precarious work conditions of the artist and creative
worker in Ireland

The Arts Council commissioned the report “The Living and Working Conditions of Artists in the
Republic of Ireland and Northern Ireland” (McAndrew & McKimm, 2010), which found out that
even though 86% of working artists in Ireland have a third-level qualification (three times higher
than in the average working population), their mean salary is the lowest when compared with
different occupational groups, as shown in Figure F.1.

Figure F.1: Average earnings for broad occupational categories, compared with average total personal income for
2008. From “The Living and Working Condition of Artists in the Republic of Ireland and Northern Ireland”, by C. Mc
Andrew and C. McKimm, 2010, p. 11. Retrieved from http://www.artscouncil.ie/uploadedFiles/LWCA_Study_-
_Final_2010.pdf.

Table F.1 shows the income of artists in the Republic of Ireland in 2008, averaging a total
household income of €47,456. According to the report (McAndrew & McKimm, 2010), 50% of
the artists had an annual earnings from their artistic work of €8,000 or less and 75% had total
personal income of €31,000 or less. Additionally, the research also points out gender disparities
in the earnings of artists7, with the average earnings of a male worker being €20,501, against
€9,789 for female artists, and the gap being higher within the visual arts and writers groups.

7
These figures do not take account of any differences in hours worked between male and female artists.

78
Table F.1: Incomes of Artists (Republic of Ireland), 2008.

From “The Living and Working Condition of Artists in the Republic of Ireland and Northern Ireland”, by C. Mc
Andrew and C. McKimm, 2010, p. 10. Retrieved from http://www.artscouncil.ie/uploadedFiles/LWCA_Study_-
_Final_2010.pdf.

With such low prospects of a fair and liveable income, only 41% of artists spend all their working
time as artists. The majority are obliged to take up additional work to complement the
household income, as shown in Figure F.2. One third of the artists claim to work more than 55
hours/week and 48% believe their artistic work leads to a work/life balance. Unemployment
among the artistic class is also higher than in the average population, with 23% artists having
registered as unemployed in the year prior to the research. This number is likely to be even
higher as some artists are reluctant to register as unemployed, especially those who are self-
employed or under short contract periods. There was also a common complaint about the lack
of understanding of the artist’s work patterns from Government bodies, making it difficult for
artists to access social benefits or funding (McAndrew & McKimm, 2010).

Figure F.2: Principal reasons why artists take paid work other than as artists (%). From “The Living and Working
Condition of Artists in the Republic of Ireland and Northern Ireland”, by C. Mc Andrew and C. McKimm, 2010, p. 8.
Retrieved from http://www.artscouncil.ie/uploadedFiles/LWCA_Study_-_Final_2010.pdf.

The situation is not dramatically different for the creative worker within the creative industries.
The short-term contractual nature of employment, alternating between self-employment, part-
time jobs and sometimes irregular activity requires a lot of flexibility and resilience. There is no
social protection ensuring fair payment or access to social benefits (Voldere et al., 2017).
Additionally, procurement processes are generally not fit for micro and small enterprises, such

79
 as in the design industry for instance (Ireland. Department of Jobs Enterprise and Innovation,
2016a).

Likewise, there is an imbalance in the power structure between big corporations that control
distribution and the many small actors who are responsible for producing content. Another
problem concerns Intellectual Property rights (IPR). The proliferation of illegal copyrighted
material is endemic within the digital context, with little adequate law enforcement.
Additionally, there is a concern whether the value generated by IPR has been fairly distributed
between distributors and rights holders. Disintermediation has been used as an alternative for
content producers who wants to have direct access to the market and consumers. However, it
comes with the price of having to develop a range of skills, from business acumen to social
networking and marketing, and less time actually working on the production of the artistic or
the creative product (Voldere et al., 2017).

The report “Making Great Art Work: Three-Year Plan 2017-2019” (Ireland. The Arts Council,
2016) sets out goals to tackle some of the issues mentioned here, such as: barring organisations
that do not pay artists adequately from receiving funding or creating more and better
opportunities for artists. Altogether, a lot has been said, with little beeing done to actually
reverse the situation.

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