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ARLA
30,4
508
Received 19 June 2016
Revised 2 September 2016
21 December 2016
22 May 2017
Accepted 18 July 2017
Academia Revista
Latinoamericana de
Administración
Vol. 30 No. 4, 2017
pp. 508-528
© Emerald Publishing Limited
1012-8255
DOI 10.1108/ARLA-06-2016-0160
Creative economy as a social
technology approach
A case study in favela da Mangueira,
Rio de Janeiro, Brazil
A economia criativa como uma
abordagem de tecnologia social
Um estudo de caso das favelas da Mangueira,
no Rio de Janeiro, Brasil
Dalia Maimon Schiray
Instituto Economia UFRJ, Universidade Federal do Rio de Janeiro,
Rio de Janeiro, Brazil
Cristine Clemente Carvalho
COPPE – Instituto Alberto Luiz Coimbra de Pós-Graduação e Pesquisa de Engenharia,
Universidade Federal do Rio de Janeiro,
Rio de Janeiro, Brazil, and
Rita Afonso
Faculty of Business Administration and Accounting,
Universidade Federal do Rio de Janeiro,
Rio de Janeiro, Brazil
Abstract
Purpose – The purpose of this paper is to discuss the characteristics of creative economies in favelas and
their potential in terms of social development from a comparison between the theory on creative economy and
the characteristics of the initiatives mapped in the Mangueira favelas.
Design/methodology/approach – The research was based on qualitative methodology and literature
review. The creative economy initiatives were mapped in the territory of Mangueira and semi-structured
interviews and questionnaire of closed questions were applied with the representatives of these. The data
collected were treated with the content analysis method.
Findings – The research mapped 17 initiatives associated with creative economy sectors in the Mangueira
favelas in Rio de Janeiro, Brazil. The initiatives develop cultural and artistic activities that make the young
people of the community aware of the history of their families, which promotes the strengthening of social ties
and individual empowerment, contributing to local entrepreneurship.
Practical implications – The theory used in Brazil for the elaboration of public policies to promote the
creative economy points to the presence of cultural and symbolic aspects in economic activities as resources
for the generation of income. However, it is important to understand how this applies in different contexts,
which may have or lack certain characteristics of human and physical capital pointed as essential by theory
to creative economy promotion.
Originality/value – The results of this research go beyond the theory of creative economy and highlight
characteristics of project management and impacts on social development that demonstrate how the
dynamics of the creative economy in the Mangueira favelas also represent a case of social innovation using
social technology tools.
Keywords Creative economy, Social innovation, Social technology, Favela, Low-income community
Paper type Research paper
Resumen A case study in
Propósito – O estudo tem como objetivo discutir as características na economia criativa em favelas e seu favela da
potencial em termos de desenvolvimento social a partir da comparação entre a teoria sobre economia criativa
e as características das iniciativas mapeadas na favela da Mangueira. Mangueira
Metodologia/Abordagem – A pesquisa utilizou ferramentas de metodologia qualitativa e esteve baseado
em revisão de literatura. Foram mapeadas as iniciativas de economia criativa no território da Mangueira e
realizadas entrevistas semi-estruturadas e um questionário com perguntas fechadas com os responsáveis.
Os dados coletados foram tratados com o método de análise de conteúdo.
Resultados – A pesquisa mapeou 17 iniciativas associadas aos setores da economia criativa na favela da 509
Mangueira, no Rio de Janeiro, Brazil. As iniciativas desenvolvem atividades culturais e artísticas que
conscientizam os jovens da comunidade sobre a história de suas famílias, o que promove o fortalecimento de
laços sociais e a capacitação individual, contribuindo para o empreendedorismo local.
Implicações práticas – A teoria utilizada no Brasil para a elaboração de políticas públicas de promoção da
economia criativa aponta para a presença de aspectos culturais e simbólicos nas atividades econômicas como
recursos para a geração de renda. No entanto, é importante entender como isso se aplica em contextos
diferentes, que podem ter ou não algumas características do capital humano e físico apontadas como
essenciais pela teoria para a promoção da economia criativa.
Originalidade/Valor – Os resultados desta pesquisa vão além da teoria da economia criativa e destacam
características de gestão de projetos e impactos no desenvolvimento social que demonstram como a dinâmica
da economia criativa nas favelas da Mangueira também representa um caso de inovação social utilizando
ferramentas de tecnologia social.
Palabras clave economia criativa, inovação social, tecnologia social, favela, comunidade de baixa renda
Tipo de papel Trabajo de investigación

Introduction
During the 1990s and 2000s, creativity was recognised as a critical asset for the construction
of a post-industrial society (Corazza, 2013). The authors point to changes in the dynamics of
production and consumption around the world driven by the introduction of information
and communication technologies , the growth of the service sector and the use of knowledge
and creativity as assets for economic production.
Despite the economic deceleration of the world economy, Brazil has been and continues
to be one of the leading producers and exporters of creative products and services
(UNCATD, 2015, p. 26). According to data, the creative sector is responsible for 2.84 per cent
of the Brazilian gross domestic product (GDP) (IIBGE – Brazilian Institute of Geography
and Statistics, 2010; Instituto de Pesquisa Econômica e Aplicada (IPEA), 2013) and employs
over 11 million people. In addition, since the 1980s, a 37.5 per cent increase in the middle
class population (a third of the total population) has turned the country into one of the
biggest cultural markets in the world. This has attracted the attention of the government,
which now recognises the importance of creative and cultural assets to formal economic
parameters for public investment, leading to the creation of the Secretariat for Creative
Economy under the Ministry of Culture in 2012.
Seeking a contemporary discussion of the theme, the Brazilian Planning for Creative
Economy uses international authors (Florida, 2011; Howkins, 2007; Caves, 2000) and
agreements held by the United Nations (UNCTAD, 2010; UNESCO, 2013). On the one hand,
the authors refer to the industry or the creative economy as that which occurs in urban areas
with high concentrations of creative enterprises or in tourist cities and high-tech regional
hubs. However, on the other hand, United Nations’ publications point to the fact that
creative economy producers and consumers are emerging in developing countries and
economically vulnerable regions.
In Brazil, Paes de Barros (Lima, 2015)[1], a specialist in labour market public policies,
states his “concern [that] the poorest, the group of young people with very low education,
despite social programs, cannot surf the market[2]”. Going against this, many social
programmes are offered by NGOs and public institutions in order to overcome deprivation in
favelas – neighbourhoods characterised by poor local infrastructure and low Human
ARLA Development Indices (HDI). However, the precarious infrastructures present in the favelas
30,4 hide abundant resources around their potential wealth. The favelas offer basic living
conditions; residents have access to the city (schools and work) and information technologies
promotes access to knowledge and networking. According to Central Única Das Favelas
(CUFA) and Data Popular (2013), favela residents purchase electronic devices and access
internet facilities just to manage their economic activities and to access cultural references.
510 To date, there are very few studies and a general lack of data on the creative market in
Brazilian favelas. According to IPEA (2013) and SEBRAE/RJ (2012), this is due to the high
percentage of people involved in informal work[3]. It is, therefore, also difficult to categorise
creative economy industry agents and their activities in general.
Innovation processes in the social field are characterised by an intervention initiated by
social actors in order to meet a solution or seize an opportunity to act in favour of improving
the communities’ living conditions (CRISES, 2010; Klein et al., 2009). In the context of
developing countries, social technology is “a set of production techniques that optimise the use
of available resources in a society, thus maximising social welfare” (Dagnino, 1976, p. 86).
Given that creativity as a word with multiple definitions, it intuitively refers to the ability to
both create the new, and to reinvent the old, diluting traditional paradigms, joining apparently
unrelated points and, therefore, finding solutions to both old and new problems.
What about the initiatives taking place in favelas where entrepreneurs and social leaders
are trying to meet their main need: a solution or optimisation of opportunities to improve the
quality of community living based on the creative resources available at the local level?
What can we learn about social innovations and social technologies in the context of the
creative economy in favelas? It is necessary to examine the creative organisations and their
production processes, considering the distinction between different industries or sectors and
their contexts of development.
The study “Creative territories and productive inclusion: A case study in the
neighbourhood of the Maracanã Stadium, Rio de Janeiro” was funded by the Ministry of
Culture during the 2014 and 2015, and was conducted by the Laboratory of Social
Responsibility and Sustainability (LARES) at the Federal University of Rio de Janeiro.
The methodology used was based on a literature review and qualitative research,
semi-structured quantitative and qualitative interviews followed by quantitative and
qualitative data analysis. Its purpose was to compare the theory of creative economy and
the characteristics of the initiatives mapped in the Mangueira favelas.
The research brought about some reflections on the understanding of the creative
economy as social innovation in the context of favelas, the use of the creative sector
activities to promote citizenship and the generation of employment and income, the presence
of networks of small NGO initiatives linked to larger structured organisations, and the
importance of creative economy activities rooted in the tradition of the local cultural.
The paper is divided into four parts. The first part analyzes the main approaches in the
fields of creative economy, social innovation, and social technology. The second part
presents the results of the research in terms of local infrastructure, the management of
cultural projects, and social networks. The third part of this paper outlines the
characteristics of creative economy, social innovation, and social technology found in the
initiatives mapped. Finally, the last part is dedicated to a number of considerations about
the study, limitations, and suggestions for future research in the field of creative economy,
cultural economy, and social development.

Literature review
Creative economy
The term “creative industries” was first used by the prime minister of Australia in 1994 in
the opening speech for the “Creative Nation” project. He pointed out the opportunities to
promote the national economy based on local culture associated with digital media A case study in
technology as a response to the globalisation movement (Australia, 2004). In 2007, with a favela da
different perspective of empowering the national economy, the British Department for Mangueira
Culture, Media & Sport (UK, 2011) analysed the market trends and national competitive
advantages of creative industries in the GDP of the British economy, based on the use of
creativity, skills, and individual talents as production inputs. According to Reis (2008),
a Brazilian specialist on the creative economy in cities, the British Government initiative 511
contextualised the creative industries programme in response to a global socioeconomic
landscape in transformation and highlighted sectors of competitive advantage for the
country, reordering public priorities, and promoting them. It caused a review of the
productive structure process, including the development of new business models.
Recent papers have been written on business, economics, and management posing
questions about the scenario and opportunities in the so-called “creative sectors of
economy” in different countries around the world. According to “The Manifesto for
Creative Economy”, the creative sectors of the economy are “those […] which specialise in
the use of creative talent for commercial purposes” (Bakhshi et al., 2013, p. 13). McMillan
and Rodrik (2011) associated the globalisation process with productivity growth in
developing societies based on structural change of the labour force and Sung (2015)
investigated the impact of the creative economy on different academic realms, including
economics, business, sociology, tourism, and others. The creative economy is defined by
Sung (2015) as:
A policy aiming at generating new growth through economic operations that promote creativity,
knowledge convergence and advanced scientific technology based on coordinate learning,
consequently creating new markets and new jobs (p. 1).

According to the author, the creative sector’s process of development is related, on one hand,
to the availability of technology and access to information, and, on the other, to a global and
networked business model, meeting the society’s demand for creative goods.
In terms of the spatial distribution of creative businesses, a creative hub, city,
or neighbourhood is a territory recognised by the following specific characteristics
(Florida, 2011; Howkins, 2007; Caves, 2000): an efficient connection between local and global
spheres, in terms of spatial mobility and digital inclusion; the existence of technology
projects and innovations in the field of natural and social sciences; the presence of
talent – professional diversity; efforts for achievement; tolerance, self-expression, use of new
technologies, openness to new ideas, and openness to people; convergences of
institutionalised organisation and intra- and extra-regional connections, networks,
exchange of experiences, and cooperation between the actors involved in the creative
environment (groups, collectives, entrepreneurs, and other participants); a concentration of
initiatives that have the same productive vocation or that contribute to a sectorial identity in
the area; the enhancement of local development; solidarity; and revolving credit funds,
networks, and shared marketing and solidarity production chains.
According to UNCTAD (2010), the market structure of a creative economy is led by micro
and small businesses in which individual and collective entrepreneurs generate income and
employment in the creative industry chain’s cycles of production and distribution. The
existence of medium and large companies often creates opportunities for those medium and
small businesses functioning as important anchors of aggregation for the distribution of
creative goods and services.
Creative class professionals (Florida, 2011) perform a wide variety of work in a wide
variety of industries using tangible and intangible goods, technological and scientific
research (Howkins, 2007) with cultural expressions, and/or artistic practice (Caves, 2000) as
the production’s inputs and outputs.
ARLA UNESCO (2013) representatives defined the cultural field as an important key
30,4 to sustainable development, boosting the economic dimension and generating
income and employment. Since the 1980s, UNESCO has been working towards
understanding inequalities between north and south in terms of “cultural resources”.
According to UNESCO (2013), cultural heritage and contemporary cultural
expressions bring creativity and innovation to the economy, which is linked to
512 the social dimension: they are the accelerators of resilience and rootedness; they
provide tools to fight against poverty; and they facilitate citizen participation,
intercultural dialogue, and equality of rights. Culture also embraces the environmental
dimension, because it explains identities and raises awareness of ecological responsibility
(UNESCO, 2013, p. 42).
The Creative Economy Secretariat Plan (Brazil, 2011) pointed out the role of cultural
diversity as a relevant capacity of members of society in economic development,
highlighting the “ability to formulate hypotheses, solve problems and make decisions in the
face of uncertainty” (Furtado, 1978, p. 81)[4]. Therefore, the guiding principles of public
investment in the creative economy sectors in Brazil were cultural diversity, sustainability,
social inclusion, and innovation (Brazil, 2011).
After that, the Brazilian Government created a permanent Secretariat for Creative
Economy within the Ministry of Culture in 2012. This was the starting point for the
conceptualisation of the creative industry sector (Brazil, 2011) and for the identification of
creative cities (FECOMERCIO-SP, 2012; Reis and Deheinzelin, 2008; SEBRAE/RJ, 2012).
The Ministry of Culture (2012) defined five creative sectors and their associated
activities: heritage – material or immaterial (intangible), archives, and museums; cultural
expressions – handcrafts, popular culture, indigenous culture, Afro-Brazilian culture, and
visual arts; entertainment arts – dance, music, theatre, and circus; audio-visual, literature,
publications, and printed media; and functional creations – fashion, design, architecture,
audio-visual, cultural production, and management.
Their study resulted in mapping associated activities and jobs (FIRJAN, 2012) and
revealed that the Brazilian creative sector had a great economic potential for the industry
sector (FIRJAN, 2012). Nevertheless, according to IPEA (2013)[5], a feature of the creative
economy, particularly in developing countries, is the high prevalence of informal systems,
processes, and cultural institutions. Whereas informal creative industries generate a
considerable income share, they are not adequately taken into account and their
contribution to the generation of added value is difficult to measure, undermining
government diagnosis for the creation of specific public policies.

Social innovation
Every technological innovation has a social component, from the collective nature of the
invention to the unfolding of inventions through contacts or spillovers. However, the
concept of “social innovation” can be separated from the technological innovation and seen
differently depending on social agents’ different points of view.
Murray et al. (2010) emphasise that social innovation is different from innovation in
“business as usual”, because of its outcomes and relationships – new forms of cooperation
and collaboration. The processes, metrics, models, and methods used in innovation in
commercial or technological fields, for example, are not always directly transferred to the
social economy.
Bouchard (2012) identifies two major approaches to social innovation. The first is
interested in solutions to major social problems, based on business initiatives, with an
emphasis on philanthropy, individual responsibility, and the market. The other approach
emphasises the collective nature of the processes and products of social innovation
(Bouchard, 2012).
 Lévesque (2007) argues that innovations are seen as measures or policies that lead to A case study in
social change and transform the relationships that are at the root of social problems. In this favela da
case, innovation cannot be considered as resulting exclusively from a voluntary and rational Mangueira
action. These innovations rely on the participation of various social actors, in order to
promote changes associated with living conditions and local development.
Bittencourt (2014, p. 329) mentions that “the definition of social innovation reveals
practices of cooperation, reciprocity, and solidarity, in which social actors make use of social 513
networking with the purpose of overcoming a situation of discomfort or finding an ideal
in common”.
Bouchard (2012) points out that social innovation is associated with the intervention of
social actors who want to meet specific needs in favour of social change. Similarly,
according to Lévesque (2007), social innovation refers to responses to specific needs, leading
to social change. It requires a new vision, a new way of seeing and defining problems and
solutions to these problems (Lévesque, 2007). These perspectives have been assumed by
researchers at the Centre de Recherche sur les Innovations Sociales – CRISES, which
conceptualises social innovation as an intervention initiated by social actors to respond to a
human aspiration, meet a need, a solution, or to seize an opportunity of action to change
social relations, to transform a frame or propose new cultural orientations to improve the
quality of community living conditions (CRISES, 2010; Klein et al., 2009).
Murray et al. (2010) consider the following aspects of innovation projects: cultural
development: understanding social, collective, human, and environmental strategies;
network thinking: combining government investing efforts, private sectors, and
non-governmental organisations (NGOs); open systems: with the collaboration of different
actors that add their different expertise and views for troubleshooting; and qualitative
indicators: new ways to assess qualitative growth that are connected to services, culture,
knowledge, and entertainment.

Social technology
The term social technology has been defined by Small (1898) and Henderson (1901) as the
use of knowledge of the facts and laws of social life to bring about rational social aims.
Leibetseder (2011) points out that social technology provides knowledge to social sciences
for purposes such as politics, by introducing a specific conception of power between the
individual and the public. Furthermore, Lektorsky (2013) associates social technologies with
the social control of natural processes, promoting the capacity of individuals for critical
reflection and presenting different possibilities to expand their realm of freedom and their
social and interpersonal ties.
In the context of developing countries, Dagnino et al. (2004) is a main reference on
conceptualising “social technology” in Latin America. According to the author, the term
refers to the process of community participation in the decision-making process of a
technological choice. The specific characteristics of social technologies include the low cost
of products and services and the simplicity of investments needed to produce them on a
small or medium scale, resulting in positive effects that generate income, health,
employment, food production, nutrition, housing, social relations, and improvements in the
environment (with the use of renewable resources). To sum up, as the main reference for
Brazil, Dagnino (1976) pointed to social technology in the Brazilian context as “a set of
production techniques that optimise the use of the resources available in society, thus
maximising welfare” (Dagnino, 1976, p. 86).
It is not mandatory for social technologies to come from social innovation. If innovation
does not occur, social technologies are spread (potentialised or scaled), but there is no new
method or results that are directly associated with social processes, which is a characteristic
facet of social innovation.
ARLA Table I presents the similarities between theories on the creative economy, social
30,4 innovation, and social technology in relation to the following issues: sectors and activities
that characterise the projects mapped in Mangueira, access to infrastructure, local identity,
cultural assets promoted by projects created by initiatives, characteristics of human
resources, and the organisational model according to the main reference authors mentioned
earlier in this paper.
514
Methodology
The research project “Creative territories and productive inclusion: a case study in Maracanã
neighbourhood, Rio de Janeiro” was conducted by the LARES at the Economics Institute/
UFRJ, funded by the Ministry of Culture/CNPq, from January 2014 to December 2014.
The field research was conducted in June and July 2014, in the Mangueira favelas in
Rio de Janeiro.
The goal of the study was to verify the necessary investments in economic
inclusion based on cultural and creative entrepreneurship in the neighbourhood of the
Maracanã Stadium. The questions that guided the researchers in reaching their goals
were: what are the dynamics of creative initiatives in the Mangueira favelas? What is the
influence of social projects established in the territory for the emergence and maintenance
of these initiatives? What is the relationship between cultural production activities in the
territory and the local culture?
The research was conducted by a group of researchers including two doctoral researchers,
one graduate student, and four undergraduate students. It was divided into three parts:
(1) Secondary research – literature review of scientific databases (Web of Science) and
Brazilian universities’ (CAPES journals) databases on topics of “creative economy”
concepts, cases in Brazil and in other countries, as well as “economy of culture”
concepts and cases in Brazilian favelas. The research team also consulted the UN
reports (UNCTAD and UNESCO), the Brazilian Governmental plans for creative
economy sectors, and the Brazilian statistics on the economic impacts of the creative
economy (IBGE, IPEA, FIRJAN).
(2) Primary research – fieldwork using a semi-structured quantitative and qualitative
questionnaire based on the guide for creative economy pool mapping presented by
Lima (2013) – UNESCO consultant for the Brazilian Ministry of Culture. In total,
30 interviews with the coordinator for creative projects in Mangueira, approximately
1 hour 15 minutes each for a total duration of 45 hours.
(3) Participant observation in two events at Mangueira School of Samba and one at the
Cartola Cultural Centre in Mangueira.
Table II shows the field research questions associated to the theory used to analyse the results.
Initiatives were mapped through the use of internet searches and recommendations
obtained from the first interviewers (network research). These were then classified in terms of
their main product and their organisation profile, production methods, and partnerships. It is
important to note that initiatives mapped in Mangueira were categorised according to their
main activity and creative sector with reference to the Plano da Secretaria de Economia Criativa
(National Secretariat Planning for Creative Economy) – (Brazil, 2011), as presented in Table III.
However, there were many social and cultural projects managed by NGOs or public
institutions that have no financial purposes; their only purpose was to produce creative
goods. Those social and cultural projects were categorised as Social Assistance and
Technical Education.
The timing of field research and the characteristics of the territory were considered in the
measurement of the research results. Scheduling interviews with the coordinators of
Issue or aspects Creative economy theory
Sectors and Generation of income and
activities employment in the cycles of
production and distribution
of the creative industry chain
(UNCTAD, 2010); solidarity
and revolving funds of credit;
networks and marketing
joint and solidarity
production chains (Florida,
2011; Howkins, 2007; Caves,
2000); use of creative talent
for commercial purposes
(Bakhshi et al., 2013, p. 13)
Local identity Productive vocation or
contribute to a sectoral
identity in place;
enhancement of local
development (Florida, 2011;
Howkins, 2007; Caves, 2000)
Cultural assets Cultural expressions and/or Cooperation and
artistic practice as inputs and collaboration based on
outputs of the production
(Caves, 2000)
Technology projects and
innovation in science, culture identities and raises
and society (Florida, 2011)
Human Talent – diversity of
resources professionals; tolerance,
self-expression, use of
new technologies, openness define problems and
to new ideas and openness solutions to these problems
to people (Florida, 2011);
citizens, intercultural
dialogue and equality
of rights (UNESCO, 2013);
exchange of experiences
and cooperation between
the actors (Florida, 2011;
Howkins, 2007;
Caves, 2000)
Infrastructure Technology availability and
access to information (Sung,
2015); efficient connection
local-global, mobility,
social and digital inclusion
(Florida, 2011; Howkins,
2007; Caves, 2000)
Social innovation theory Social technology theory
A case study in
favela da
Business initiatives, with an Low cost, simplicity of the Mangueira
emphasis on philanthropy, investments needed to
individual responsibility and produce, small or medium
market (Bouchard, 2012); scale; optimally the resources
cultural heritage and available in a society thus
contemporary expressions maximise their welfare 515
(UNESCO, 2013) (Dagnino et al., 2004)
Social actors in specific
needs in favour of social
change (Bouchard, 2012);
changes associated with
living conditions and
local development
(Lévesque, 2007)
cultural development and
qualitative indicators
(Murray et al., 2010);
awareness on ecological
responsibility (UNESCO,
2013); cultural orientations to
improve the quality and
community living (CRISES,
2010; Klein et al., 2009)
Participation of various Provides social science
social actors; requires a new knowledge for purposes,
vision, a new way to see and such as in politics,
introducing a specific
conception of power between
(Lévesque, 2007) the individual and public
Open system for different powers (Leibetseder, 2011)
actors/expertise/views
(Murray et al., 2010);
social actor networking
on a situation of discomfort
or an ideal in common
(Bittencourt, 2014)
Table I.
(continued ) Theoretical categories
ARLA Issue or aspects Creative economy theory Social innovation theory Social technology theory
30,4
Organisational Micro and small Network thinking (Murray Process of community
model businesses – individual and et al., 2010); cooperation, participation in the
collective entrepreneurs reciprocity and solidarity decision-making process
network with large (Bittencourt, 2014); collective of a technological choice
companies (UNCTAD, 2010); nature of the processes and (Dagnino et al., 2004)
516 informal systems and products (Bouchard, 2012)
cultural institutions
(IPEA, 2013; SEBRAE/RJ,
2012); connections intra and
extra regions, networks
(Florida, 2011; Howkins, 2007;
Table I. Caves, 2000)

Aspects Related question ( field research)

Sectors and activities Name of the initiative; main activity; creative sector; associated activity (Brazil, 2011)
Infrastructure What is the origin of space? Own space, rented space or space ceded?
What is your opinion about the physical conditions of the workplace for the activities
performed?
Local identity What motivated you to host your initiative in Mangueira?
What other activities does your initiative hire or are partner in Mangueira? And
outside Mangueira? If yes, what sector of economy? Where it is located? How is the
partnership carried out?
Where to find the material or equipment suppliers for your work?
Do you know any initiatives that generate goods or services related to the creative
economy in Mangueira? Which one (s)?
What public facilities for creative economy activities are available to the public at
Mangueira?
Cultural assets Is there a “brand” or na image created to identify the products and services originated
from the creative activities of Mangueira?
Human resources How many people are involved in the initiative?
What are the positions and functions?
Do the members of your initiative participate in technical training activities?
Organisational model What category of organisation is it?
Table II. What is the annual revenue? What are the fixed costs?
Field What are the sales channels for products or services?
research questions How does creative activity finance the participants’ work?

initiatives proved to be complicated between June and August due to the FIFA World Cup
event in Rio and because many organisations were closed during the public holidays in
Brazil. Mobility and security also proved to be difficult due to narrow streets, poor lighting,
and drug trafficking operations.
The next section presents the characteristics of the territory and the results of the
interviews in order to verify the aspects of the creative economy initiatives promoted by
entrepreneurs and organisations in the Mangueira favelas.

Results
The creative economy in Brazil
The organisational network of creative economy in Brazil is based on small businesses,
entrepreneurs, and individuals (SEBRAE/RJ, 2012)[6] at varying stages of business
maturity. In 2010, creative sectors in Brazil were responsible for 2.84 per cent of
Sector Main activity
A case study in
favela da
Heritage Material heritage Mangueira
Intangible assets
Archive
Museums
Cultural expressions Craftwork
Popular culture 517
Indigenous cultures
Afro-Brazilian cultures
Visual arts
Performing arts Dance
Music
Circus
Theatre
Audio-visual, book, reading and literature Movies and video
Publications and print media
Functional creations Fashion
Design
Architecture
Digital art
Cultural management/production Table III.
Social assistance All activities mentioned above Creative sectors and
Technical education All activities mentioned above main activities

Brazil’s GDP, 2 per cent of the labour workforce, and 2.5 per cent of formal wages
(IBGE – Brazilian Institute of Geography and Statistics, 2010)[7]. The multiplier effect of
creative jobs in other economic segments elucidates its power to generate income and
increase the numbers of workers. However, according to IPEA (2013), the impact on the
GDP would be even greater, if we took into account voluntary or unpaid work,
occupations that have not been coded, informal economic activities, and the fact that many
creative workers have more than one job.
According to SEBRAE/RJ (2012), the Brazilian creative economy features excessive
informality and a reduced use of management techniques/theories.
The primary organisational component is based on individual talent, which promotes
competitive differentiation in the first instance, especially in the design phase (prototype),
establishing a genuine standard of flexibility in production networks, although those
frequent and intense informal relationships cause imbalance between creation and
management functions. In organisational dynamics, the management challenge is the
equation between creative freedom, which feeds the imagination, and the establishment of
rules and management efficiency standards.

The creative economy in Mangueira, Rio de Janeiro

Mangueira is a complex of five favelas in the geo-political centre of Rio de Janeiro. It is
home to 14,589 people in a high-density population area of 223.47 inhabitants/ha[8]
(IBGE – Brazilian Institute of Geography and Statistics, 2010). This density is explained by
informal occupation in the area over the past 30 years[9], its proximity to the railway station
and to important roads and avenues that link the area to other Rio de Janeiro regions and
even other states. Figure 1 presents the location of the Mangueira favelas.
The HDI[10] of Mangueira is 0.800, which is considered high. The average per capita
income is R$357.43 (Real, Brazilian currency) (IBGE, 2010) – equivalent to US$200. This
high HDI index in Mangueira is partly guaranteed by current access to employment, health,
ARLA
30,4

518

Figure 1.
Map of
Mangueira area

and public education in other wealthier administrative regions of the city (e.g. downtown).
Recurring problems are associated with the illegal occupation of space and the lack of
infrastructure facilities: sanitation, electric light, and paved streets. According to
the Unidade de Polícia Pacificadora (2015) – Rio de Janeiro’s City Pacifying Policy Unit,
51.1 per cent of households receive electricity from distributing companies with meters,
43.4 per cent have power but no meter, and 5.5 per cent receive energy from other sources.
Some 98 per cent of households have an adequate water supply and 89.5 per cent have
sanitation assessed as appropriate. In terms of security, although there is policing in certain
areas of Mangueira, many drug trafficking operations take place in its narrow streets and
alleys, as reported by the in-field researchers.
Mangueira is a residential area, whose main economic activity is based on the retail and
service sectors (bars, restaurants, beauty salons, and small shops). It is internationally
recognised for its samba (a Brazilian musical genre and dance style, with African roots).
Cartola is one of the most popular samba composers/singers in Brazil and he used to live in
Mangueira, where he founded the Mangueira Samba School, one of the oldest and most
traditional Samba Schools in Rio de Janeiro. Samba has become an icon of Brazilian national
identity, recognised by the Ministry of Culture as an example of Brazilian cultural heritage.
Mangueira is situated next to the neighbourhood of São Cristovão and Tijuca.
São Cristóvão is considered by the City Hall to be a creative hub with a host of art studios
and design offices, next to galleries and textile factories. Tijuca is a traditional area of
theatres, cinemas, and audio-visual studios.
In terms of digital access, the emergent middle class population has doubled in Brazilian
favelas in the last decade, with it increasing the consumer market. According to the research
conducted by CUFA and Data Popular (2013) in different favelas in Rio, there is intense
demand for hi-tech electronic products, such as mobile phones, tablets, and notebooks.
In total, 47 per cent of favela residents already have an LED/LCD/plasma television at home,
and 28 per cent pay for TV channels, reflecting residents’ great interest in devices that allow
access to the media, digital culture, etc.

Creative initiatives in the Mangueira favelas

Quantitative results. The study mapped 17 initiatives that produce activities in sectors of
creative economy in Mangueira. The location is identified in Figure 2.
 A case study in
favela da
Mangueira

519

Figure 2.
Map of initiatives
in Mangueira

The initiatives were classified according to the associated creative sector (Brazil, 2011).
Figure 3 shows initiatives distributed by sectors and activities associated with the creative
fields (in colour).
As seen above, most initiatives are associated with the arts and performance sector (six),
followed by functional creations (four), and social assistance (four). Most activities are

6 2

5 Technical education
Social assistance
4 Heritage
Functional creations

3 Arts and performance

5
2 2
1
1 2
1 1 1 1 1 Figure 3.
Number of initiatives
0 by creative field and
Cultural Dance Fashion Literature Museum Music Visual arts main activity
management
ARLA related to music (seven), followed by visual arts (three). By analysing the data relating to
30,4 sectors and activities, one can see how the technical education sector is associated with
visual arts activities and arts and performance with music.
Regarding the type of organisation and source of funds, the individual entrepreneurs
type include formal and informal workers; collectives of entrepreneurs include informal
association of workers; non-governmental initiatives include third-sector organisations,
520 NGOs and associations; and governmental initiatives are associated with public policy.
Figure 4 shows the percentage of initiatives by type of organisation.
From a total of 17 initiatives mapped by researchers, 53 per cent are non-governmental
initiatives, 18 per cent individual entrepreneurs, 17 per cent collectives of entrepreneurs, and
12 per cent Governmental Initiatives.
The number of initiatives by type and source of income is displayed in Figure 5.
According to their main source of income, 44 per cent of NGO obtain their resources
from private sponsorship and 33 per cent from public sources; 75 per cent of individual

17%

12%

53%

18%

Figure 4.
Percentage of Collective of entrepreneurs Governmental initiative
initiatives by type
Individual entrepreneurs Non-governmental initiative

Public and private sponsorship 1 2

Private sponsorship 4

Own products sale 2 2 3

Public sponsorship 3

Figure 5. 0 1 2 3 4 5 6 7 8
Number of
initiatives by type Collective of entrepreneurs Governmental initiative
and source of income
Individual entrepreneurs Non-governmental initiatives
entrepreneurs get their income from selling their own products and 25 per cent from A case study in
private/public sponsorship. Similarly, 66 per cent of collectives of entrepreneurs obtain favela da
their income from their own products and 25 per cent obtain it from private/public Mangueira
sponsorship. As expected, government institutions obtain their income from public
sources. Some 11 per cent of interviewers received other sources of income, such as
donations or money from other projects.
Table IV presents the percentages of types of initiatives by their annual income. Table V 521
shows the percentages of annual income by type of initiative.
In terms of financial resources, 35.3 per cent of the initiatives have an annual
income of up to US$540 per year, 83.3 per cent of which are NGO initiatives. Some
23.5 per cent receive between US$2,700 and US$13,500 per year, 50 per cent of which are
individual entrepreneurs.
When we compare the two tables, it is remarkable to see that individual and collective
entrepreneurs have a higher income than NGOs, even when the latter sell their own products
and services. The annual income of 66.7 per cent of individuals and 66.6 per cent of collective
entrepreneurs varies between US$2,700/year and R$81,000/year. Some 83 per cent of NGOs
have up to US$540/year.
The relationships between property and satisfaction with the quality of the space and
attendance to their needs are shown in Table VI.

Collective of Governmental Individual Non-governmental

Type of initiative/annual income entrepreneurs initiative entrepreneurs initiative

A – Until US$540/year 0 0 33.3 55.6

B – US$540/year-US$2,700/year 0 0 0 22.2
C – US$2,700/year-US$13,500/year 33.3 50 66.7 0 Table IV.
D – US$13,500/year- R$81.000/year 33.3 0 0 0 Percentage of types
E – No answer 33.3 50 0 22.2 of initiatives by the
Total 100 100 100 100 annual income

A – Until B – US$540/ D – US$13,500/

Annual income / Type of US$540/ year-US$2,700/ C – US$2,700/year year-R$81,000/ E – No
initiative year year -US$13,500/year year answer

Individual entrepreneurs 16.7 0 50 0 0

Collective of entrepreneurs 0 0 25 100 25 Table V.
Governmental initiative 0 0 25 0 25 Percentage of
Non-governmental initiative 83.3 100 0 0 50 annual income by
Total 100 100 100 100 100 type of initiative

Satisfied Not satisfied Total

Number of Number of Number of
Occupation/satisfaction initiatives % initiatives % initiatives %

Tenants 1 100 0 0 1 100 Table VI.

Occupying 2 33.3 4 66.7 6 100 Number of initiatives
Owners 7 70 3 30 10 100 by type of occupation
Total 10 58.8 7 41.2 17 100 and satisfaction
ARLA In total, 59 per cent of initiatives take place in their own property, 35 per cent
30,4 occupy borrowed spaces offered by others and 6 per cent are tenants. Some 70 per cent
of entrepreneurs who use their own property feel satisfied, 66 per cent that occupy or
borrow spaces are less satisfied, and 100 per cent of tenants are totally satisfied with the
space used.
The motivations behind teams, managers, and individual entrepreneurs installing and
522 operating the initiative in the Mangueira area are displayed in Figure 6.
In total, 65 per cent of the respondents are local residents, motivated by proximity to the
family; 29 per cent were attracted by the presence of the public that demands social
assistance; and 6 per cent of respondents wanted to be close to business partners.
Qualitative results. In terms of aims and expected results, the Social Assistance and
Technical Training initiatives mapped in Mangueira are geared towards the promotion of
citizenship, employment, and income generation.
The project manager of the social assistance initiative “Associação Meninas e Mulheres
do Morro” (Association of Girls and Women from Favelas) pointed out: “the practice of
traditional music and literature promotes local identity and civic attitude”. In the case
of FAETEC, a public project, “the State provides equipment and technical knowledge
for cultural productions in order to promote labour market inclusion”. It is noteworthy
that some of these welfare initiatives (NGOs and private/public projects) were funded by
market-established companies.
Samba music is part of Brazilian cultural heritage and the “glue” that connects the
creative initiatives network mapped in Mangueira. Some of the initiatives seem to be closer
to each other, structuring a network of partnership based on commercial contracts or
informal deals. The notable case of the Mangueira Samba School shows how big
organisations act as a node in this network, providing learning opportunities to local
residents and commercial spaces for practicing musical activities.
The main activity in the Mangueira Samba School is the musical production of “samba”,
in addition to dance, visual arts, fashion, and design. The school also promotes museum
exhibitions and gastronomy parties. It is an NGO funded by carnival parade awards and
sponsorship, and products and service profits based on its renowned brand.

29%

6% 65%

Figure 6.
Number of initiatives Local resident Proximity to local suppliers
by motivation
Proximity to interested public
Three small and local creative entrepreneurs (Vitor Art, Giraia and Fabiana Oliveira) started A case study in
their individual connections to the samba network when they were children and part of social favela da
projects. Now, they continue as work partners. These bold individuals were born in Mangueira, Mangueira
their families are associated with the samba tradition and they have participated in the social
project known as Mangueira do amanhã or the Mangueira of Tomorrow created by the Samba
School and funded by both public and private sponsorship.
Vitor Art is the Percussionist and Vocalist of a band. He was the Director of the Mangueira 523
Samba School percussion group. Giraia is a Musician and the Producer of the “Art Junior”
band. Fabiana Oliveira is a professional Samba Dancer and a Dance Teacher. She was
recognised as “the queen of the Samba School drums” during past carnivals. Under copyright
and registered trademark laws, all these artists use the “Mangueira Samba School” trademark
in publicity, sharing rights, and income with the School.
The Samba School’s physical space is occupied by two projects managed by other
organisations. These are not directly associated with samba, but with other creative
technical training activities. The ballet school Dançando para não dançar (Dancing in order
to not dance)[11] is an organisation present in different communities around the city. It is
sponsored by the Petrobras Brazilian Oil Company with government subsidies. A recent
partner is the public organisation Digital FAETEC, funded by the state of Rio de Janeiro
through “Fundação de Apoio à Escola Técnica – Foundation for the Support of Technical
Schoo[12]”. According to the coordinator of FAETEC project, “at first, it was an open
computer class, but it changed into handicraft classes. Some of the products are sold at
Samba School events”.
The Cartola Cultural Centre (Samba Museum) is responsible for the national heritage of
samba and primarily operates in the heritage sector of the creative economy. It offers
museum activities and music/dance/gastronomy events. Even though it has a large physical
space, it is not as popular as the Mangueira Samba School. None of the interviewees have
any projects with the institution. According to an interviewee responsible for other creative
initiatives, “Cartola’s family members keep fighting each other seeking sponsorship […] and
the institution doesn’t allow local entrepreneurs to use their space”.
An example of a creative initiative associated with fashion and based on samba and
carnival is the Ecomoda project, managed by the State of Rio de Janeiro’s Secretariat of the
Environment in partnership with LIESA, the Samba School League. The project provides
training in the production of clothes, bags and decorative objects from materials discarded
at carnival parades. It is not linked to the Mangueira Samba School, but it has links with
other Samba Schools in the city.
In terms of internet connectivity, only Samba School and Cartola Centre have websites
used to promote their activities, but most of the other initiatives have Facebook and
YouTube pages. All the interviewees make constant use of mobile phones to communicate
with work colleagues and clients.

Practical implications
This chapter will relate the results of the research into the creative economy at the Mangueira
favelas and the characteristics of creative economy highlighted in the theory (Howkins, 2007;
Florida, 2011; Caves, 2000; Hartley, 2005), the social innovation aspects of the initiatives
(Bouchard, 2012; Lévesque, 2007; CRISES, 2010; Klein et al., 2009; Murray et al., 2010) and the
aims of social technology (Dagnino et al., 2004).

Creative economy
In terms of physical infrastructure, although Mangueira’s HDI is considered high,
it is important to mention that the area is influenced by its proximity to the city centre and
ARLA the neighbourhood of Tijuca, where people can find schools and medical assistance.
30,4 Another aspect of local infrastructure that affects the use of information technology refers
to irregular access to electrical power: 43.4 per cent of the population in Mangueira
consumes electrical energy illegally. The water supply is good but there is no sewage
treatment[13].
The economic sectors of retail and services, which emerged with the growth of the
524 middle class population in Brazilian metropolises over recent decades, are growing in
Mangueira despite its precarious conditions. The purchasing of electronic products and
mobile phone and computer access to the internet are common tools used by the
interviewees to communicate with colleagues and clients in order to manage their project
activities, including international knowledge on audio-visual and music production.
The results point to an emerging model of network organisation as a social technology in
the management of small and local activities. There is a close coordination between public
and private projects, associated with social assistance and technical schools, with small
businesses and self-employed workers. They disseminate tacit knowledge fostering
creativity, innovation, and cooperation in the implementation of productive steps.
The convergence of governmental efforts and NGOs funded by private sector
sponsorship aims to support children and unemployed young people with social assistance
projects based on arts and traditional cultural resources, promoting local talent.
The frequent presence of foreigners in samba events promotes cultural diversity and an
open-minded environment, in which tolerance is a natural consequence.
In contrast to that which has been pointed out in the creative economy theory, the
initiatives mapped in the Mangueira favelas do not flourish closer to industry concentration.
Even when selling products and services, the annual income of social organisations is low
when compared to individuals and collectives of entrepreneurs, which depend greatly on the
state or on private sponsorship.

Social innovation
The samba network in Mangueira is led by micro and small businesses (individual and
collective entrepreneurs). The existence of a medium organisation (Samba School) creates
opportunities for projects, acting like anchors of aggregation, and distribution of creative
goods and services. These new forms of cooperation and collaboration provide training,
space to work, and publicity for their products and services. Intrinsic aspects of creative
production processes and social innovations are relevant in this network: the importance of
cultural appreciation and understanding of the social, collective, and human spheres.
In terms of their business models and long-term sustainability, the characteristics that
explain their autonomy are correlated to their relationship with clients (motivation to start
the initiative), supply chain, and sponsors. Despite Mangueira being near São Cristóvão
and Tijuca, there are no links of commercial partnership, supply, or consumption with
these neighbourhoods. The motivation to start a creative project in Mangueira is related to
cultural aspects and local development. Also, the reason pointed out by almost all
interviewers was the need “to be close to home”. Partnerships between local residents and
entrepreneurs can be seen by the use of physical workspaces. Most entrepreneurs own
their work facilities, some initiatives occupy borrowed spaces offered by local
organisations, be they private or public. Those which rent or borrow work facilities
have to improvise and make deals without legal contracts, which does not guarantee their
rights of use.
The characteristics identified in Mangueira are in accordance with the organisational
dynamics highlighted by IPEA (2013) and SEBRAE/RJ (2012), where the Brazilian creative
economy is based on small businesses with highly informal business processes, establishing
a genuine standard of flexibility in production networks.
Social technology A case study in
All initiatives mapped in Mangueira operate through low investment costs on products and favela da
processes needed to produce them, in small or medium scale, as observed in their annual Mangueira
income. They optimise human and cultural resources available in their community in order
to maximise social welfare, associated with income generation and employment (in the case
of social assistance and technical training), social and interpersonal ties (the case of samba
network), and the preservation of the environment (with the use of renewable resources, 525
in the case of EcoModa). The social assistance projects, based on traditional and cultural
information, develop individual capacity for critical reflection, especially for the next
generation, increasing peoples’ creative capacities and promoting a process of community
participation in decision-making processes.

Final considerations
The management of creative projects and the dynamics of relationships with local networks
pointed to the identification of contextual social innovations associated with the
characteristics of the territory.
Despite the precariousness of public and private services, there is much human and
cultural wealth in the Mangueira favelas. Both academia and the market have sought to
value the wealth produced in favelas, which experience a powerful sense of community,
already lost in the urban environment. So, the conceptual design of the creative economy
sector in Brazil should begin by understanding how it appears in other areas of the country;
that is, its processes and not its products.
From the perspective of economic production, the literature on creative economy in
low-income communities, such as favelas, is scarce in Brazil. The research project
conducted by LARES (CNPq/MINC/SEC) in Mangueira, Rio de Janeiro, identified new
theoretical and conceptual aspects of creative economy in vulnerable social contexts.
Awareness of the problems, combined with the determination to overcome them and
the appreciation of the distinctive features, acts as a springboard for entrepreneurship
and innovation.
This study results in guided reflections on the understanding of the creative economy as
a social innovation in the context of favelas; the use of creative sector activities to promote
citizenship and the generation of employment and income; the presence of networks made
up of small initiatives linked to larger structured organisations; and the importance of
creative economy activities rooted in local cultural tradition.
Although the theories on creative classes and cities point to the need to access urban
infrastructure, high technology, and higher educational levels, the reality in the Mangueira
favelas is another. The symbolic substrate is strong and full of intergenerational content.
The experience in social projects has led children and teenagers to develop principles of
citizenship and social belonging. The context of favelas has been sharing networks inside
and outside the community, connecting them to public policies and company incentives,
in addition to local consumers. The model of a large organisation that involves, encourages,
and provides knowledge to children and young people will later produce a new generation of
incremental innovations.
The strong partnership between productive-creative activities in Mangueira is motivated
by the local cultural tradition of music, and events such as carnivals and tourism.
Traditional cultural and leisure activities associated with the tradition of the samba
headquarters in Mangueira are recognised as intangible cultural heritage (Instituto de
Património Histórico e Cultural, 2007) and give rise to (with its characteristics) a
neighbourhood which is an economic and creative asset. Another connection is made
through the welfare and training practices of these activities, indicating educational values
and promoting citizenship through arts and cultural expressions.
ARLA Networks fed by social projects of large public and private organisations that support
30,4 the development of smaller enterprises consider these processes an aspect of local territorial
identity, maintaining the sense of financial sustainability, social inclusion, and the
associated improvement of the community’s quality of life.
Innovations are seen as measures that lead to social change, i.e., the transformation of the
relationships that are at the root of social problems. In favelas, innovation can be identified
526 by the management of social projects aimed at social assistance and training income, using
fields of local cultural expressions. We can see in the case of Mangueira that the multiplicity
and breadth of social projects are designed by the interactions between the actors involved
and engaged in promoting lasting social change based on cultural and local social capital.

Notes
1. Interview to the Newspaper Valor Econômico, published in the Ministry of Finance website.
available at: www1.fazenda.gov.br/resenhaeletronica/MostraMateria.asp?page=&cod=1013403
(accessed January 2015).
2. The expression refers to “catch the wave” or seize the opportunities of the market movement.
3. The informal economy is mostly composed of small businesses with limited access to credit,
unable to access the legal system for the protection of property and contract enforcement, since
they are not registered with the government entities.
4. Brazilian Economist and later Minister of Culture, Celso Furtado (1920-2004) is a reference in
public policies to preserve and promote Brazilian culture as essential to national development.
5. IPEA is the Institute of Economics and Applied Research, available at: www.ipea.br
6. SEBRAE is the Brazilian Micro and Small Business Support Service, a non-profit private entity,
available at: www.sebrae.org.br
7. IBGE is the Brazilian Bureau of Census – Institute of Geography and Statistics, available at:
www.ibge.br
8. 1 ha (hectare) is equivalent to 0.01 km2; 10,000 m2.
9. Mangueira is a complex of favelas first occupied during Brazilian colonial years (1839), when
Rio de Janeiro was the capital of the colony. Close to it, there was the king’s family official
residence. After colonial years, the area was occupied by military and federal buildings. During
the 1950s, the important Brazilian Research Institute of Geography and Statistics – IBGE, as well
as the biggest Brazilian ice-cream factory established their headquarters there. Both buildings are
nowadays abandoned, decayed and occupied by homeless families.
10. Human Development Index (HDI) is a statistic index composed of life expectancy, education, and
income per capita indicators, which are used to rank countries into four aspects of human development.
11. Reference to a Brazilian expression in which “to dance” means to fail, or to lose something you
were fighting for.
12. FAETEC is a public institution of secondary, higher, and technical education linked to the
Secretariat of the State of Rio de Janeiro for Science, Technology and Innovation.
13. Find out more at: http://rioonwatch.org.br/?p=7342

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Further reading
Bujor, A. and Silvia, A. (2016), “The creative entrepreneur: a framework of analysis”, SIM/13th
International Symposium in Management, Procedia-Social and Behavioral Sciences No. 221,
7 June, pp. 21-28.

Corresponding author
Cristine Clemente Carvalho can be contacted at: cristine.c.carvalho@gmail.com

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