IntroductionCultural and creative industries with foreseeabledevelopment prospects have become important indicators of urban economy. Thestatistical data of culture and creative economy also reflects the life in moderncities. The Federal Republic of Germany lies at the heart of Europe and is a significantexample of the successful development of the cultural industry.1 Berlin, its capital, is alsoconsidered as the cultural center of Germany for its various cultural andcreative industries.
Its economic structure was gradually reformed andoptimized after the reunification of East Germany and West Germany, andachieved remarkable results since war. Its diversified demographic compositionand unique historical background provide prerequisite conditions for their development.These industries have become an important thrust of the city’s economicdevelopment in the past 25 years. In this essay, I will start with thedefinition of the term cultural economy. Then the development of Berlin’s culturalindustries after reunification will be discussed with vertical comparisons inlast five years. Moreover, I will show the employment statistic in the culturalindustries and Berlin’s cultural industries compared to other industries andother European countries to illustrate their crucial roles in Germany’seconomy. Thedefinition of cultural economyThe controversy of the defining the term”cultural economy” regards to the question of whether culturalproduction was a commercial business in the first place. Unlike the giant multinationalcooperation, most components of the cultural industries are micro studios andsmall teams.
Also, all cultural and creative economic activities had been, asfar as one agrees, rendered as so-called “creativeact”. However, in this essay, I will leave that controversy aside, andconsider these artworks as commercial worksof art (Caves, R. E. 2002) simply for the great profits they produce in thecultural industries.
I will also not address the clear distinction between creative industry and cultural industryeither,2but to discuss them as a whole. In order to do so, I am applying theEurope-wide uniform classification of the cultural and creative industries of the first European cultural economy report3 for the length of this essay. “Culturaland creative industries include those cultural and creative enterprises thatare predominantly economically oriented and that deal with the creation,production, distribution and / or media distribution of cultural creative goodsand services.
“4 1. Publishing / musicindustry2. Film industryincluding TV production3. Broadcasting industry4.
Group of PerformingArts, Fine Arts, Music and Literature(here mainly group ofindependent artists)5. Journalism and newsoffices6. Museum shops, artexhibitions7. Retail sale ofcultural goods (bookstores, music retailers, art dealers) 8. Architects’offices9. Design industry(industrial, communications, graphics, other design) Creative industries10. Advertising11.
Software / Games12. Miscellaneous danceschools, libraries / archives (private equity), botanical and zoologicalgardens, as well as amusement parks and amusement parksCultural economy is acomprehensive term that consists of the upper branches, not only for thereasoning below, but also for the statistical data in the course of the work. Berlin afterreunification: the development of cultural industriesGerman reunification was the starting point for the transformationof the economy in Berlin.
The Gross domestic product (GDP) of Germany rose from€ 65.739 million to € 109.186 million from1991 to 2013. Berlin’s 1991 GDP was1,699,000 and 1,788,000 in 2013.5Growth impetus came from a combination of additional demand for products andservices from West Berlin and the catching-up process in East Berlin. In thesecond half of the 1990s, the economic situation changed into stagnation andnegative growth rates, and lasted until the new millennium. Fourteen yearsafter reunification, in 2004, economic output was below the economic level of1991. Yet the cultural and creativeindustries brought the Berlin economy back on tract from 2005 onwards, even theglobal financial and economic crisis in 2009 did not cease the development6.
Berlin transformed rapidly from a traditional industrial city to a dominantservice-sector metropolis, where the so-called “soft” factors, suchas art and culture, and capacity ofinnovation, tolerance and cultural attractiveness are becoming increasinglyimportant7.Economic output fell by only 1.3% in Berlin, while it fell by 5.1% in Germany.In the period of 2005 to 2013, Berlin recorded much stronger economic growth at18.8% than Germany at 11.6%.8Recentdevelopment: vertical comparison in the last five yearsRevenuesof the cultural and creative industries in Berlin over time (2009- 2013)9The estimates for the cultural and creative industriesare based on national accounting data.
Annual income of themusic industry has increased by several hundred million euros since 2011.Although the table below applies another new statistical methodology (see notechart), the music industry continues to grow in the face of digitalization, thesoftware and gaming market is expected to increase by 12%. The tendency to maintainthe growth is strong in the national market of the cultural and creativeindustries.
Yet the losses in the film and radio industries are minor, it mightdue to the fact that not adapting to the ever-changing digital challenges ofthe new millennium.Employmentwithin the cultural industriesIn 2014, the employment agency offers 218,086 jobspositions in the cultural industry. This includes socially insured employment, secondaryand independent activities.
The employment figures have been steadily increasingsince 2008, which is particularly attributable to the software / games market.At 66%, this represents the largest share of employees of the culturalindustry. In other markets, the average percentage is 40%.
The proportion of self-employed in culturalindustries is enormously high at 53%. In Berlin, which is perceived by many as a city ofarts and culture, the share of employees in the cultural industry is only about9% above average. Yet knowing that Berlin has a population of 3,470,000 in 2015,the percentage does not stand out for a reason. Looking at the absolute figure,Berlin has a large number of 61,754 employees in the cultural industry.
10 Culturalcompared to other industries The total sales of cultural and creative products are consideredand their significance for regional economic performance. Berlin is currentlydivided into so-called sales tax statistics 10 part of the overall economy ofthe country. In this graph, the cultural industry is in sixth place with 15.
6billion euros. The sales are about as large as those of the constructionindustry, and account for almost 6% of all revenue taxable income of Berlin. Thereforein Berlin, the creative industries are an important factor for growth andemployment. Berlincompared to other cities in GermanyThe HWWI / Berenberg-Kulturstädteranking measured thecultural offer (cultural production) and the cultural demand (culturalreception) of the 30 largest cities of Germany by quantitative criteria. Theresults show that the share of the cultural industry in the overall economy, Berlinhas the highest percentage of around 17%. Munich and Cologne occupy the 2nd and3rd place respectively. Berlin has the highest number of artists in Germanyand also Berlin has the highest density of artists. With regard to the absolutenumber, 69,299 artists live in the four million cities of Germany (Berlin,Hamburg, Munich, Cologne).
This is almost 67% of all German artists. Thus, theconcentration of artists in Berlin facilitates personal contact on the spot. It facilitates local interaction andpromotes specialization so that space-dependent external economies of scale,which favor cultural economic activities, emerge.11 Conclusion In the FederalRepublic of Germany, the city seems to have found a new role. It became a placeof the avant-garde of cultural industries. On the one hand, a specialdepartment in the Senate Department for Economics, Labor and Women has beenworking for years at the policy level to promote companies in thisforward-looking segment of the local economy.
In 2005, it published the first Berlin cultural economy report.12This report has made it clear that cultural and creative industries in Berlin (includingsoftware and telecommunications industries) are crucial for the city, and atthe same time are of considerable importance for the labor market. More andmore highly qualified young people from Europe and even from all over the worldcome to Berlin in search of new perspectives and development opportunities thatenrich the creative potential of the city with their ideas. Berlin has been andwill be dependent on this influx of talent for its recent and future economicdevelopment. Bibliography:Bai, Y. &Ling, J. (2013) Culture and CreativeIndustrial in Austrian.
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1 Chmielak, A. (2007). Towards unification of Europe: culture andeconomy. Bialystok: Univ. of Finance and Management.2 Scott, A. J.
(2008). Culture, Economy, and the City. Social Economyof the Metropolis, 84-109.
Cultural Industries and Employment in TheCountries of The European Union: Summary (Education and Culture Series EDUC104A) OL/ DB. URL: http ://www.europa.
eu.int.4Söndermann, M (2009): Guide tothe creation of a statistical data base for cultural industries and atransnational analysis of cultural data, URL:http://kreativgesellschaft.org/assets/files/dokubox/4/Leitfaden_zur_Erstellung_einer_statistischen_Datengrundlage_fuer_die_Kulturwirtschaft_2009.pdf,16.02.2015, S. 5.
5 Office of Statistics Berlin-Brandenburg andFederal Employment Agency (2015), o. S.6 The Governing Mayor of Berlin, Senate Chancellery – CulturalAffairs, (2008), The creative industries in Berlin, Berlin.7 Ulrich Fuchs, (1987), The Importance of the Capital of Culture for Local Cultural andEconomic Development, Culture and the Economy: A Lucrative Connection.
8 Data source: Results of the Working Group National Accounts of theLänder (AK VGRdL), Calculation status August 2013 / February 2014. As therewere no revised long regional VGR series after the 2014 revision at the time ofpreparation of this brochure, results of the preceding data were used.9 Office of Statistics Berlin-Brandenburg andFederal Employment Agency (2015), o. S.10 Office of Statistics Berlin-Brandenburg and Federal EmploymentAgency (2015), o. S.11 HWWI/Berenberg Kultur-Städteranking2014—Die 30 größten Städte Deutschlands im Vergleich.
12 Kulturwirtschaftin Berlin – Entwicklungen und Potenziale. (2005, December 04). Retrieved May24, 2016, fromhttps://www.berlin.de/rbmskzl/aktuelles/pressemitteilungen/2005/pressemitteilung.47401.php