Innovations in Creative Industries
Keywords:
Creative Industries, Creativity, Innovation, Productivity, Online games, Knowledge Production Function, CDM-modelAbstract
The plethora of research on Creative industries speaks to the importance of this sector ofthe knowledge-based economy. Creative industries worldwide have witnessed rapidgrowth in the past decade and this has prompted more interest in this sector. Research oninnovation in creative industries on the other hand has been rather limited, althoughseveral studies have indicated useful approaches to the management and organization ofinnovation relevant to the creative industries, however empirical studies in this respectare still far from comprehensive, hence prompting this empirical research on the impactof innovation on productivity in Creative Industries with a focal point on China OnlineGame Industry.This paper empirically studies the links between innovation and productivity at the firmlevel in Creative Industries using Chinese Online Game Industry as the focal point of itsanalysis. This study bases its analysis on the recommendations of the Oslo Manual, thisapproach provides a means to achieve a high level of comparability within the Industry, italso provides standard definitions and indicators of innovation. The paper further adoptedthe scoring matrix approach in order to capture and delineate the various dimensions,dynamics and key features of online gaming enterprises in China. Indicators adopted inthe analysis were selected based on literature review and statistical analysis. The scoringmatrix adopted is based on data obtained from descriptive innovation indicators utilizedin an innovation survey that outlined innovation in the Chinese online game industry. Itranks the firms in the industry based on their innovation intensity as deduced from theindicators.The empirical approach is based on micro data obtained from enterprise-based surveys ofinnovative activity in Chinese online game firms. The paper applied an econometricmodel of Research and Development, innovation and productivity interrelations at a firmlevel similar to that of Crépon, Duguet, and Mairesse (1998) for France, to the micro dataobtained for China online gaming industry.The methodology comprises of:(i) Aneconometric model comprised of recursive equations that explains productivity byinnovation output, and innovation output by research investment;(ii) Micro data ofChinese Online Game firms; (iii) Estimation of the model with econometric methodswhich corrects for selectivity and simultaneity. Through the course of the empirical analysis it became evident that the biases that arise from simultaneity and selectivityshould be corrected for together because they tend to interact.References
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