June 29, 2005

The creativity of the market; exploring the role of the government in creative industries

Stimuleren cultuur en creativiteit verdient heldere motivatie en terughoudendheid

Press release
Wil de overheid cultuur en creativiteit effectief kunnen stimuleren, dan moet steeds duidelijk zijn waarom bemoeienis van de overheid nodig is. Vaak zal de markt goed in staat zijn om slimme oplossingen te bedenken voor mogelijke knelpunten in het aanbod van cultuur en andere creatieve producten.

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Potential market failures are identified using distinguishing characteristics of creative products. Subsequently we assess whether the government has a role to play and possibilities in reach to alleviate these potential market failures.

An important outcome of the analysis is that we should not underestimate the creativity of the market in overcoming potential market failures. Nevertheless there might be reasons (external effects, paternalism) why the government would want to intervene, especially concerning efforts to target underproduction. In those cases it is important to know the underlying causes of underproduction, for otherwise policies cannot be targeted effectively. Given the large heterogeneity of the creative industries and the considerable uncertainties about the functioning of the market, as well as the relevance of market failures and the functioning of government instruments, restraint in policies is recommended.

This publication is in Dutch.


Marcel Canoy
Richard Nahuis
Daniël Waagmeester