Knowledge-based Economy vs. Creative Economy

Abstract

Slovakia is not rich in mineral resources, and along with other European countries, it is currently struggling with the financial and economic crisis. One way to get out of the crisis is to stimulate economic growth, for example by supporting the so-called creative economy, which includes all areas of human activity based on original creativity and the value resulting from it. Creative industry, forming the core of the creative economy, consists of industries which have their origin in individual creativity, skills and talent and which have the potential for creating wealth and employment opportunities. Slovakia has great potential for the development of the creative economy, which derives from its cultural, social and geographical context. The aim of this paper is to support the creative industries through education reform. Creative industry in mutual synergy with a knowledge-based economy creates conditions for a strong and sustainable creative economy. It is necessary to remove barriers in science and research, to ensure appropriate protection of intellectual property and to lead towards creativity. Thus, we would like to introduce creative industries into practice through innovative university study programmes designed on the principle of interdisciplinarity and interconnectivity with practice.

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Procedia - Social and Behavioral Sciences 141 ( 2014 ) 413 – 417
Available online at www.sciencedirect.com
ScienceDirect
1877-0428 © 2014 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/3.0/).
Selection and peer-review under responsibility of the Organizing Committee of WCLTA 2013.
doi: 10.1016/j.sbspro.2014.05.072
WCLTA 2013
Knowledge-based Economy vs. Creative Economy
Dagmar Veselá a*, Katarína Klimová a
aFaculty of Humanities Matej Bel University, Tajovského 40, Banská Bystrica 974 01, Slovakia
bSecond affiliation, Address, City and Postcode, Country
Abstract
Slovakia is not rich in mineral resources, and along with other European countries, it is currently struggling with the financial and
economic crisis. One way to get out of the crisis is to stimulate economic growth, for example by supporting the so-called
creative economy, which includes all areas of human activity based on original creativity and the value resulting from it. Creative
industry, forming the core of the creative economy, consists of industries which have their origin in individual creativity, skills
and talent and which have the potential for creating wealth and employment opportunities. Slovakia has great potential for the
development of the creative economy, which derives from its cultural, social and geographical context. The aim of this paper is to
support the creative industries through education reform. Creative industry in mutual synergy with a knowledge-based economy
creates conditions for a strong and sustainable creative economy. It is necessary to remove barriers in science and research, to
ensure appropriate protection of intellectual property and to lead towards creativity. Thus, we would like to introduce creative
industries into practice through innovative university study programmes designed on the principle of interdisciplinarity and
interconnectivity with practice.
© 2014 The Authors. Published by Elsevier Ltd.
Selection and peer-review under responsibility of the Organizing Committee of WCLTA 2013.
Keywords: Creative Economy, Knowledge-based Economy, Creativity, University Study Programmes;
1. Introduction
The world is currently struggling with a serious financial and economic crisis. Until recently, it was the support
of a knowledge-based economy that has been viewed as an efficient tool in the fight against the crisis. However,
there is an increasing belief that the crisis cannot be overwhelmed without the support of the so-called creative
* Corresponding Author: Dagmar Veselá. Tel.: +0421-48-446-4194
E-mail address: dagmar.vesela@umb.sk
© 2014 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/3.0/).
Selection and peer-review under responsibility of the Organizing Committee of WCLTA 2013.

414 Dagmar Veselá and Katarína Klimová / Procedia - Social and Behavioral Sciences 141 ( 2014 ) 413 – 417
economy. This term was used for the first time in 2001 by John Howkins in his work The Creative Economy: How
People Make Money from Ideas. He was the first to highlight creativity as a driving force of economic growth. The
developed world is aware of the importance of creativity, evidenced by the celebration of August 21 as World
Creativity and Innovation Day since 2002. In 2005 this was extended to World Creativity and Innovation Week. The
European Union expressed the same awareness when they declared 2009 the European Year of Creativity and
Innovation. The Year’s main aim was to improve creativity among the entire population through activities covering
various fields: education, culture, entrepreneurship, media, research, social and regional policy and rural
development. In order to draft policies that would promote creative-industry development in Europe, the European
Commission (namely the Directorate-General for Enterprise and Industry) established the European Creative
Industries Alliance (ECIA). This platform comprises representatives of European cities, interested parties of several
pilot projects and experts selected from the whole of Europe.
In 2008 the Creative Industry Forum (CIF) was established in Bratislava, Slovakia as a professional organization
of creative industries. There are two other institutions promoting creative industry – the Centre for Culture and
Creativity Support and the Institute for Creative Economy – both established in Košice, the European Capital of
Culture for 2013.
In its Report on Unlocking the Potential of Cultural and Creative Industries (CCI) of 13 April 2011, the European
Parliament recognised that “as sources of economic and social innovation in many other sectors of the economy,
CCI have great synergising power” emphasizing “the need to pass on techniques and know-how and the value of
reinforcing learning and setting up professional training programmes focused on the cultural and creative sector.” In
terms of CCI development, Europe can draw from its cultural diversity, particularly with respect to its regional
languages and cultures. CCI are, at the same time, playing an important role in the support of this cultural and
linguistic diversity, but also of pluralism and social and territorial cohesion, and in the promotion of dialogue
between cultures across the EU. The European Commission is therefore expected to provide support for the CCI and
education that would enable citizens to gain creative and intercultural skills, but also support for innovation in the
cultural and creative sector through research and education. Existing study programmes should be innovated to
provide multidisciplinary education. Education and knowledge gained about other cultures help our citizens to
understand other cultures, and in this way contribute to their social inclusion.
The CCI are also of strategic importance in terms of achieving the objectives of the Europe 2020 strategy. They
play a key role primarily at the local and regional levels, where they are formed by entities integrated into the local
and regional economic environment, as they stimulate the re-launch of the deteriorating local economy, create new
jobs and make towns and regions more attractive. For these reasons the aim of this paper is to present innovative
university study programmes designed on the principle of interdisciplinary and interconnectivity with practice.
2. The Knowledge-based Economy
While in the past knowledge was not considered to be a main source and a driving force of economic growth and
the raising of the standard of living, in the 20th century society started to realise its importance, and it has since
become an integral part of economic theories and models. The economies of all developed countries are currently
based on knowledge and information, and therefore they are referred to as knowledge economies. Their functioning
is conditional upon creation, distribution and use of knowledge and related information. Information and knowledge
are considered to be the primary and the most productive source of wealth creation (P. F. Drucker, 1993) and have
therefore replaced traditional sources used in the recent past, such as capital and energy, or earlier ones like land and
labour. The transformation of economies into knowledge-based economies is connected with the emergence of the
post-industrial society. In his work Post-Capitalist Society (1993), P. F. Drucker defines two main classes –
knowledge workers who possess knowledge, use it and manage its use (in this case called “knowledge managers”),
and service workers who work on the basis of the developed knowledge. He views schools as socially responsible
institutions that should operate as partners of economic entities and he highlights the need for well-educated
individuals who permanently retrain themselves through lifelong learning. Therefore investments in education,
research and development and IT play a crucial role.
3. Why a Creative Economy?

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The current era has witnessed the rise of a new type of economy based on ideas and creativity. It is fully
demonstrated mainly in urban agglomerations with a natural concentration of a high-qualified and creative
workforce. The term “creative industry” has begun to appear, even in political speeches. Its principal “architect” was
Lord Smith of Finsbury, the British Minister of Culture, who was the first, had managed to implement creative
industry into his government policies and to highlight the economic importance of creativity.
Creative industry, as a phenomenon of economic development in the post-industrial world, offers an alternative
type of growth, even in the economic crisis, thanks to the so-called “creative class”. This class’s emergence has been
mentioned by Florida (2002), among others, who assigned it a significant economic function – the creation of new
ideas, technologies and creative content. He believes that creativity is “a fundamental source of economic growth”
(ibid., p. xi) and “the decisive source of competitive advantage” (ibid., p. 5). Florida takes the view that the creative
class has “the power, talent and numbers to play a big role in reshaping our world” (ibid., p. xi) and is comprised by
scientists, engineers, architects, educators, writers, artists and entrepreneurs. Florida’s understanding of the creative
class has moved from a restrictive interpretation (the creative class as a class formed by the privileged creative
workers, i.e. members of the so-called creative core and creative professionals) to an understanding of creativity as
both a universal competence belonging to each individual and as a fundamental human right (Murgaš, 2011, p. 132).
In the European Parliament (EP) report of 13 April 2011 on unlocking the potential of cultural and creative
industries the term “creative industry” is perceived in connection with the so-called “cultural industry”. It is
characterised by “a dual nature, being economic in that they contribute to economic development through
employment, economic growth and wealth creation, but also cultural, thanks to activities integrating individuals
socially and culturally into society as well as by being involved in promoting values and cultural identities and
developing a European cultural heritage”.
The important role of the cultural and creative industries was also highlighted at the UNESCO Convention of
20 October 2005 on the Protection and Promotion of the Diversity of Cultural Expressions. This role mainly
encompasses the production and distribution of “cultural goods” and provision of access to a wide range of these
cultural goods and services. The CCI to no small extent contribute to international cooperation as well.
A crucial role in creating the conditions for the development of creative industry is played by towns and regions.
Activities in the fields of research & development and education are mainly concentrated in the cities, so in the
interest of the survival of enterprises and educational institutions in fierce competition, but also with a view to
maintaining the employment level and standard of living in towns and regions, it is not surprising that the world's
capitals try to attract talent, industry, technologies and investments. In Western Europe and the U.S. the concept of
so-called “creative cities” (Landry, 2000; Howkins, 2001; Florida, 2002) has been developing for several decades.
This concept is based on the support of creative industry, insofar as the creative potential of the creative class is
urban-oriented.
3.1. Support of the Creative Economy through Education Reform
According to the previously-mentioned EP report, cultural and creative industries account for 5 million jobs and
2.6 % of the EU’s GDP. They create new jobs and serve as an efficient tool in the fight against the current recession.
We are convinced that successful allocation of creative industry within the region requires a high-quality base of
creative workers (Blahovec, 2012, p. 13). Following the analysis of creative class employment in individual Slovak
regions between 2001 and 2008, Blahovec (2012) concluded that the analysed period saw a decline in creative class
employment in all of Slovakia’s regions, with the exception of the Bratislava region. In light of the above we take
the view that it is necessary to mobilise educational activities aimed at supporting cultural and creative industries in
all Slovak regions, but also to develop innovative university study programmes designed on the principle of
interdisciplinary, which would increase not only the creative potential of graduates, but also their employability on
the labour market. From the position of professionals in the educational sector – university researchers and
educators at Matej Bel University in Banská Bystrica (MBU) which represents a centre of the region – we have
decided to support creative industry through innovative university study programmes based on the interconnectivity
of artistic, economic and legal fields with the study of foreign languages. This combination is itself a result of
creativity focused on the development of new study programmes. Moreover, the combination with foreign languages

416 Dagmar Veselá and Katarína Klimová / Procedia - Social and Behavioral Sciences 141 ( 2014 ) 413 – 417
is justified. In our faculty’s (Faculty of Humanities) translation and interpreting programmes, foreign language study
is combined with the study of corresponding cultures, and language skills are considered a “must” in business
activities. Thus, we fully concur with E. Davignon (2007, p. 3) in his view: “Languages provide the keys to the
cultures they represent. Multilingualism fosters openness and tolerance but will also open doors to new markets and
new business opportunities.”
3.2. Innovative Study Programmes and Their Objectives
As we drafted the framework proposals for our new interdisciplinary study programmes, we tried to match
a particular selected field of study with a type of interpreting that would provide “added value” in terms of
graduates’ employability. At the same time, we aimed to enable a student of interdisciplinary study to use the
knowledge and skills gained in one field within the study of another field. However, we have primarily focused on
the demands of practice, which have changed in the current economic context and require more broadly educated
people able to respond more quickly to the changes on the labour market, including those created by study
programmes oriented at creativity. Realisation of these study programmes will require the cooperation of several
educational institutions, which will support networking between colleges and universities. In our case it will be
cooperation between the Faculty of Humanities of MBU and faculties of the Academy of Arts, as well as
cooperation between particular faculties of MBU (the Faculty of Humanities, the Faculty of Economics and the
Faculty of Law). All the proposed interdisciplinary study programmes have a common feature – there are currently
no study programmes in Slovakia that would provide an integrated and carefully developed education with this kind
of orientation.
3.3. Interdisciplinary within Matej Bel University
From a wide range of combinations of programmes, based on the cooperation between faculties that we have
proposed in one of our previous papers (Veselá & Klimová, 2013) we choose two examples:
(a) Law branch of study with Interpretation-Translation (I&T) branch of study, with a main emphasis on legal
interpreting, which would be developed on the basis of cooperation between the Faculty of Humanities and the
Faculty of Pedagogy of MBU. Legal interpreting represents a large field of linguistic and cultural transfer of a
specific type. In strict sense it involves inter-language transfer (interpreting and translation) relating to a judicial
proceeding (courtroom, lawyer's office, office of the public prosecution, police station, prison) and the need for it
has increased significantly over the past decade. During their studies a law student acquires a great deal of
knowledge from various fields of law (international law, public and private law, war and humanitarian law,
international human rights, law of international organisations, the law and legal system of the EU) including
knowledge in the fields of international relations, diplomatic protocol, diplomatic history, conference diplomacy,
etc. They will be able to make good use of this knowledge – together with a competence in translating and
interpreting they have attained in their chosen language and culture – in various jobs at European institutions, in
particular at the European Court of Justice in the Hague, which for the position of interpreter-translator requires, in
addition to impeccable knowledge of a foreign language, a complete legal education at the graduate level. There is
also an important need for qualified interpreters and translators within the regional context of the Slovak Republic.
(b) Tourism Business branch of study and I&T branch of study, with an emphasis on guide interpreting, thanks
to the cooperation between the Faculty of Humanities and the Faculty of Economics of MBU. Guide interpreting is a
specific sphere of activities in tourism. An interpreter-guide provides a new type of professional services. Unlike a
common guide or interpreter, an interpreter-guide combines both these functions and commands a wider set of
competencies (linguistic competence, translation competence, expertise, knowledge of culture, etc.). These
graduates would support regional development and the country's effort to increase interest in domestic tourism that
could contribute, to a large extent, to a higher GDPs.
3.4. Cooperation between the Academy of Arts and the Faculty of Humanities of Matej Bel University
When planning cooperation between universities, we choose the study programmes in which a combination with

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translation-interpretation orientation would contribute to graduates’ employability within the media and culture
sectors. There is a focus on increasing competencies in the field of media interpreting (Müglová, 2009, p. 198), as
well as in the field of multimedia translation, i.e. in various forms of translation for media and new media. These
study programmes may be developed in cooperation with individual faculties of the Academy of Arts (the Faculty of
Performing, the Faculty of Fine Arts, the Faculty of Dramatic Arts). The graduates of these programmes will be able
to operate in regional, private or public media, in cultural institutions and at public administration positions related
to social and cultural life.
4. Conclusion
The creative economy, in synergy with a knowledge-based economy, is able to transform towns and regions into
economically more active and attractive places for life. We strongly believe that educational institutions should
become key partners of local and regional governments in the development and maintenance of creative potential in
towns and regions. We hope our draft of innovative and interdisciplinary study programmes will contribute, after
their implementation, to the enrichment of the current offer of study programmes in the Banská Bystrica region,
attract more talented and creativity-oriented young people to the region and ultimately create the preconditions for
the establishment of vital businesses operating in some of the creative industries, thereby enlivening the spectrum of
the business sector in this region.
Acknowledgements
We would like to express our sincere gratitude to Daniela Ováriová, Ivona Kompišová and Michael Dove for
their enthusiastic help with the translation of the present paper into English and with proofreading.
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