In the past, the terminology of “Economy” refers to how to use or allocate the natural resources, labor, or capital in effective and efficient ways, and this view ignores the value of technology and innovation especially the production of intellectual property but throughout the world currently is struggling to fight with a several serious financial and economic crisis, global economy concerned with technology and innovation is to include in economic and the world competitiveness.
Most of the developed countries are now supported by the knowledge-based economy that was reviewed that as the efficiency tools to helping in developing and strengthen their countries economies. knowledge-based economy refers to the description of the trends of the economy toward to use of knowledge, information, and high skill levels and to the increasing need for ready access to all of these by the business and public sectors.
However, the concept of intellectual property is widely discussed nowadays, and it is very important in the new types of developing economies. Developing economy is based on people’s use of their creativity, imagination to creating an idea value and it is applying of art culture, good and service and research and development which is called “Creative economy”. In short, it is an economic model that includes creativity whether expressed in the art of innovation.
Today the creative economy is becoming a powerful tool to change the world. It is potential for development and is one of the most rapidly growing sectors in the global economy. It is not just only in the term of generating income but it is also for job creation and exports earning.
A creative economy could be defined as the one in which businesses promote creativity, knowledge, and the state of technology that is based on learning in order to create new products-services, new markets, and new jobs. It may be also a driving force to grow to sustain a national economy among fierce global completion, especially in developing countries.
Knowledge-Based and Creative Economy
There are varieties of economic types and each county are modified based on the different kinds of economic. There are agricultural-intensive economies Labor-intensive based economy, Knowledge-Based Economy (KBE), Creative Economy (CE), and Digital Economy.
In this article, we have illustrated the two main types of economic with the first is knowledge-based economy and creative economy.
Knowledge based economy is the use of knowledge to generating tangible and intangible value. Technology and in particular knowledge technology help to transform a part of knowledge into the machine.
The economy for all developed countries is currently based on knowledge and information and therefore they are referred to as a knowledge economy. The most important in this economy is the creation, distribution, and use of knowledge and related information which are considered the most productive source of wealth creation. It was replaced the traditional-based economy that depends on such as labor, capital, energy…etc.
Prerequisite in a knowledge-based economy are four pillars (by World Bank):
- Institutional Regime and Information infrastructure
A key concept of the knowledge economy is that knowledge and education (often referred to as “human capital“) can be treated as one of the following two:
- A business product, as educational and innovative intellectual products and services, can be exported for a high-value return.
- A productive asset
It can be defined as Production and services based on knowledge-intensive activities that contribute to an accelerated pace of technical and scientiﬁc advance, as well as rapid obsolescence. The key component of a knowledge economy is a greater reliance on intellectual capabilities than on physical inputs or natural resources.
The current era of new types of economics base on ideas and creativity. The multiple definitions of the creative economy are defined but we could illustrate in general that it was solely incurred from the development of “knowledge-based economy activities” and upon which “creative industries” are based.
Creative economy By John Howkins: this term is firstly used in 2001 in his work that he described that creative economy is how people make money from ideas. He is the first to highlight creativity as a driving force in economic growth. The creative economy is also the transaction of creating products that have the economic good and service as the result of creativity and economic value.
Furthermore, for some illustrations about CE are the thinking of economic moving that upon knowledge base, education, creative and intellectual property which is a link to the base of culture wisdom, technology, and innovation.
Extracting from the United Nations Conference on Trade and Development (UNCTAD), the creative economy is a relation of concept on creative assets that are generating economic growth and development.
- It can foster income generation, job creation, and export earnings while promoting social inclusion, cultural diversity, and human development.
- It embraces economic, cultural, and social aspects interacting with technology, intellectual property, and tourism objectives.
- It is a set of knowledge-based economic activities with a development dimension and cross-cutting linkages at macro and micro levels to the overall economy.
- It is a feasible development option for innovation, multidisciplinary policy responses, and inter-ministerial action.
- At the heart of the creative economy are the creative industries
The creative industry is forming the core of the creative economy that it consists of industries that have their origin in individual creativity, skills, and talent and which have the potential for creating wealth and employment opportunities.
The creative industry is a new definition of industry components of the economy in which creativity is input and intellectual property is the output.
Creative Economy in Global Competition
The creative sector generates and leverages knowledge and information, and innovation, creating social and economic wealth for society and contributing to sustainable development and the achievement of the Millennium Development Goals. The creative industries also provide opportunities to showcase and support traditional and indigenous knowledge, culture, and practices. Creative industries across the globe represent one of the most rapidly expanding sectors or economies.
The importance of creative industries as a dynamic sector for growth and development is relevant today when the demand for cultural and creative products is growing on a global level and when creativity is seen as an important development resource.
Technological innovation, in particular the digital revolution, has changed the way creative goods and services are marketed and exchanged, creating challenges to current revenue generation but also opening entirely new markets and opportunities.
One of the most crucial elements of this infrastructure is the existence of a supportive regulatory framework and in particular intellectual property rights.
Intellectual Property in Creative Economy
At the heart of the creative economy is the cultural and creative industries that lie on the art, culture, business, and technology, and these activities are all for trade-in form of creative assets and in the form of intellectual property which creativity translate into economic value.
In a Creative Economy, managing the Intellectual Property is more than just obtaining the form of Intellectual Property rights or require an official registration from the National intellectual property office but also it also must be acquired the protect the value of know-how and creativities. In this way, IP strategies should be integrated into Enterprise’s business plan and should be considered the following to adapt with Creative Economy:
- A Policy on Intellectual Property acquisition: A product or service may be contained a variety of forms of Intellectual Property so the enterprise should consider the protection package and bear in mind that Intellectual Property portfolios should be created to ease the evaluation of the price of Intellectual Property. The cost incurred during research and development as well as a model of prototypes is to be included in Intellectual Property creation.
- A policy on Intellectual Property Exploitation: These may including the commercialization of Intellectual Property-Protected products or services, transferring, licensing, franchising, joint-ventures would happen have acquired Intellectual Property rights so this meantime, the enterprise should be considered and make a decision about the best ways of their agreement with the licensee of franchisees to exploit the benefit from their Intellectual Property by both domestically or internationally.
- A Policy on Intellectual property Monitoring: In this strategy, the main activities by searching and monitoring the database of Patents or trademarks regularly because it is very important for enterprises to know about the trend of technical development and new technology. It is also monitoring to activities of competitor and identify possible infringers and avoid infringement of competitors’ rights.
- A Policy on Intellectual Property Enforcement: A clear policy on Intellectual Property enforcement si important due to the loss that may be incurred by the existence of counterfeit goods in the market and the high cost involved in some intellectual Property deputed.