Why Do Governments Financially Support the Creative Industries?

Kazuko Goto ()
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Kazuko Goto: Setsunan University

Chapter Chapter 3 in Tax Incentives for the Creative Industries, 2017, pp 21-31 from Springer

Abstract: Abstract This chapter discusses the reasons why governments financially support the creative industries, both from the point of view of cultural policy and economic theory. Cultural policy reasons for financial support of the creative industries include the furtherance of excellenceExcellence , innovationInnovation , and accessAccess ; recognition and celebration of national, regional, or local identityIdentity ; promotion of continuity; and furtherance of diversity. Economic policy reasons include the contribution of the creative industries to the economy; perceived positive externalitiesExternalities ; the desire to redress free riderFree rider behavior; the difficulties some creative industries face for increasing productivity when costs increase; and the desire to reduce the negative effects of the cost structure of many creative industries, where there is a combination of high sunk and fixed costsFixed costs and low marginal costsMarginal costs .

Keywords: Cultural policy; Economic policy; Innovation; Identity; Diversity; Market failures; Externalities; Free rider behavior; Public goods; Impure public goods; Baumol’s cost disease; Sunk costs; Fixed costs; Marginal costs; Economies of scale (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:spr:crechp:978-981-287-832-8_3

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DOI: 10.1007/978-981-287-832-8_3

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