Industrial clusters and the creative economy: The case for CCI clusters in South Africa

Abstract

This paper explores the question of the institutional promotion of Cultural and Creative Industries (CCI) in South Africa, arguing for formal, systematic CCI clusters. Firstly, it examines the revived international emphasis on industrial clusters in economic and industrial development strategies. The paper suggests that the growing interest in cluster approaches is linked, in part, to the increased acknowledgement of institutional and social factors in new economic and planning theory and policy. Secondly, the more specific application of such cluster approaches to the CCIs and the creative economy is inspected. This includes the integration of CCI clusters within smart specialization and place-based approaches to economic and industrial development. Thirdly, the paper examines the case for formal CCI cluster interventions in South Africa. The uneven, and predominantly technical application of industrial cluster analysis and policy in the post-1994 era is analysed. The need for systematic incorporation of industrial clusters in contemporary South African industrial policy is considered. The merits of the case for the establishment of formal CCI clusters are then examined alongside select CCI clustering trends. While CCI clustering appears to have increased in recent years, these developments tend to be more organic and/or modest with little articulation within policy and institutional structures. Finally, the paper outlines potential policy measures. A formal CCI cluster initiative is proposed, on a multi-agency and public-private partnership basis, with the South African Departments of Trade, Industry and Competition (DTIC) and of Sports, Arts and Culture (DSCAC as central players. The initiative will look to reinforce the international trade and leverage existing and new incentives.