Eugenija Martinaitytė,

Faculty of Economics and Finance Management

Mykolas Romeris Univerity Lithuania

E-mail: eu2martin@yahoo.com

THE FACTORS OF CREATIVE INDUSTRIES DEVELOPMENT IN NOWADAYS STAGE

Rusnė Kregždaitė,

Mykolas Romeris University Lithuania

E-mail: rusne.kregzdaite@gmail.com

ABSTRACT. Purpose. This paper analyzes factors most influencing development of creative industries (CI) in Lithuania in the context of the importance of this sector for the whole economy, using factors analysis and developing integrated CI factors assessment model.

Methodology. The theory of creative industries does not have a systemic approach to the creative industries’ description. There is a lack of consolidated methodology on creative industries’ impact assessment on the economy. Research factors were analyzed using methods of qualitative comparative analysis, which was made by Tosmana software. Method lets to indicate factors’ influence on creative industries development and give recommendations about priority to strengthen factors with high and medium influence in order to use all the economic and social opportunities for creative industries sector development.

Findings. The factors analysis results show, that the high weight factors are: i) private expenditures for culture and ii) creativity index. These factors have a strong correlation coefficient also. The increasing these factors in Lithuania and Estonia are long-run objectives because of linkage to an educational system. Factors with medium influence are: government expenditures for culture, number of patents, and employment rate in R&D and tolerance index. Low weight influence factors are: employment in Creative Industries (CI), export of CI sector’s production, government expenditures for R&D and inhabitants with high education. A factor with no influence on economy growth is participation in cultural activities.

Research limitations. Performing the research it was taken into account several assumptions: the defini- tion of Creative Industries (CI) used in the research based on UNCTAD’s 2010 report. It was used to develop statistical scoring model of Lithuanian creative industries. The narrow range of variable used for the modeling caused by an absence of relevant statistical data. The data consists of 12 indicators, divided into four groups: Economic, Technological, Social and Cultural factors. The model can be expanded to incorporate additional internal and external factors.

Practical implications. The developed model targeted to assess Creative Industries’ impact on the economy may be used to identify opportunities and priorities for strengthening certain areas (sub-sectors) of Creative Industries. An integrated assessment method lets to analyze which factors have high values in leading countries and by comparing it with Lithuania to find factors that used in these countries in order to support influences of creative industries sector in Lithuania.

Novelty. The integrated statistical assessment model for the Creative Industries impact on economy growth in Lithuania is newly developed.

Received: January, 2015

1st Revision: February, 2015

Accepted: May, 2015

DOI:10.14254/2071- 789X.2015/8-1/5

JEL Classification: C52, F43, L82, Z10

Keywords: creative industries, economy development, factors, added value.