Leveraging Global Trends: How Creative Industries Can Benefit Smaller Communities and Rural Areas
Ragnar Siil is a founder and managing partner of Creativity Lab – creative economy think tank and consultancy in Estonia and Latvia. He is an expert in cultural policies and creative industries development strategies. In 2016-2018, Ragnar worked as a Key Expert at the EU-Eastern Partnership Culture and Creativity Programme, advising governments, cultural operators and other stakeholders from Ukraine, Georgia, Moldova, Armenia, Azerbaijan and Belarus in strengthening cultural and creative sectors in those countries. Ragnar is a former Estonian Undersecretary for the Arts, a member and a chair of the EU Expert Group on Cultural and Creative Sectors, as well as an expert at the European Creative Industries Alliance’s Policy Learning Platform and the European Commission’s platform Voices of Culture.
The creative industries have become integral to various facets of modern life, shifting from consumption to creation. How do you see this evolution impacting traditional economic sectors, and what implications does it have for cultural policy development?
In today’s fast-paced, turbulent, and increasingly automated world, creativity has become incredibly critical. It is a key skill for the future, giving us an advantage as we face an uncertain tomorrow. Art and dance students often question the viability of their professions and their potential to earn a decent living. I firmly believe that creative professions do have a future. Even if the art pieces or dance acts they produce were to become less central (which I hope is not the case), their approach to critical thinking, creativity, and communication skills will become increasingly valuable as the world grows more complex.
Thus, creativity, creative professionals, and creative industries will significantly impact our lives and the more traditional economic sectors surrounding them. This impact will be fundamental and, in many cases, could be a matter of life or death for some traditional sectors. In a globalised, hyper-competitive world where mundane routines are easily automated, staying a step ahead is crucial. Creative industries are known for being at the forefront of innovation, pioneering new paths amid growing uncertainty. This is good news for creatives.
How does this influence the development of cultural policy, and should it? Principally, the role and importance of culture are growing, even if politicians fail to acknowledge it. Consider the European Union: while some perceive it merely as an economic union, it has become clear that without a cultural and creative component, the EU risks failure. Nationally, cultural policy intersects with education, innovation, regional development, entrepreneurship, defence, and more. Culture deserves more attention, integration, and funding—no doubt about it. However, while culture is a broad and integrated area, we should avoid diffusing or diluting it excessively. As long as culture receives its fair share of attention across other policy areas, cultural policy itself can focus on the unique roles of arts, culture, and heritage, the resilience of the sector, and ensuring the growth of the next generation of creatives and their audiences.
You have played a significant role in shaping Estonia’s cultural policy and creative industries policy. How do you approach the task of drafting cultural policies that balance tradition with innovation, and what guiding principles do you consider essential in this process?
I know I risk sounding like a broken record, but it truly is all about the process. Papers, documents, drafts, and strategies come and go, but human relationships endure. For me, strategy building is fundamentally about building trust. It involves listening, finding common ground, making necessary compromises, and gaining a clear understanding of the sector’s actual needs, priorities, and specific action plans to achieve objectives.
A good strategy process is transparent, open, and engaging at every step. Back in 2010, when we were preparing the Estonian cultural policy, we didn’t just prepare a draft with a small group of experts and then send it to stakeholders for comments with a two-week deadline. Instead, we invited sub-sectors to rally around key stakeholders. We gave them six months and funding to organise workshops, meetings, and expert groups, asking them to provide the Ministry with their proposals, recommendations, and needs analysis in any format they chose.
Too many strategies and policy papers are focused on words, elegant descriptions, and appealing graphics—a style I’ve employed myself for years. These often result in what I like to call a “menu-type” strategy, where everything is discussed but rarely what truly matters. A good policy or strategy should help you make choices; it should allow you to prioritise and decide on alternative scenarios. Having a 128-page strategy document where the vision, objectives, and action plan start on page 85 is not acceptable. If you can’t produce a concise, clear, and focused policy document, or at least explain your strategy in a two-page format, something is wrong.
As a Key Expert at the EU-Eastern Partnership Culture and Creativity Programme, you advised multiple countries on strengthening their cultural and creative sectors. What did you gain from working across diverse cultural contexts, and how did these experiences shape your understanding of effective cultural policy?
Over the course of my professional career, I have worked in over 35 countries across Europe, Africa, the Americas, and Asia. My engagements have ranged from short-term projects with municipalities and NGOs to assisting national and local governments in drafting cultural policies and creative industries roadmaps. These experiences have been eye-opening, broadening my perspectives, allowing me to familiarise myself with different realities, and teaching me what works and what doesn’t. Above all, they have made me humble.
While chairing the EU Expert Group on creative industries and working with (then) 27 Member States, I thought I understood the world of culture and creative industries. However, working in places like a small community in Namibia (where I had the honor to collaborate with UNESCO), Sint Maarten in the Caribbean, or discussing circumpolar cultural mobility with indigenous peoples from Canada, Greenland, and Finland, I realised how much there is still to learn.
Helping countries like Ukraine, Georgia, Moldova, and Armenia to reform their cultural policies and establish a creative industries support system has been a lifetime honor. Despite experiencing war and instability, the resilience of the people, especially the youth, is evident. For instance, the current events in Georgia show that as long as people stand united and express their desire to be part of Europe, there is hope.
This brings me to a major lesson learned: Building strategy is building trust. In Western and Northern Europe, people generally trust their public institutions. They might not always agree with the government, but the institutions have legitimacy and are seen as partners in shaping an effective cultural ecosystem. Conversely, in many Eastern Partnership countries, there is a significant trust deficit that is difficult to bridge. Creative professionals and government representatives often view each other as adversaries, leading to engagements that are mere formalities and debates that are perceived as attacks.
Being from Estonia, I find it easier to navigate these environments. Estonia serves as an inspiration for many countries—it’s small, savvy, innovative, digital, and has a vibrant cultural scene that punches above its weight. We understand the difficulties these countries face in building modern, open, and innovative societies because we’ve been through similar challenges. We also share the misfortune of having a militant neighbour that disregards international law. This creates an opportunity for mutual learning.
Given your extensive experience in cultural policies and creative industries development, how do you perceive the importance of collaborative innovation policies in addressing grand challenges such as the Green Deal, digital transformation, and inclusion within the creative and cultural industries (CCIs) at the city level, particularly in cities like Kosice?
My PhD research focuses on the role of culture and creative industries in smaller and medium-sized towns and regions, a topic I find particularly fascinating. Global experience shows that creative industries tend to cluster in metropolitan areas. Therefore, understanding how these industries can benefit smaller communities, whether towns on the periphery or rural areas, is crucial.
It’s clear that creative industries are often very location specific. Consequently, many effective policy interventions also occur at the local level. These industries require a favourable innovation ecosystem, and cities like Košice are often more agile and precise in providing what the cultural and creative sectors need to maximise their potential. This support might include networking and clustering opportunities, investment in physical infrastructure, and support for creative entrepreneurs along the value chain.
Understanding the mutual impact of different sectors is also crucial. Grand challenges, such as the green transition, digital transition, and social inclusion, affect the creative industries, which, in turn, can help mitigate these challenges. Boyd Cohen, an urbanist and climate strategist from the US, outlines three stages of Smart City development: Smart Cities 1.0 are technology-driven, leading to an increase in applications, screens, and gadgets. Smart Cities 2.0 are technology-enabled but city-led, meaning development is driven by cities rather than technology providers. In the best cases, city administrators use technological solutions to enhance their citizens’ quality of life. Smart Cities 3.0 focus on citizen co-creation, grounded in social inclusion and transparency. Unlike the isolation possible with Smart Cities 1.0 and 2.0, truly engaging and co-creative smart cities require not just technological readiness but a cultural shift.
An ongoing project, Cycle Up!, led by the Goethe-Institute and co-funded by the European Union, exemplifies this by using artistic solutions and interventions to create more cycle-friendly cities in Poland, Slovakia, Czechia, Estonia, and Germany.
How do you see the role of open innovation in fostering a more resilient and adaptable creative sector in cities? And what are the implications of creative clusters for the development of local and national economies? How do these clusters foster innovation and collaboration in the creative industries?
Open innovation, and in particular an open innovation ecosystem is a foundation of a successful and impactful strategy for more resilient communities and cities. The way we have understood the open innovation and its ecosystems in the Ekip, the European Cultural and Creative Industries Innovation Policy Platform, is that it is a multistakeholder environment, which is focused on cross-organisational and cross-sectoral collaboration with the aim to co-create shared value through radical change in complex transitions.
The cities and other sectors need the creative sector as much the creative sector needs them. Open innovation is not just about making the creative sector more resilient and adaptable (which it does), but the creative sector helps to make other sectors and cities in general more liveable, more competitive, more sustainable and more resilient.
And this is where clusters come in. Clusters play a pivotal role in the growth and sustainability of creative industries by serving as dynamic hubs of networking and coordination. These clusters, often geographically concentrated, foster an environment where individuals and companies from various sectors can collaborate, sparking innovation and cross-pollination of ideas. This cross-sectorial interaction is vital as it allows for open innovation where traditional boundaries are crossed and new concepts can be born, integrating diverse technologies and artistic disciplines. Moreover, clusters act as a mechanism for achieving a critical mass, providing the necessary scale to compete effectively in national and global markets. In creative industries that are typically fragmented, clusters help in consolidating resources, talent, and ideas, enhancing visibility and collective bargaining power. The synergies fostered within these clusters are essential for catalysing economic growth, attracting investment, and driving the creative industries forward, making them indispensable in today’s rapidly evolving environment.
As the founder of Creativity Lab and a thought leader in creative economy development, what do you see as the most pressing challenges facing the creative industries today? How can policymakers, cultural operators, and creatives collaborate to address these challenges and drive sustainable growth in the sector?
The creative industries face many challenges today, reflecting broader economic, technological, environmental, and societal shifts. One of the most pressing challenges is the effects of digital transformation. While technology offers unprecedented opportunities for reaching global audiences and streamlining creation and production processes, it also presents significant disruptions. Traditional business models, particularly in sectors like music, publishing, and media, have been upended by digital platforms that alter how content is produced, distributed, and monetised. Navigating this digital landscape requires not only new skills and knowledge but also innovative approaches to copyright management and revenue generation.
Another major challenge is economic sustainability. Many creative professionals and smaller enterprises struggle with financial instability due to irregular income streams and the project-based nature of much of the work in this sector. The creative industries are composed of mostly nano and micro companies, the sector itself is fragmented. This issue was further exacerbated by the COVID-19 pandemic. Securing funding and managing cash flow remain critical issues, with many creative entities relying heavily on external funding and grants to survive.
Cultural policy and regulatory frameworks also pose significant challenges. The need for supportive legislation that understands and nurtures the unique needs of the creative sectors is crucial. However, many existing policies are not adequately adapted to the realities of the creative industries, inhibiting innovation and limiting growth potential. A lot of work needs to be done to raise awareness of both the policy makers as well as investors and stakeholders from other industries. We need more and better data to qualify and quantify the true impact of creative industries.
We need a more coherent and integrated approach to supporting creative industries. Politicians often favour visible, short-term projects, especially before elections, because these allow them to cut ribbons and garner publicity. However, it’s essential to shift from these project-based, short-term solutions to structural changes with a long-term perspective. Mayors around the world frequently ask me what the single best action is that they can take to enhance the creative industries in their city. Unfortunately, I always must inform them that there is no one-size-fits-all solution, no single initiative that will solve everything. It’s not about converting one building into a creative centre, launching one funding program, or organising one event. The key is to strengthen the overall creative ecosystem, which, although it may sound less appealing, is genuinely effective.
Together with CIKE, you are part of Ekip project. One of project’s goals is to create a pan-European network for CCIs to facilitate knowledge sharing and policy development. What do you believe are the essential components of a successful network of networks among cities, and how can such a network effectively bridge the gap between diverse creative sectors and other industries in urban areas?
The Ekip (European Cultural and Creative Industries Innovation Policy Platform) will create a pan-European network that would facilitate knowledge sharing, collaborative innovation, and coherent policy development across the continent. Such a network would not only connect different creative sectors but also bridge the gap with other industries and local innovation ecosystems in cities. As I mentioned earlier, creative industries are deeply rooted in the local ecosystems, thus, cities and other local and regional authorities play a crucial role in creating a sustainable and competitive environment for the cultural and creative sectors to grow.
For this network of networks, which includes cities, to be effective, we have developed a comprehensive, bottom-up integrated approach called a policy engine. The policy engine includes identification of key trends and innovation areas that need further development. Those emerging themes are then prioritised, based on the actual needs of the sectors as well as cities. The selected themes are then investigated by data collection, social listening, primary research and city level surveys. This will lead to policy formulation, which will be done through involvement of diverse group of experts and stakeholders in number of policy labs. The results of the policy labs will be validated and further tested in city context. The cities play an important role as hosts to open innovation systems which will implement innovation portfolios, build capacity and develop new tools for other cities to follow the suit. The outcomes of the entire process will be shared with the public through reports, case studies, trainings and the Knowledge Bank.
I know, it all might sound overwhelming, but essentially the Ekip itself is an open innovation laboratory, putting in practice co-creative design practices for generating new solutions to set up stronger and more resilient creative industries ecosystems. For cities across Europe this is a wonderful opportunity to get new insights and proven tools to put in place effective measures which would help them to maximise the creative industries’ potential.