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Why Do Governments Financially Support the Creative Industries?

In: Tax Incentives for the Creative Industries

Author

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  • Kazuko Goto

    (Setsunan University)

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 .

Suggested Citation

  • Kazuko Goto, 2017. "Why Do Governments Financially Support the Creative Industries?," Creative Economy, in: Sigrid Hemels & Kazuko Goto (ed.), Tax Incentives for the Creative Industries, chapter 0, pages 21-31, Springer.
    • Handle: RePEc:spr:crechp:978-981-287-832-8_3
    DOI: 10.1007/978-981-287-832-8_3
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    Cited by:

    1. Maria del Mar Casanovas-Rubio & Carolina Christen & Luz María Valarezo & Jaume Bofill & Nela Filimon & Jaume Armengou, 2020. "Decision-Making Tool for Enhancing the Sustainable Management of Cultural Institutions: Season Content Programming at Palau De La Música Catalana," Sustainability, MDPI, vol. 12(14), pages 1-24, July.

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