arc centre of excellence for creative industries and innovation 2007 ANNUAL REPORT ARC Centre of Excellence for Creative Industries and Innovation 2 0 0 Creative Industries Precinct 7 Z1-515 Musk Avenue A N KELVIN GROVE QLD 4059 Australia N U P: +61 7 3138 3556 F: +61 7 3138 3723 W: www.cci.edu.au AL R E P O R T a r c c e Major Partners n t r e o f e x c e lle n c e fo r c Australian Research Partners r e a t iv e in d u s t r ie s a n d Australian Industry Partners Select International Partners in n Australian Centre for the Moving Image Stanford Law School Centre for Internet and Society o v Australia Council for the Arts Massachusetts Institute of Technology a t io Australian Film Commission Oxford Internet Institute n Australian Museum Chinese Academy of Social Science Department of Communication, Information Technology and the Arts Creative Commons Worldwide National Museum of Australia Powerhouse Museum Queensland Museum New Partners The Salvation Army Auran State Library of Queensland European Research Centre for Information Systems (Qld) Department of Tourism, Regional Development and Industry Front Cover Image by Jeffery Coolidge, The Image Bank arc centre of excellence for creative industries and innovation annual report 2007 contents 2 Director’s Report 5 Research Director’s Report 7 Research Programs 8 1 Crisis in Innovation 1.1 Creative Digital Industries Mapping 1.2 Evolutionary Economics of Creative Industries 1.3 Broadband Public Policy in Australia 1.4 Creative Resources as Inputs to the Health Sector 1.5 Creative Industries and Innovation Policy 14 2 Creative Workforce 2.1 New Learning Lab 2.2 Creative Commons Clinic 20 3 Citizen Consumer 3.1 Youthworx 3.2 New Literacies, New Audiences 24 4 Enterprise Formation and Sustainability 4.1 Business of Creativity 4.2 Business Process Management 4.3 Enabling Technologies 4.4 Standards and Metadata 4.5 Firm strategy and innovation in the Creative Industries 30 5 Legal and Regulatory Impasses & Innovations 5.1 Creative Commons and Open Content Licensing 5.2 Digital Liberty 35 6 International Creative Content Cultures and Australian Advantage 6.1 Surveying the Digital Future 6.2 Development of the Creative Industries in China 6.3 IP Law in Asia 6.4 Creative Industries and the Development Agenda 6.5 Cultural Economy 42 Federation Fellowship: John Hartley 46 Investigators, Staff and Students 60 Training for RHDs, ECRs, Industry and Government 61 Centre Structure, Governance and Internal Communication 65 Performance against Key Indicators 72 CCI in the Media 76 Publications and Conference Presentations 84 Seminars 85 Grants 87 International and National Collaborations 93 Financial Summary 1 director’s report We claimed that, over a fi ve-year period, The programs we would contribute to a demonstrable improvement in Australia’s national We need to develop a better understanding innovation system. We broke this claim of the dimensions, trends and dynamics of down into several outcome areas: the creative economy (Crisis in Innovation 1. improved understanding and recognition Program). The Centre will address of the nature and extent of the creative shortcomings in statistical assessments industries and ‘creative economy’; of the digital content and broader creative industries; at the same time, it will trace 2. improved understanding and recognition the way creative inputs (whether human, of the value of education and training for economic or technological) are becoming a ‘creative workforce’; more deeply embedded in the wider 3. demonstrations of the social, economic economy. There will be focused policy and cultural value of digital literacy, research around international innovation digital content innovation, and user-led systems, the policy frameworks that support innovation in diverse settings; them, and targeted evidence-building to support advocacy for a more comprehensive 4. improved understanding and approach to innovation. demonstrations of models for sustainable Professor Stuart Cunningham enterprises in the creative sector; A creative workforce is a key longer-term director investment in a creative economy and 5. infl uence and impact on understanding society. The Centre will model and test and policy around digital content and how both formal education and less formal In our application for the Centre of the legal and regulatory impediments learning environments can be assisted to Excellence in 2004, we argued that to growth; respond to challenges of rapid innovation Australia is well known for cultural 6. international leadership in broadening and risk. These arise in particular from inventiveness and creative talent, and and extending the innovation system the increasing impact of knowledge and for being a fast follower or early adopter and the place within it of digital content creativity on the economy, together with of new technologies. It has upgraded and the creative industries. the infl uence of globalisation and new its national policy commitment to technologies across key areas of work research and development in science, These outcome areas map to the Centre’s and experience (Creative Workforce engineering and technology, and its links program areas, which are structured as a Program). to international research networks in set of activities that address key bottlenecks those areas. It has had export success in or gaps in the national innovation system. Over the coming years, the conditions global cultural and education markets. The Centre’s research for content creation and dissemination encountered by the creative workforce Despite these many positive characteristics, (cid:2) identifi es the dimensions and dynamics will continue to undergo profound changes. we claimed that serious problems are of the creative economy; Distinctions between consumption and emerging in securing for Australia the maximum benefi t from innovation in both (cid:2) promotes workforce education and production, labour and citizenship have blurred, allowing new commercial and public the creative economy and the broader training suitable for a creative economy; opportunities in such areas as user-led and service economy. Obstacles to creative (cid:2) theorises and demonstrates ways of ‘pro-am’ (professional-amateur) innovation, innovation may handicap Australia’s future addressing bottlenecks in content open source, and broad-based consumer development as a knowledge economy. We generation and dissemination; creativity as a basis for lower-cost content identifi ed several bottlenecks and missing generation and dissemination. The Citizen links in the innovation ‘chain’ in Australia. (cid:2) assists in improving the business Consumer Program addresses this issue. Our empirical knowledge of the creative structures and practices of creative sector is substantially defi cient. There are enterprises; Content and communication with impact major gaps in our policy frameworks. There and lasting signifi cance will not form simply (cid:2) examines policy settings and regulatory are costly market and planning failures, from a Procrustean bed of generic human regimes and advocates better outcomes such as skill mismatches in the creative creativity. Mechanisms to improve the for creators and consumers; and industries’ labour market. The legal and formation and sustainability of creative regulatory structures controlling cultural and (cid:2) engages at depth with Australia’s place enterprises and the business and regulatory informational products embody conceptual in the region and with crucial export environment in which they work are crucial obstacles to innovation. markets and cultural partners. to an effective innovation system. A vast amount of content is locked up in legacy formats and content management systems, or sequestered by copyright regimes skewed toward powerful aggregators rather than creators, or stored in ‘silos’ because 2 arc centre of excellence for creative industries and innovation annual report 2007 of a lack of interoperability between data Progress toward relied extensively on CCI’s creative economy and metadata systems. The Centre will work to defi ne and map the dynamics of outcomes research and assist the wider adoption of ‘Building a Creative Innovation Economy’. common suites of metadata standards that The current Commonwealth Government’s enable discovery, licensing and delivery of Some three-and-a-half years on from our arts policy shows the impact of CCI’s material which is so critical to lowering the original application, and coming into the work in defi ning the extent, dynamism and infrastructure costs of the sector. This is third year of the centre’s operation, we are relevance of the creative economy, and captured in the Enterprise Formation in a position to indicate progress toward explicitly models its proposed Creative and Sustainability Program. meeting our objectives. For the purposes of Industries Innovation Centre on what in this ‘interim’ report, I will focus only on some China is known as the ‘Queensland model’. The Legal and Regulatory Impasses headline advances. and Innovations Program explores a This refers to our vision for integrated legal and technological environment that is education, R&D, enterprise and digital increasingly beset by differing approaches to Renovating policy on creative creativity built into the CCI’s home at QUT’s the problem of intellectual property. On the industries and innovation Creative Industries Precinct. The Chinese one hand, formidable efforts are being made have sought to emulate this in some of Creative industries and innovation policy to sequester and control IP through stronger their many industry cluster initiatives. We development – at a state, national and copyright regimes and technological fi xes have advised a succession of universities international level - has been demonstrably such as digital rights management; on and governments intrigued by this model infl uenced. In 2003, a research team led by the other, a groundswell of support for of applied humanities and creative practice Stuart Cunningham and CCI Advisory Board open content licensing approaches is aligned to education reform and enterprise Chair Dr Terry Cutler achieved a major now beginning to make its mark. Without development appropriate to the creative conceptual policy breakthrough by placing progress in fashioning a better balance industries. the creative industries within an ‘innovation between these two forces, the future of systems’ analytical framework – a world fi rst. The UK’s National Endowment for Science, Australia’s creative economy and society This framework underpinned the successful Technology and the Arts (NESTA) and the will be measurably compromised. bid for the Centre of Excellence and has since New Zealand department of Trade and It might appear from the foregoing that guided the research agenda of the Centre in Enterprise have engaged us to apply our the challenges can be met with minimal its work in partnership with several agencies. model of the creative economy in their reference outside the nation state. On jurisdictions. Our report for NESTA showing CCI has developed a new model of mapping the contrary, Centres of Excellence must how the UK – the home of the creative the creative economy (the ‘Creative Trident’) benchmark themselves against international industries concept – can improve its data which shows that the sector is much larger best practice and give premium-quality coverage of the creative economy is a good than indicated by any previous fi ndings. Australian research an international profi le. example of ‘bringing coals to Newcastle’. In The Creative Trident can also track the Moreover, an Australian creative economy addition, the Arts and Humanities Research input value of ‘creative occupations’ to the and society is inextricably and increasingly economy as a whole. Council in the UK is using CCI research implicated in our immediate region and with to underpin a contemporary argument for major vectors of trade, interchange and In Australia, during 2008, the Review the place of the arts and humanities in the research. Our sixth Program, International of the National Innovation System is modern economy. Creative Content Cultures and expected to approach the challenge of Australian Advantage, is dedicated renovating innovation policy in ways which to advancing these imperatives. are consistent with, and infl uenced by, Conceptual Advance: creative CCI research. Building up to this, the innovation as an enabling social It is becoming increasingly clear that Queensland government has been using technology progress in meeting the aims of the Centre CCI’s research to refocus its Creative John Hartley’s Federation Fellowship would not have been possible without the Industries Program since 2006, and has focuses on how the modern, print-based, strategic decision to build an unusual degree committed to a medium-term partnership professional paradigm of knowledge- of collaboration into our work, enlisting to deliver a Creative Business Intelligence production is in process of dynamic change input from a range of compelling research Service which will provide in-depth strategic and creative destruction, with the number perspectives in the humanities, creative industry data through to 2009. The Design of multimedia users now exceeding a billion arts, and technical and social sciences. Institute has used our research into the people worldwide. What happens when CCI has research and industry partners in extent of designers’ employment across the ‘publisher-provider’ gives way to the six Australian states and territories and a the economy to help promote design inputs ‘navigator-aggregator’; when agency passes ‘necklace’ of active, prestigious international into manufacturing. Our innovation research from centralised institutions to distributed collaborations ranging across the UK, was used in the development of the national networks? US, China, southern and Southeast Asia, Digital Content Industry Action Agenda Germany, and New Zealand. Outcomes and (2005-06) and the ‘Imagine Australia’ report Together with CCI fellow Jason Potts and outputs are being achieved which would to the Prime Minister’s Science, Engineering postdoctoral fellows including Jean Burgess, have been unlikely or impossible without the and Innovation Council in 2005. More John Banks and Lucy Montgomery, creation of the Centre. recently, the Cultural Minister’s Council has Hartley has completed an intensive period director’s report 3 of conceptual and historical refi nement of As much of this digital content is copyright- Acknowledgements the model of multimedia literacy and the protected, we are challenged to fi nd new evolution of knowledge, providing tools ways of managing copyright in order to I thank the Australian Research Council for for practical implementation projects. harness the potential of Web 2.0 and the its core support of this Centre of Excellence, The team has developed a robust model Semantic Web. One of these has been the and the Queensland University of Technology for understanding the relation between rise of Open Content Licensing (Creative for its generous support as host institution. I individual creative ‘literacy’ and scaled-up Commons (CC) being the best recognised acknowledge the crucial participation of our aggregation of content. Progress has been licence) and its implementation world-wide. other university partners: Australian National made on modelling the relations between Today CC is a global cultural and economic University, Charles Darwin University, Edith producers and consumers in creative force harnessing the value of social Cowan University, Swinburne University of innovation, and on the nature of social networking and internet technologies through Technology and the University of Wollongong. network markets. greater access to knowledge and culture. I also thank all of our other research and Their quest is to see if very long term, Working closely with CC founder, Stanford industry partners for their active engagement population-wide, large-scale processes University’s Professor Lawrence Lessig, Brian in the work of the Centre: the Australasian can be studied in a unifi ed way by paying Fitzgerald introduced the Creative Commons Centre for Interaction Design, the Australia attention to emergent practices among lay project in Australia and has led an outstanding Council for the Arts, the Australian Centre populations, with due understanding of both team of researchers and stakeholders on for the Moving Image, Australian Film human agency and systematic process. CC implementation and policy development, Commission, Australian Film Television and They call this endeavour ‘cultural science.’ both in Australia and internationally. Radio School, Australian Museum, the then Department of Communications, Information The outcomes of this work provide a new The CCI research program has established Technology and the Arts, National Museum of Creative Commons licensing as a tool for model of creative innovation as an enabling Australia, Powerhouse Museum, Queensland Australians to manage copyright in the digital social technology. It is now being tested in Museum, The Salvation Army, and the State age. We have built web resources, created analyses of social network markets from Library of Queensland. the necessary legal documents and made YouTube and Flickr to fashion and music- sharing. Hartley’s team has remodelled them available online, written numerous To our new partners, Auran, European the fraught relationship between games articles and reports, communicated Research Center for Information Systems developers and users, on which the fate widely, and provided training and advice (ERCIS) and (Queensland) Department of a multi-million dollar product or even to stakeholders such as the Queensland of Tourism, Regional Development and a company depends. They are applying Government, Commonwealth Government Industry, I extend a warm welcome. and the Australian Broadcasting their model to the development of creative Corporation, as well as numerous To the Centre’s collaborative web of industries, not only in advanced economies community and web-based organisations. investigators, staff and research students, like the US, UK and Australia, but also in I offer my heartfelt thanks for a job extremely developing countries like China. Australian governments at all levels hold well done. And to all those we have worked enormous amounts of material covered Research results include demonstrating the with over the past year – our Advisory by Crown Copyright. Increasingly, citizens integral role that the creative sector plays in Board, our partners and international want better access to this huge, publicly incubating innovation, stimulating demand for collaborators, and all other stakeholders, funded, yet inactive archive – to improve new products and services, and highlighting I trust that you have found the collaborative research, education, health outcomes, the role of user-generated content in experience of value and lasting benefi t. environmental planning and much else. The developing new business models to enhance application of generic, machine-readable, Finally, I would like to acknowledge two very the sustainability of creative enterprises. open content licences to government signifi cant appointments: Professor Malcolm copyright overcomes licensing roadblocks Gillies, a Chief Investigator and strong Open Content Licensing for the which are a key factor in preventing material supporter of CCI, as Vice-Chancellor at being released or reused. Fitzgerald realised The City University, London; and Chair of the creative, public and educational that CC licences could be applied to CCI Advisory Board Dr Terry Cutler as Chair sectors Crown Copyright in 2004, and has led the of the Review of the National Innovation We live in age when access to digital content development of this worldwide. CCI Creative System. I wish them both the very best in has become a key element in social, cultural Commons has also infl uenced the Australian these new roles. and economic innovation. Linear models education sector, facilitating broader access of production are rapidly being supplanted to content and allowing students greater by more distributed, collaborative, user- creative freedom in producing their output generated, and open networking models. and distributing it to the broader community. Professor Stuart Cunningham Director March 2008 4 arc centre of excellence for creative industries and innovation annual report 2007 research director’s report Governments around the world are are also ahead of the wave in terms of the recognising the benefi ts of bringing together use of sizeable teams, international networks cultural entrepreneurs, practitioners and and interdisciplinary inputs as part of the researchers in a critical mass. In Australia, research process. the Queensland University of Technology has been a pioneer through its Institute of Creative Industries and Innovation, and Production-based to Creative Industries Enterprise Centre. Federal consumption-based Labor’s Creative Industries Innovation Centre will boost the capacity of Australia’s creative innovation industries, maximising their contribution to our cultural life and economy.1 As we have become more familiar with the The implication for the CCI is that we have world of knowledge-based policy formation an unprecedented opportunity to contribute across science, business and government, to policy at the national level, not just in the some of us have been struck by the fact that creative sector, but in relation to the entire much of it still adheres to a ‘production-line’ innovation system. or one-way model of causation. Research Welcome as this development is, it brings investment tends to cluster around the with it risk – in particular, that simply production end of the value chain, to the Distinguished Professor John Hartley because we’re already here, policymakers relative neglect of application, diffusion research director will turn to areas of more urgent reform and use. – other states, other levels of education This model holds sway, whether the (including schools and TAFE), other sectors Innovation: ‘creative unit of analysis is at the ‘macro’ level of (especially consumer services). Meanwhile, industries, the ‘meso’ level of fi rms, or the problem-solving for economic and fi nancial constraints, not to ‘micro’ level of entrepreneurs and artists. mention the response to the challenge of Too little attention is paid to the consumer, practical outcomes’ climate change, will increasingly preoccupy audience, citizen or user. Policy is fi xated the incoming government. on origination. The most common model John Hartley Therefore, as CCI heads into the second half of consumption still sees it as an individual of its fi ve-year funding, it is important that behavioural effect rather than as purposive The chair of the CCI Advisory Panel, we do so with a clear strategic vision of how or creative action. Dr Terry Cutler, has been appointed creative innovation connects with economic, by the incoming Federal Minister for Those who have studied culture and cultural and artistic change. Innovation, Industry, Science and media from a humanities perspective have Research, Senator Kim Carr, to chair A compass to guide us in that direction has long argued that the diffusion and use of a wide-ranging review of Australia’s been provided by Terry Cutler, who sees symbolic values cannot be reduced to an national innovation system. innovation as ‘creative problem-solving for industrial process or Taylorite business plan, practical outcomes.’ Our attention must be with passive consumers waiting in docile but In a media release Senator Carr said that fi xed on ‘practical outcomes,’ but these will expectant anticipation for the latest innovation ‘innovation is critical to Australia’s national differ depending on whether we are looking to plop out of the production pipeline. future. Our prosperity, our economic at the individual, team, fi rm, regional cluster strength and our ability to compete in the Equally, so-called ‘cultural behaviour’ cannot or global ‘focal length’ of analysis. global economy, all depend on valuing be reduced to what a recent Santa Fe innovation.’ He added: ‘In today’s economy, ‘Problem-solving’ will become more central Institute paper defi ned as: ‘individual and innovation policy is industry policy…We in research strategy, not only at the level of community level patterns that are context need to fi nd ways to increase innovation individual projects but also system-wide. dependent and often suboptimal.’2 Science- across the economy.’ Instead of responding to myriad individual based game theorists seeking computational proposals, as the ARC and NH&MRC models for ‘behaviour’ see culture only as an In other words, the broader agenda that currently do, future funding strategies may impediment to self-interested rational action. drives the CCI is now driving the Federal follow the path set by science itself, where Here cultural ‘stickiness’ is cast as a threat, Government. This is not an idle boast. In the interdisciplinary and international teams gather not an opportunity. election campaign the ALP committed $17m around a problem rather than remaining in to fund a Creative Industries Innovation But instead of seeing culture as ‘suboptimal’ isolated specialist disciplines or individual Centre, to develop a ‘critical mass of arts to the expansionist energies of restless projects. Competitive research funding will practitioners, cultural entrepreneurs and capital, it is necessary to see it as a source favour large-scale, problem-based programs. researchers, with access to the latest of values, both economic and symbolic, and technology and business support programs.’ Luckily for us, this is the CCI model – and in as a resource for action, both individual and The explicit model for this is QUT: the humanities and creative arts at least, we institutional. 1 See: www.alp.org.au/download/now/071110_innovation_centre_fact_sheet.pdf. 5 Shifting R&D and policy attention to the linkages? How is innovation itself applied Given the realities of global scale, Australia ‘wrong’ end of the value chain is not, and diffused, and how is it taken up by can’t expect to dominate world thinking in therefore, perverse, for the industrial model consumers as well as enterprises, schools innovation research or any other fi eld. is fl awed at the level of fi rst principles. It as well as research centres, networks and But on the Kelly-Carmody principle that cannot explain the shift from linear causation markets as well as industries? ‘from little things big things grow,’ Australia to a complex web of causation, from can aspire to being a generative seedbed The CCI has an unrivalled opportunity to individual to network, and from behaviour for new ideas; and if it links up with enough contribute to ‘creative problem-solving for to action. These shifts have been enabled partners, it can plan to be a ‘hub’ in practical outcomes’ in this context. In short, at least in part by digital technology (not complex knowledge networks, not we need to be innovators of innovation policy. to mention a long consumer boom). The merely a ‘node.’ We must identify what cultural changes are traditional value-chain model does not needed to accommodate structural reform, Terry Cutler points out that Australia’s recognise the importance of extending social responsiveness, and new distributed market share in the world economy is about to everyone in commercial democracies sources of value (economic and cultural), 2 percent (and shrinking as others grow not only consumer products but also thereby enhancing Australia’s position within faster). In such a context it is not practical to knowledge, agency and entrepreneurship. global fl ows of knowledge, as well as its compete with the other 98 percent, as if we As a result, policy – innovation, industry economic and cultural competitiveness. could beat the big G7 economies, or even R&D, IP and education policies alike – lags the developing giants (Brazil, Russia, India, Both cultural and economic research has behind popular culture in the exploitation of China), on their own terms. historically under-estimated the importance user-led innovation, consumer co-creation, of consumer-led innovation. Cultural research Instead, we ought to focus on links and and the emergent values of social networks. has been more interested in cultural struggle networks among other ‘two percent’ If there is to be a re-think of innovation and power than in the agency that ordinary economies, many of them our OECD policy, it must include a shift from industry people develop in that context, which itself colleagues,3 working out what we to market, from behavioural to cultural has been amplifi ed via the internet and have in common with them, and what understandings of consumption, and from social network markets. Economic research sort of interface we ought to develop disciplinary or hyper-specialised expertise has been blind to the possibility that causal with comparable countries. That way, to team-based problem-solving. It must change and emergent values may emanate ‘knowledge shared is knowledge gained,’ develop active interfaces with communities from the ‘end-user’ of the value chain (on and innovation becomes an expansive, of users, including creative consumers. the reasonable but erroneous assumption multi-national project, not a competitive, that casting consumers as creators amounts zero-sum game. to ascribing ‘cause’ to an ‘effect’). We have taken early steps in our own ‘Knowledge shared is Now, however, with due recognition of the intellectual networks, but much remains to knowledge gained’ technologically-enabled (Web 2.0) growth be done. The innovation system needs a of user co-creativity in any large-scale open creative make-over. Industry policy needs network, we are at a tipping point in our the ‘wisdom of crowds’ as well as ‘long- If researchers on the arts side of C.P. understanding of how values are created. tail’ economics if it is to benefi t from the Snow’s ‘two cultures’ can mount a good We need to take these insights into the distributed but situated creativity of everyone case for how we are already across these policy domain, to show how apparently in the system, rather than just an elite class issues and have something more valuable small interventions may trigger important of entrepreneurs. International collaboration to offer than a devotion to ‘suboptimal evolutionary changes in the system. needs to be scaled up and retained in a new behaviour,’ then we can take a leadership The CCI’s overall position is that the creative knowledge infrastructure, from which may role in the revitalisation of the humanities industries – understood as everything from fl ow new creative energies. – and thence (why not?) in a strategic re- investment in what some of us are already micro-enterprises to global media giants, These are the upcoming challenges and from individual users to global social calling ‘cultural science.’ for the CCI. networks – are the appropriate point for early This is timely in relation to the incoming R&D intervention that will create momentum government’s plans to develop a new national downstream, affecting the economy as a innovation strategy for the next decade. What whole and culture as a whole. The creative are the gaps in Australia’s capabilities? What industries are the living laboratory in which problems need to be solved in the knowledge creativity (as ‘problem-solving for practical John Hartley domain itself –along the infrastructural or outcomes’) is tested, extended socially Federation Fellow, Research Director, CCI ‘stock’ axis of universities and disciplines, and developed, from human attribute to as well as the ‘fl ow’ axis of investment and economic sector to cultural resource. February 2008 2 Jenna Bednar and Scott Page (2007) ‘Can Game(s) Theory explain Culture? The emergence of cultural behaviour within multiple games.’ Rationality and Society, 19:1, 65-97. 3 G7 = USA, Japan, Germany, UK, France, Italy, Canada. The 30 OECD member countries are: Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, The Netherlands, New Zealand, Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland, Turkey, UK, USA. Countries not in the OECD with which Australia compares include Chile and Malaysia. 6 arc centre of excellence for creative industries and innovation annual report 2007 research programs Crisis in Innovation Creative Workforce Citizen Consumer Enterprise Formation and Sustainability Legal and Regulatory Impasses & Innovations International Creative Content Cultures and Australian Advantage 7 1 crisis in innovation program leader: Stuart Cunningham Australia faces a crisis in innovation in the sphere of economic development and policy. This is being addressed at a national level during 2008 with a wide- ranging Innovation Inquiry. Synergistic relations between science, engineering and technology and the dynamic services, consumer and creative sectors of the economy need to be explored and realised. Australia’s ‘creative innovation’ system, while embryonic, needs to be underpinned by a better understanding of the basic dimensions, trends and dynamics of the creative economy. CCI is working to address the shortcomings of statistical assessments of the digital content and broader creative industries, and tracing the way creative inputs (human, economic, technological) are becoming more deeply embedded in the wider economy. We are working hard on new conceptual foundations which can advance knowledge in the domain of the co-evolution of the economic and cultural spheres. There is focused policy research around international innovation systems, the policy frameworks that support them, and targeted evidence-building to support a more comprehensive approach to innovation. 8 arc centre of excellence for creative industries and innovation annual report 2007