Creativity, Incentive and Reward: An Economic Analysis of by Ruth Towse

By Ruth Towse

‘This is a vital paintings on reimbursement of the artist and the incentives for inventive job. The explosive evolution of the expertise of communications increases really urgent matters during this enviornment and poses new threats to remuneration of the artist. The dialogue of copyright during this e-book offers important details for research of this factor. The ebook is informative, clever and good written - accurately what's wanted for figuring out of its subject.’ - William J. Baumol, ny college Creativity is important to the data Age economic system. it's the foundation of creation within the cultural industries. during this first-class booklet, Ruth Towse presents an research of the interplay among creativity, the legislation, and markets for cultural items and companies. Copyright legislation establishes estate rights that create fiscal incentives to cultural creation and Ruth Towse makes use of her research to attract conclusions approximately coverage on copyright. This exact research should be of curiosity to these in economics, legislation, cultural stories and administration.

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2 The cultural industries, copyright and cultural economics 35 employment at any one time in the cultural industries and about the growth of the employment they provide, however defined. COPYRIGHT AS THE BASIS FOR DEFINING THE CULTURAL INDUSTRIES A unifying feature of the cultural industries is that at their core is creativity protected by copyright. This has been explicitly recognised in the UK where copyright is now viewed as the organising principle of the creative industries. The Creative Industries Task Force set up to review cultural policy took as its definition: those activities which have their origin in individual creativity, skill and talent and which have a potential for wealth and job creation through the generation and exploitation of intellectual property.

Cheung (1986) is relevant to this question; he argues that unless both parties, licensor and licensee (author and publisher) share revenues, the licensee will obtain information on the value of the invention, which is otherwise not signalled directly to the licensor. Put simply, authors have the incentive to overstate the value of their work and publishers to understate it without full information. An alternative to droit de suite is to give artists an exhibition payment right, a share of the entrance charge to public exhibitions of their work (Santagata, 1995).

The doctrine is known as fair dealing in the UK; in the USA and the UK exceptions and limitations are judged in the context of the case. In other countries they are specified by statute (see, for example for Netherlands, Holzhauer, 1999). 9. Liebowitz and Margolis (1995) have argued in opposition to Menell, however, that the concepts of market failure and network effects are considerably overrated. 10. Their argument as outlined above was about works in the public domain; they also deal with the related issue of derivative works (Landes and Posner, 1989).

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