The debate took a close look at the question of maximising positive links between creative industries, the rest of the economy and their contribution towards the whole society.

Officials charged with drafting Europe's first 'innovation act' are looking at ways to boost creative clusters, which are seen as a driver of innovation and job creation.

Jean-Noël Durvy, director of innovation policy at the European Commission's enterprise department, has promised a broader definition of innovation and support for networks of creative industries across Europe.

Speaking at the debate, Durvy said the new innovation blueprint would represent "a paradigm shift" away from focusing solely on high-tech business.

"The traditional concept of clusters needs to be adapted to move beyond groups of technology companies," he said, adding that Brussels is exploring ways to strengthen links between regions keen on beefing up so-called "knowledge-intensive industries".

A platform where European regions could meet to share experience and expertise on the development of creative clusters is one of the measures under consideration, but Durvy accepted that a more concrete policy framework will also be needed.

"Exchange of best practice is not enough. Networking is necessary but what we need is partnerships and business support services. We are developing better support systems for the innovative services industry," he said.

Access to finance remains a headache for creative sector

Durvy said the innovation strategy, due to be published in spring 2010, will look at technology transfer, access to finance and support for new businesses.

The Act is also likely to focus on practical issues like patent reform and making public procurement more SME-friendly.

According to Durvy, who is intimately involved in drawing up the innovation plan, the role of design is likely to feature strongly in the final document. He said design is an aspect of innovation that the Commission has paid particular attention to as a driver of innovation and competitiveness.

This is in line with the priorities set down in the Manifesto for Creativity and Innovation presented to European Commission President José Manuel Barroso earlier this month.

Durvy said all industries should be encouraged to make better use of designers when thinking about innovative products and services.

A fundamental problem for creative industries, according to the EU official, is access to finance. While all start-ups have struggled to secure bank loans in recent times, this has proven to be a particular challenge for knowledge-based companies whose only capital is their creativity.

Hans Martens, chief executive of the European Policy Centre and moderator of the EYCI debates, said Europe has grown too attached to traditional industries at the expense of the creative sector.

"You could see it in who was bailed out during the crisis. It was traditional industries. We have an emotional attachment to these kinds of large physical businesses," he said. Martens added that "asset-light" companies face a major problem in convincing banks to back them because they do not have any collateral.

Miguel Silvestre, coordinator of the Óbidos Creative Cluster in Portugal, said the Internet has made it possible for small urban areas to build a critical mass of creative industries.

"Creativity can act as a driving force for economic development of small and medium urban centres and not just big cities. This can help diversify the economic base and provide opportunities for young people," he said.

Silvestre said smaller towns find it easier to involve creative people in policy development but added that practical measures are needed to entice creative workers back from major cities. In his area, local authorities have renovated old houses for high-value creative workers as part of efforts to attract and retain talented people.

Ruta Prusiviciene, director of the Vilnius Festival in Lithuania, said there is a serious threat that the cultural agenda will be erased from government spending plans due to the severe economic crisis.

According Ruta Prusiviciene, the Vilnius Festival has helped put the cultural sector on the map in Lithuania and now serves as a meeting point where creative people and politicians can discuss how to improve the environment for the arts.

In Lithuania, this dialogue has resulted in tax exemptions for artists and improved links between arts and business groups.

Hasan Bakhshi, director for creative industries at the National Endowment for Science, Technology and the Arts (NESTA) in the UK, said creative industries can have positive "spillovers" for the wider economy.

He said research indicates that companies that engaged with creative services by working with designers and architects are themselves more innovative.

"Innovation policymakers need to understand the role creative industries make, not just because of their direct contribution but because, in a more profound way, they influence innovation," he said.

Anne Marie Boutin, president of the Agence pour la promotion et la creation industriellein France, said education is central to building a more creative workforce. She said all industries must become creative and educators should train young people in cross-disciplinary project work.

"If we want to leave a desirable and sustainable world for future generations, we need to develop creativity in all companies, in public administration, and in civil society," she said.

Boutin concluded adding that if politicians want things to change in Europe, they should set a good example by involving designers in policy building.

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