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Innovation and Diversity

Explore the effects of innovation on cultural sectors, including the emergence of new occupations and concerns about homogenization and market concentration. Discover the benefits of diversity and the potential challenges and opportunities that innovation brings.

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Innovation and Diversity

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  1. Innovation and Diversity Does Innovation threaten the Cultural Sectors?

  2. Diversity’s benefits (Stirling, 1998) • Hedging Against Ignorance • Mitigating Lock-In • Accomodating Plural Perspectives • Fostering Innovation

  3. Cultural concerns about innovation • Innovation leads to new cultural occupations… • …at the expense of the existing ones? • …which kind of occupations? • …towards a homogenization of the cultural world? • An homogenization of content? • A dumbing down of revenue models? • A greater market concentration?

  4. Towards a homogenization of content? • Long Tail Vs Superstars - Technologies lead to even more universal presence - A good compromise in view of unlimited choice - Technologies allow greater democratization of production of, and access to, contents - More means to discover new content Source: Anderson (2006)

  5. Towards a dumbing down of revenue models? • The reign of free? • Large development of unauthorized uses • Importance of funding through advertising • Internet particularly well-suited for advertising (targetting audience, interactivity, etc.)

  6. ... Or rather a coexistence of revenue models? • A whole range of hybrid revenue models • Freemium • Buy one thing, get another free e.g. Netflix e.g. iTunes e.g. Hulu e.g. BBC iPlayer

  7. Towards a greater market concentration?The initial view on total disintermediation… Musician Musician Record producer ? Record distributor Retailoutlet Consumer Consumer

  8. Towards a greater market concentration? …instead a new reintermediation… New gatekeepers?... But many gates! Musician Facebook MySpace E-books Users > 60% (US) > 500M Amazon Universal Search Engine iTunes 64% (Eu) Google Live Nation Lastfm Digital Music Sales 69% (US) Consumer

  9. Innovation can allow new and diverse occupations to emerge • From physical to attention scarcity => A need for occupations that help finding what one likes or will enjoy discovering • Innovation brings challenges and opportunities for diversity • Issues of transition • Issues of existing occupations and industries

  10. Thanks for your attentionhranaivo@vub.ac.be

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