Decompose the model of value creation for cultural and creative industry from industrial characteristics

For decades, industrial policies in Taiwan are mostly focus on high technology industries and have developed an effective subsidy models. However, over the last few years, the culture and creative industries (CCI) have become another economic force. The culture and creative industries subsequently gained a new challenge on the political agenda. Moreover, Taiwan successful industrial policy and experience in high tech industries is difficult to transfer to CCI. We think the challenge comes from that policy and subsidy model should be adjusted according to industrial characteristics but there remain important gaps in what we know a lack of understanding of how the industrial characteristics influence the CCI to create value; and a clear view of what the strategic investment competitive advantage in these industries lies. Therefore, we adopted exploratory case study method to analyze deeply one research question: what are the value drivers of CCI. This study found that CCI has four value drivers, which are novelty, complementarity, network externality and resource scarcity. The results of this study will help the growth of the cultural & creative industry in Taiwan, rapidly and successfully improving its competitiveness.