This research aims to develop an economic analysis of innovation that is applicable to a range of cultural institutions.

Key findings: 

• There are four categories of innovation common to cultural institutions. These are innovation in: audience reach, art form development, value creation, and business management and governance.
• Digital technologies allow arts and cultural organisations to exploit their cultural assets and create more value. Museums and galleries are already starting to take advantage of opportunities offered by the internet and digital technology.
• By exploring the innovation strategies of the Tate and the National Theatre, the project is expected to yield lessons for, and gain the attention of, arts and cultural organisations more generally.

In most industries, including the creative sector, innovation is key to gaining competitive advantage and enhancing growth prospects in difficult times. But the concept of innovation itself is not at all clearly defined when applied to organisations in the arts. Little is known about the various ways in which these institutions engage with, adopt, utilise and contribute to processes of innovation.

The aim of this research project is to develop an economic analysis of innovation that can be applied to a range of cultural institutions across the different areas in which they operate. It also aims to generate robust empirical evidence, in particular on how they can use innovative digital technologies to expand, and deepen their relationships with, audiences. It draws heavily on experimental case studies with two of the UK's premier national cultural institutions, the National Theatre and the Tate. 

Authors:

Hasan Bakhshi and David Throsby