54th Congress of the European Regional Science Association: "Regional development & globalisation: Best practices", 26-29 August 2014, St. Petersburg, Russia
This paper elaborates on how the global discourse on creative economy is interpreted in developing countries. We accomplish this by examining how the discourse has been institutionalized in several Indonesian cities. As an effect of decentralization, localities attempt to become a winner among other regions. The creative economy policy is thus pragmatically adopted to boost economic growth. Often these localities do not consider their local contexts before applying this policy. The creative economy in Indonesia is different in nature as interpreted in a different way. Traditional cultural industries are imposed to be included as creative industries, but they hardly perform new knowledge learning and innovation. This policy is implemented also to preserve traditional culture values, while efforts in improving knowledge and innovative capacity are taken for granted. The strong attachment to traditions could be the barrier to developing recent design and innovative products.