Creative Industries in Brazil: Analysis of Specifics Cases for a Country in Development

This paper aims to focus in a theoretical approach on the traits of the Brazilian CCIs. They are marked by various forms of inequality, but yet experience a high level of cultural diversity. For this reason, we analyze the sectorial development in respect to the creation of employment, income, emphasizing the actions and policies directed to both segments, through information provided by the Social Information Annual Report (RAIS) and the Brazilian Association of Digital Game Developers (Abragames). Also using data from the RAIS, we analyze the factors associated with the development of the fashion industry in the major cities. The analysis of these two sectors of the CCIs in a peripheral country sought to put in evidence the institutional differences, different configurations of companies’ size, average income, educational level and gender composition. However, those differences disregard spillover potential and cross-fertilization between the fashion and games and apps sectors.


Introduction
The Creative Economy has been recognized ever since the 1990s as a range of sectors, services, products, activities, and arrangements that systematize the combination of three things: culture, creativity and innovation. This articulation has allowed approaching questions related to the economic development, Theoretical Economics Letters changing roles of territories in the productive process as well as the social dimension of production, organization and distribution in this New Economy 2 .
The cornerstone of the creative economy is the diversity of practices, products and activities. This diversity mirrors, among other factors, the geographical and social divide of the space where it develops. The relations between the creative economy and regional issues are object of a series of studies that evidence the importance of investigation, guided by the local distinctions [2].
In the case of developing countries, such as Brazil, it is not different, although local distinctions are present. In spite the fact that Brazil has continental dimensions, diverse ethnic groups, providing an incomparable cultural diversity, and the fact it is one of greatest economies in the world and part of the BRICs, there is a series of problems holding back its creative economy. Among them, the disarticulated actions of an industrial policy that concentrates resources in already consolidated sectors, such as automotive industry, oil and civil construction. Also, cultural activities are not given high priority in the distribution of budget resources, having to compete with important areas such as education, health, basic sanitation, among others. To many governmental administrations, culture is still considered superfluous and a luxury, occupying a lesser priority position in the public expenditure. And, when it is chosen to invest in cultural and creative segments, the initiative is restricted to management of extant assets, which fragments and discontinues initiatives. On the other hand, the private sector tends to be dependent on public expenditure, investing in segments where there are benefits of tax exemption and fiscal incentives.
Related to the demand for cultural and creative goods and services, there are many problems concerning the formation of audience, plus insufficient financial and infrastructural resources. The low educational level combined with lack of leisure time and great distance of the main cultural centers from the low income residential areas leads to the usual audience to be composed of elite classes, especially in great urban centers.
In spite of the mildly disheartening context, there are segments of the Brazilian creative economy emerging or consolidating in this scenario, due to the mentioned creative and cultural diversity, initiatives of entrepreneurs, producers, artists and some institutional actions directed to stimulate the cultural and creative industries (CCIs).
In the last 15 years, there has been a discontinuous but important increase of the scope of cultural policies in Brazil. Given this context, in this paper we intend to analyze two CCI segments in the perspective of employment and innovation, with emphasis in regional comparison. Among various activities, two have stood out in the last ten years: digital games and the fashion industry.
The Brazilian digital games industry is an emerging sector, composed of small and medium size companies highly dependent on imported software. However, the degree of consumption was substantially enhanced by the expanded access to 2 This term was created by Baumol [1] to treat the centrality of knowledge and creativity in the economic processes of the paradigm created by the Information and Communication Technologies.  3 . Brazil is the fourth biggest consumer and the eleventh producer in the world (NEWZOO, 2016) [3]. Its capacity of interaction has boosted the implementation of technological centers and start-ups aimed at developing games and apps that cover a wide range of purposes related, for example, the serious games, especially in education, health and entertainment.
In regards to the fashion industry, Brazil has a consolidated textile industry, being the 4 th greatest producer in the world. In this sector, there has been a combination of experiences shared between traditional knowledge, handicraft, and the development of textiles suitable to the tropical climate. The introduction of fashion weeks helped to create an identity in the national production and to give it international visibility. And this synergy between the traditional and the contemporary was enabled by the work of designers concerned not just with international trends, but also with the knowledge and traits of the different regions of the country.
Concerning to analyze those segments that are important to Brazil creative economy and were benefited by Communication and Information Technologies in different forms, this paper intends to identify the presence of competences in human resources with territorial identity, access and use of innovative resources for production, distribution and financing, besides local differences, in a regional perspective. For such, it is divided in four parts, including this introduction.
The second focuses in a theoretical approach on the traits of the Brazilian CCIs.
They are marked by various forms of inequality, but yet experience a high level of cultural diversity. In the third part, we analyze the sectorial development in respect to the creation of employment, income, emphasizing the actions and policies directed to both segments. Finally, the article aims to point out what is specific about both sectors, considering how they are incorporated into the world market. We also discuss the possible interaction of these sectors with each other and with other sectors of the creative economy, as well as the producer-consumer interaction as a way of fostering development and innovation networks. i.e., the theoretical analysis by means of the use of approaches referring to the evolutionary theory.

The ICCs in International and Brazilian Literature
According to the evolutionary theory, based on Schumpeter [11], innovation is defined in economic terms as the creation of new products and processes related to the development, distribution and diffusion of the economy, constituting in a force of support of the capitalist dynamic in the long run [10]. The focus of this literature is in science and technology, related to the technical progress, patents, industrial sectors and the tangible production. However, innovation in services, especially the ones related to the CCIs, becomes evident by its aesthetical, symbolical and intellectual aspect. The focus then becomes the creative and organizational nature of innovation [12] [13] suggests that innovation in these limits presents itself, from one hand, as a cultural process and an innovation of product and, from the other, as technological products of the innovation process.
In this way, the CCIs act as a confederation of activities organized around creation, transformation and consumption of knowledge, ideas and cultural symbols. The productive structure creates and diffuses and also becomes a user of the CITs and, thus, it creates a virtuous cycle that modifies and is modified by the evolving technological paradigm.
Potts [14] sees the creative activity as any one that presents this transformation: the union of human creativity and intellectual property, and treats it as a primary resource not only for culture, but also for the economy as a whole. In Potts [15], he points that CCIs are not only intensive in innovation and rapid growth, since they also overflow these advancements to other economic sectors.
In other words, they promote spillover effects. Bakshi, McVittie and Simmie [16] also emphasize the role and the strong presence of the creative industries in the innovation systems. In a study on the CCIs in the United Kingdom, they ratify the effects of overflowing and the presence of knowledge spillover effects coming from the CCIs to other sectors of the economy. We also have Wijnberg [17], Pratt and Jeffcutt [18] and Lazzeretti [2] that reinforce the use of the evolutionary approach in order to comprehend the relation between the technological innovation and the productive processes in the creative industries. In a synthetic way, the said authors understand that technological innovations under the CITs paradigm promoted modifications in the market structure, companies and, mainly, in the productive processes of the es- On the other hand, as Paglioto [21] points out that the entrance of peripheral countries can contribute to maintain the external dependence, once that the initial conditions continue being unequal in many structural aspects, which reinforces the existence of a dual productive system in terms that are technological, educational, of worker insertion (which represents high rates of informality).
The unequal conditions must be considered in strategies for the propagation of the creative economy in peripheral countries. In 2008, the then Brazilian Minister of Culture, Gilberto Gil, wrote that "the diverse and sophisticated Brazilian cultural production, in addition to its symbolic and social relevance, should be understood as one of the greatest economic assets of the country, capable of  [22]. Since then, with the support of the Ministry of Culture, a series of policies and actions in the three spheres were implemented, but little consolidated due to the political discontinuity.  Secretariat was a sign of the crisis in the ministry and the current government 9 .
Considered what has been exposed, the next section develops a sectorial approach to analyze how the instable expansion of the creative economy in Brazil reflects in practical terms in two of its most important segments in the country: fashion and digital games. They will help us to understand different potentials to the development, in the matter of innovation and employment.

Analysis of the Games and Fashion Sectors in the Institutional and Creation of Employment Perspective
As  [23]. 6 The first mapping of the Brazilian creative industry was published by FIRJAN (Federation of the Industries of Rio de Janeiro), in 2008 [24]. 7 National Bank of Economic and Social Development. 8 Brazilian Service to Support Micro and Small Businesses. 9 In 2017, three different ministers took office.

Digital Games
The digital games industry can represent a key sector to the development of the creative culture as a whole, once that its production has an interface with other  [26]. The initiative was well received by the members of Abragames [27]. In spite of these punctual initiatives, it is not possible to identify a clear public policy to the sector, encompassing regulation and an industrial policy that promotes international competitiveness.
Although not directly identified as policies for the creative economy, there is a number of state and municipal programs that aim to encourage information technology (IT) entrepreneurship, especially apps and games development. In some cases, technology parks are created within educational institutions in partnerships with other entities. In São Paulo, which has the most developed technology network, there are start-ups with platforms to promote work and interchange among entrepreneurs. They organize major events and promote interaction between them and the most diverse segments of the Brazilian economy.
In Porto Alegre, there is the ADJogos-RS (Association of Digital Game Developers), with 30 members, the biggest regional association in Brazil [28]. As Zambon [25] emphasizes, in the digital games market, the innovation is inherent and historically follows the development of this industry starting from the evolution of computational capacity, which strengthens the competitiveness.
This is reflected in the data: while the services sector registered a fall of 4.6% in 2016, the IT sector showed an increase of 4.2%. Analysts consider that the digital games market was responsible for this increase [31].
About 75% of Brazilian producers had, in 2013, annual revenue up to $80,000 USD [32]. The majority of the Brazilian developers run small businesses, with an average of 8.5 employees per company, including partners, according to a BNDES study conducted with 133 companies [32]. Only five employ more than 30 workers. Furthermore, Fleury et al. [32] show that most Brazilian companies use resources from their families or from other individuals as forms of financing (64.7%), followed by incubators (26.3%), and from the non-reimbursable resources (18.8%). Also, as stated by the same study, a large number of companies work with games aimed at entertainment (97.8%), serious games (48.1%) and advergames 11 (30.1%).
The gaming sector is included as part of non-customizable computer programs in the National Classification of Economic Activities (CNAE) 12 . Considering the data from the RAIS for this specific rubric, the number of establishments of this sector diminished between 2006 (consolidation year of the sector in the country) and 2015 (last available database), as it can be seen in Table 1.
The reduction in the number of establishments from 11,778 to 8095 coincides with an increase in the number of formal ties, which jumped from 17,538 in 2006 to 46,056 in 2015. This performance suggests that there is a concentration 10 The Mineira Association of Games (GAMinG) was created in 2016. It has 26 associated development studios, as well as 11 support companies and 7 educational institutions, according to Raoni Aldrich Dorim, president of the association and partner of Mopix Games [29]. 11 Games developed to be interactive advertisements for other companies.

Fashion Industry
Fashion can be considered another key sector for the development of the creative economy in Brazil, especially because of its consolidated relation with the industrial sector. The institutional policy for the Brazilian fashion industry involves various sectors, seeking international projection. With the liberalization of imports in the 1990s, the Brazilian textile industry was negatively affected. It was outdated and unprepared to face competition from imported products, which had better quality and lower prices. It was hence subject of a quick modernization [33]. From this decade on, Brazil was influenced by international fashion trends 15 and this forced national stylists to return to their regional identities.
As a consequence, fashion designers focusing on reflecting the local, popular In addition, the textile industry, which had reorganized itself since the 1980s.

The institutional policies sponsored by the Brazilian Association of Textile and
Fashion Industry (ABIT) have acted to expand national and international markets. They bring into contact brands whose creative products have good quality 15 For example, in 1990, the international luxury brands store Daslu was inaugurated in São Paulo, turning into a centre to spread international fashion trends throughout the country. 16 In 2007, according to SCALZO [33], there was approximately 80 undergraduate fashion schools and 40 specialization courses. Criadores (1997) was created to be an event to discover young designers and new markets, using alternative spaces.
In this perspective, due to their creativity and production capacity, these events have inspiration from other important Brazilian cultural events such as carnival parades, the Parintins oxen and religious festivals. Fashion is now a part of Brazilian Cultural Patrimony.
The acknowledgement of the cultural value of fashion can be identified in the words of the former minister Gilberto Gil during the 2007 Marketing for Fashion Seminary, placing the fashion as "vital part of the Brazilian culture." In 2008, the System Moda Brasil was created, linked to the Ministry of Development, Industry and Foreign Trade, gathering different government representatives and the main private association of the sector, with objective of developing the fashion chain and promotion of Brazilian fashion abroad. In 2010, the MinC publishes the first sectorial research about fashion in its cultural perspective, seeking to contribute for the insertion of fashion in the national agenda of cultural public policies. Also, in this year, the I National Fashion Seminar takes place, during which the Fashion Sector Collegiate of the National Council of Cultural Policies is elected.
By fashion industry we understand that it is the core of design, creation and innovation that gives support to the textile and confection industry, plus shoes and accessories. The FIRJAN considers as part of this creative core the occupations of fashion designers, tailors, models, jewellers and artisans related to production of clothes, shoes and accessories. This core, in 2015, represents 49,000 workers, with an average remuneration of R$1.724. 36% of them are in the state of São Paulo, which has more than half the fashion-related courses [34].
However, the impacts of the fashion industry, in terms of creation of employment and income, cannot restrict themselves to its creative core, due to its importance to the chain as a whole.
In a general way, the fashion as a concept influences many steps of the tex- 17 For example, Auá, a brand from Minas Gerais, was created from a combination of art and modeling, away from the semiannual parades trends. Auá was invited by the ABIT to take part in the Paris fair "Who is next?" in 2011, 2012 and 2013 in order to promote Brazilian artistic fashion works. In terms of employment creation, we have three segments selected from the RAIS data, in the same years: wiring and weaving; clothing industry; and production of footwear, accessories, jewellery and bijouteries (Table 2)   Summarizing, the analysis of the two segments in the CCIs' profile shows different configurations of companies' size, average income, educational level and gender composition. However, those differences disregard spillover potential and cross-fertilization between the fashion and games and apps sectors, as we are going to present in our conclusion.

Final Considerations
Digitalization has allowed the exchange of a variety of information between users. The creative industry is one of the sectors that have benefited most from it. In first place, it allows the allocation of less work or even extinction of certain functions, favoring spatial and temporal flexibility. The content production demands allocation of time and financial resources, but the dissemination of such content costs almost nothing. This increases the capillarity and brings together customer and developers, often anonymously, transcending the concept of a local market into a global one, which has contributed to reduce the number of links in the gaming and apps value chains. For example, app stores have become substitutes for computer distributors.
This trend is already being observed in the sectors connected to the fashion chain [37]. Some authors claim that the sector is going through a "fourth industrial revolution", reforming its entire value chain through scientific and technological bases that are different from those currently employed. With this new scenario in mind, ABIT itself organized an innovation mission in Silicon Valley in 2015, looking to share technology from different segments that could inspire the wiring and weaving sectors [38].
In this perspective, the possibilities of interaction between the different sectors of creative economy become evident. The fashion and digital games sectors are an example of overflowing and cross-fertilization effects. Another clear example is the expansion of the communication channels between consumers and producers in the fashion industry through the "fast fashion" 19 . Considering the increasingly easier and more dynamic access to internet, fast fashion approximates consumers to the production chain, by starting the mass customization process in the factories, and giving designers and promoters a new role. This interaction in the marketing channels can be potentially enlarged using apps that apply virtualization technologies to clothing measurement (using 3D mirrors) and advergames.
The digital gaming sector has a development line based on "hyperreality", which relies on precise movements of 3D characters created with help of specialized software 20 . With a market open to development of national technologies 21 and potential to cooperate with other sectors, such as the fashion one, this sector "continues to seek more realistic and mechanically accurate models" [37]. Co- 19 "Fast fashion can also be understood as a strategy to offer high-quality, fashion-intensive, high-frequency collections that seek to meet consumer demand at its peak, but at relatively low prices" [37]. 20 For example, the British company Natural Motion. http://www.naturalmotion.com/. 21 For example, the Brazilian company Audaces. http://www.audaces.com/. Another important form of interaction between the two sectors, regarding the expected changes in the fashion sector and the current developments in the games and apps sector, would be the use of "serious games" to train new professional profiles appropriate to the changes in the productive base: The use of inputs from other chains, such as sensors and electronic actuators, and photonic filaments, for example, creates unprecedented complexities for the clothing technology, from its conception to its actual manufacture. Former seamstresses should be able to operate different machines in assembly processes involving other skills, other than those that have been required for manual workers for centuries [39].
These lowly qualified professionals mentioned above would have the opportunity to increase their skills to deal with computational tools, digital automation systems, intensive use of data, and new business models. As Fleury et al. [40] point out, the games bring realism and motivation, with potential for significant reduction in training time and greater employee engagement.
On the other hand, the digital gaming industry can also benefit from experiences of the fashion industry throughout its long history in the country, and for being the last full Western textile chain (from fibre production to catwalks). As we observed, the opening to international markets has promoted a national production strongly focused on the values and creativity of the Brazilian identity, which it is still hard to notice in the digital gaming sector. We are still too dependent on foreign content and design. However, an exception would be the game titled "Dream of Jequi", whose theme and art are inspired by the Jequitinhonha Valley in Minas Gerais. The game was selected to represent Brazil in the "Imagine Cup", a competition of technological projects, innovation and games, promoted by Microsoft.

Conclusions
This paper intends to analyze Brazilian CCIs. They are marked by various forms of inequality, but yet experience a high level of cultural diversity. For this reason, we describe the sectorial development in respect to the creation of employment, income, emphasizing the actions and policies directed to two segments, games and fashion, through information provided by secondary data.
The analysis of these two sectors of the CCIs in a peripheral country sought to put in evidence the institutional differences in the foment of their foundations, as well as the creation of value. In this case, the investigation through secondary data (RAIS) shows how employment and income position themselves. Certainly, a case study, recurring to primary data, would turn more evident the formation of clusters in the mentioned metropolitan regions, their innovative processes and its interaction with other segments. Anyway, this paper presented two relevant CCI sectors for the Brazilian industry and their insertion in the world sce- 1364 Theoretical Economics Letters nario, besides their local traits in the distribution throughout the territory, the capacity of using CITs and the formation of a cultural identity, important attributes in the constitution of a creative economy.