RESER 2000

Rapport 2000

'Beyond the Economic? Cultural dimensions of services'
The RESER Survey of Service Research Literature in Europe 2000
A report on 7 national reports
Christof Ellger

Sommaire :

1. Introduction
2. But what, then, is 'culture'?
3. 'Culture' in the humanities/social sciences: the "cultural turn"
4. Cultural institutions as a subsector of services - a double growth sector: in reality and in research
5. Further aspects of 'culture and services'
6. An (interim) conclusion
7. Bibliography

The relationship between culture, economy and institutions is at the core of the interest of today's economic research.
Andrea Bergami and Lanfranco Senn in the Italian country report

1. Introduction

On the occasion of its X. Annual Conference held in Bergen, Norway in October 2000, RESER, The European Network for Research on Services and Space, presented for the forth time a survey on trends in services research in a number of European countries where the network is established. The idea for this survey was born in 1996 and owes its origin essentially to Peter Daniels, at that time president of RESER. He conceived this transnational survey of the literature as an instrument to find out about dominating themes, but also about new themes in services research - themes which are common to several or all of the countries covered, or themes which are specific for one country but can potentially be of interest for other countries and for the work of the network and the service research community as a whole. Taking this idea somewhat further, the report may also be a source from where deficits and wants in service research can be gathered, again both on the level of individual countries as well as on the network and European level. In sum, the survey's purpose is also to stimulate discussion about forthcoming services research, by individual or several RESER teams and by the network altogether.

For the first two years of its existence, the authors of the progress reports ploughed through the recent publications and research reports on services studies in their countries (and languages) and reported on these, considering all kinds of thematic orientation and only accentuating personal and/or national preoccupations within the field. In 1998 it was decided that the annual survey should cover one specific subject rather than services research in general, as the total field seemed too wide to be covered in such an undertaking. With this decision, the annual survey theme was linked to the motto of the RESER conference held in the year of the presentation of the report .
In 2000, the task of preparing the survey has been an especially difficult one, as the theme of conference and report was "Beyond the Economic? Institutional and cultural dimensions of services". The reason why contributors have been complaining about the project is that the word in focus - 'culture' - is such a vague, complex and multi-dimensional concept, however interesting, future-oriented and, of course, fashionable it may be as an area of increasing economic and societal importance. In addition, the field designated by "culture" is almost endlessly wide: 'Culture' is such an ample term and covers such an enormously broad spectre of aspects. What in social science and in "cultural studies" today does not have a link to either 'culture' or 'services'?
The authors of the individual country contributions to the report are: Andrea Bergami and Lanfranco Senn (Milano) for Italy, Trine Bille (Kopenhagen) for Denmark, Metka Stare (Ljubljana) for Slovenia, John Bryson (Birmingham) for the United Kingdom, Luis C�sar Herrero Prieto (Valladolid) for Spain, Peter Sj�holt (Bergen) for Norway and Christof Ellger (Berlin) for Germany. The last-mentioned is also in charge of the synthesis presented here. Unfortunately, promised articles on France and Portugal did not arrive, which, certainly in the case of France, excludes from this report some of the most original research in recent services studies.
It was the announcement and the call for papers for the X Annual RESER conference in Bergen which served as a basic guideline for composing the survey. It included a rather detailed description of the topic along with an extended list of sub-topics. Given the scope of the field and its reflection in the various disciplines and countries represented in RESER, individual approaches to the subject are necessarily strongly selective and highly idiosyncratic; the contributing colleagues or teams follow very different approaches. These are, however, much less influenced by country trends and national specificities but rather by the concepts and perspectives of the discipline in which the individual author/s is/are based. There is essentially a distinction between the economists' reports from Denmark, Spain, Italy and Slovenia and the geographers' reports from Norway, the United Kingdom and Germany. Most of the contributors leave out the 'institutional' aspect altogether, with the exception of Norway and Italy (discussing the privatisation debate in traditionally public services as an institutional question). For the majority of the authors the field of the cultural aspects seemed already wide enough indeed to be worked through in their surveys, and they refrained from combing yet another area of similarly wide scope.

To characterise the country reports somewhat more exactly, a brief typology of the contributions may be added here. The Danish and the Spanish reports were both commissioned to scholars from outside RESER concentrating on the more narrowly defined field of Cultural Economics, which can basically be regarded as "Economics of the Arts". Both reports are excellent surveys on this particular field; they thoroughly present basic concepts as well as present-day applications in this subdiscipline in the two countries (and in the international discussion). They miss perhaps the inter- and transdisciplinary breath of RESER work which is documented in some of the other contributions, which, in turn, however, are somewhat more superficial regarding special subfields of the given subject matter. The Italian contribution also focuses strongly on culture as a service, but, in addition, includes a chapter on (cultural) changes in financial services. The Norwegian report, too, looks essentially at culture as the arts and its importance for metropolitan areas and for tourism, but also highlights research about institutional aspects of services. The tourism aspect of cultural monuments and institutions also comes up in the Slovenian contribution alongside with a discussion on service culture, two service aspects which seem quite topical for the discussion in a country which finds itself in the transformation situation after the "system change" from state socialism to capitalism and relies on tourism as one major development strategy. (There is no other 'transformation' country covered in the survey, but literature on East Germany is included in the German survey). The British contribution is altogether different from these reports in that it concentrates on the "cultural turn" in economic geography, which, as a rather "strong" subject in the United Kingdom, represents here social science in general. In doing this, the British report uses a different concept of "culture", namely the "non-economic" or "non-socio-economic", which can be regarded as a new (or rediscovered) source of topicality and explanation in social science. The German report lies somewhat between these approaches: In German social science the "cultural turn" has also been recognised and is explicitly discussed at the end of the 1990s. This discussion is presented in the report. In addition, however, studies on culture as the arts (and therefore a specific conglomerate of services) are covered as well.
Preparing this "survey of surveys" the reporter responsible for this synthesis relies very much on his own contribution on the German literature on "culture and services", as it seems to provide a suitable frame for the topics treated in all reports. The contributing colleagues are asked for their understanding. In the presentation here, therefore, the other country reports shall be treated as products in their own right and quoted as free-standing papers with the authors' names and the country code.

2. But what, then, is 'culture'?

We are dealing here with a difficult term, even more so as the word "culture" probably has varying connotations in our RESER languages (which, seen in a global perspective, are still rather close together, after all). For instance, one aspect of "Kultur" in German is perhaps better expressed in French or English by "civilisation". (Thus, Huntington's title "Clash of Civilisations" has been translated as "Krieg der Kulturen" [literally "war of cultures"] in German).
There are at least four dimensions of the word "culture" which should be mentioned (see also Rassem 1995, pp. 746ff.):
1) = the opposite of nature: man's realm through cultivating the earth; beginning with "agri-culture" (and bu-colos = shepherd) and continuing with all forms of division of labour in society; this concept of culture is similarly implied in the word "socio-cultural"; it expresses the unity notion of one human culture: humanity as culture;
2) = a (sometimes larger) subgroup of mankind with commonly held concepts, visions, ideas, values, traditions, activity patterns, beliefs, norms, habits, attitudes etc. etc. (perhaps more usually termed civilisation in English and French, see above); this leads to an understanding of culture on earth as not unified but varied instead (and in the plural): the variety of cultures/civilisations studied above all by ethnology and anthropology, more precisely "cultural (!) anthropology";
3) = the arts (or even "fine arts") and their institutions: the ensemble of functions and institutions which are not directly useful ("l'art pour l'art"), transcending the material necessities of life; in this sense also understood as: achievements, treasures - a specific realm of society, often understood in an elitist sense, distinguishing the "cultural" from the "uncultural", barbaric, "low".
4) = an opposite to 'the economic' in society, i.e. the non-economic dimensions of human societies (but sometimes also understood as the all-encompassing concept which would include the economic), i.e. like in 3) the concepts, traditions, activity patterns, beliefs that underlie the functioning of a given culture-civilisation. It comprises all that which an individual acquires in the process of "Enkulturation" (socialisation, "inculturation") into his/her society, this acquisition/learning process being always incomplete; here, 'culture' is an unfinished, open process of societal communicative interaction in which an individual is always only partially involved, but as an active agent - thus, a concept which is very much founded on social interaction, agency, communicative interaction and common interpretation (see also Lackner/Werner 1999, p. 46).
It is especially this last meaning of 'culture' which is relevant for our purposes here. It is, however, of course related to the other meanings. For instance, as 'culture' requires a certain degree of organisation, cultural institutions in the sense of "the arts" (3) emerge from the cultural process (4) in the culture communication community (2).

3. 'Culture' in the humanities/social sciences: the "cultural turn"

There is widespread recognition that a change of orientation and methodology has swept through the social sciences and humanities during the last three decades of the 20th century. This can be called the "cultural turn". It is the realisation that explanation in terms of causal or systemic relationships in the disciplines concerned is constructed less on the basis of socioeconomic factors, 'functional' or - in an economic sense - 'rational' (Lackner/Werner 1999, p. 34) dimensions of phenomena and processes, but rather around "cultural" aspects or factors (i.e. understood in the sense of definition 4, above). Such an approach discusses for instance the attitude to work and competition, the importance of the individual versus the collective in society or the conception of nature and of technology and traces them back, sometimes, to roots in religion, tradition and the history of ideas. This means in scientific practice that theoretical cornerstones from ethnology and ("cultural") anthropology are transferred into other disciplines, in the first place history, then sociology, economics and political science as well as geography. John Bryson reports in quite a similar way on the recent evolution of economic geography in the UK and in the English-speaking world, where "culture" has acquired a "central role in the current reconfiguration" (Bryson, UK) of the discipline.
The theoretical basis goes back to a number of scholars. The German discussion mentions especially Clifford Geertz for the early evolution in the 1970s and Pierre Bourdieu and Anthony Giddens for the time since the late 1970s. Further back, Max Weber and Margaret Mead, or Thorstein Veblen in economic sociology (Herrmann-Pillath 1999), are also important pioneers and protagonists of the approach.
In a concise article on the cognitive cultural anthropologist approach in cultural economics, Stephan Panther (2000) revisits Max Weber's famous "protestantism thesis" - doubtlessly a cornerstone of both economic sociology and cultural economics - in the light of the achievements of cognitive cultural anthropology in the 1990s: Between the positions of both economic and cultural determinism, he opts for a mediating approach of reciprocity and coevolution between both realms: Ideas are born and nurtured in the cultural sphere; whether they are adopted and operationalized in everyday economic action, is a question of how well they can be matched with prevailing (institutional) interests.
What has been termed the "cultural turn" can be regarded as a swing back from "modern" economic, socio-economic, rational explanation to "pre-modern" cultural explanation which traditionally has been associated with concepts like "mentality" or even Hegel's "Geist". There is certainly a strong neo-idealist branch in the "culturalist" tree. No doubt, the cultural turn has produced and is producing achievements as well as pitfalls. The "relapse" into cultural modes of explanation leads to a certain unquestionability of statements about culture - very much in the sense of a "black box" - and to an exaggeration of factors which cannot be scrutinised further by critical analysis. John Bryson adds in his report on the cultural turn in economic geography that neither the economic nor the cultural "can be conceptualised as distinct from the other" and that, as a matter of fact, "the four spheres of activity - the economic, the social, the political and the cultural - are part of a single system". And: "It is important that the cultural does not become an explanation of last resort." It should rather be argued, with Lash and Urry (1994), and similarly to Panther, "that economic and symbolic [standing for: cultural] processes are interrelated or to use their language 'interlaced'" (Bryson, UK).
In addition, and perhaps most interestingly, there is the "cultural turn" in economics , i.e. the observation that "cultural" factors - in the sense of "non-economic", "non-rational" - have been gaining an increasingly strong position in explaining, for example, paths and conditions for economic growth and success. Among other study areas, cultural factors of this kind play an important role in investigations on the transformation process of the former socialist states (Herrmann-Pillath 1999), based on the realisation that there are influences on this process beyond economic rationality (or power, for that matter, which would lead to a political economic approach).
"Culture" understood in that direction encompasses "informal institutions", "mental" models (Herrmann-Pillath 1999), attitudes of economic agents (be they consumers, entrepreneurs, inhibited entrepreneurs, managers, workers etc.) as well as modes of interaction (especially communication). Insights about the theory and methodology of such economic-cultural approaches are provided by Herrmann-Pillath 1999. As culture is very much comprehending the symbolic, cognitive, mental, even if in some form of materialisation, it moves essentially around the production (and reproduction) of social, collectively held, "meaning" (Bryson, UK). Extreme forms of collectively held meanings, which have developed into stereotypes - for places, cities, landscapes or countries -, are to be found in the concept of "the tourist gaze" which sees locations through the glasses of stereotypes, e.g. Paris as "timeless romantic Paris", English countryside as "real olde England", Switzerland as "Wilhelm Tell revolutionaries" (Urry 1990 following Culler 1981, quoted in Bryson, UK).
The "cultural turn" has reached urban and regional analysis as well as development studies in the sense that 'culture' is increasingly recognized as the main frame of reference for analysis and planning. It is being treated as the major arena for social evolution and societal struggle - alongside and beyond "the economic". In Germany at the beginning of the 1990s, a lively discussion about extra-economic influences on regional development was stimulated by a study by Meinhard Miegel and collaborators (1991) on differences in economic culture and work culture as a major factor for regional growth in different regions of the country. The authors compared work ethics and collectively held attitudes towards work performance in (peripheral) areas of North and South Germany and their effects on regional economic development. This is taken up again in an article by Hartmut H�ussermann and Walter Siebel on "culturalisation of regional policy" (1993), emphasizing cultural aspects in regional development, thereby reviving in a way older approaches of "mentality factors", which are, nevertheless "purified" through decades of systems theory and socio-economic thinking. In a similar way, "lifestyles" (as a categorisation for subgroups of society) are much more defined by cultural factors than by economic factors. An urban socio-spatial analysis based on such a "lifestyle" approach would also emphasise aspects of cultural quality and change (Helbrecht 1997). This, again, owes a lot to work by geographers in the English-speaking world, in Canada and the UK, for instance by Nigel Thrift (1994), Thrift and Leyshon (1992) (Bryson, UK), exploring not only "the relationship between consumption, lifestyle and success" but also the "growing importance of image, �, especially image articulated through consumption (education, accent, dress, cars, house etc.)" (Bryson, UK).
This phenomenon of "culturalisation of economics" is nothing new to services studies, to be sure. It is, in fact, well known from the work on networks, creative and innovative milieus as well as on knowledge intensive business services. Here, a lot of research that has been done on services interacting in networks and creative milieus can be classified as studying "cultural dimensions" of services, if it is not simply social psychology (as in the fundamental concept of trust in economic interaction, so relevant for networks, milieus and new industrial spaces). Explanations for the origin and functioning of networks or milieus have been sought in the configuration of the cultural setting which underlies them.
Again, John Bryson reminds us of one central revealing concept: embeddedness. Embeddedness, not in Granovetter's original sense, but rather in that of most of the publications of the 1990s, is understood as "embeddedness in culture". These concepts are taken further - and into the "institutional" - in the idea of "institutional thickness" (Amin/Thrift 1994, in Bryson, UK). Bryson also highlights the methodological reorientation which comes along with the cultural turn ("for example textual analysis, iconography, semiotics, ethnography, participant observation and action research") and mentions the proximity to the "postmodern turn", which "encourages multiple voices and accounts, but [�] also compels an examination of the positionality and authority of knowledge claims. What results is a more "modest geography (Law 1994)" (Bryson, UK). "This modest approach recognises the positionality of the author and highlights the partial nature of the economic geography that has been constructed in a journal article or monograph. One consequence of this movement is the apparent fragmentation of economic geography into a discipline of multiple and sometimes conflicting approaches to understanding the geography of the economy. There is no doubt that this has produced an enlivened economic geography, but at the expense of the construction of knowledges that are considered by the policy-making community as suspect. It is difficult to inform policy by drawing upon the findings of research that is heavily informed by the cultural turn, the positionality debate and a multitude of complex but frequently considered by policy makers to be partial qualitative methodologies (Pollard et al. 2000)" (Bryson, UK).
John Bryson also points to the increasing use of "the metaphors of performance and stage � in geographical and sociological narratives" and traces this back to methodological innovations in anthropology ("from ritual to performance"), which means that individuals' actions as well as events in space are increasingly being depicted in the sense of performance. Especially convincing here - and especially central to services studies - is the title of an article by Clark and Salaman (1998): "Creating the 'right' impression: towards a dramaturgy of management consultancy". Playing roles, forever a facet of urbanism, is again at the centre; also taken up in feminist research (McDowell 1995, 1997). Along with this there is the continuing relevance of the "image" which a person, or a place, creates for himself/herself/itself (also mentioned in Bryson, UK, following Lash and Urry 1994).
Especially interesting is an application of the cultural explanation to the service employment debate (in Germany still the "service gap debate") which Martin Baethge (2000) offers in his highly original contribution. He emphasises once again the observation of an employment gap in Germany in comparison with other economically leading countries, which for him is essentially due to the adherence to a specific "industrialist" (or more correct: "manufacturalist") model of economic and societal organisation in Germany, where services have never had a chance to realise specific patterns of specialisation, labour organisation, formation and qualification procedures and interest representation of their own or a services-oriented concept of efficiency and productivity. Service work has in many respects been incorporated into and subdued to manufacturing work, a fact which is also reflected in the minor role which services have played in business studies and national economics in Germany for a long time (Baethge 2000, p. 151f.). 'Work' for Germans has traditionally been manufacturing work (if not bureaucratic or academic, of course, for special groups of society). This phenomenon must also be looked at from the demand side: With the considerably smaller labour participation rate of women in Germany, there are much less household services on demand in the country. This is the fundamental reason why a great proportion of the job potential realized in other countries in the last two decades has not been transformed into employment in Germany. In the end, work culture in Germany is characterised by a smaller degree of (formal) division of labour than in other countries. Baethge concludes, however, that this situation will not survive as the foundations of the old "industrialist" model of the German economy, challenged by international competition, are already trembling.

4. Cultural institutions as a subsector of services - a double growth sector: in reality and in research

The analysis of the economic and regional economic implications of the existence (and of the public financing) of 'cultural institutions' has been a topic for research - and consultancy work - for a number of years, and 'cultural economics', i.e. the economics of cultural institutions, its economic factors and consequences, has expanded substantially in the 1990s and seen a number of case studies, following strands of thought in the international discussion: Among the 'models' for many of the European studies are Baumol and Bowen's classical study on the economics of the performing arts (1966), Blaug's reader "The economics of the arts" (1976), the New York - New Jersey study (Port Authority of New York and New Jersey 1983) and Myerscough's "Economic importance of the arts in Britain" (1988), in the 1990s also very much Zukin's work in cultural urban sociology on New York City. In addition, Herrero Prieto mentions Becker and Stigler 1977, Benhamou 1996 (as a basic textbook), Throsby 1994, Urrutia 1989. With the "Journal of Cultural Economics", started as early as 1976, and the "Association for Cultural Economics International", the subdiscipline has strong international institutions. The Association for Cultural Economics International held its 10th biannual conference in Spain in 1998, which shed bright light on the discipline in this country, reported in Herrero Prieto's contribution.
Since these cultural or arts institutions - theatres, museums, music etc. - are, of course, invariably services, we are dealing here with the economic or regional economic analysis of an important subgroup of services.
The Spanish contribution to this report is an excellent overview of cultural economics in general (Herrero Prieto, E) and includes a concise introduction to the subdiscipline and some of its basic concepts, approaches and methods, among them the special characteristics of culture as a product (additive-cumulative character, "unquenchable" nature, intangible asset, cost-disease problem, non-reproducibility - or if reproducible: problems of copyright and royalties, problems of definition and data) . Herrero Prieto also emphasizes the importance of growth in the sector which is often underestimated. This is, above all, due to a high income elasticity: rich regions show expanding spending on culture (Herrero Prieto, E). In addition, Herrero Prieto discusses very interestingly the problem of self-servicing in culture (by recorded music, video, tv etc.) as well as questions of commercialisation and commodification of leisure activities. The strong links to tourism, however, seem somewhat problematic, as only a special subsector of tourism can be regarded as "cultural" - where is the culture in sunbathing? - unless one adopts a totally different concept of "culture" (see above).
As a rule, the authors of the regional cultural economy studies seek to highlight the relevance of the arts for the local/regional economy in question beyond a simple description and attempt to calculate a "culture multiplier index", i.e. a multiplication factor which indicates how much local/regional turnover is induced by the public spending for culture in that region. Apart from these, there are studies which focus on the growth of cultural services themselves; they also treat culture as an economic (sub-)sector. Thirdly, it is held that the "cultural equipment" of a city has many indirect effects on its economic performance: It improves the attractiveness for knowledge-bearing elite personnel, it contributes to a positive perception of the region elsewhere and it helps to strengthen identification processes and something like "social pride" in the regional population (Dziembowska-Kowalska/Funck 2000, p. 5). Here, culture is seen as a special and (more and more) important factor of production. On top of that there is, forthly, the observation that the existence of cultural institutions and their activists has positive effects on creative processes in creative businesses which are not based in the arts sector themselves but closely connected to it, like advertising, design or architecture. This approach considers culture to be more than just one location factor but rather an essential resource for the economic activities mentioned. Here, however, empirical work beyond theoretical speculation (as in Dziembowska-Kowalska/Funck 2000, p. 5) is rare.

4.1. The multiplier effect of public spending for culture
An often cited pioneer work on the local economic impact of public spending for the arts in Germany is the study on Bremen by Taubmann and Behrens (1986) which was followed by the one on Neuss (near D�sseldorf) by Gerwien and Holzhauser (1989), also produced in the Bremen University Geography Department, which has since formed a stronghold for the topic: It is Gerwien and Holzhauser's multiplier equations which have been used in most of the later studies; and in the late 1990s Engert has delivered his thesis on culture in Milano in Bremen (1997), which includes a short history of the "urban culture and urban economy" studies. Before that, a first survey and summary of the approach in German was given by Behr et al. in their 1989 book. In the 1990s a number of case studies have followed, among them Behr/Gnad/Kunzmann 1990, Haubrich-Gebel 1995 (G�ttingen), Dziembowska-Kowalska et al. 1996 (Karlsruhe), Blum et al. 1997 (Dresden).
The studies have produced - mainly for larger cities and conurbations - fundamental data and statements about the size, role and impact of the cultural sector within the urban economy. They are generally very descriptive. Their major question is: How much turnover in the local/regional economy is generated by the public subsidies that go into the cultural sector? The factor is usually rated at something above 1.0, i.e. more money is earned somewhere else in the regional economy than the local state spends on culture. Beyond the analysis and into policy measures, in one of the most recent publications, Blum et al. give some interesting pieces of advice, for instance that the most expensive tickets for the opera and other "high-culture" institutions should be sold in auctions, as this would probably raise their prices.
Through the 1990s there is a discussion about the legitimacy of these implication studies and especially about the calculated multiplier values regarding the effects of expenses for the arts. The basic questions are whether turnover is in fact created through the subvention of cultural institution or rather turned away from other branches and whether the cultural services are indeed basic functions (in the sense of export base theory) or rather non-basic functions.
More recently, Sonja Clausen (1997) studied in a (regional) economic analysis the "implications of public financing of cultural events", using the example of the Schleswig-Holstein music festival (the second largest music festival in Germany after Bayreuth's Wagner event). She gives a comprehensive survey of the problems involved in using a multiplier factor to assess the regional economic impact of the subsidies involved, also criticising a number of earlier studies which neglect parallel losses in turnover in culture or other (sub-)sectors. Using a welfare economic approach and a total-benefit-calculation she arrives at the result that public subsidies for cultural attractions cannot be justified by regional economic gains. In addition, the author looks into the economic effects of an improved location image by subsidising a given cultural event, i.e. using this for marketing purposes. These image effects may be indeed substantial, but they are difficult to assess in comparison with the zero signalling situation ("no festival").
Perhaps it is this criticism that makes researchers in other countries refrain from such studies; they are mentioned in no other report. In Italy, instead, there is a discussion on public versus private management of culture and heritage (of which Italy has got such a lot), and apparently this discussion moves towards a balance between commercialisation (box-office income), subsidies, non-profit organisation (as a "third way" of institutionalization) and volunteer work (Bergami/Senn, I). A well-established alternative approach to assess the legitimacy of public spending on culture is through the Contingent Valuation Method (CVM) which measures willingness-to-pay by taxpayers. Such a study has been conducted by Trine Bille Hansen for the Royal Theatre in Kopenhagen (Bille, DK and Bille Hansen's various publications which also deal with theory and methodology).

4.2. Culture as an important source of income and employment
Beside the largely state financed cultural institutions which form the focus of the multiplier studies, there is a range of cultural businesses which are in fact vital sources of income and act as export services for metropolitan areas, especially the film business and related services, music production and distribution, photography, design and also advertising. In addition, there is the new integration of media and arts elements with computering in the evolving "multimedia" industry. With parallels to research in the U.S. by Allen Scott e.g., Stefan Kr�tke and Renate Borst emphasize in their new Berlin book the relevance of these branches (essentially services, but with linkages to material production like copying etc.) for the economy of the city. They find interesting local concentrations of the film business and related services at the edges of Berlin's central business districts and interprete them as production clusters, although this has not yet been proved by an interaction analysis of the businesses concerned. The research shows, to be sure, that these "cultural industries" form indeed an important category for economic and spatial research in metropolitan areas.
The Spanish studies assess the contribution of the cultural sector to GDP at 4,5% in 1997, risen from a mere 3,1% in 1992 only recently (Garc�a Gracia et al. 1997, 2000; Herrero Prieto, E). But here, tourism is included, which in a tourism country of world reputation is somewhat "drowning" the cultural subsector proper. The extent of branch studies in Spain concerning individual elements of the arts is striking (or the other contributors did simply not bother listing them). In addition, there is the strong importance of heritage in the discussion of the "value of culture", with a lot of potential in Spain (Herrero Prieto 1998, 2000). In this respect, Slovenia tries to follow the example of other countries, such as Spain, developing heritage as one foundation (beside nature) for tourism; Stare lists two relevant master's theses here as well as journal articles from Slovenia (e.g. Pauko 1996). The link between culture and tourism is also followed in Norway (Sletvold 1998).
Ifo-Institut in Munich has delivered a number of studies on the economic importance of the cultural sector to state institutions, for instance Hummel/Waldkircher 1992. They show that in Germany at the end of the 1980s the cultural sector comprises 2,5% of total value added of the German economy, 2,9% of persons employed and 2,0% of fixed capital investments; growth was higher than the economy as a whole during the 1980s, but there was a minor loss against the total economy in the early 1990s due to the unification expenses. The figures also reveal the labour intensity of the sector. Definition of the cultural sector is a problem; the Munich researchers include the media in total (which should perhaps be separated into a special sector) as well as (non-university) libraries.
Especially in urban economics and planning studies, "cultural economics" has been on the agenda. So for instance in Norway, where the West and East Norway Research Foundations have commissioned work on this topic. Here, "cultural institutions, by their very nature, still reap most benefits in the capital city region with its well developed cultural infrastructure notwithstanding the extensive public funding which has been in favour of more peripheral regions" (Sjoholt, N). The economic role of "culture" and its institutions has been assessed for a number of cities and conurbations during the 1990s. Studies of this kind have become more or less standard work. The Spanish reports also lists a considerable number of urban and regional studies in that direction (Herrero Prieto, E). These studies treat cultural services not as a cost sector for public spending, but as a dynamic sector in its own rights and a contributor to regional growth. The federal state of Northrhine-Westphalia has commissioned a voluminous (third) report on the "culture economy" in the state (Arbeitsgemeinschaft Kulturwirtschaft 1998), i.e. on the arts sector (music, painting, sculpting, film, theatre, dance, excluding the media but including literature and book publishing). It assesses the growth of value added as well as employment of this sector, which is both substantially above average. In addition, it attempts to find linkages within specific sub-sectors and between these and other parts of the regional economy; these results are rather general: In some branches there are notable regional linkages (mainly understood as regional markets, like specialised music schools or lighting equipment rental firms), in others there are none (as in record production or book publishing).
For Denmark, Trine Bille Hansen and collaborators have produced a number of studies in cultural economics, on the total size of the market for the arts in the country (Bille, DK).

4.3. Culture as a (soft) location factor
Extensive work on "soft" location factors in regional and urban development research has included the arts as one major factor in this category. The leading study in that direction which was conducted in Germany in the 1990s (Grabow et al. 1995; it includes an extensive summary in English) sums up the discussion around the relatively new distinction between "hard" and "soft" location factors and holds that soft location factors are of increasing importance in locational decision-making; one reason for this is the fact that the differences in availability of hard location factors between regions are decreasing. Soft location factors - a term apparently difficult to translate into English - are defined as those location factors which are rather subjective and intangible and which are generally difficult to measure on the one hand (like the business climate of a region or the co-operation quality of the local administration etc.) or those which are relevant for employees and decision-makers as persons on the other hand, determining or at least influencing the "reproduction quality" of a location (like residential qualities, amenities etc.). Soft location factors, too, can be either more business-oriented or more person-oriented. The attractivity of the cultural sector in a given location counts as a person-oriented soft location factor. Empirical results (from a questionnaire to about 2000 enterprises) on the relevance of soft location factors for a selection of towns in Germany and Austria does, however, not attribute a substantial importance to this factor: "Many other person-related soft locational factors, including cultural facilities, a field frequently addressed in the public debate on the subject, rank far down in the salience hierarchy of locational factors", and "rating diverges widely (by industry, size of business etc.)" (Grabow et al. 1995, p. 33). As a consequence, increasing efforts by local governments with respect to developing "high culture" institutions anwith its well developed cultural infrastructure notwithstanding the extensive public funding which has been in favour of more peripheral regions" (Sjoholt, N). The economic role of "culture" and its institutions has been assessed for a number of cities and conurbations during the 1990s. Studies of this kind have become more or less standard work. The Spanish reports also lists a considerable number of urban and regional studies in that direction (Herrero Prieto, E). These studies treat cultural services not as a cost sector for public spending, but as a dynamic sector in its own rights and a contributor to regional growth. The federal state of Northrhine-Westphalia has commissioned a voluminous (third) report on the "culture economy" in the state (Arbeitsgemeinschaft Kulturwirtschaft 1998), i.e. on the arts sector (music, painting, sculpting, film, theatre, dance, excluding the media but including literature and book publishing). It assesses the growth of value added as well as employment of this sector, which is both substantially above average. In addition, it attempts to find linkages within specific sub-sectors and between these and other parts of the regional economy; these results are rather general: In some branches there are notable regional linkages (mainly understood as regional markets, like specialised music schools or lighting equipment rental firms), in others there are none (as in record production or book publishing).
For Denmark, Trine Bille Hansen and collaborators have produced a number of studies in cultural economics, on the total size of the market for the arts in the country (Bille, DK).

4.3. Culture as a (soft) location factor
Extensive work on "soft" location factors in regional and urban development research has included the arts as one major factor in this category. The leading study in that direction which was conducted in Germany in the 1990s (Grabow et al. 1995; it includes an extensive summary in English) sums up the discussion around the relatively new distinction between "hard" and "soft" location factors and holds that soft location factors are of increasing importance in locational decision-making; one reason for this is the fact that the differences in availability of hard location factors between regions are decreasing. Soft location factors - a term apparently difficult to translate into English - are defined as those location factors which are rather subjective and intangible and which are generally difficult to measure on the one hand (like the business climate of a region or the co-operation quality of the local administration etc.) or those with its well developed cultural infrastructure notwithstanding the extensive public funding which has been in favour of more peripheral regions" (Sjoholt, N). The economic role of "culture" and its institutions has been assessed for a number of cities and conurbations during the 1990s. Studies of this kind have become more or less standard work. The Spanish reports also lists a considerable number of urban and regional studies in that direction (Herrero Prieto, E). These studies treat cultural services not as a cost sector for public spending, but as a dynamic sector in its own rights and a contributor to regional growth. The federal state of Northrhine-Westphalia has commissioned a voluminous (third) report on the "culture economy" in the state (Arbeitsgemeinschaft Kulturwirtschaft 1998), i.e. on the arts sector (music, painting, sculpting, film, theatre, dance, excluding the media but including literature and book publishing). It assesses the growth of value added as well as employment of this sector, which is both substantially above average. In addition, it attempts to find linkages within specific sub-sectors and between these and other parts of the regional economy; these results are rather general: In some branches there are notable regional linkages (mainly understood as regional markets, like specialised music schools or lighting equipment rental firms), in others there are none (as in record production or book publishing).
For Denmark, Trine Bille Hansen and collaborators have produced a number of studies in cultural economics, on the total size of the market for the arts in the country (Bille, DK).

4.4. Culture as a specific resource
In connection with the increased role of knowledge and creativity in economic and regional development (Ellger 1996, Bryson et al. 2000), the arts receive revived attention from a rather different angle of (regional) economic research: For a number of branches of the "creative economy", among them industrial design, advertising, architects, perhaps also writing, journalism and publishing as well as the new businesses where information technology, media and arts overlap, the existence of a lively arts scene appears to be much more than one among several location factors. It must be regarded as the decisive factor of production, the essential source for ideas. This idea is taken up in Klaus Engert's thesis (1997), who studies the importance of the arts sector for the economy of the city of Milano (!), where about 1% of the persons employed can be regarded as the personnel of the arts sector. Engert uses a postal questionnaire sent to advertisers, designers, architects, publishers, software producers and manufacturers in the furniture and the garment industry to assess the importance of arts institutions for their work, using elaborate quantitative techniques (causal analytical) to process the statements (of a sample of 219) from the questionnaire study. As a result, urban agglomeration advantages seem most important as location factors, qualified personnel comes second and the creative environment is also rated among the top factors.
Notwithstanding the achievements in Engert's study, it seems more adequate to use more qualitative techniques in investigations on the importance of the arts sector for "creative" businesses, tracing interaction paths and sources of knowledge and ideas. A small step in that direction is Katrin J�rgens' dissertation (2000) on the Spandauer Vorstadt quarter in central Berlin, an inner-city area characterised by an agglomeration of arts and creative businesses. J�rgens is able to show - though on the basis of a very small sample (10 in-depth interviews) - that creative businesses in the quarter (designers, architects, advertisers) confirm the relevance of soft factors for the quality of the location (such as the atmosphere of the quarter or its image as a lively and creative place) as well as agglomeration effects. In addition, the local arts scene, mainly the 'off' institutions, plays an important role in giving and stimulating ideas, making the quarter a specific urban environment of arts and creativity with substantial economic effects.
In a different approach to the relationship of culture, economy and society, recent studies in urban sociology highlight the arts as a major arena of conflict: In the field of culture, ideologies and lifestyles compete for hegemony. Under the heading "economy of symbols", this critical approach stresses the importance of the use of 'culture' by the ruling classes (or "growth coalition") to promote their interest: 1) to determine the aesthetics of spaces, especially public spaces, showing the power of the investors, 2) to increase the trading value of properties by decorating it with culture, and 3) to help to define the identity of the ruling class with the means of the built environment, in specific shapes of office buildings, shopping malls, factories etc. (Kirchberg 1998, p. 48f.).
One of Germany's major enterprises, Volkswagen, seems a good example for this recent development in the relationship between culture and the economy, with a new "vitreous factory" in Dresden and with the newly opened "Autostadt" (automobile city) in Wolfsburg, a gigantic mixture of sales department, showroom, information desk and entertainment centre, propagating a corporate culture which aims at integrating the purchasers and drivers of Volkswagens into it. Here, culture is being exploited as the main instrument in a new stage of marketing strategy, marketing being one of the essential service tasks in capitalist industrialism at the beginning of the 21st century, thereby integrating several of the meanings of the word 'culture' mentioned above: culture as cultural institutions and cultural events - the factory, the showrooms and the building for the delivery of the car to its new owner as a cultural institution offering a specific form of event; culture as a set of commonly held values and interaction patterns - the formation of a cultural community consisting both of car producers and purchasers ("the Volkswagen family") transcending the mere economic aspects of interaction in the economy and carrying them further into the realm of the meaningful symbolic.
In a similar way, the cultural foundations for the design of shopping premises is being investigated in British (and American) economic geography (Bryson, UK names for instance Shields 1989, Goss 1993), namely the way in which (on the basis of a lot of knowledge in (media) psychology), design and staging are exploited to maximise consumption in the shopping mall - "the ultimate in designed spaces" (Bryson, UK).
A glance at the other extreme of the socio-spatial ladder also shows, in a very different context, that development without culture seems improbable to achieve: Frahm et al. (1994) emphasise in their extensive survey the role of culture for rural development in theory and practise.

5. Further aspects of 'culture and services'

5.1. Telecommunications and cultural change
The internet as the new frontier of telematics is profoundly changing social communication, both in the business world and in the private sphere. This in turn has effects on service demands, for instance in banking, an aspect which the Italian report depicts � la longue. Interestingly, none of the other reports takes up the internet, perhaps because it is so self-evident and all-pervading now (and there are enough "cultural" topics apart from the new information and communication technology arena).

5.2. The culture of services
This aspect is mostly treated in business studies. It concerns the quality of services, i.e. (given the nature of services as producer-client interactions) essentially consumer orientation and consumer satisfaction. The problem is that the producer's performance is difficult to measure. The user's appreciation is decisive for the quality assessment, but again, this is not easy to assess (Bergami/Senn, I). The same themes are beginning to appear in Slovenian research (Stare, SLO).

w "vitreous factory" in Dresden and with the newly opened "Autostadt" (automobile city) in Wolfsburg, a gigantic mixture of sales department, showroom, information desk and entertainment centre, propagating a corporate culture which aims at integrating the purchasers and drivers of Volkswagens into it. Here, culture is being exploited as the main instrument in a new stage of marketing strategy, marketing being one of the essential service tasks in capitalist industrialism at the beginning of the 21st century, thereby integrating several of the meanings of the word 'culture' mentioned above: culture as cultural institutions and cultural events - the factory, the showrooms and the building for the delivery of the car to its new owner as a cultural institution offering a specific form of event; culture as a set of commonly held values and interaction patterns - the formation of a cultural community consisting both of car producers and purchasers ("the Volkswagen family") transcending the mere economic aspects of interaction in the economy and carrying them further into the realm of the meaningful symbolic.
In a similar way, the cultural foundations for the design of shopping premises is being investigated in British (and American) economic geography (Bryson, UK names for instance Shields 1989, Goss 1993), namely the way in which (on the basis of a lot of knowledge in (media) psychology), design and staging are exploited to maximise consumption in the shopping mall - "the ultimate in designed spaces" (Bryson, UK).
A glance at the other extreme of the socio-spatial ladder also shows, in a very different context, that development without culture seems improbable to achieve: Frahm et al. (1994) emphasise in their extensive survey the role of culture for rural development in theory and practise.

5. Further aspects of 'culture and services'

5.2. The culture of services
This aspect is mostly treated iw "vitreous factory" in Dresden and with the newly opened "Autostadt" (automobile city) in Wolfsburg, a gigantic mixture of sales department, showroom, information desk and entertainment centre, propagating a corporate culture which aims at integrating the purchasers and drivers of Volkswagens into it. Here, culture is being exploited as the main instrument in a new stage of marketing strategy, marketing being one of the essential service tasks in capitalist industrialism at the beginning of the 21st century, thereby integrating several of the meanings of the word 'culture' mentioned above: culture as cultural institutions and cultural events - the factory, the showrooms and the building for the delivery of the car to its new owner as a cultural institution offering a specific form of event; culture as a set of commonly held values and interaction patterns - the formation of a cultural community consisting both of car producers and purchasers ("the Volkswagen family") transcending the mere economic aspects of interaction in the economy and carrying them further into the realm of the meaningful symbolic.
In a similar way, the cultural foundations for the design of shopping premises is being investigated in British (and American) economic geography (Bryson, UK names for instance Shields 1989, Goss 1993), namely the way in which (on the basis of a lot of knowledge in (media) psychology), design and staging are exploited to maximise consumption in the shopping mall - "the ultimate in designed spaces" (Bryson, UK).
A glance at the other extreme of the socio-spatial ladder also shows, in a very different context, that development without culture seems improbable to achieve: Frahm et al. (1994) emphasise in their extensive survey the role of culture for rural development in theory and practise.

5. Further aspects of 'culture and services'
5.1. Telecommunications and cultural change
The internet as the new frontier of telematics is profoundly changing social communication, both in the business world and in the private sphere. This in turn has effects on service demands, for instance in banking, an aspect which the Italian report depicts � la longue. Interestingly, none of the other reports takes up the internet, perhaps because it is so self-evident and all-pervading now (and there are enough "cultural" topics apart from the new information and communication technology arena).

6. An (interim) conclusion
Questions of "services and culture" constitute an enormously wide field of investigation and there can be no doubt about the fact that they will feature as a major research area in the future. Linked to economic, social and political questions, "culture" will continue to rise in relevance for social science research, both "pure" and applied. And there will certainly be demand for studies, nationally and internationally, also in the EU (and especially in an expanding Union!).
It seems that with the disciplinary, inter- and transdisciplinary knowledge acquired in the teams and individuals of RESER - with an emphasis on economics and applied business studies on the one hand and economic geography on the other hand, but also with a strong base in political economic sociology and "cultural studies" -, the network seems excellently equipped for research in this field, in all the sub-subjects which are expressed in the report, connected to the different meanings of "culture" and the different steps of analysis of the impact of "the arts" in society, economy and space. One aspect makes me especially optimistic about this: I have outlined earlier that culture (once again in the sense of "the arts") is basically "knowledge in various forms of materialization". Having gone thoroughly through the 'knowledge debate' (in the service and information society discussion, when working on business services etc.), it is certainly very interesting for RESER to apply this meta-knowledge to the questions of culture mentioned in this report and the national reports. This is especially valid for the investigation of "creative spaces" (or non-spatial creativity networks/milieus/associations for that matter), where culturally and economically relevant creativities merge. Little is as important for economic advancement, urban and regional policy and politics in general (also considering education and training!) as the promotion of creativity. It must form a task for RESER (and associated researchers).

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