Does weaker copyright mean stronger creative industries? Some lessons from China

Abstract

We review the theory of intellectual property (IP) in the creative industries (CI) from the evolutionary economic perspective based on evidence from China. We argue that many current confusions and dysfunctions about IP can be traced to three widely overlooked aspects of the growth of knowledge context of IP in the CI: (1) the effect of globalization; (2) the dominating relative economic value of reuse of creative output over monopoly incentives to create input; and (3) the evolution of business models in response to institutional change. We conclude that a substantial weakening of copyright will, in theory, produce positive net public and private gain due to the evolutionary dynamics of all three dimensions.

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