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Viktoriia Kovpak and Nataliia Lebid, Creative Industries as a Mechanism of Creative Economy and Strategic Communications (2022)

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Article by Viktoriia Kovpak and Nataliia Lebid, Creative Industries as a Mechanism of Creative Economy and Strategic Communications, in the Baltic Journal of Economic Studies, Vol. 8 No. 4, 2022, pages 102-109. The abstract argues that in a period of crisis, namely a pandemic and martial law, the economy transforms into a system driven by the exchange and mutual evaluation of knowledge in which creative industries form the creative economy that Richard Florida called the new economic era of the 21st century. The purpose is to analyse the tools of Ukrainian creative industries that produce new cultural products or services, serve as a resource for strategic communications and increase the creative economy's potential under martial law, using successful Ukrainian cases. The methodology combines systemic and value-based approaches with discourse analysis.

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“Viktoriia Kovpak and Nataliia Lebid, Creative Industries as a Mechanism of Creative Economy and Strategic Communications (2022).” Original at baltijapublishing.lv. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/viktoriia-kovpak-and-nataliia-lebid-creative-industries-as-a-mechanism-b45fb70dd2/, SHA-256 94c05a5b3d9915e64dc7338c532b1981e14d07e0ea427adbcfa3816581071d22.

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Baltic Journal of Economic Studies
                                                                                                                          Vol. 8 No. 4, 2022
DOI: https://doi.org/10.30525/2256-0742/2022-8-4-102-109

         CREATIVE INDUSTRIES AS A MECHANISM OF CREATIVE
            ECONOMY AND STRATEGIC COMMUNICATIONS*
                                            Viktoriia Kovpak1, Nataliia Lebid2


Abstract. In a period of crisis – namely, a pandemic and martial law – the economy is transforming into a system
where the main driving forces are the exchange of knowledge, its mutual evaluation, where creativity and
creative industries play a significant role, which ultimately form the creative economy, which economist and
sociologist Richard Florida called "the new economic era of the 21st century". The purpose of the scientific work
is to analyze the tools of Ukrainian creative industries that contribute to the production of a new cultural product
or service, have a semantic load, are a resource for strategic communications and increase the potential of the
creative economy in martial law (on the examples of successful Ukrainian cases of creative industries in the crisis
period). The methodology of the study is based on a combination of systemic and value-based approaches, as well
as discourse analysis, which together contribute to the disclosure of structural relationships in the ecosystem
of the creative economy (in particular, social capital, entrepreneurial culture, state and international support,
innovation potential, reputational capital of Ukraine in the world), their correlations with the peculiarities of
national political and economic development and global trends, in particular in times of crisis, such as pandemic
and wartime. The scientific work traces the genesis of the formation of a conceptual understanding of the
creative economy and creative industries in the Ukrainian dimension, which contains legislative (Order of the
Cabinet of Ministers of Ukraine No. 265-r "On Approval of Economic Activities Related to Creative Industries",
the Law of Ukraine "On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on State Support
of Culture, Small Business and Creative Industries in Connection with the Implementation of Measures Aimed at
Preventing the Occurrence and Spread of Coronavirus Disease (COVID-19)", etc.), terminology (the meaning of
the concepts of "creative product", "creative industries", "project", "institutional support grant", etc. was clarified),
social and institutional (creation of the Public Union "Center for the Development of the Creative Economy",
the National Bureau of the EU program "Creative Europe" in Ukraine, the Startup Fund, the Ukrainian Cultural
Foundation (UCF), etc. Special attention in the scientific work is paid to the anonymous online survey of the
UCF together with the Ministry of Culture and Information Policy of Ukraine of creative entrepreneurs and
creative professionals, which was conducted among UCF 2020–2022 applicants on the state of culture and
creative industries during the war (June 2022) in order to form a recovery and strengthening plan. The analysis of
successful Ukrainian cases of creative industries allowed to outline the tools for the development of the creative
economy in the crisis period: monetization of hobbies, innovative entrepreneurship, business clustering
(in particular, the idea of a cluster of creative industries), brand collaboration, craft production, creation of cultural
products such as books, grant/fund support and others, on the terms of donation to support the humanitarian
and military needs of Ukrainian society. And the recently created podcast "Frontline of Creative Industries"
about the success stories of representatives of this industry, who with their projects resist Russian aggression
and support the economy and the institution of national identification of Ukraine, opens up prospects for further
analysis of such tools as crowdfunding, revitalization, development of creative clusters of Ukrainian business.
Key words: creative economy, creative industries, strategic communications, cultural product, intellectual
capital, wartime.
JEL Classification: H11, H76, J48
1
  Zaporizhzhia National University, Ukraine (corresponding author)
E-mail: Kovpak.viki@ukr.net
ORCID: https://orcid.org/0000-0001-9461-0536
2
  Zaporizhzhia National University, Ukraine
E-mail: lebidnataliia2019@gmail.com                                                           This is an Open Access article, distributed under the terms
ORCID: https://orcid.org/0000-0002-7227-6597                                                           of the Creative Commons Attribution CC BY 4.0

* The article is prepared in the framework of the state-financed research coded 1/21, registered 0121U107470 "Strategic communications
as a tool for implementing the national interests of the state: Ukrainian and foreign experience" of Zaporizhzhia National University.

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Vol. 8 No. 4, 2022
                          "The main fuel of the ХХ century      2. Concepts of creative economy
          Was oil, and the fuel of ХХІ century is creativity"   and industries in the context of pandemic
                                           John Newbigin        and war: Ukrainian dimension
                                                                   In general, the concept of creative economy was
1. Introduction                                                 first formed in the 1960s. “In 2001 John Hawkins,
  In connection with the introduction of martial law            a member of the United Nations Creative Economy
in Ukraine in accordance with the Presidential                  Advisory Council, a British writer and media
Decree No. 64/2022 of 24.02.2022 due to the                     manager, for the first time used this term in his book
military aggression of the Russian Federation against           ‘The Creative Economy: How People Make Money
Ukraine, the economy of Ukraine faced the risks                 from Ideas’, where he defined the creative economy
of developing a humanitarian and economic crisis,               as "the creation of value from ideas." (Creativeeconomy.
as the press service of the Ministry of Finance of              center, 2022)
Ukraine reports that "for eight months of this year,               But before the challenges of the "wartime economy",
the state budget was executed with a deficit of                 people felt the challenges of the "pandemic era
416. 9 billion UAH, in particular, the general                  economy". Two years ago, COVID-19 as an economic
fund – 418.1 billion UAH against the planned deficit            crisis of natural origin greatly affected the recreational
of 864.2 billion UAH for this period." (Zharykova,              sphere of life, the life of the cultural industries.
2022) It is obvious that today, when the war is in full         This fact prompted the Verkhovna Rada on April
swing and Ukraine's economy has already suffered                22, 2020 to register the draft Law No. 3379 "On
large-scale losses from Russian armed aggression                Amendments to the Tax Code of Ukraine and Other
in the sectors of GDP, logistics, exports/imports,              Laws of Ukraine on State Support of Culture, Small
inflation, investments, banking sector, business                Business and Creative Industries in Connection with
activity, huge losses in metallurgy, fuel and energy,           the Implementation of Measures Aimed at Preventing
agriculture, migration and human capital (Biz. censor.          the Occurrence and Spread of Coronavirus Disease
net, 2022), the state of the economy and the ideas              (COVID-19)" (Volos, 2020). This law proposed
of the anti-crisis plan should be analyzed constantly,          to introduce the concept of a grant, regulate the
because business continues to work and support the              procedure for its taxation, temporarily exempt
economic background, Western partners support                   creative industries and cultural institutions from
and agree to participate in the implementation of               paying VAT on services, income tax and personal
Ukraine's recovery. Thus, in the context of anti-               income tax (personal income), which would increase
crisis measures in April, President Zelenskiy stressed          the amount of liquid capital. Law of Ukraine "On
the need for creativity to restore the economy:                 Amendments to the Tax Code of Ukraine and Other
"The economy is also the front on which we fight for            Laws of Ukraine on State Support of Culture, Small
our freedom, for our state and for our people, so we            Business and Creative Industries in Connection
need to find ways to constantly adapt to the existing           with the Implementation of Measures Aimed at
circumstances. Now we need to be as creative and                Preventing the Occurrence and Spread of Coronavirus
bold as possible in solving economic issues." (Koval,           Disease (COVID-19)" (Bulletin of the Verkhovna
2022) Therefore, there is a growing demand for                  Rada (BVR), 2020, No. 43, Article 371) the meaning
the possibility of using creative potential to create           of the following concepts was clarified accordingly:
innovations, the need for intellectual capital, struc-          "creative industries – types of economic activity
tural capital (consumer capital and organizational              aimed at creating added value and jobs through
capital), the demand for knowledge, which, in turn,             cultural (artistic) and/or creative expression"
is reflected in the scientific terminology of the               (Zakon.rada.gov.ua, 2020); "creative product – goods
economic sphere, in particular, along with the                  and services that have high added value and are
definition of "creative economy" the terms "knowledge           created/provided as a result of cultural (artistic)
economy", "innovation economy" are used. This fact              and/or creative expression" (Zakon.rada.gov.ua, 2020).
is connected "with the development of high-tech                 Providing institutional support was identified as one
sectors of goods and services, wide availability of infor-      of the tasks of the Ukrainian Cultural Foundation
mation and communication technologies and higher                among others; it is also emphasized the need to
education in the second half of the 20th century. Thus,         support and develop projects in the fields of culture
the creative economy, the knowledge economy and the             and arts, creative industries and cultural (domestic)
innovation economy are components of each other, and            tourism, to provide grants of institutional support
each of them is part of the concept of the new economy,         to legal entities of all forms of ownership to ensure
which can be interpreted as a high-tech economy that            competitiveness and job creation in the conditions
requires business entities to constantly innovate in the        of restrictions on economic activity imposed by law
context of globalization." (Ushkarenko, 2018)                   caused by an emergency or state of emergency, or the

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implementation of administrative and (or) health           of the NGO GoLOCAL Ihor Komend, "state
measures (quarantine); providing grants to support         business support programs, such as Diia City,
and develop projects in the fields of culture and          5-7-9 loans, Startup Fund, support from donor and
arts, creative industries and cultural and educational     international organizations, specific projects in the
(domestic) tourism (Zakon.rada.gov.ua, 2020). Accor-       regions, such as Creative Economy Centers, create
ding to this law, the project should be understood as      a unique ecosystem for youth development, smart
"the activities of individuals and legal entities aimed    earnings and, as a result, for the development of the
at creating a certain cultural product, cultural good      regions." (Rivchachenko, 2022) (Figure 1) Therefore,
or cultural service (their combination); product or        the national genesis took place in accordance with
service (their combination) from cultural (domestic)       global markers, where international organizations,
tourism; a product or service (their combination)          creative hubs, society (consumers and creators
from the main economic activity in the types of            of creative products), the state (active state and
creative industries approved by the Cabinet of             regional policy can be traced in the UK, China,
Ministers of Ukraine, or institutional support of legal    South Korea, the Netherlands and other countries
entities, ..., to achieve clearly defined goals within     that are leaders in this issue), business (especially in
a certain estimate (budget) and the implementation         the context of cooperation between small, medium
of which requires actions within the agreed time           and large enterprises), public organizations, local
frame provided by the contract concluded with the          governments, educational and research institutions
Ukrainian Cultural Foundation" (Zakon.rada.gov.            are identified as key stakeholders of the creative
ua, 2020), and the term "institutional support grant"      economy (Creativeeconomy.center, 2022).
means "the provision of financial resources on               The indicators in Figure 1 suggest a more precise
a gratuitous and irrevocable basis to legal entities       definition of the term "creative economy" as "a set of
of all forms of ownership in the field of culture,         economic activities based on knowledge, creativity,
cultural (domestic) tourism and those persons whose        intelligence, technology and innovation, with
main activity belongs to the types of economic             a high potential for profitability and job creation, and
activity related to the creative industries..."            including creative industries and other creative
(Zakon.rada.gov.ua, 2020) The law adjusts the work         economic activities (research, education, fashion,
of the National Council on Television and Radio            tourism, services, creative products, etc.)." (Creative-
Broadcasting, state support for cinematography in          economy.center, 2022) The measurable structuring
Ukraine, for example, in the form of temporary state       of the creative economy by the Center for Creative
subventions for the development of film projects,          Economy Development is presented in Figure 2.
state support for book publishing in Ukraine, etc.           The National Bureau of the EU program "Creative
  And in wartime, this sphere, the sphere of creative      Europe" in Ukraine distinguishes the following
industries, is able, in addition to commercial             12 sectors of cultural and creative industries:
benefits, to generate intellectual capital as a resource   performing arts (theater, dance, ballet, opera and
of strategic communications, such as archetypal            musical performances); visual arts (painting, sculpture,
roots, national identification meanings, national          graphics, printing, photography); crafts (textiles,
cultural values, historical myths and is able to scale     ceramics, wood, metal, glass, graphics); cultural
them on the civilizational map of the world. As noted      heritage (tangible and intangible heritage, cultural
in the study of the creative economy of Ukraine and        heritage sites; archaeology, museums, libraries,
international experience, conducted in 2021 by the         archives); audiovisual sector (films and videos);
NGO GoLocal together with the think tank CMD               interactive software/IT/training programs; computer
Ukraine and the Center for the Development of the          and video game development; music (live and
Creative Economy, it is "the DNA of the creative           reproduced); design and fashion (clothing manufac-
economy is the ability to generate intellectual            turers and others specializing in the fashion industry
capital with high profitability potential, create jobs     and interior design); literature and publishing (books,
and exports, while promoting social inclusion,             magazines, periodicals); architecture (construction
cultural diversity and human development." (Rivcha-        and landscape architecture); mass media, advertising
chenko, 2022) This study has proved the strong             (television, radio, newspapers) (Prostir.ua, 2022).
potential for the development of the creative                From June 1 to 13, the Ukrainian Cultural Foundation
economy in Ukraine, in particular, a noticeable            (UCF) together with the Ministry of Culture
dynamics has been recorded since 2016, when the            and Information Policy of Ukraine conducted an
creative sphere began to rapidly increase its weight       anonymous online survey among creative entrepre-
in most key macroeconomic indicators, when the             neurs and creative professionals – applicants for the
added value created by the creative industries of          Ukrainian Cultural Foundation 2020–2022 on the
Ukraine increased by 32.7% and, according to analysts'     state of culture and creative industries during the war
forecasts, tends to increase. According to the head        in order to form a plan for the restoration and

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           Figure 1. The main producers of added value of the sector of creative economy in Ukraine.
           The growth of the creative economy in Ukraine from 2013 to 2019
           Source: (Rivchachenko, 2022)




        Figure 2. Dimension of creative economy
        Source: Creativeeconomy.center (2022)


strengthening of the sphere, to engage partners                   of work and sending employees on unpaid leave.
and donors, taking into account that the outflow of               There was a lack of awareness among industry
human capital, along with the reorientation of                    professionals about receiving state support, while
funding to the Armed Forces of Ukraine, reduced                   at the same time, according to 61% of respondents,
demand and other factors may disrupt the positive                 the restoration and development of the creative
dynamics shown in Figure 1 (UCF.in.ua, 2022). The                 industries in the postwar period is possible through
survey revealed that the incomes of employees and                 project grants. Interestingly, 92% of respondents,
their employment decreased along with the demand                  being abroad, do not stop "donating" to the Armed
for cultural services and products; one third of the              Forces of Ukraine, participate in various events and
participants recorded a decrease in sales of products             actions in support of Ukraine from abroad. And
and services by more than 90% compared to last year;              the collection of open responses highlighted the
but the vast majority of enterprises and institutions             following markers: transparent competition for senior
continued to pay taxes in full, by reducing the volume            positions, restructuring of the management vertical

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of the industry, international educational trainings      "clothing models that designers develop according
and exchange programs for artists and managers of         to the same patterns as traditional ones, but with
the creative sector; co-production and cooperation        the help of 3D technologies and computer programs.
in international projects; emphasis on cultural factors   Such digital versions of things are used to fill the
in state international policy; state support strategy,    profile on Instagram or on online gaming platforms."
minimization of document circulation.                     (Nikishova, 2022) The mission of the project is as
                                                          follows: "The new approach should solve the problem
                                                          of overproduction and overconsumption, returning
3. Successful Ukrainian cases of creative                 purchases. According to Barclays Bank, about 9% of
industries as tools for the development                   clothes are bought for photos and then returned, and
of creative economy in the crisis period                  this is with a market volume of $1.3 trillion per year."
  Examples of successful cases of creative industries     (Bukatseli, 2018) The creators were able to prove to
in the crisis period provide an opportunity to try to     investors the need for people to get closer to the usual
identify tools that contribute to the production of       realities limited by quarantine restrictions during
a new cultural product or service, carry a semantic       the pandemic, in particular, online fashions that the
load and increase the potential of the creative           computer technology industry should respond to
economy in wartime.                                       in clothing – thus, the project received $2 million in
  Among the first tools is the monetization of            venture capital investment from Alpha Edison and
hobbies, because thousands of Ukrainians today            Artemis Fund, which was aimed at creating a mobile
are trying to develop small business ideas to enable      application and launching an NFT marketplace for
them to make a systematic "donation" to help the          clothing. The idea of selling a billion digital fashion
Armed Forces, to implement volunteer initiatives:         items outlines the prospect of creating new jobs –
creation of jewelry, including patriotic themes,          virtual clothing designers, product promoters around
sale of clothing, including patriotic prints, sale of     the world. "Now the popularity of the project makes
cosmetics, designer toys, repair of electronics, etc.     it possible to raise funds for the defense of Ukraine
For example, Hanna Horlenko, a Methodist teacher,         in the context of Russian armed aggression. In the
honored with "Excellence in Education of Ukraine",        digital store "Support Ukraine" appeared a collection
with the help of the Armed Forces brigade,                of clothes, all proceeds from the sale of which
makes jewelry from beads for sale. In particular, the     the co-founders transfer to the Armed Forces of
Career Hub community on its Telegram channel              Ukraine." (Nikishova, 2022)
(https://t.me/careerhub) within the framework of             In addition to personalized examples, it is
the marathon of useful tips #ВсеБудеУкраїна created       appropriate to mention regional cases, in particular,
a helpful infographic (https://careerhub.in.ua/wp-        the clustering of business, the idea of a cluster of
content/uploads/2022/05/self-employment-1.pdf )           creative industries in the context of the development
about monetizing a hobby with tips on where to            strategy of the Carpathian region under martial law,
start, how to find one's niche, what one needs to         which was presented by the head of the Agency for
know before starting one's own business (Yagodka,         Regional Development of Ivano-Frankivsk region,
2022). Experts name the top five of the most              member of the board of the Ivano-Frankivsk Business
popular niches for self-employment: cooking/              Association Viktor Vintoniak.
confectionery; floristry; artistic creativity, painting      In an interview with the "Firtka" news agency, he
on objects, walls, showcases, decoupage; making           emphasized the prospects for the development of
candles, jewelry, perfume, soap, tableware, leather       creative industries in their region, where there are
goods or cosplay costumes.                                no powerful industrial capabilities, and this industry
  Among the tools for the development of the              can provide almost the greatest added value
creative economy in the conditions of war is              (Darmograi, 2022). As an example, he cited the
innovative entrepreneurship in the creative sector,       English model, where the contribution of creative
or creative entrepreneurship is "a social technical       industries in 2019 amounted to one hundred and
and economic process that promotes the creation of        eleven billion pounds, and emphasized the legislative
best-in-class goods, services or technologies through     basis for understanding creative initiatives in
the commercial use of innovation" (Bukatseli, 2018),      Ukraine: Resolution of the Cabinet of Ministers of
which is often based on creative production, is very      Ukraine No. 501 of May 19, 2021 established the
mobile, based on project activities. So, for example,     Creative Economy Development Council, which
Daria Shapovalova (founder and creative director of       includes the head of the expert group on creative
"Mercedes-Benz Kiev Fashion Days") and Natalia            industries of the Directorate of Book Publishing,
Modenova, Ukrainian experts in the modern world           Creative Industries and Tourism of the Ministry of
of fashion, created in 2020 the project "DressX" –        Culture and Information Policy of Ukraine. Thus,
an online platform for selling digital clothes –          among the diversity of creative industries,

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V. Vintoniak noted the breakthrough of Ukrainian            "This is Craft" trading platform created in Nova
film production since 2015 as the most meaningful,          Kakhovka for producers and craftsmen from
qualitative, value-forming and, according to him,           Ukraine, who even during the full-scale war
"Galician film production as a film industry can            continued their work online, evacuating to
unite at least fifteen professions from the list of         Uman, where they opened their first offline store
creative industries," (Darmograi, 2022) since Ivano-        (Boychenko, 2022). Having started a business at
Frankivsk region has been a popular location for            the height of the pandemic, a team of two activists
filmmakers since S. Parajanov’s "Shadows of Forgotten       working at the Regional Development Agency of
Ancestors" was filmed in 1964. V. Vintoniak states          the Tavria Union of Amalgamated Hromadas set out
that Hungarians, that have positive experience in           to create an online platform for entrepreneurs and
the creative industries of film production with more        craftsmen. Cooperation with 52 producers allowed
than 30% of gross national income, are ready to             to organize a creative service instead of a store.
help in creating pavilions for the production of            Tasting evenings were organized in cooperation
audiovisual products. Norwegian, Italian and Indian         with a local promoter of movie nights with the
experts see the potential of a creative industries          introduction of gift sets in wooden boxes with a
hub in the region with a focus on film production.          variety of food and drinks. They allowed to expand
   There are cases when a cultural product is not only      the customer base from individuals to businesses
a mechanism for obtaining reputational, image and           and local authorities. The team invests 50% of the
semantic capital, but becomes a tool for conveying          marketplace's profits in its own charity fund "This is
a true picture of the world, in particular, the project     Craft", which takes care of several programs:
created by the Ukrainian studio Starni Games – the          1) "Revolving fund" provides entrepreneurs with
online game Ukraine War Stories, where players are          returnable money for them to scale up their activities,
offered to survive the occupation, save their relatives     then people return funds;
and leave for a safe place from Bucha, Gostomel and         2) "Permanent competition of creators" is a micro-
Mariupol in three "visual novels". These "novels" are       grant competition that can be spent on an expert’s
based on real events, with real photos. One of the          consulting from or creating a test model (for
creators of this game experienced this occupation in        example, we made details for a necklace and author’s
Bucha firsthand. It is planned that the game will be        packaging for massage bags made of healing herbs);
released in October 2022 in free access. "We will not       3) "Centavrida" is a program that appeared during
get anything from this project. Our goal is to tell the     the full-scale war to provide funds for the production
world audience about the experience of the people of        of a minimum amount of copies of children’s books
Ukraine," the developers say (Barsukova, 2022).             that would present the South of Ukraine, Tavria
   The mechanism of brand collaboration today               as an interesting legendary region of Ukraine.
is also extremely effective and successful in the           Eventually, when this territory was occupied, the team
context of the creative economy. Namely, the                strategically reoriented the business to volunteering,
collaboration of fashion and sports, for example, the       and as a result of the evacuation, the relocation and
Ukrainian sustainable brand from designer Andre             arrangement of the offline store was carried out with
Tan RDNT. "And despite the realities, RDNT                  the support of the Ukrainian Venture Social
continues to give light and broadcast national              Fund. Today their strategic idea, according to the
messages       about    independence,      individuality,   co-founder of "This is Craft" Victoria Kulakova, is
freedom of expression and lust for life. In the first       to create an all-Ukrainian network of "This is Craft"
spring drop... the main codes of the young brand            stores with local and all-Ukrainian gastro and regular
are transmitted, which include environmental                souvenirs, which will work on the basis of a franchise,
friendliness, manufacturability, relevance. The             when the team is responsible for brand promotion,
author's water print on clothes symbolizes life,            creation of a single marketplace, product placement
because water is an integral part of our life and water     on the website and its marketing, and local partner
polo." (Cases.media, 2022) The proceeds from the            entrepreneurs saturate regional "This is Craft" stores
sale of T-shirts of this collaboration will be directed     with high-quality local products.
to the charity platform dobro.ua to help children
who are being treated in medical institutions of
Ukraine during the war.                                     4. Conclusions
   Another example of a successful case is regional           Comparing the performance of the creative
craft production: "support for local producers and          industries with the same pandemic first quarter
craftsmen, promotion of quality goods made from             of 2021, when the "contact" sectors suffered the
natural raw materials, integration of villages into         greatest losses, while others continued to grow,
creative industries, modernization of Ukrainian             the Ministry of Culture and Information Policy of
cultural heritage – these are the tasks of the              Ukraine, together with representatives of the World

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Bank, showed not just a drop in economic activity,        hobbies, innovative business (in particular, the
but also its closure: "The total number of taxpayers      idea of a cluster of creative industries), brand
decreased by 60% and the amount of declared               collaboration, craft production, creation of cultural
income in the creative industries decreased by 41%        products such as books, grant/equity support and
in the first quarter of 2022 compared to the first        other activities that involve donations to support
quarter of 2021," (Tax Revenues, 2022) which is           humanitarian and military needs of Ukrainian society.
common to all sectors in the creative industries.         In the conditions of war, creative industries as an
  "Russia's war of aggression is destroying Ukraine's     environment of economic activity are considered
creative economy. Many objects of cultural and            as a segment of the social economy that generates
industrial infrastructure have been destroyed or          and promotes intellectual, value, semantic capital,
seriously damaged by missile strikes. Supply and          which reveals its potential in the context of strategic
demand chains are disrupted by the fighting. Creative     communications. The podcast "Frontline of Creative
professionals are leaving the country – the problem       Industries" has been recently created to collect
of brain drain is becoming especially acute for           stories of how representatives of this field oppose
preschoolers." (Tax Revenues, 2022) However, the          Russian aggression and support Ukraine and each other.
formation of a successful Ukrainian creative economy        A more detailed consideration of such tools as
sector in the conditions of a promising creative          crowdfunding, including the use of Patreon, the
environment and in the conditions of crisis socio-        creation of merch, revitalization, the so-called
economic preconditions, in particular during the          "Second Chance – from Industrial Use to Creative
war, requires, as the considered successful cases have    Impulse", and creative clusters of Ukrainian business
shown, the use of certain tools: monetization of          may also be promising.

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                                                                           Received on: 26th of September, 2022
                                                                             Accepted on: 29th of October, 2022
                                                                           Published on: 30th of November, 2022




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