Mechanisms of Innovative Projects Financing in the Culture Industry on the Basis of Public-private Partnership

Abstract

Strengthening the role of the culture industry in modern economy makes it relevant to developing scientific and methodological approaches to the organization of its financial support. Among the mechanisms of culture industry financing there are the mechanisms of public-private partnership. The purpose of this study is to identify the prerequisites for the use of public-private partnership and the definition of effective forms of its organization in the field of culture, taking into account the experience of developed countries. The article discusses the main models of financing culture, measures on state support of the development of culture and creativity, and the mechanisms of public-private partnership in the implementation of innovative projects in the field of culture. The study identifies the most applicable forms of publicprivate partnership such as life-cycle contracts. By effectively distributing risks between the customer and the contractor, covering the entire life cycle contracts of a cultural object, combining design, construction and operation into a single complex, they allow to optimize the costs of the creation and operation of cultural objects. The development of publicprivate partnership projects is a real prerequisite for the growth of investment and social attractiveness of the cultural industry and for strengthening the competitiveness of national economies.

Practices and history of “co-programmazione” and “co-progettazione” in Italy: the case of cultural production and music education in Trentino

“…In the first case, the public sector can produce the cultural service directly, owning the means of production. Differently, the public sector can subsidise cultural production by transfers to the private sector, or by means of fiscal policies (including tax incentives, credit and financial mechanisms), public-private partnerships and other collaborative agreements or infrastructural investments for instance in the creation of services supporting cultural clusters (see also Malshina and Firsova, 2018). In parallel, market mechanisms can combine with public policy when the financing operated by the public administration includes the use of vouchers which are used by individuals to buy the service from private firms that produce and sell cultural services.…”

Application of the Real Options Method for Innovation Project Investment Evaluation

“…According to UNCTAD, the growth rate of international trade in innovation creative services in 2016 was 3% and it was on the second place after the 4.5% growth of the IT and computer sector. All this testifies to the growing importance of innovations and contribution to economic development in modern conditions and the prospects for the development of organizational and financial mechanisms for investing in these areas [1], [2].…”