Economic Contribution
Globally, Creative Industries excluding software and general scientific research and development are said to have accounted for around 4% of the world's economic output in 1999, which is the last year for which comprehensive figures are currently available. Estimates of the output corresponding to scientific Research and Development suggest that an additional 4-9% might be attributable to the sector if its definition is extended to include such activities, though the figures vary significantly between different countries.
Taking the UK as an example, in the context of other sectors, the creative industries make a far more significant contribution to output than hospitality or utilities and deliver four times the output due to agriculture, fisheries and forestry. In terms of employment and depending on the definition of activities included, the sector is a major employer of between 4-6% of the UK's working population, though this is still significantly less than employment due to traditional areas of work such as retail and manufacturing.
Within the creative industries sector and again taking the UK as an example, the three largest sub-sectors are design, publishing, and television and radio. Together these account for around 75% of revenues and 50% of employment.
The complex supply chains in the creative industries sometimes make it challenging to calculate accurate figures for the gross value added by each sub-sector. This is particularly the case for the service-focused sub-sectors such as advertising, whereas it is more straightforward in product-focused sub-sectors such as crafts. Not surprisingly, perhaps, competition in product-focused areas tends to be more intense with a tendency to drive the production end of the supply chain to become a commodity business.
There may be a tendency for publicly-funded creative industries development services to inaccurately estimate the number of creative businesses during the mapping process. There is also imprecision in nearly all tax code systems that determine a person's profession, since many creative people operate simultaneously in multiple roles and jobs. Both these factors mean that official statistics relating to the Creative Industries should be treated with caution.
The creative industries in Europe make a significant contribution to the EU economy, creating about 3% of EU GDP - corresponding to an annual market value of €500 billion - and employing about 6 million people. In addition, the sector plays a crucial role in fostering innovation, in particular for devices and networks. The EU records the second highest TV viewing figures globally, producing more films than any other region in the world. In that respect, the newly proposed 'Creative Europe' programme (July 2011) will help preserve cultural heritage while increasing the circulation of creative works inside and outside the EU. The programme will play a consequential role in stimulating cross border co-operation, promoting peer learning and making these sectors more professional. The Commission will then propose a financial instrument run by the European Investment Bank to provide debt and equity finance for cultural and creative industries. The role of the non-state actors within the governance regarding Medias will not be neglected anymore. Therefore building a new approach extolling the crucial importance of a European level playing field industry may boost the adoption of policies aimed at developing a conducive environment, enabling European companies as well as citizens to use their imagination and creativity - both sources of innovation -, and therefore of competitiveness and sustainability. It supposes to tailor the regulatory and institutional frameworks in supporting private-public collaboration, in particular in the Medias sector. The EU therefore plans to develop clusters, financing instruments as well as foresight activities to support this sector. The European Commission wishes to assist European creators and audiovisual enterprises to develop new markets through the use of digital technology, and asks how policy-making can best help achieve this. A more entrepreneurial culture will have to take hold with a more positive attitude towards risk-taking, and a capacity to innovate anticipating future trends. Creativity plays an important role in human resource management as artists and creative professionals can think laterally. Moreover new jobs requiring new skills created in the post-crisis economy should be supported by labour mobility to ensure that people are employed wherever their skills are needed.
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