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Policy-making for the creative and cultural industries.
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Measuring the creative industry and creative economy
1.
© CAJ, 2009 Policy-making
for the creative and cultural industries Cultural sector mapping Using data for policy- making Presentation to UNESCO Capacity Building Programme – Africa 2012
2.
© CAJ, 2009
Economic contribution models Measurement and mapping of the creative industries/ creative economy Evidence of contribution DEVELOPING CLEAR ADVOCACY BASED ON FACTS AND EVIDENCE
3.
© CAJ, 2009 Measurement
of Creative Industries UNESCO – Framework for Cultural Statistics: 1987 Still little agreement on a methodology for measuring the creative industries Individual countries collect stats Australian surveys of industries, individuals, attendance of events Statistics Canada – measures size of industry, participation in cultural activities, cultural labour force survey Finland, France & Italy – governmental statistical agency collects creative sector stats Philippines extracts relevant stats from national statistical agency but much is lost due to informality and micro nature of firms UK and Singapore – relevant government department extracts information from data collected by businesses at 4-5 digit SIC level
4.
© CAJ, 2009 What
information is being collected Gross value added - turnover less total costs (excluding labour and capital) Number of businesses Exports Total creative employment Employment in creative industry firms Employment of creatives in occupations in other sectors
5.
© CAJ, 2009 UK
experiences Creative Britain: new talents for the new economy - latest government strategy “Britain is a creative country and our creative industries are increasingly vital to the UK. Two million people are employed in creative jobs and the sector contributes 60bn a year – 7.3% to the British economy. Over the past decade, the creative sector has grown at twice the rate of the economy as a whole and is well placed for continued growth as demand for creative content – particularly in English – grows” (DCMS, 2008)
6.
© CAJ, 2009 Why
collect statistics? Good official stats ‘prove’ the contribution of creative sectors to the overall economy and encourage regional, sub-regional and local assessments of contribution This links to regional development strategies linking creative businesses with wider networks of communication and exchange, improving business development agencies’ appreciation and understanding of creative industries Enhancing investor knowledge of creative industry opportunities
7.
© CAJ, 2009 Mapping:
origins UK: Mapping the Creative Industries, 1998 (DCMS) – Creative Industries Task Force Defined and measured economic contribution of creative industries and assessed their opportunities & challenges Mapping provides the economic data which shows the current value of the creative economy Mapping shows the economic potential of the sector and where it needs support to grow and realise its potential UK now a world leader in English speaking economies in identifying creativity as the driver for job creation & economic growth.
8.
© CAJ, 2009 Creative
Industries: a definition CITF defines Creative industries “those activities which have their origin in individual creativity, skill and talent and which have a potential for wealth and job creation through the generation and exploitation of intellectual property” See website www.culture.gov.uk/creative/mapping.htlm These include advertising, architecture, the art and antiques market, crafts, design, designer fashion, film, interactive leisure, software, music, the performing arts, print media and publishing, software, television and ratio, heritage and tourism services
9.
© CAJ, 2009 Creative
mapping Valuable tool used in Developed world: UK, Canada, USA, Hong Kong, New Zealand, Australia, Developing countries: Colombia (2002), South Africa (2008) Colombia developed a handbook “Guide to producing Regional mappings of the Creative Industries” (Spanish and English) – has guidelines for creative mapping process Since 2002, UK has produced yearly Creative Industries Economic Estimates using comprehensive survey data collected by the Office for National Statistics (ONS). (regular updates and consistent data on activity of creative industries).
10.
© CAJ, 2009 UK
research strategy revealed .. Government strategy “Creative Britain” preceded by Creative Economy Programme (CEP) in 2007 Series of research projects commissioned from independent consultants, research bodies, inside DCMS – all on website http://headshift.com/dcms/ “The CEP’s objective in commissioning these research projects was to furnish policy makers with a more complex understanding of the characteristics and structure of the creative industries and trends they have experienced. Together they represent a large advance in DCMS and research partners’ understanding of the creative industries” (DCMS 2007
11.
© CAJ, 2009 Questions
framing the research What is the direct contribution of the Creative industries to the economy? Do the creative industries face barriers to growth and improved productivity What is the government’s role in overcoming these?
12.
© CAJ, 2009 Creative
mapping Creative mapping as a way to assist countries to recognise importance of the sector To raise awareness of the industries , raise their profile & the contribution they make to the economy Impact of creativity in regeneration & social inclusion is widely acknowledged Share expertise and experience with countries (British Council support to mapping studies)
13.
© CAJ, 2009 Creative
mapping and why we do it Economic data – current value of creative economy (GDP, employment, ) Potential of the sector and where it needs support to grow and realise its potential Contribution in ‘hard’ terms for policy makers in treasury and trade and industry - used to obtain support (political and financial) Evidence based policy Used to track the development of the sector and success of its interventions
14.
© CAJ, 2009 Creative
mapping (2) Mobilising stakeholders and forces govt to take Creative Economy seriously In UK 2 million people employed in creative jobs and the creative sector contributed 7.3% to the British economy and it has grown at twice the rate of the economy as a whole (DCMS, 2008)
15.
© CAJ, 2009 Limitations
of statistics Official statistics do not keep pace with rapid changes, particularly in technology consequent classification problems that occur in creative industries Scope of sectors – such as design which crosses many codes Fail to capture full extent of activity as do no accurately reflect structure of industries Figures therefore remain estimates rather than definitive valuations
16.
© CAJ, 2009 New
insights from UK process Findings from DCMS (Frontier Economics) Large firms are important for the creative industries The largest 200 firms account for 50% of turnover Growth in the creative industries is driven by start- up companies Start up companies accounted for 48% of growth from 1995-2005: most of this in year 1. Creative Industry companies appear to grow slowly in the years after they start up Creative firms have survival rates that are similar to other sectors. Three year survival rates for firms within the creative industries is similar to the average across all industrial sectors but there are variations between sectors Large international creative industry firms are important in the UK International firms may locate in the UK because of its supply of high quality graduates, specialist “creative skills”, unique infrastructure and because the UK is an attractive place for executives to live and visit Creative industries perform well on a number of productivity measures compared to other UK sectors The creative industries are more likely to be innovative than the other sectors identified in the project and they employ highly skilled workers and have a higher proportion of self employed people that then economy as a whole
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© CAJ, 2009 Most
important insight for developing countries While individually the creative industry sectors (music, film, performing arts, dance, fashion, etc) might not be of STRATEGIC importance to the UK, there was no doubt that COLLECTIVELY the creative industries are very important.
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© CAJ, 2009 Framework
for cross-cutting policy Production Services Arts and Crafts Publishing Television & media Film & video Interactive leisure software Designer fashion Advertising Architecture Performing arts Arts and Antiques Crafts Software & computer services Design Music Frontier Economics, 2007
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© CAJ, 2009 Purpose
of mapping studies (1) To diagnose a given situation by identifying its constituent elements, the relations between them and the results of such interaction To describe and interpret the data to contribute to solutions to the problems revealed by the diagnosis To give greater visibility to the sector through the identification of the value of culture and creation both as cultural expression as well as its contribution to the economy or region
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© CAJ, 2009 Purpose
of mapping studies (2) To provide information that allows national & regional agents to identify key aspects about the dynamics of creative industries To provide the necessary facts that improves decision-making in the design of policies to strengthen these industries To stimulate the organisation of individuals & companies of the creative & cultural sectors so that they are perceived as a collective whole that facilities their recognition, positioning & empowerment as an economically important sector.
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© CAJ, 2009 Purpose
of mapping studies (3) To identify the targets of the study which are the institutions that are able to support the growth of the sector, the role-players within the creative sector as well as the stakeholders in the creative community. The process of mapping could, through the building of alliances & clusters of industries, stimulate organisation Ministry of Culture, Colombia, 2007:6
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© CAJ, 2009 Contribution
of Creative Industries to the Economy: some evidence Mapping studies in UK, Singapore, Canada and Australia Not directly comparable across countries since definitions vary But they illustrate the significant contribution that sectors make to the economy as a whole Eg UK: Creative industries in 2004 contributed 7.3% of Gross value added (£57billion) and grew at rate of 5% (97-04) (compared to rest of economy of 3%) with employment growing at 2%. They exported £13 billion worth of goods and services and employed 1.8 million people (DCMS, 2006)
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© CAJ, 2009 Contribution
of Creative Industries to the Economy: some evidence Singapore From 1986 in 5 yearly averages can compare growth rates in various creative sectors: value of S$3 bn in 2000 (=1.9% of GDP) employed 46,850 people (= 2.2% of employment) exported S$536 million worth of g & s. Higher growth rates than economy of whole: 87-2000 CIs : 17.2% pa (annual ave growth of GDP 10.5%)
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© CAJ, 2009 Contribution
of Creative Industries to the Economy: some evidence Canada Conference Board of Canada (2008) full contribution is $84.6bn (7.4% of total real GDP) in 2007 Full employment contribution (direct, indirect and induced effects) being over 1.1 million people in 2007 Average household in Canada spent about $1,650 on cultural g & s = $21 bn in 2007 (trends of household spending away from written media to cable and satellite TV)
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© CAJ, 2009 Advocacy
position continued: key questions relating to data/information you may need to make your case Why are we collecting data What information do we need to make our case what will we use it for (representations to other govt dept, policy-making, feedback to consumers/audience, etc) who is our audience industry stakeholders, govt, international bodies how might it affect or alter our policies Provide direction/spend less/more, on different ‘things’ how can it be simplified Do we need to collect all the information/ data? How big must the sample be? What is our strategic vision and organising principle
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© CAJ, 2009 Policy
in support of cultural and creative industries
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© CAJ, 2009
28.
© CAJ, 2009 Interventions
through research Any policy-oriented research is also an intervention. A new dynamic is set in motion the minute you start asking people questions. For ex: In a research project conducted amongst small creative enterprises in the SADC region, providers of small business support and assistance became aware that more co-ordination was necessary.
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© CAJ, 2009 Strategic
Pillar 1: Improving Access to Resources Problem Lack of access to resources such as materials, production space etc. Intervention Urban and satellite hubs Objective Improve access to resources to improve product quality and production efficiencies Risk Dependency Gate keeping Indicators • Production space: 30 craft enterprises per region • Improvement in product quality and production efficiency • Consistent increase in the turnover of craft enterprises CRAFT Strategic Framework
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© CAJ, 2009 Problem
Lack of market access Intervention • Improved access • Product development • Product ranges linked to opportunities (2010) • Market segmentation strategies • Partnerships with retail & other sectors • Export market identification Objective Facilitate and grow market access opportunities Risk Inability of producers to meet market demands due to market readiness issues Indicators • Consistent growth in regular custom • Value of sales of new products • Increased market share of local products CRAFT Strategic Framework Strategic Pillar 2: Improving Market Access
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© CAJ, 2009 Problem
Lack of value of local craft products in the market Intervention • Advocacy campaigns • Branding strategy • Promotion of fair trade practice • Media to promote craft Objective Increase consumption of craft products in Gauteng Risk “Overselling” of products Indicators • Increase in volume of sales • Increase in attendance at markets etc. • Increase in retail outlets • Increase in fair trade practices CRAFT Strategic Framework Strategic Pillar 3: Marketing
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© CAJ, 2009 Problem
Significant skills gaps Intervention • Facilitation of formal training through SETAs • Continuous professional development programmes • Mentorship & apprenticeship programmes Objective Improve skills of producers, retailers & agents Risk Training not “demand-led” Dependency on SETA funding Indicators • General improvement in skills • Increase in outputs of crafters in programmes CRAFT Strategic Framework Strategic Pillar 4: Improving the Skills Base
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© CAJ, 2009 Problem
Under-utilised design & innovation resources Intervention • Design & product development support • Market driven programmes • Quality assurance & control • Materials development • FabLab links Objective Develop design & innovation skills to ensure continuous product innovation Risk Lack of market-driven ethos Sustainability Indicators • Increased market access • Number of new products • Improved products & quality • Increased market share CRAFT Strategic Framework Strategic Pillar 5: Improving Design and Innovation
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© CAJ, 2009 Problem
Survivalist level of enterprises Intervention • Application of business criteria • Partnership development • Referral services • Tailor-made services Objective Enterprise development at all levels Risk Failure rate of new enterprises Dependency Lack of co-operation Indicators • Increase in registrations • Increase in turnover & profitability • Number of businesses in business after 5 years • Increase in skills • Increase in production & sales CRAFT Strategic Framework Strategic Pillar 6: Developing Enterprises EXAMPLE OF FORMAT FROM CREATIVE MAPPING IN GAUTENG
35.
© CAJ, 2009 Problem
Lack of communication & co-operation between stakeholders Intervention • Networking opportunities • Tools such as a newsletter • Regional hubs • Regional craft forum • Research • Centralised database Objective Improve government services Risk Gate keepers Apathy Cynicism Indicators • Increase in range of services • Improved quality of services • Increased networks in the sector CRAFT Strategic Framework Strategic Pillar 7: Improving Information Sharing & Coordination EXAMPLE OF FORMAT FROM CREATIVE MAPPING IN GAUTENG
36.
© CAJ, 2009
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