Friday, 1 July 2016

Economic Contribution of Creative Industries



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 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)[5] 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. 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.

In recent years, creative industries have become ‘increasingly attractive to governments outside the developed world’. The harnessing of creativity brings with it the potential of new wealth creation, the cultivation of local talent and the generation of creative capital, the development of new export markets, significant multiplier effects throughout the broader economy, the utilisation of information communication technologies and enhanced competitiveness in an increasingly global economy’.
   By Segesela Blandina
      BAPRM 42663

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