© CAJ, 2009

Policy-making for the creative and cultural industries

Cultural sector mappingUsing data for policy-making

Presentation to UNESCO Capacity Building Programme – Africa 2012

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Economic contribution models Measurement and mapping of

the creative industries/ creative economy

Evidence of contributionDEVELOPING CLEAR ADVOCACY

BASED ON FACTS AND EVIDENCE

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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

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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

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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)

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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

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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.

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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

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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).

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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

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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?

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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)

© 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

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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)

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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

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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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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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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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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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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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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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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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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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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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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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Policy in support of cultural and creative industries

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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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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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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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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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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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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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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

© 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

© CAJ, 2009