Dimiter Gantchev,Deputy Director, Copyright and Creative Industries Sector, WIPO

Port of Spain, Trinidad and Tobago, April 6-7, 2017

Creative Industries as a Factor for Economic DevelopmentA Perspective from the World Intellectual Property Organization

Overview

Conceptual framework

The empirical evidence

Challenges

Looking ahead

D. Gantchev

Why are we Concerned with the Creative Industries?

Are creative industries a development factor?Do the benefits extend beyond culture and social welfare?Are creative industries the solution to all problems?What kind of infrastructure is needed to support them?A need for positive agenda based on realityEmpirical results need to address all of the above

Intellectual Property and Creativity

IP is one of the tools to promote creativity IP is a new conceptual framework It transforms creative outputs into economic goods allows monitoring supply and demand provides evidence on impact

IP is perceived today as an indicator of development and is linked with sustainable developmentThe creative economy – broad and narrow deifnitions

Mr. D. Gantchev-WIPO

A Copyright Approach To Creative Industries

Creativity is the subject matter of copyright protection, but poses definitional problems as suchCopyright is a well defined concept a set of rights given to authors to control the use of

their works a financial mechanism to reward creators a basis for the operation of huge industries

Copyright as a delimitating factor for the creative economy

Mr. D. Gantchev-WIPO

Economic Fundamentals Of Copyright

Economic characteristics

Economic functions

Economic consequences

Conditions for economic efficiency

Mr. D. Gantchev - WIPO 6.

Creative Markets

Demand Unpredictability Quality Price Piracy impact

Supply Experience products Low entry barriers Distorted distribution of income and risk Excess of supply

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Functions of Copyright in the Creative Economy

Economic function An enabler A market framework A measurement tool

Social Function balance ownership and access catalyst for innovation supports national and local development

Cultural function Contribute to cultural diversity and supply of content

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Source:Daryl Mann, Beijing,Sept 2010

Source: Daryl Man, Beijing, Sept.2010

II. Why Measure the Creative Sector?

Assess performance and potentialUse as a competitive and marketing toolMeasure progressPolicy planningAwareness

Direct Copyright revenue

SourceRoyaltySalary FeeLicenseRightRemunerationOther revenue

Description (e.g.)from a publisherfrom a newspaperphotographerPermission to use a workperforming right for licensed workRemuneration collected by CMOPrivate copying compensation

WIPO Measurement Indicators

Indicators of size Value added Employment Foreign trade

Dynamic indicators Productivity Multipliers Contribution to real GDP growth

Constant search for new ones

Mr. D. Gantchev-WIPO

GDP contribution

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

Avg. 5.16%

Employment contribution

-1.00%

1.00%

3.00%

5.00%

7.00%

9.00%

11.00%

13.00%

15.00%

Avg. 5.36%

R=0.53

Relationships to Economic Indicators - GDP per Capita

R=0.57

Foreign direct investment

R=0.56

Global innovation index

R=0.43

Global competitivness index

R=0.42

Business freedom

R=0.41

Freedom from corruption

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9%

1%

2%

15%

6%

39%

2%

22%

4%

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1%

2%

7%

7%

9%

43%

5%

20%

6%

The Creative DNA

0%

20%

40%

60%

80%

100%

Press and Literature

Music, Theatrical Productions, Operas

Motion picture and video

Radio and Television

Photography

Software and Databases

Visual and Graphic Arts

Advertising Agencies and Services

Copyright Collecting Societies

Findings

An overall significant contributionDriversDynamicsWell interconnected with the economyCapital and labour productivityOutput and employment multipliers

Mr. D. Gantchev

III. Challenges -misperceptions

Creativity on its own can lead to economic growthCreative industries are independent of the rest of the economyCreative industries can be developed by one institution The contribution of the creative sector is constantly growing Creative industries are exclusively about economic growth Creative industries can solve systemic problemsDigital=creative

Risks

Matching the level of expectationsSetting unrealistic targetsAdopting the concept without: underlying economic factors infrastructure in place statistical capacity

IV. Looking aheadPolicy Capitalize on the high profile of the concept Look for global solutions Work on the level of acceptance in society

Economic Focus on how to monetize creativity Build up the operational infrastructure Identify drivers of economic performance

Research Empirical is key Specific impacts New generation of metrics

Questions ?dimiter.gantchev@wipo.int

29.Mr. D. Gantchev - WIPO