The Economic Impact of the Creative Industries in the Americas
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The
1
Economic
Impact
of the
Creative
Industries
in the
Americas
A report prepared by for
The aim of this research is to 2 assess and demonstrate the economic contribution and potential of the creative and cultural industries in the countries of the Americas and 10 benchmark countries. This report provides an overview of the availability of data and makes recommendations on how to improve the measurement of this important sector.
Executive summary 3
The creative and cultural The creative industries are set 1
industries1 constitute one of the to become an increasingly important Reference to the “creative industries”
fastest-growing sectors globally. The contributor to GDP growth across the in this report is meant to encompass
sector is forecast to play a bigger role region. In the two largest economies both creative and cultural industries.
in coming years. If the countries of the of the hemisphere, Brazil and the The term “creative industries” has
Americas2 are to achieve a balanced, United States, the creative industries different meanings and uses throughout
high-growth economy, it is vital that are estimated to account for over the world; for purposes of this report,
the key strengths of businesses in 10% of GDP. To place this in context, the term covers the following sectors:
the creative sector are nurtured. 11% of GDP in the US is roughly Advertising; Art Crafts; Audio-Visual
Accordingly, the Organization of equivalent to the size of the entire / Film; Cultural Heritage; Design;
American States, the Inter-American US manufacturing sector or about Entertainment Software, including
Development Bank and the British one-fifth of the world’s manufactures. Video Games; Fashion; Music;
Council have commissioned Oxford In other countries in the region the Publishing; Performing Arts; and Visual
Economics to undertake this research GDP contribution of the sector is Arts.
to better showcase the economic estimated to be smaller between 2%
impact and potential of creative to 7% in Argentina, Mexico, and Peru, 2
industries across the Americas and in highlighting the scope for catch up and Reference to the “countries in the
comparison with selected benchmark illustrating the high growth potential of Americas” in this report refers to the
countries around the globe. The report the sector. With regard to growth the OAS member states (or the non-
highlights the need to further develop sector is showing significant promise, benchmark countries) listed on p. 8.
common statistical frameworks to with data highlighting that the sector
support evidence-based policy-making is accounting for a growing share of
that enables the sector to continue national GDP in countries such as
to flourish and contribute to growth, Argentina, Brazil, Colombia, Paraguay,
employment, and development. and the United States.
The creative industries The sector can provide new
represent untapped economic potential, employment opportunities. The creative
and make a positive contribution to the sector is a major source of dynamism
innovation economy and other sectors for the economies of the Americas,
of the economy through supply chain growing rapidly with the potential to
effects. If the Americas are to continue generate creativity, innovation and
to increase competitiveness in this enterprise across a wide range of
changing global environment, they need activities. The sector is already an
to put in place the right conditions for important provider of employment
creativity and innovation to prosper in a in some economies, accounting for
new entrepreneurial culture. There is a between 5 to 11% of employment in
lot of untapped potential in the cultural Canada, Colombia, Mexico and Trinidad
and creative industries to create growth and Tobago, with employment forecast
and jobs. Many recent studies have to continue to grow in the sector.
shown that the creative industries
represent highly innovative companies
with a great economic potential and are
one of the most dynamic sectors in the
Americas.
4
A global market for creative Trends in cultural consumption and Common definitions and
goods and services is growing rapidly infrastructure provide the context methodologies are necessary. Efforts
and outperforming other exportable for future development. As shown in this direction will lead to a more
sectors. The sector is also becoming in changing advertising distribution fluid and effective exchange of
increasingly international, with both patterns, the soaring consumption ideas across the Americas, helping
creative goods and creative services of videogames, the continual overcome the challenge of producing
traded in international markets, disappearance of newspapers, statistics for a sector where there
highlighted by growth in global creative and wider access to the Internet, is rapid technological and market
exports at over 10% per annum for successful business models are in change. The search for a minimum
much of the past decade. The Americas constant evolution. If the Americas are common ground is underway, albeit
account for approximately $87 billion of to continue to increase their global far from consolidated. This could be
world creative exports, approximately competitiveness and harness the achieved by adopting an internationally
14% of the world total. It is worth dividends of nurturing their creative recognised statistical framework such
highlighting that the region accounts economies, policy interventions need to as UNESCO’s published framework
for almost two-fifths of global ‘personal, take into account the fluid dynamics of for cultural statistics using detailed
cultural and recreational services’ modern creative businesses. International Standard Industrial
(which includes audio-visual services) Classification (ISIC) and International
exports and over one quarter of global Market intelligence for Standard Classification of Occupations
‘visual arts’ exports illustrating its growing sectors is important to enable (ISCO) codes, or developing a new
position as a world leader. ‘evidence-based’ policymaking. There agreed definition for the region using
is an evident lack of knowledge ISIC and ISCO codes common to all
Creative industries have base on the economic impact of the countries as a base.
continued to perform well during the creative industries both nationally
recent global recession. Resilience to and internationally. This research has Governments are currently reliant
the crisis is also evident in the exports signposted the available evidence to upon non-economic data to provide
of creative services; they have grown demonstrate economic contribution and intelligence in many countries. Very
at 4.3% per annum since the global potential; further research is required to few countries in the world publish
recession began in 2008. As a rapidly better understand the economic impact reliable, continuous, comparable data
growing international market, this of the sector. An enhanced evidence of the creative industries. Infrastructure
presents an opportunity for countries base could be used to argue in favour and creative consumption variables
that are engaged in international trade of measures, policies or initiatives that are used as proxies. Information on
of creative goods and services. The would help to encourage growth in the the cultural infrastructure within a
sector’s resilience and the evidence creative industries. country can be valuable information
that it is an important provider of for policymakers in the absence of the
employment opportunities is all the Estimating the contribution availability of GDP and employment in
more interesting because creative of culture to the economy across numbers. Cultural atlases, like those
sectors have a higher percentage of the Americas poses challenges. The of Argentina, Costa Rica, Ecuador,
youth employment than the rest of the lack of an agreed framework for Jamaica, Mexico and Peru are good
economy, at a time of record high youth researchers to follow leads to widely examples of this.
unemployment in both developed and varying estimates on the scale of the
developing countries. sector. Due to the dynamic and diverse
nature of the sector, it often does
not align well with official statistical
measurement frameworks, which tend
to use Standard Industrial Classification
(SIC) codes or Standard Occupational
Classification (SOC) codes.
5
Addressing data gaps and in partnership with other countries
leveraging existing sources. There and international organizations
are a number of useful data providers working in this field, to ensure that
publishing information relating to the the accounts are produced using the
creative industries, but with limited same methodology and definition of the
country coverage of the smaller states sector to enable accurate comparisons
in the Americas. There is an opportunity among countries.
to open dialogue with existing data
providers to scope the potential for Ensuring best practices in
additional countries to be added to statistical methods should also apply
improve their data coverage, and help to the creative industries. Experiences
national statistics institutes to measure such as cultural atlases and satellite
better the creative sector. accounts of culture must be shared
and developed across the Americas
Cultural satellite accounts cooperatively. This will encourage and
are providing invaluable information help smaller countries to catch up
for policy makers and represent and coordinate better in the common
a comprehensive model for the development of a hemispheric creative
measurement of the economic economy.
contribution of national cultural
statistics. The cultural satellite account Ensuring stakeholder buy-
is an economic information system in: Developing the creative economy
for cultural products and the activities should not and cannot be undertaken
that create them. The development merely by public initiative. Implementing
of cultural accounts is an extremely new processes to improve
positive recent development in the measurement will require investment
statistical measurement of the sector, and expertise from partners in industry
and can be an informative tool for and civil society. With the sector
governments to draw upon to enable becoming an increasingly important
evidence based policy making for driver of growth, a commitment across
the creative and cultural industries. the board will be essential to effectively
Argentina, Canada, Chile, and develop the required evidence-based
Colombia already produce cultural policy.
satellite accounts. Brazil, Costa Rica,
the United States and Uruguay have
made advanced progress towards
the development of their satellite
accounts, while Bolivia, Ecuador and
Peru are currently in the initial stages of
developing their own, respectively. The
expansion in the number of countries
producing satellite accounts is hugely
important and will provide enhanced
market intelligence on the evolution of
the sector, identifying growth markets
within the sector. It should be noted that
governments should not undertake the
development of their satellite accounts
in isolation, and the development of
satellite accounts should be undertaken
The economic impact of the creative industries 6
Introduction An increasing number of
governments across the globe are
cultural industries is a cross-cutting
issue that covers several areas of
identifying the creative industries focus for the OAS, including culture,
The creative economy has become as a priority sector in their national competitiveness, innovation, trade,
a topical issue of the international development strategies, and expressing tourism and facilitating the participation
economic and development agenda the need to build capacity to better of small and medium-sized enterprises
during this decade, calling for informed measure the economic impact of in domestic and international markets.
policy responses in both developed these activities to inform their policy One priority mandated in the area
and developing countries. The responses. of culture specifically, is to support
sector has outperformed many other With its growing importance in “member states in their efforts to build
traditional growth sectors during the the global economy there is a need for capacity to measure the social and
recession, increasing its economic better understanding of the dynamics economic impact of cultural activity,
performance and providing employment and needs of the creative economy. In and to gather, analyze and disseminate
opportunities during a period of slow this context, improved and up-to-date information on culture through the
global economic growth. regional and national mappings of exchange of information and practice in
economic indicators related to creative cultural information systems.” National
In recent years countless activity are critically important to help systems, such as satellite accounts,
academic publications and reports shape policy to help increase economic and up-to-date information on the
have discussed the role of innovation, growth through culture. economic contribution of the cultural
culture or creativity in development and creative sectors, are critical to
processes. The EU highlights that The creative industries are develop common indicators, the data
cultural and creative industries breathe particularly important in the countries infrastructure, and the institutional and
new life into declining local economies of the Americas. The Organization human capacity to inform the design
and spawn new economic activities, of American States (OAS) with the of public policies, implement programs
thereby creating new sustainable jobs Inter-American Development Bank to increase economic growth, and
and making the regions and cities of (IDB) and the British Council (BC) promote development through culture
Europe more attractive.3 The OECD have collaboratively commissioned and innovation. Additionally the OAS
also stresses the role of the cultural Oxford Economics to conduct a study is focused on “promoting intercultural
and creative industries as a lever for on the economic impact of the creative dialogue, creativity, and artistic
social and personal development. Such industries in the Americas. expression and enhancing awareness
industries generate economic growth and respect for cultural and linguistic
and constitute the core of the definition Each organisation has a diversity.” For more information about
of “global competitiveness.”4 The sector specific rationale and interest in the the work of the OAS, visit www.oas.org.
also has notable supply chain linkages, creative industries sector in the region:
purchasing materials from other IDB: The IDB is the main
sectors and thus contributing to their OAS: The Organization of source of multilateral financing in
growth. Notably the creative sector American States is the main political, Latin America and the Caribbean. It
has strong supply chain linkages with juridical, and social governmental provides solutions to development
other creative sectors which has high forum in the Hemisphere. It carries challenges and support in the key
‘within sector’ multiplier effects which out the essential purposes for which areas of the region. Through its Cultural
contribute to rapid growth.5 it was established on the basis of four Center, the IDB supports collaborative
mutually reinforcing pillars: democracy, and innovative initiatives for the
human rights, multidimensional security advancement of culture and creativity
and integral development. The principal as agents of social and economic
goal of the OAS with respect to development in the region. The work
development is of the Cultural Center as regards the
cultural and creative economy focuses
to support member states in their on three interdependent areas: 1)
efforts to reduce poverty and collection, analysis and dissemination
inequity. The issue of creative and of statistics; 2) identification and
7
promotion of concepts and best responses to encourage growth, and 3
practices; and the 3) multidisciplinary demonstrable economic impacts are European Commission (2010): Green
generation of innovative ideas to essential to secure both public and paper. Unlocking the potential of
stimulate political engagement. For private finance. cultural and creative industries.
more information on the IDB Cultural
Center, visit www.iadb.org/cultural. This report forms one of 4
the outputs of the research project, OECD (2005): Culture and Local
British Council: The British alongside 45 excel data files and 7 Development.
Council is the UK’s international country summary dashboards. The
organisation for cultural relations excel files provide a centralized location 5
and educational opportunities and is where all data relating to the creative NESTA (2008) Creating innovation:
represented in 110 countries worldwide. industries that is currently published Do the creative industries support
The Creative Economy Unit was are housed, providing a one stop shop innovation in the wider economy?
established in 1999 as part its Arts for all data relating to the sector and
Department to work with UK and highlighting areas where there are 6
international creative industries and data gaps. The dashboards showcase These countries were selected based
cultural policy-makers to co-create the available data to demonstrate the on factors such as the quality and
programmes that empower local economic impact of the sector in Brazil, availability of data.
creative talent, boost cultural policy, Chile, Colombia, Guatemala, Mexico,
improve infrastructure development Peru, and Trinidad & Tobago.
and increase international connections.
By helping to shape thinking amongst
policy-makers while also building
entrepreneurial and leadership capacity,
the British Council aims to encourage
collaborative change across sectors
and increase collaborations between
cultural production, enterprise and
digital technology, accelerating growth
in R&D and new business models in
culture. For more information about the
work of the British Council, visit www.
britishcouncil.org/creativeconomy.
The three organisations are
committed to working together on a
collaborative basis to help encourage
the development of the creative
industries, with the first stage of
this process being to ensure timely,
accurate and policy-relevant statistics
are available for the sector in today’s
increasingly complex and rapidly
changing social, political and economic
environments. The availability of data
is extremely important, notably to
help develop evidence based policy.
For example, it is important that
governments are able to track the
evolution of the sector and adapt policy
The economic impact of the creative industries 8
Objectives and Costa Rica United States of
scope of the Dominica America
research Dominican Uruguay
Republic Venezuela
The key objective of this
research is to assess and demonstrate Ecuador
the economic contribution and potential
of the creative and cultural industries El Salvador Benchmark
in the countries of the Americas and
10 additional benchmark countries, Grenada countries
including the effect of these industries
on economic growth, jobs, and Guatemala China
investment, through the assembling of
country and industry datasets in excel Guyana Italy
format.
Haiti Jordan
The countries included in this
research are listed below. Honduras Malaysia
Jamaica Mauritius
Countries in Mexico Philippines
the Americas Nicaragua South Africa
Antigua & Panama South Korea
Barbuda Paraguay Spain
Argentina Peru United Kingdom
Bahamas Saint Kitts &
Barbados Nevis
Belize Saint Lucia
Bolivia Saint Vincent &
Brazil the Grenadines
Canada Suriname
Chile Trinidad &
Colombia Tobago
9
In this report, Oxford Economics has Ideally the best data to provide
concentrated on collecting all available insight into the sector relates to
data and statistics that fall under a employment, GDP and trade. However,
number of key headings common in a number of countries this level of
across most definitions of creative detail is unavailable or unquantifiable.
industries. We have also collected any data
available relating to either creative
consumption or creative infrastructure.
Advertising Figure 1.1 below summarises the types
of data we have collected as part of this
Art Crafts research project.
Audio-Visual /
Film
Cultural
Heritage
Design
Entertainment
Software,
including
Fashion
Music
Performing Arts
Publishing
Video Games
Visual Arts
Figure 1.1 10
Creative industries data collection
— Number of cinemas
— Number of film
distribution companies
— Creative Goods
— Number of libraries
— Number of museums Trade imports and exports
— Creative services
imports and exports
Scale of Employment
Infrastructure Creative / GDP
Sector
— Video game
expenditure
— Advertising sales
— Limited data at the
— Music sales
— Film box office sales Cultural required level of detail
— Dependent upon
Consumption national studies11
Oxford Economics has Following the meeting, Oxford
collected data using national public Economics contacted all CIC official
and private data sources, as well as representatives for assistance in
international bodies including the collecting national statistics, which
United Nations Conference on Trade opened a constructive dialogue with
and Development (UNCTAD), the World member states and provided access
Intellectual Property Organization to additional data not publically
(WIPO), and the United Nations available being shared with Oxford
Educational, Scientific, and Cultural Economics and reflected in this report.
Organization (UNESCO). Oxford Economics also undertook a
large consultation exercise with the
statistical authorities in each member
The Inter-American state, discussing data availability with
Committee on Culture (CIC) invited statistical experts in each country and
Oxford Economics to present the providing them with data spreadsheets
initial findings of this study during the to verify the quality of the results and
Committee’s fifth regular meeting held ensure that no available data relating to
at OAS headquarters in Washington, the sector were missing in the report. 9
DC on March 22, 2013. Oxford
Economics set out for the CIC the 7
objectives and outputs of the study Barbados, United States, Canada,
and provided an overview of the data Costa Rica, Dominican Republic,
availability on creative industries in Paraguay, Colombia, Chile, and
the countries of the Americas and Guatemala made statements during
benchmark countries. The presentation the meeting; the Andean Community
highlighted the importance of improving (CAN) sent a note, reporting on the
measurement and data coverage recent resolution adopted by its
to identify niche growth markets, to member states committing them to
track the evolution of the sector, and establish national cultural satellite
to support policy officials in fostering accounts.
a trading environment that helps the
creative sector to continue to grow. 8
Representatives of UNESCO’s Regional The Report of the Fifth Regular
Center for the Promotion of Books Meeting of the Inter-American
in Latin America and the Caribbean Committee on Culture (CIC) (CIDI/CIC/
(CERLALC) and the Convenio doc.8/13) and other CIC documents,
Andrés Bello (CAB) or Andrés Bello including the presentation by Oxford
Convention commented on ongoing Economics, can be found in Documents
efforts toward the harmonization of of the V Regular Meeting of the CIC at
culture accounts in the region, as http://portal.oas.org/Portal/Topic/
did several representatives7 among SEDI/Educaci%C3%B3nyCultura/
the 27 member state delegations in Cultura/Comisi%C3%B3nInterameri
attendance. The CIC welcomed this canadeCultura/Reunionesplenarias/
research initiative commissioned by the VReuni%C3%B3nOrdinaria/
three institutions. Member states were tabid/1950/Default.
invited to offer further comments and aspx?language=en-us
assist in the data collection. 8
9
See “Acknowledgements” at the end of
this report.Layout of this report 12
The remainder of this Appendix 3
report is structured UNESCO review of labour
as follows force surveys
efining the creative
D Appendix 4
industries Global creative trade
vailability of data on
A ppendix 5
A
the creative industries WIPO copyright industries
Conclusions and Appendix 6
recommendations Data matrix of data
availability
ppendix 1
A
DCMS creative industries Appendix 7
definition Country Summary
Dashboards
ppendix 2
A
UNESCO cultural Appendix 8
industries proposal Excel Country Data Files
definition
Acknowledgements
Defining
13
the creative
industriesDiversity of terms used for the creative economy 14
The term creative industries Another common term used
has different meanings and uses to describe the sector is the copyright
throughout the world. In its broadest industries, which lies at the heart of the
sense it is used to refer to all the definition used by WIPO. The copyright-
industries that generate copyright, based industries are defined as those
patents and trademarks. In other industries in which copyright plays an
contexts it is used to refer only to such identifiable role in creating tradable
industries that produce creative and private economic (property) rights and
artistic content. income from use of these economic
rights.
Possibly the most accepted
definition at an international level is that The copyright industries
of the Department of Culture, Media include a number of sectors such as
and Sport (DCMS) in the UK. According music, which is common across most
to the DCMS, creative industries are accepted definitions (see table below).
those that “have their origin in creativity, However, the copyright industries only
individual skills and talent and have include fashion and architecture as
the potential to create wealth and partial copyright industries, whereas
employment through the generation the DCMS definition of creative
and exploitation of intellectual industries includes both these sectors.
property.”10
10
According to UNESCO, the DCMS (2001), Creative Industries
term “cultural industry” applies to those Mapping Document 2001 (2 ed.),
industries that combine the creation, London, UK: Department of Culture,
production and marketing of content Media and Sport.
that is by nature cultural and intangible.
Content is protected by intellectual
property rights and can take the form of
goods and services.
Although cultural and creative
industries are considered to be one
and the same in some of the reviewed
texts, in others cultural industries are
shown as a sub-group of the creative
industries.
The CAB also distinguishes
between cultural activities and cultural
goods. The cultural field comprises
cultural activities (museums, libraries
and festivals, which make up a part
of heritage) and cultural goods
(publishing, music, film, etc.).Table 1.2 15
Classification systems for the creative
industries from different models
UK DCMS model Symbiotic texts model Concentric circles model WIPO copyright model
Advertising Core cultural industries Core creative arts Core copyright industries
Architecture Advertising Literature Advertising
Art and antiques market Film Music Collecting societies Film and
Crafts Internet Performing arts video
Design Music Visual arts Music
Fashion Publishing Other core cultural industries Performing arts
Film and video Television and radio Film Publishing
Music Video and computer games Museums and libraries Software
Performing arts Peripheral cultural industries Wider cultural industries Television and radio
Publishing Creative arts Heritage services Visual and graphic art
Software Borderline cultural industries Publishing Interdependent copyright
Television and radio Consumer electronics Sound recording industries
Video and consumer games Fashion Television and radio Blank recording material
Software Video and computer games Consumer electronics
Sport Related industries Musical instruments
Advertising Paper
Architecture Photocopiers
Design Photographic equipment
Fashion Partial copyright industries
Source: United Nations (2008), Creative Architecture
Economy Report 2008 : The Challenge Clothing
of Assessing the Creative Economy: Footwear design
towards informed Policy-making Fashion
Household goods
Toys
It is this diversity of the
definitions that makes comparisons
difficult, both within countries and
internationally. For example, in
Brazil the national statistics agency
(Instituto Brasileiro de Geografia e
Estatística) has estimated employment
at approximately 1.8 % of total
employment, whereas UNESCO and
UNCTAD estimate 3.8 % and 0.95%
of total employment respectively (see
table below) . The lack of an agreed
framework for researchers to follow
leads to widely varying estimates on
the scale of the sector.Table 1.3 16
Formal employment according to different
creative methodologies by regions
Methodology Brazil South East State of Metropolitan Municipality
region Sao Paulo region of Sao Paulo
Sao Paulo
Number % Number % Number % Number % Number %
Formal Employment 41,207,548 100 21,098,135 100 12,079,131 100 6,722,364 100 4 ,621,085 100
Firjan 6,635 ,379 16.1 21,098,135 16.4 2,029,607 16.8 1,164 ,805 17.3 805,505 17.4
DCMS 2,281,527 5.5 3,465,671 5.5 684 ,659 5.7 380,450 5.7 295 ,451 6.4
UNESCO 1,527,721 3.8 1,150,067 4.4 511,362 4.2 316,637 4.7 237,537 5.1
Fundap 753,178 1.8 927,307 2.2 296,231 2.5 215,982 3.2 140,499 3.0
IBGE 751,539 1.8 464 ,927 2.2 279,049 2.3 183,490 2.7 134 ,969 2.9
OIC 729,053 1.7 437,395 2.1 277,694 2.3 210,544 3.1 151,194 3.3
UNCTAD 390,454 0.9 468,788 1.1 136,536 1.1 103,482 1.5 81,195 1.8
Source: Firjan, Department of Culture
Media and Sport (DCMS), UNESCO,
Fundap, Instituto Brasileiro de
Geografia e Estatística, Observatorio
de Industrias Creativas (OIC) and
UNCTAD
The lesson to be learned is
that comparisons can only be made
when using a consistent methodology,
comparing results from different
studies using different methodologies
can lead to inaccurate conclusions
being drawn.Differences in definitions across countries 17
Often where countries are
using a similar term for the sector, they
use a different sector definition. This
is not only an issue for the Americas,
but applies to all economies across the
globe.
For example the UK includes
fashion in its definition of the creative
industries, but France does not; and
France includes architecture in its
definition of the cultural industries,
whereas Spain does not (see Table 1.4
below) .Table 1.4 18
Comparison of four countries: definitions
of the creative/cultural industries
UK Germany Spain France
Term Used Creative industries Culture & creative Culture industries Cultural sector
industries
Architecture
× × ×
Audio-visual (film, TV, radio)
× × × ×
Performing arts
× × × ×
Libraries
× ×
Design
× ×
Art market / visual arts
× × × ×
Publishing
× × × ×
Fashion
×
Software / multimedia
× ×
Museums / cultural heritage
× ×
Music
× × × ×
Crafts
×
Advertising
× ×
Source: British Council (2010) Mapping
the creative industries: A Toolkit
Therefore, even when comparing
internationally if different countries are
using the same terminology it may not
be an accurate comparison.What data are required to enable 19
accurate benchmarking?
Due to the dynamic and diverse However, the creative
nature of the sector, it often does industries require a much more granular
not align well with official statistics level of data to produce employment
measurement frameworks which and GDP estimates. For example, the
tend to use Standard International DCMS definition used in the UK is
Classification (SIC) codes or Standard perhaps the most widely used definition
Occupational Classification (SOC) of the creative industries. The UK
codes. Statistical systems of industrial definition requires 4 digit level SIC
classification struggle to keep pace data to estimate employment (refer to
with the rate of industrial change. They Appendix 1), and for some industries
provide the most detailed coverage for only a portion of very detailed sectors
traditional areas of the economy, such are classified as ‘creative’.
as primary and extractive industries,
and manufacturing. Consequently, in Measuring creative
general, the service sector is poorly employment is equally difficult (i.e. also
covered and the classifications are including persons employed in creative
particularly weak for areas in which occupations outside the creative
there is rapid technological and market industries sector) . UNESCO proposed a
change; both types of change generate global study on measuring employment
difficulties. in the ‘cultural industries’ in 2011, which
faced similar problems of requiring
Accuracy in benchmarking can granular data (refer to Appendix 2 for
only be achieved if there is confidence its proposed definition) .
that the data providers have used
the same industry definitions and are This level of granularity is
working from a consistent methodology. difficult to obtain. Some advanced
economies where statistical authorities
For a researcher, the best have large budgets are able to produce
method to ensure accurate comparisons data to this level of detail (e.g. UK, US,
is to build up a database using raw Australia, EU economies, Canada etc.) .
statistics from official sources. However, in most cases developing or
emerging markets will not be able to
Using raw data for sector produce data to the required level of
comparisons is usually relatively detail to enable researchers to estimate
straightforward, and data can be drawn the size of the creative industries.
largely from central sources such as
the International Labour Organization Many cross-economy
(ILO) to enable comparisons of broad business surveys also have insufficient
sectors such as retail, construction, coverage of micro-enterprises and sole
agriculture, manufacturing etc. traders, which are disproportionately
represented in the cultural sector.
There are two main sources
of employment data, ‘labour force and
household employment surveys’ and
‘population censuses’. There are both
positive and negative aspects to these
data (refer to table below) .Table 1.5 20
Overview of key data types
Data Type Positive Negative
Labour force and —A significant number of countries —S
mall size of their samples in some
household surveys carry them out countries (e.g. sample size is often too
— T hey are done especially for capturing small to produce results at granular
employment phenomena sectoral level that are statistically
— M any of them have consistent significant)
standardized ILO concepts —L
ow levels of occupation and activity
— T hey are done on a regular basis, classification coding in some countries
monthly or annually in most regions —C
oncepts used vary among some
around the world countries
— Disaggregated coding systems
Population censuses — T hey are done by an overwhelming — T
hey are usually done once every
majority of countries ten years
— T hey have information on employment — T
hey employ different methodologies
obtained from their well sized sample and ways of applying samples
surveys
— T hey register both activities and
occupations
— S ome countries carry out inter-census
procedures in which estimations projected
for the subsequent years can be found
Therefore, even if these data
are available, there are considerable
barriers such as timeliness and use of
consistent methodologies. Our review
of data availability highlighted that very
few of the countries in the Americas
published data at the level required
to make estimates of the economic
contribution of the creative industries
sector, as highlighted in Table 1.6
below.Table 1.6 21
Review of the availability of employment statistics
1 Digit 2 Digit 3/4 Digit 1 Digit 2 Digit 3/4 Dig
DigitAntigua & Barbuda
× × Nicaragua
× ×
Argentina
× Panama
× ×
Bahamas
× × Paraguay
× ×
Barbados
× × Peru
× × ×
Belize
× × × St Kitts & Nevis
× ×
Bolivia
× × St Lucia
× × ×
Brazil
× × × St Vincent & the Grenadines
× × ×
Canada
× Suriname
× × ×
Chile
× × Trinidad & Tobago
× × ×
Colombia
× × × United States
Costa Rica
× Uruguay
× × ×
Dominica
× × × Venezuela
× × ×
Dominican Rep.
× × Benchmark Countries
Ecuador
× × China
× ×
El Salvador
× Malaysia
× ×
Grenada
× × × Italy
Guatemala
× × Jordan
× ×
Guyana
× × Mauritius
× ×
Haiti
× × Phillippines
× × ×
Honduras
× × South Africa
Jamaica
× × South Korea
× ×
Mexico
× Spain
UK22
While there appear to be In the United States, GDP for
relatively few countries producing the copyright industries increased from
data to 3 and 4 digit levels, it may 4.9% in 2002 to 11.1% in 2011.
be possible to access this level of
data through special requests and In Argentina, the creative
consultation with the relevant national industries increased their share of
statistical authorities. It is also worth national GDP from 2.5% to 3.8%
noting that in its proposal for a study between 2004 and 2011.12.
to estimate global employment in the
cultural industries, UNESCO found very While the GDP estimates
few countries that were producing data above may not be technically
to the level of granularity needed (see comparable due to differing
Appendix 3). methodologies and definitions used,
they do nonetheless provide an
With regard to GDP data, indication of the increasing importance
even in advanced economies it is of the creative and cultural sector in
often difficult to source GDP data terms of GDP contribution in many of
at the required level to estimate the the countries across the Americas.
GDP impact of the creative industries.
Some countries run regular business Due to the difficulties
surveys (such as the Annual Business in estimating both output and
Inquiry in the UK), although it is only employment, it is best to turn to the
in exceptional cases where the data availability of other data and other
from these surveys is of the required analyses conducted by third party
granularity to enable robust estimation research organisations to provide
of creative industries GDP. It would be additional insight into the economic
highly unlikely that information would impact of the creative industries. Using
be available at the required level of raw data to produce international
detail on a consistent basis across estimates of creative industries is
countries. beyond the remit of this study, and
would require a large scale research
With regard to GDP, the main source programme.
of information on the economic impact
of the sector is from commissioned 11
research projects aimed at estimating Please refer to the country dashboard
the size of the sector which are for Brazil which accompanies this
available for some of the countries in report for further information.
the Americas. For example:
12
In Brazil the copyright Please refer to the country data files
industries were estimated to account which accompany this report for further
for 6.7% of GDP in 1998, compared information.
to 11.1% for the copyright industries in
2006.11Availability
23
of data on
the creative
industriesSatellite accounts 24
The
Although it is difficult to − to establish the magnitude of cultural
get data from national accounts at a activity and compare it with the
development
disaggregated level to estimate creative national economy;
industries output, some governments
of satellite
have recognised the importance of the − to come up with instruments that
sector as a key contributor to economic contribute to all decision-making
accounts in
growth and have commissioned a processes, and the definition and
satellite account. A number of countries evaluation of cultural policies;
Colombia
in the Americas have produced a
satellite account measuring the sector, − to identify in the main framework
including Chile and Colombia. the set of cultural activities and
In Colombia, the cultural satellite implement the measurement
The cultural satellite account account (CSC) has been developed mechanisms of the national accounts
is an economic information system by the DANE (national statistics system;
for cultural products and the activities office) and the Ministry of Culture
that create them. The account has as a from late 2002, with the support of − to make available to the community
frame of reference the United Nation’s the Convenio Andrés Bello (CAB) and (business organizations, creators,
System of National Accounts. Its main the National Copyright Office at the academia, etc.) reliable information
objective is to produce information that Ministry of Interior. This concept has on cultural activities;
will make possible economic analysis been introduced within the financial
and evaluation of cultural activities in accounting systems with the goal of − to achieve an economic
the country and to facilitate public and "expanding the analytical capacity of measurement of culture that allows
private decision-making in the cultural national accounts in a flexible manner, international and inter-sectoral
sector. without overloading or distorting the comparisons;
central system."
− to provide information to identify the
In the CSC system, the cultural sector strengths and weaknesses of the
is "defined in a practical way, based on various cultural activities from their
the guidelines adopted and developed economic dimension;
by the economy and culture project of
the CAB. This does not only include − to enrich the economic analysis of
activities such as arts, folklore or culture with non-monetary indicators.
tangible and intangible heritage, but
also other activities from which much
of the cultural processes flow, such
as television, radio, advertising, film or
publication of books, magazines and
newspapers."
This broad spectrum of activities is
known as the cultural industries. The
aim of the cultural statistics was:25 Colombia’s cultural satellite account provides information on value added, employment, cultural infrastructure and consumption in the following sub-sectors of the cultural sector: — Audio-visuals — Books — Cultural Areas — Libraries — Magazines — Movies — Music — Newspapers — Publishing — Radio — Television — Videogames — Videos By way of summary the table below provides GDP in the cultural sector in Colombia at a broad sub-sector level:
Table 1.7 26
Value added in cultural industries in Colombia
2001 and 2007 (millions of pesos, current prices)
Sector 2001 2007
Publishing and printing 649,659 1,227,984
Radio, television and cable program transmission 176,640 384 ,523
Advertising, photography and research and development 941,210 2,674 ,860
Recreational activities, cultural and recreational services 1,334 ,863 2,909,772
Museums 16,998 40,128
Artistic education 99,686 156,525
Government 179,636 288,893
Total cultural industries 3,433,692 7,680,724
% of total GDP 1.6 % 1.8 %
The data illustrate that the The development of cultural undertaken in partnership with other
scale of the cultural sector in Colombia accounts is an extremely positive countries in the region and international
has more than doubled in size13 over recent development in the statistical organizations working in this field to
the six year time period for which data measurement of the sector. Argentina, ensure that the accounts are produced
are available. The sector has only Colombia, Chile and Canada15 already using the same methodology and
marginally increased its share of total produce cultural satellite accounts. definition of the sector to enable
GDP as the economy as a whole has Brazil, Costa Rica, the United States accurate comparisons among countries.
experienced strong growth over the and Uruguay have made advanced
period in question. progress towards the development of a 13
cultural satellite accounts, and Bolivia, In current prices.
Although there are some Ecuador and Peru are currently in the
other countries that have produced initial stages of developing a cultural 14
cultural satellite accounts, international satellite account. The expansion in the Heritage; Archives and Libraries;
comparisons can still be problematic. number of countries producing satellite Books and Press; Visual Arts;
For example, in the cultural satellite accounts is hugely important and will Performing Arts; Audio-visuals and
account of Spain, one of the benchmark provide enhanced market intelligence Multimedia; and Interdisciplinary.
countries in this study, a slightly on the evolution of the sector, highlight
different set of sub-sectors14 is used growth markets within the sector and 15
making comparisons at detailed be an informative tool for governments Canada does not technically produce a
levels difficult. Therefore, although in to draw upon to enable evidence based cultural account, however it does have
Spain the cultural sector is recorded policy making for the creative and the most complete cultural statistical
in its satellite account in 2007 as cultural industries. framework in the hemisphere and,
representing 2.9% of GDP, this is not arguably, the world.
directly comparable to the 1.8% figure It should be noted that
recorded in Colombia due to the slightly governments should not undertake the
different definitions of the cultural development of their satellite accounts
sector that have been used. in isolation, and the development
of satellite accounts should beTrade information 27
Other than satellite accounts, Creative exports (goods and
trade information is the best source of services) from the countries in the
statistics from a central source relating Americas account for 2.2% of all their
to the creative industries.16 UNCTAD exports of goods and services. Their
provides detailed estimates of imports creative goods exports account for
and exports for most countries across approximately 1.6% of all the goods
the globe. As this comes from a central exports from the Americas, and their
source using the same methodology all creative services exports account
data are directly comparable. for 4.6% of all their services exports.
Creative exports from the countries
The available statistics in the Americas are comprised of
highlight some interesting trends for 56% creative goods and 44% creative
the global creative industries: services (refer to table below).
$646 billion of exports (in 2011), 16 Although it is one of the best sources
growing at an average annual rate of of data with regard to the creative
10.8 per cent between 2002 and 2011; industries, the trade information
does have some gaps where trade
2.5% of world export of goods (in 2011); in particular goods or services is of
a small volume; the measurement
and of trade in services is difficult and
methods to improve data measurement
34.4% of world export of services of intangibles are constantly being
(in 2011). reviewed.
The countries in the Americas 16
account for $87 billion of world creative Although it is one of the best sources
exports, approximately 14% of global of data with regard to the creative
creative exports. industries, the trade information
does have some gaps where trade
in particular goods or services is of
a small volume; the measurement
of trade in services is difficult and
methods to improve data measurement
of intangibles are constantly being
reviewed.Table 1.8 28
Exports from countries in the Americas
of all creative industries (goods and services),
by subgroup, 2002, 2008 and 2011
Value in % of % total Value in % of % total Value in % of % total
$ millions creative exports $ millions creative exports $ millions creative exports
industries industries industries
All Creative 49706 100 % 2.9% 87860 100 % 2.6 % 87600 100 % 2.2%
Industries
All Creative 49706 64% 2.4% 54261 62% 2.0 % 49453 56 % 1.6 %
Goods
Arts crafts 2111 4% 0.2% 2447 3% 0.1% 2055 2% 0.1%
goods
Visual arts 3404 7% 0.3% 9337 11% 0.3% 8218 9% 0.3%
goods
Performing 648 1% 0.0 % — — — — — —
arts goods
Publishing 9421 19% 0.7% 11331 13% 0.4% 9412 11% 0.3%
goods
Audiovisual 209 0% 0.0 % 394 0% 0.0 % 271 0% 0.0 %
goods
Design goods 12676 26 % 1.0 % 20725 24% 0.8 % 21724 25% 0.7%
New media 3327 7% 0.3% 10027 11% 0.4% 7772 9% 0.3%
goods
All Creative 17909 36 % 4.7% 33600 38 % 4.6 % 38147 44% 4.6 %
Services
Advertising and 512 1% 0.1% 1466 2% 0.2% 2021 2% 0.2%
related services
Architecture and 4297 9% 1.1% 11029 13% 1.5% 12760 15% 1.5%
related services
Research and 1641 3% 0.4% 4031 5% 0.6 % 5180 6% 0.6 %
development
services
Personal, cultural 11459 23% 3.0 % 17073 19% 2.3% 18186 21% 2.2%
and recreational
services
Source: UNCTAD
Oxford Economics Note: Creative goods are expressed as a
% of total goods exports, creative services are expressed as a % of total
services exports and total creative industries are expressed as a % of
all exports of goods and services.Trade information 29
Creative exports in the countries in 17
the Americas have grown by 6.5% The benchmark group of countries
per annum between 2002-11. This is are comprised of China, Italy, Jordan,
slower than the growth achieved by the Malaysia, Mauritius, the Philippines,
benchmark group17 of countries, which, South Africa, South Korea, Spain, and
driven by China, has grown at 11.3% per the United Kingdom.
annum.
The leading creative export
categories include design goods
($21.7 billion), personal, cultural and
recreational services ($18.2 billion),
architecture and related services
($12.8 billion) and visual arts goods
($8.2 billion). In order to put these
trade figures into context in the wider
economic environment, it is interesting
to note that:
— The value of exports of design goods
from the Americas is comparable to
the value of remittances to Mexico in
2011.
— The value of personal, cultural and
recreational services exports from
the Americas was greater than the
size of the economy of Honduras in
2011.
— The value of architecture and related
services exports from the Americas
is approximately three times the value
of the Foreign Direct Investment
received by the Caribbean countries
combined.
— The value of visual arts goods
exports from the Americas is
comparable to the value of coffee
exports from Brazil.Figure 1.9 30
Creative goods exports index (2002=100)
300
Benchmark
250
Creative goods exports (2002 = 100)
200
150
Countries in the Americas
100
50
0
2006
2008
2009
2005
2007
2002
2003
2004
2010
2011
Source: UNCTAD
Figure 1.10
Creative services exports index (2002=100)
300 Growth in the countries in the Americas
Benchmark
has been fast in new media and visual
arts goods, and has achieved double
250 digit per annum growth in architecture
Creative services exports (2002 = 100)
and related services, research and
development services, and advertising
and related services, over the 2002-11
200 time period for which data is available.
150
Countries in the Americas
100
50
0
Source: UNCTAD
2006
2008
2009
2005
2007
2002
2003
2004
2010
2011Figure 1.11 31
Creative goods exports growth rate (2002-2011)
Creative Goods exports - % growth rate 2002-11
Benchmark
Arts crafts goods
Countries in the Americas
Publishing goods
Audiovisual goods
Design goods
New Media goods
Visual Arts goods
2002-2011 (% growth p.a.) -10 % 0% 10 % 20 % Source: UNCTAD
Figure 1.12
Creative services exports growth rate (2002-2011)
Creative service exports - % growth rate 2002-11
Benchmark
Personal, cultural and recreational services Countries in the Americas
Architecture and related services
Research and development services
Advertising and related services
2002-2011 (% growth p.a.) 0% 10 % 20 %
Source: UNCTADData from other central providers 32
The UNCTAD data provide
more granular information than has
Figure 1.13
been presented in this report (e.g.
design can be split out by architecture, Creative exports as a %
fashion, glass wear, interiors, jewellery,
and toys; new media can be split into
recorded media and video games;
of total exports (2011)
and visual arts can be split into
antiques, paintings, photography and
sculpture).18
5.0 %
The data are also available
on a country by country basis, and 4.5%
can also provide analysis of bi-lateral
creative trade flows. The chart below 4.0 %
ranks the countries in the Americas for
which data are available, highlighting
3.5%
that Barbados and Canada have the
greatest creative export intensity
while countries such as Paraguay and 3.0 %
Ecuador rank towards the lower end of
the scale. The important point from this 2.5%
is that each country in the region is at a
different level in the development of its 2.0 %
creative industries sector, highlighting
that some countries which currently 1.5%
have a small creative sector have
potential for growth of the sector to 1.0 %
catch up with leading countries.
0.5%
The UNCTAD creative goods
and services databank is a very useful
resource to provide insight into trade in 0.0 %
the creative industries.
Barbados
Brazil
Canada
USA
El Salvador
Argentina
Jamaica
Colombia
Mexico
Guatemala
Bolivia
Costa Rica
Chile
Peru
Paraguay
Dominican Republic
Ecuador
18
Please refer to the country data files
which accompany this report for further
information.Other data providers 33
There are other data providers
that provide specialist information
Figure 1.14
with regard to the creative industries
ranging from economic studies to the GDP impact of copyright industries
statistics included in cultural yearbooks.
WIPO
Through its creative mapping
research programme, WIPO seeks to
12% Copyright industries (% of GDP)
quantify the economic contribution of
the copyright-based industries to value
added output (GDP), foreign trade WIPO Countries in the Americas Benchmark countries
(exports and imports) and employment. 10 %
WIPO’s definition of the
‘copyright industries’ is based on 4 digit
ISIC data, and sourced from labour 8%
force surveys, household surveys,
business surveys, trade records and
company accounts. Using data at this 6%
level and estimating outputs represents
a hugely ambitious and large scale
research programme.
4%
A number of the countries
included in the WIPO research
programme are among the countries in
2%
the Americas and benchmark countries
included in this study. A summary of the
results for all countries is included in
Appendix 5 of this report. 0%
USA (2011)
St Lucia (2012)
St Kitts & Nevis (2012)
Panama (2009)
St Vincent & the Grenadines (2012)
Trinidad & Tobago (2011)
Mexico (2006)
Grenada (2012)
Colombia (2008)
Peru (2009)
Malaysia (2008)
Phillipines (2006)
Canada (2004)
Jamaica (2007)
Dominica (2012)
South Korea (2012)
China (2009)
South Africa (2011)
Jordan (2012)
The charts below summarise
the economic contribution of the
copyright industries for the countries
in the Americas and the benchmark
countries for which data is available.
Source: UNCTAD
Note: 2010 data is used where 2011 data has not yet been published34
Of the countries in the
Americas, the copyright industries
Figure 1.15
account for the largest proportion of
GDP in the United States, and the Employment impact of
greatest proportion of employment in
Mexico.
copyright industries
It is worth highlighting that
in the USA the copyright industries
account for 11.10% of GDP and only Copyright industries (% of Employment)
12%
8.19% of employment, whereas in
Mexico the copyright industries account
for 4.77% of GDP and 11.01% of WIPO Countries in the Americas Benchmark countries
employment. This highlights the higher 10 %
value added activity in the USA in the
copyright industries relative to Mexico,
where productivity in the United States
is much higher. 8%
UNESCO
UNESCO 6%
Publishes a range of statistics
relating to the creative industries,
largely relating to film and TV and 4%
media. The charts below highlight two
of the main data variables available
through UNESCO’s statistical database,
2%
illustrating number of cinemas and
number of daily newspaper titles.
0%
USA (2011)
St Lucia (2012)
St Kitts & Nevis (2012)
Mexico (2006)
Grenada (2012)
Panama (2009)
St Vincent and the Grenadines (2012)
Colombia (2008)
Peru (2009)
Malaysia (2008)
Phillipines (2006)
Canada (2004)
Jamaica (2007)
Trinidad & Tobago (2011)
Dominica (2012)
South Korea (2012)
China (2009)
South Africa (2011)
Jordan (2012)
Source: WIPOYou can also read
