1. Creative Industries: Brief Review of Research Literature Julie Carr Culture, External Affairs & Tourism Analytical Unit 6 August 2009

2. Context and Purpose Creative industries identified as one of six key sectors by the Scottish Government Available statistical data provides valuable economic insights into the sector Purpose of the review was to:  Get beneath the statistics  Explore the themes in the literature to inform a more detailed understanding of the sector  Consider the experiences of those working in the creative industries

3. Presentation overview Overview of policy context What the statistics tell us Method taken Main findings Conclusions

4. Context Creative industries defined as: Those industries which have their origin in individual creativity, skill and talent which have a potential for wealth and job creation through the generation and exploitation of intellectual property. (UK Department of Culture, Media and Sport, 1998) Comprised of 13 distinct industries Scottish Government has taken a partnership approach to supporting the creative industries Creative Industries Framework Agreement published February 2009 Formation of Implementation Group Publication of Scotland’s Creative Industries Partnership Report (June 2009)

5. What the statistics tell us Main data source Annual Business Inquiry Estimated turnover £5.1 billion (2006) Employs around 58,000 people (2006) 8,485 registered enterprises (2008) Small businesses - 97% of enterprises 0-49 employees Computer games and software largest sub- sector (2006) West of Scotland - 41,000 people employed

6. Method Collation/review of statistical and economic evidence Brief review of the research literature Highlights the key themes found, areas worthy of further consideration and policy implications

7. Main findings - Definition The analysis of the official statistics based on the DCMS definition only takes our understanding so far The statistics don’t capture: those who are not registered for VAT/PAYE individuals who work in creative jobs outwith the DCMS 13 industries The statistics include those working in the creative industries who do not produce creative content – can lead to over- counting The fast moving nature of the creative industries poses a challenge for official statistics in keeping up with this sector Emergence of a 3-pronged approach to creative production – publicly funded culture, commercial/market culture and social production (interaction with users/consumers of creative content)

8. Main Findings - Characteristics Creative industries characterised by:  Small businesses  Self-employment/freelance work  Project/ad hoc work  Informal hiring/work experience What about large(r) firms? Importance of networks Characteristics of creative workers

9. Main findings – Measuring growth Richard Florida’s theory of creativity – Cultural inputs yield economic outputs? Prevalence of smaller businesses The instinct to stay small challenges understandings of growth based on increased numbers of larger organisations Implications of this for measuring progress in Government Economic Strategy

10. Conclusions Limitations in current definitions though other approaches (eg creative economy) still being developed Traditional ways of understanding/measuring growth may not be the most appropriate for this sector Reported evidence of a skills gap and the need for further information on how barriers faced by the sector can be overcome Challenges for policy of moving away from ‘traditional’ interpretations of work, learning and training Value of developing policies that are context specific and that recognise the diverse views and differing needs within the sector

11. Questions Questions/Comments Contact details for CEAT Analytical Unit Social Research: Janet Ruiz, Luke Cavanagh, Wojciech Hupert Statistics: Ken Humphreys