UK work to date and the use of allocation factors: The Problems of Mixed Classes in Economic Classifications OECD Workshop, Paris, 4-5 December 2006

Department for Culture, Media and Sport Improving the quality of life for all DCMS – our context Government Department with policy responsibility Economic measurement focus, rather than social Separate from the National Statistics institute (ONS) Historical emphasis on 13 ‘Creative Industries’ Development of Mapping Document & Statistical Bulletin Development of an ‘Evidence Toolkit’ for all DCMS sectors

Department for Culture, Media and Sport Improving the quality of life for all How have we tackled the issue? “Activities which have their origin in individual creativity, skill and talent and have a potential for wealth and job creation through the generation and exploitation of intellectual property” But definition is constrained when using official statistics Rigid NACE/SIC system – set definitions, not often updated Official sources assign businesses based on ‘principal activity’ Survey data – owned by the ONS Need to derive and apply allocation factors ‘Creative’ Industries

Department for Culture, Media and Sport Improving the quality of life for all How have we tackled the issue? What is a creative activity/business? Different dimensions  Employment, turnover etc.  Regional / International Sum of disaggregates ≠ aggregated national figure Best-estimates, for indicative purposes Planning to review by analysing micro-data Wider footprint – even harder to identify Allocation Factors

Department for Culture, Media and Sport Improving the quality of life for all How have we tackled the issue? Classes are clear (100%)  Operation of arts facilities (5 digit) class exists, but survey data not available  Architecture and engineering activities…  Architecture activities Class too broad – activity is ‘hidden’  Other publishing  Retail sale of second-hand goods in stores Allocation Factors - Examples

Department for Culture, Media and Sport Improving the quality of life for all What have we found? Total GVA Contribution7.3% By selected sector… …Software, Computer Games & Electronic Publishing2.7% …Publishing1.2% …Designer Fashion0.05% Exports£13bn Employment1.8m …in Creative Industries1.0m …in other creative occupations0.8m Number of Businesses117,500 Value of UK Creative Industries - Headline Findings

Department for Culture, Media and Sport Improving the quality of life for all How have we tried to develop? Establish a definition that is robust on a conceptual and technical level Propose consistent approach / methodologies Covers all DCMS sectors (culture, media, sport, tourism) Based on NACE / SIC Framework based on domains and functions ‘Cultural cycle’ - covering the production part Development of an Evidence Toolkit

Department for Culture, Media and Sport Improving the quality of life for all Toolkit: ‘Cultural Cycle’ Creation Making Dissemination Exhibition & Reception Archiving & Presentation Education & Understanding

Department for Culture, Media and Sport Improving the quality of life for all Where have we got to? Universal agreement impossible, but have frameworks Good ground work that now needs developing Consistent series for the Creative Industries Attempting to ‘close down’ old arguments

Department for Culture, Media and Sport Improving the quality of life for all Issues still facing us… Advocacy – Government & Industry To manage or direct policy To add (more) credibility to what we say But… How accurate do we need to be? Are we going over old ground? How can we expand & develop? Why do we need data? Who uses it?

Department for Culture, Media and Sport Improving the quality of life for all Other ways to take forward… Satellite Accounts  National Statistics institute suggested  Support idea, but how use?  Needs expertise / resource More industry involvement?  Data collection? Improve credibility  Need to make comparisons (within UK / international)  More consistency in approach