1. Task Force 3, Cultural Industries Kutt Kommel
ESSNet Culture
Task Force 3, Cultural Industries
Kutt Kommel

2. Cornerstones of TF3 Task to harmonize cultural statistics collection
To propose relevant indicators of:
Economic characters of the culture
Cultural employment
7 participant countries, 9 members, 5
meetings
(Why do we need TF3 in the of ESSnet Culture?) There are 2 main cornerstones harmonisation and proposals for concrete statistics production.
Participants: Eurostat, Denmark, Netherlands, France, Sweden, Finland, Estonia and Germany (external expert)
Members: Switzerland (most active), Luxembourg (most active), Germany, Greece, Spain (most active), Italy, Lithuania, Poland, Romania
Meetings: Tallinn (TF 3), Amsterdam (TF 1,3,4), London (TF 1,3), Stockholm (TF 3), Paris (TF 3,1)
Green Paper describes strategical targets – do we know how to measure the process?

3. to propose concepts of cultural industries and cultural employment;
TF3 goals were:
to describe how statistics reflect implementation of EU policies and strategies;
to propose concepts of cultural industries and cultural employment;
to analyze data availability across Europe;
to harmonize the methodology of measuring economic characteristics of the cultural sector and cultural employment;
to propose the key indicators and the manual with their descriptions;
to make proposals for the future works.
Main topics are listed above.

4. Starting platform of Task Force 3
Measuring the role of Cultural Industries in national economics;
The focus of the group is on the conception of the domain, elaboration of the indicators and definitions, taking into consideration work that already has been achieved on this subject;
The long term objective of the Task Force is to make a proposal for a regular production of coherent and commonly approved indicators and characteristics of Cultural Industries comparable on European level by analyzing data provided by participating countries.
The employment and economic characteristics of the cultural sector.
Tasks of the Task force 3 in the ebeginning of the project:
- define a common field of Cultural Industries (including new sectors if necessary);
- make an inventory on existing and missing data;
- agree on parts of the nomenclatures corresponding to this field;
- precise the vocabulary used (and always use the same);
- outline the key policy needs of the statistics of Cultural Indusries;
- provide a list of indicators that everybody i.e. all the cultural actors could use.

5. Calendar (24 months / 4 phases)
Inventory and study of the statistical sources, previous studies on Cultural Industries and the general framework;
Analysis of the data and the feedback, elaboration of the conception and the set of Indicators;
Elaboration of the proposal of data collection and output system;
Finalization of the project.
Establishing an inventory and analyze national and international statistical sources which allow the production of statistical information comparable at EU level;
Making inventory on Eurostat data of the business, employment and cultural statistics to find best ways to use available statistical ressources;
Organizing meetings on national level in order to share information and find out the best needs and practices to present in TF 3 meetings;
The statistics of cultural industries must bear in mind the needs of both fields, the culture as well as the economy;
The cultural industries must preserve what is specific for each 27 EU member state, but same time to outline also what is common to Europe as a whole.
2. Drawing up a definition of the field of creative industries (in close collaboration with TF 1);
Elaborating a set of indicators on the basis of the sources retained after assessment and produce data e.g. on growth, growth differential with the other sectors of the economy, added value, etc;
Participation in Eurostat work on the new nomenclature (NACE and ISCO)
Analysing the relation between the ICT sector and audiovisual domain, considering the possibilities of producing coherent and comparable statistics on audiovisual sector and other sectors, as well as on digitisation and cultural tourism;
Exploring the possibilities of using business registers in a demographic perspective (number and size of companies, number and size of SMEs, percentage of SMEs in each sector, number of start-ups, survival rate of start-ups after 5 and/or ten years, number of micro-enterprises, number of self-employed/free-lancers, level of concentration, etc);
Making proposals for creating synergies and possible collaboration and use of data collected by different sectors.
3. Providing, in close collaboration with the other Task Forces, guidelines for data production;
Finding also new output for the statistics of Cultural Industries;
4. Creating a manual (and a final report).

6. Challenges – three general tasks of TF3:
First task:
What are the policy needs and how statistics support EU policies?
What is exactly the research area?
Second task:
To find the set of key indicators that are internationally comparable;
Third task:
To propose a proper methodology to produce harmonised cultural employment statistics.
What’s the benefit for EU strategies and policies?
What is our area of interest while talking about cultural industries in numbers?
What are the main indicators to measure the field?
What is behind the term cultural employment in EU?

7. First task: Policy needs
How cultural sector contributes to the...
Smart growth – indicators that reflect how culture contributes to the education, research and innovation, digital society;
Suatainable growth – what is the business environment of the cultural industries and how cultural sector influences the economic environment as a whole;
Inclusive growth – what is the role of culture in creating jobs, growing welfare and social inclusion.
Policy needs:
How cultural sector contributes to the...
Smart growth – culture is an important part of the lifelong learning but it creates also a need for highly educated specialists,
Creativity in cultural sector is always considered as an important (precondition) in finding and implementing innovative ideas, culture also helps to disseminate innovative ideas,
digital society, culture creates a content to the digital environment, helping also to develope it and bring it to the more people (users of the digital world);
Suatainable growth – what is the business environment of the cultural industries, what is the share of culture in overall economy, what is the spillover effect of the culture or how it helps to grow the other sectors of the economy;
Inclusive growth – what is the role of culture in creating jobs, how culture helps to reduce poverty, etc.

8. First task: Policy needs, How the indicators of economic characters and employment statistics reflect the targets EU 2020 strategy:
Employment (75% of the year-olds to be employed);
R&D / innovation 3% of the EU's GDP (public and private combined) to be invested in R&D/innovation;
Climate change / energy greenhouse gas emissions 20%, 20% of energy from renewables, 20% increase in energy efficiency;
Education Reducing school drop-out rates below 10%, at least 40% of 30-34–year-olds completing third level education;
Poverty / social exclusion at least 20 million fewer people in or at risk of poverty and social exclusion.
Policy needs:
What is the share of cultural sector and cultural occupations in the total employment. How culture helps to involve more people with higher skills and educatin but also reduce differences of the different groups;
How culture contributes to the economic growth and competetiveness of the Europe is the background of the several indicators of the TF3 also of the researc made on spillover effect;
Culture’s contribution to the climate change is indirect i.e. culture helps to disseminate the ideas related to environmental problems and its possible solutions, the sustainable growth and developement.
How culture supports lifelong learning, what is the need of highly educated specialists in the cultural sector etc.
How culture helps to create more and better jobs? What is its contribution to social cohesion?

9. First task: Policy needs
Taking into consideration the policy needs it is important to:
Find a key elements to measure the economic effect of the cultural sector;
Map the business environment of the cultural sector;
Find data to evaluate the potential of the sector in the context of EU 2020.
Policy needs:
Do we know the real content of cultural industries and to we measure it in a similar way in EU?
What kind of indicators we need to present comparable data?
Are we able to measure added value of the cultural sector (employment, competetiveness etc) in EU?
Important is to follow the framework of green paper on Unlocking the Potential of Cultural and Creative Industries in EU

10. Policy needs: next steps
Priority F of the Council Work Plan (Nov 2010)
“The end 2011 report of the ESSNet on cultural statistics will be the basis for discussion of take-up of recommendations, future priorities and working methods”
An expert working group on mobility statistics in
Implementation of the proposed statistical data collection.
Making data that is unavailable at the moment available.
We also have to propose and take the next steps on enhancing statistics production to support the EU 2020 strategy with the appropriate statistics.

11. Policy need Concept of cultural industries (statistical view)
50% criterion - Cultural industries are all market oriented enterprises and organisations of the cultural sector. Market oriented enterprises are those whose income is at least 50% earned by selling their own products and services.
Longer definition of market oriented enterprises can be found in European System of Accounts. Market oriented enterprises are differentiated by 50% criterion.
In ESA95, economically significant prices are defined as prices that generate sales
covering more than 50% of production costs.
· In distinguishing market and other non-market producers by means of the 50%
criterion, “sales” and “production costs” are defined as follows:
a. “sales” exclude taxes on products but include all payments made by general
government or the Institutions of the European Union and granted to any kind of
producer in this type of activity, i.e. all payments linked to the volume or value of
output are included, but payments to cover an overall deficit are excluded.
b. “production costs” are the sum of intermediate consumption, compensation of
employees, consumption of fixed capital and other taxes on production. For this
criterion other subsidies on production are not deducted. To ensure consistency
of the concepts sales and production costs when applying the 50% criterion, the
production costs should exclude all costs made for own-account capital
formation.
· The 50% criterion should be applied by looking over a range of years: only if the
criterion holds for several years or holds for the present year and is expected to
hold for the near future, should it be applied strictly. Minor fluctuations in the size of
sales from one year to another do not necessitate a reclassification of institutional
units (and their local KAUs and output).
· The 50% criterion decides also when a government unit can be treated as a quasi-corporation
(owned by the government): a quasi-corporation can be created only if
it meets the 50% criterion.
· If a public unit is mainly financed by the general government according to its costs
or to global budget negotiations focusing on several factors (final output,
maintenance of buildings, investment in technical equipment, payment for
compensation of employees…), the public institutional unit has to be classified in
the general government sector because this financing does not correspond to
sales. To check the nature of these payments, it could be useful to check whether
general government systematically covers the unit’s deficit.
Manual on Government Deficit and Debt, Implementation of ESA95 (page 14) NB! At the present time ESA2010 is in procedure and its documents will be published in near future. Probably this reference needs then update.

12. List of key indicators (28); Descriptions of the key indicators e.g.:
Second task: Indicators of the employment and economic characteristics of the cultural sector
List of key indicators (28);
Descriptions of the key indicators e.g.:
share of the cultural enterprises
turnover of cultural enterprises
number of cultural enterprises
export and import rates
etc
List of indicators of the employment and economic characteristics of the Cultural sector.
List of key indicators
Nr Name of the indicator
1 Entrepreneurship
1.1
Share of the cultural enterprises in the overall economy
1.2
Share of the cultural enterprises in the service sector
1.3
Share of the cultural enterprises turnover in the overall economy’s turnover
1.4
Share of the cultural enterprises’ turnover in the service sector’s turnover
1.5
Share of the micro-enterprises (by employment size) in the cultural sector
1.6
Share of micro-enterprises (by employment size) in cultural sector compared to share of micro- enterprises in overall economy
1.7
Share of cultural micro-enterprises (by employment size) in cultural sector compared to the share of micro enterprises in the service sector
1.8
Percentage of self-employed without employees in the total employment of cultural sector
1.9
Share of the value added produced by cultural sector compared to the overall economy
1.10
Share of the market oriented (“turnover over 50% earned by selling own products or services” criteria) cultural enterprises compared to the total cultural sector 2
Employment
2.1
Quintiles of the net salary of the cultural employment with higher education compared to the quintiles of the net salary of all the overall employment with the higher education
2.2
Total cultural employment
2.3
Share of cultural occupations in total employment (absolute figures and % of total employment)
2.4.1
Total employment in the cultural sector (absolute figures and % of total employment)
2.4.2
Total employment in the cultural industries (absolute figures and % of total employment)
2.5.1
Percentage of employed in cultural occupations working in cultural sector
2.5.2
Percentage of employed in cultural occupations working in cultural industries
2.6
Share of the employees among the culturally employed persons
2.7
Share of persons with temporary contract among all employed in cultural sector/occupations
2.8
Culturally employed persons by gender (Percentage of women in cultural employment)
2.9
Share of persons with tertiary educational attainment in cultural employment
2.10
Share of foreigners in artist occupations (Mobility of artists) 3
Import and export of the cultural goods
3.1
Share of cultural goods in total import
3.2
Share of cultural goods in total export
3.3
Share of cultural services in total import
3.4
Share of cultural services in total export 4
ICT in cultural sector
4.1
Share of the cultural sector in the total e-commerce turnover
4.2
Main cultural products sold in E-commerce

13. Data sources LFS SBS Other databases National data sources
Methodological questionnaire Cultural Industries ESSnet Culture:
Response summary:
Responded by now 22 memberstates, Austria, Belgium, Bulgaria, Cyprus, Denmark, Estonia, Finland, France, Germany, Iceland, Latvia, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey. Missing information on Czech Republic, Greece, Hungary, Ireland, Italy, Lithuania, Luxembourg, United Kingdom.

14. Third task: Cultural employment, (definition and list of cultural occupations);
Cultural occupations include occupations involved in the creative and artistic economic cycle i.e. creation, production/publishing, dissemination/trade, preservation, training, management /regulation. These occupations involve tasks and duties undertaken:
1. For the purpose of artistic expression (e.g. visual arts, performing arts, audiovisual arts etc.).
2. To generate, develop, preserve, reflect or study cultural meaning.
3. To create, produce or disseminate cultural goods and services which generally contain intellectual property rights.
Definition proposed by Task Force 3
Cultural occupations include occupations involved in the creative and artistic economic cycle i.e. creation, production/publishing, dissemination/trade, preservation, training, management /regulation. These occupations involve tasks and duties undertaken:
1. For the purpose of artistic expression (e.g. visual arts, performing arts, audiovisual arts etc.).
2. To generate, develop, preserve, reflect or study cultural meaning.
3. To create, produce or disseminate cultural goods and services which generally contain intellectual property rights.
Definition proposed by LEG Culture
An occupation is considered as cultural occupation if it meets, at least to some extent, all of the following criteria:
1. occupations involved in activities related to works of art and other cultural products, cultural performances, exhibitions, etc. (e.g. art, mass media, heritage);
2. occupations which have a certain creative element;
3. which are essential in defining and producing the contents of the works of art, performances etc. of the given field.

15. Cultural employment (3 fields)
There are two statistical fields where cultural occupations are present: there is cultural sector i.e. cultural economic activities according to the framework of ESSnet Culture (Cultural occupations A) and there are other sectors outside the cultural sector (Cultural occupations B).
Cultural employment – total cultural employment is the sum of employed (self-employed and employees) on the fields A, B and C i.e. the sum of the all employed in the cultural sector and employed of the cultural occupations in other sectors.
Employment in the cultural sector – all the employed (self-employed and employees) on the fields A and C i.e. representatives of both cultural (A) and non-cultural occupations (C) in the cultural sector as defined in the framework.
Employment in cultural occupations – is the sum of employed (self-employed and employees) on the fields A and B i.e. the representatives of the cultural occupations, working in cultural sector or/and outside it.

16. TF3 achievements:
Manual of the indicators - Practical collection of the works of TF3;
List of key indicators with detailed descriptions;
Methodology of the cultural employment on 3 and 4 digit level;
Research on data sources (data that is available now and what has to be available in the future)

17. Proposals for the future works
Harmonisation of the cultural statistics;
Cultural Satellite account;
Cultural clusters;
Indicators;
Proposals for the ISCO nomenclature;
Proposals for the NACE nomenclature;
Directives for data harmonisation;
Analyses of the cultural statistics;
Strengthening the collaboration.
Harmonisation of the cultural statistics – The culture is still interpreted in different ways in different countries. There is a need of directive for harmonisation of the cultural statistics data collection.
Cultural Satellite account - Elaboration of the Cultural Satellite account, that could be implemented on all the European member countries.
Cultural clusters - Define the cultural clusters. Formulate policy needs of the cultural clusters. Elaborate a proposal for the data collection of the cultural clusters statistics.
Indicators - The work on statistical indicators has to continue as the policy needs change in time. Proposals of the new indicators must be possible also in the future. Improvement of the cultural statistics should be seen as continuous process because the statistical tools as well as appropriateness of the indicators may change.
Proposals for the ISCO nomenclature - To add cultural occupations in the ISCO nomenclature and make these distinguishable at least on 3 digit (better at 2 digit) level of ISCO classes.
Proposals for the NACE nomenclature - To add missing cultural economic activities to the NACE nomenclature and make these distinguishable on 3 digit level which allows to get the exact share of the cultural sector in the GDP as well as distinction of the cultural industries.
Analyses of the cultural statistics - There is also a need on analyses that should be made on the European level to interpret the collected and published statistical data and propose ways to improve the cultural climate as well as its influence to the other fields of human activity in the Europe.
Strengthening the collaboration – We have to strengthen the collaboration between policy makers, scientists, statistics professionals and other relevant experts of the member states to evaluate the needs of common market and enhance the statistical information production and its use.

18. Thank You!