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Assessing the Economic Contribution of Creative Industries Dimiter Gantchev, Creative Industries Division, World Intellectual Property Organization Geneva,

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Presentation on theme: "Assessing the Economic Contribution of Creative Industries Dimiter Gantchev, Creative Industries Division, World Intellectual Property Organization Geneva,"— Presentation transcript:

1 Assessing the Economic Contribution of Creative Industries Dimiter Gantchev, Creative Industries Division, World Intellectual Property Organization Geneva, May 20 2008

2 Outline Intellectual property and creativity Copyright as a tool for economic analysis WIPOs experience in measuring creative outputs Challenges WIPOs Creative Industries Agenda

3 Creativity in the XXI century Creativity as a resource Causality relationship with economic growth Today as a result of conceptual frameworks such as copyright and technological developments we can –transform creative outputs into economic goods –monitor the supply and demand on creative products –obtain evidence on the importance of the creative economy The intangible economy is strongly dependent on knowledge and creativity IP is one of the instruments supporting creativity Mr. D. Gantchev-WIPO

4 Why Empirical Evidence Matters? Growing interest towards measurement of creativity: –Is creativity a driver in the knowledge economy? –Can creativity bring more development? –Can nations capitalize on creative assets? specific policy objectives lead to specific measurement tools a possible approach of studying creativity is through the types of impacts that it produces Importance of delimitating creativity to analyze its relationship with development Mr. D. Gantchev-WIPO

5 A Copyright Approach To Measuring Creativity Creativity is the subject matter of copyright protection, but poses definitional problems as such Copyright is a well defined concept –a set of economic and moral rights –a balance between individual and public interest –a financial mechanism to reward creators –serves as the basis of huge industries –enhances and enriches cultural heritage and cultural life Mr. D Gantchev -WIPO 5.

6 Economic Fundamentals of Copyright economic characteristics economic functions consequences of economic nature conditions for economic efficiency of copyright monitor and control misuse consumer valuation > production and distribution costs Can be used a tool for economic analysis 6. Mr. D. Gantchev

7 Creative Markets Demand Consumption unpredictable, quality matters, focus on superstars Demand on local products is often insufficient Stronger dependence on income Local demand stifled by massive piracy Supply High fixed costs for creation/low marginal cost Low entry barriers Concentration and tolerance to smaller companies Distorted distribution of income and unequal risk distribution Excess of supply Mr. D. Gantchev - WIPO 7.

8 The WIPO measurement model Objective - provide a basis for consistency - enable international and cross-sectoral comparisons - provide solid data as input for policy formulation Main features - a reinforced link to copyright - relating copyright to economic activities - new definition of the creative industries - a more transparent link to statistical reporting 8. Mr. D. Gantchev

9 Creation Formatting Production Production of equipment Distribution Distribution materials Marketing and promotion Consumption and use of the work Production of equipment for the consumption Identifying The Creative Industries Mr. D. Gantchev - WIPO 9.

10 The Copyright Industries Core copyright industries - fundamentally exist to produce/distribute copyright materials Interdependent industries –facilitate the creation, production or use of works Partial copyright industries –a portion of the activities is related to copyright Non-dedicated support industries Induced impact, measure spillover effects Mr. D. Gantchev-WIPO 10.

11 Mr. Gantchev - WIPO 11.

12 WIPO Surveys – The Empirical Evidence Country Contribution to GDP % of Employment USA 11,128,49 Singapore 5,705,80 Canada 4,505,55 Latvia 4,004,50 Hungary 6,677,10 Philippines 4,9211,10 Bulgaria 3,424,31 Mexico 4,77 11,01 Lebanon4,754,49 Jamaica 4,803,03 Russia 6,06 7,30 Romania 5,544,17 Croatia 4,424,65 Peru3,602,51 Ukraine3,471,91 Korea8,674,31 Ongoing: Brazil, China, Colombia, Kenya, Malaysia, Morocco, Nigeria, Pakistan, Sudan, Tanzania Source: WIPO Mr. D. Gantchev 12.

13 Contribution of Creative industries to GDP and Employment

14 Findings The record results are not necessarily a function of the overall economic development pattern strong influence of economic cycles impressive dynamics – 2 to 3 times the average multiplier effects and productivity indicative of structural changes in the economy The perception growing interest to surveys underpinning policy action –5 languages, over 24 surveys, new edition provide elements for development strategies Mr. D. Gantchev - WIPO 14.

15 Limitations Of Applying The Ip Framework Scope and coverage –copyright is limited to what is protectable –the grey economy is not surveyed –social and cultural aspects not surveyed Statistical issues –industrial approach/ individual creative activities –production, not consumption based approach –underdeveloped statistical framework Technical issues Mr. D. Gantchev-WIPO

16 Wipos Creative Industries Agenda Support policy-oriented research –Enable the positioning of the creative sector in the overall development strategy –Promote the development of strategies in related areas Contribute to conceptualize the creative industries –endorse the IP approach Methodology development –improve measurement tools –guidelines for measuring copyright piracy –data collection models Develop tools for creators in specific creative industries – music, publishing, film, design, management Mr. D. Gantchev-WIPO

17 Final Words The evidence promotes understanding the potential of the creative sector and opens the door for policy interventions Economic development is positively influenced by the ability to economically exploit creative assets Refined instruments and more empirical research are needed International cooperation can help the development of appropriate tools for studying the multiple impact of creativity Mr. D. Gantchev-WIPO

18 Thank You! 18. Mr. D. Gantchev - WIPO

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