Setting the scene

Cultural assets and human creativity are inexhaustible resources

available in all countries with both cultural and economic value
Ideas, knowledge and information are drivers of creativity
Globalization re-shaped patterns of world cultural consumption
world dominated by images, sounds, texts and symbols

in a

Connectivity influencing society life-style and the way creative products

are created, reproduced and commercialized
Shift towards a more holistic approach to development strategies
interface between economics, culture and technology
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Creative Economy Report 2008

Chapter I: Concept and context of the creative economy
Chapter II: The development dimension
Chapter III: Analysing the creative economy
Chapter IV: Towards evidence-based assessment of the creative economy
Chapter V: International trade in creative goods and services
Chapter VI: The role of intellectual property in the creative economy
Chapter VII: Technology, connectivity and the creative economy
Chapter VIII: Policy strategies for the creative industries
Chapter IX: The international policy framework for creative industries
Chapter X: Lessons learned and policy options
Statistical Annex : World trade of creative goods and services, 1996-2005
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Chapter I: Creative Economy

- Concepts and definitions : cultural industries, cultural economics,
creative industries, creative economy, creative cities, creative
clusters, creative class, etc
- Major drivers : technology, demand and tourism
- Multiple dimensions: economic, social and cultural
-

Multi-disciplinary nature: need for concerted inter-ministerial

policies and dialogue with all stakeholders

- The creative economy: a leading sector driving economic growth,

employment and trade
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Creative Economy
An evolving concept based on creative assets
potentially generating socio-economic growth
Embraces economic, cultural and social aspects interacting with
technology and tourism objectives
Can foster income generation, job creation and export earnings,
while promoting social inclusion cultural diversity and human
development
Is a feasible policy option to promote trade and development gains
(UNCTAD)

Creative Economy
Is a set of knowledge-based economic activities with
cross-cutting linkages to the overall
economy

Creative Industries
Are tangible goods and intangible services with
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creative content, economic value and market objectives

UNCTAD Classification

Chapter II: The development

dimension

Millennium Development Goals and poverty reduction

Development linkages: beyond economics - cultural, social

and sustainable development

Traditional knowledge, arts and the creative economy

Obstacles to expansion of the creative economy: capital, entrepreneurial

skills, infrastructure and institutional tools

Shaping a model for enhancing the creative economy : UNCTADs

creative nexus (C-ITET) model

The creative economy in the developing world :Africas share

global trade of creative goods and services is less than 1%

in
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The development dimension

Chapter III: Analysing the creative

economy
- Need for systematic analysis, consistent methodology,
reliable statistics and qualitative indicators
- Organizational structure: predominance of SMEs and few
large transnationals working internationally
- Economic analysis: value-chain analysis, IPRs,
inter-industry and locational analysis, contract theory
- Important role : public and quasi-public institutions
and individual artists and creative producers
- Distribution and competition issues

Chapter IV: Towards an evidencebased assessment of the creative

economy
- Reliable benchmark: international base using trade data
- Operational model: universal comparative analysis to all countries
- Practical measures: further research, minimal additional costs
- Assessment tools: economic evaluation is partial, not exhaustive
- Problematic : valuation of culture, technological changes and
boundaries between arts/culture and industry
- Creative products : relative low value as materials, but real value
in intellectual property (blank CD case)
- Trade in creative industries relatively invisible, shadows of IPRs
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Chapter V: International trade

in
creative goods &
services
World trade
of creative products
annual growth rate of 8.7% during
2000-2005, reaching US$ 424,4
billion in 2005
Creative goods totalled US$ 335,5
billion in 2005, 47% higher than in
2000, as shown in the table
Developed countries dominated trade
but exports have risen faster in
developing countries due to China
New opportunities for developing
countries to leapfrog in high growth
sectors of the world economy

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Creative economy: leading growth

and
employment in advanced countries

In Europe EU-25, the creative economy has

grown 12% faster than the overall economy
during 1999-2003

UK: In 1997-2004, as value added 5% growth

compared with 3% for the rest of the economy.
Employment grew twice faster
EU led world exports, US$ 145 billion in 2005
Italy, ranked first in exports of creative goods
due to competitive position in design products
Exports earnings 42% higher in developed
countries in 2000-2005. Same countries among
top 10 exporters during the period

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Creative industries exports

goods and services
billion US$

Source : UNCTAD

billion US$

13

Creative goods and services

A new dynamic sector in world trade
UNCTAD figures show that world exports of :

Design

Art crafts

-US$ 119.7 billion in 1996

- US$ 14.7 billion in 1996

-US$ 218.1 billion in 2005

- US$ 23.2 billion in 2005

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In developing countries a nuanced

situation
Despite the abundance of creative
talents, most developing countries are
not yet fully benefiting from the
potential of their creative economies

In Asia-Pacific and Middle-East the

creative economy is growing fast with
competitive products

In Latin America and the Caribbean

noticeable improvements but need to
reinforce creative capacities

Africa very fragmented creative

industries requiring financing and
business support

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Creative industries goods

share in world exports - 2005

Source : UNCTAD

16

Regional economic groups in world

markets
European Union leads world exports
with
43% market share

Exports from Asia is now higher than from

North America
FTAA countries exported US$ 45.5 billion
in 2005, about 14% world market, mainly
from NAFTA countries
MERCOSUR has very small share in world
trade of creative goods
ACP countries, which includes Caribbean,
Africa and Pacific have an inexpressive
participation in world markets.

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THAILAND

Source: UNCTAD

18

THAILAND
CREATIVE INDUSTRIES EXPORTS BY PRODUCTS
(millions of dollars)

Source: UNCTAD

19

THAILAND
DESIGN: EXPORTS BY PRODUCTS
(millions of dollars)

Source: UNCTAD

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Chapter VI: Intellectual Property Rights

and the creative economy
Intellectual property: sensitive area with
different approaches
Copyrights: source of wealth, can be an
incentive and reward for production and
dissemination of creative works
IPRs contribution to the creative
economy: GDP/ employment
Traditional cultural expressions and
public domain issues
Copyright and new technologies: the
internet treaties
Possible policy options
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Policy options
An efficient and fair international IP
system
-

Protect IP in export markets is crucial

Increase awareness and adherence to international treats

Viable reinforcement is often a more critical issue

Protecting copyright is a public-policy goal

Developing countries better explore flexibilities of the TRIPs

agreement and WIPO Development Agenda

No one-size-fits all model, some alternatives

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Chapter VII: Connectivity and the

creative industries
- ICTs impact on the creative
economy: changes in
marketing & distribution and
stimulus for creative content
- Digitization: 1/3 developing
countries penetration rate of
less than 5%
- Convergence : new business
models, markets structures
and governance
- Impact across the production
chain: from conception to
access to markets /audience
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- Looking into the future

Chapter VIII: Policy strategies for the

creative industries
- The role of public policies : government as facilitator

- The policy process : objectives, tools, implementation

- Policy directions : strategic concerted actions
- Target measures for enhancing creative capacities
- Tailoring policy action at the national level
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Policy directions
-

Provision of infrastructure
Provision of finance & investment
Creation of institutional mechanisms
Development of export markets
Protection of creators rights
Establishment of creative clusters
Tools for effective data-collection measures

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Chapter X: Lessons learned and policy

options
Lessons Learned :
- Creative economy calls for multi-disciplinary and concerted
policy response
- World exports of creative goods and services grew by 8.7 %
annually during 2000-2005 with faster growth in developing
countries
- ICTs and IPRs are major drivers of the growth of the creative
economy worldwide
- Technology offers opportunities for SMEs: new distribution
channels for creative content, innovative business models
- The creative economy strengthens the links between creativity,
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culture, technology and economic development

Major findings
- An evolving concept : no common definition of the
creative economy, nor a unique classification of the
creative industries
- There is no one-fits-all recipe but flexible and strategic
choices to be made by governments at national level
- The creative economy offer new venues for developing
countries to leapfrog into high-growth areas of the
world economy
- Need to reconcile national policy-making for the
creative economy with on-going multilateral processes
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Policy options
- Role of governments: to articulate a conducive
climate and infrastructure to stimulate creative
capacities
- Role of creative entrepreneurs: to promote
creative entrepreneurship to upgrade skills and
linkages between arts, creation and business
- Role of civil society: forging strategic alliances
to facilitate interactions with all stakeholders
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Key messages
-

Creative industries is one of the most dynamic sector in world

trade. Developing countries have great potential to expand
exports as a source of economic growth and development

- Policy strategies to support the development of the creative

industries require inter-ministerial policy actions
- Policy measures should reinforce the creative nexus between
investment, technology, entrepreneurship and trade
- Lack of reliable data affect policy-making. Need for better
methodologies for gathering data worldwide
- IP should provide a stimulus to creators and is crucial for
enhancing the creative sector for development. Current IPR
regime needs improvements
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The Way Ahead

- Redefining priorities: Developing countries
have impressive trade deficits as regards
creative products, how to reverse this situation?
- The role of international cooperation: UN
system can assist governments to better grasp
the dynamics of the creative economy and
identify areas for possible policy action

- The Creative Economy Report paved the way

for enhanced cooperation in both national and
international levels.
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