INTRODUCTION
What this document does
This document explains what the Government is already doing to create the environment to ensure that the creative industries are able to flourish, and sets out our programme for action. We are working closely with local government and other public sector agencies to ensure that they are providing the support that is needed. We are determined to work closely with those involved in the sector to ensure that we can be responsive to their changing needs.
The creative industries' role in delivering the Government's purpose
The Government has a clear purpose: - to create a more successful country with opportunities for all of Scotland to flourish through increasing sustainable economic growth. In our Government Economic Strategy, we identified 7 key sectors where Scotland has a comparative advantage over other countries or regions. These have the potential to make a significant contribution to increasing Scotland's growth because:
- Scotland has distinctive capabilities and businesses with the potential to be internationally successful in areas of global demand.
- They currently account for a significant part of the Scottish economy and reflect the contribution of all areas of Scotland
- Government intervention can make a significant difference to future success where the market alone cannot deliver the best outcome. 1
The creative industries, including digital content and technologies, is one of these sectors. RR Rrresearch has shown that the UK has the largest creative sector in the EU and possibly the largest in the world relative to GDP2. Internationally, a UN report found that between 2000 and 2005, that global trade in creative goods grew at an annual rate of 8.7%. 3 We want to build on this potential.
The creative and cultural industries are not just economically beneficial in their own right; they have "spillover" effects which mean that they also act as catalysts for growth in other areas. For example they spur on technological innovation, while a strong cultural and creative sector can help to make regions more attractive living places for highly skilled workers in other sectors of the economy. While we recognise and appreciate the much wider contribution this sector makes to the wellbeing of people in Scotland, and to economic growth in other sectors, this document specifically looks at how we support economic growth within the creative industries.
What is a creative industry?
The creative industries are those which have their origin in individual creativity, skill and talent. They include industries that have the potential to create wealth and jobs through the development, production or exploitation of intellectual property. In line with standard definitions used by DCMS, we consider there to be 13 distinct industries making up the sector: 4
- Advertising
- Architecture
- Arts and Antiques
- Crafts
- Design
- Designer fashion
- Film
- Interactive Leisure Software
- Music
- Performing Arts
- Publishing
- Software and computer services
- TV and radio
Recent trends in the creative industries
The creative industries sector in Scotland experienced significant growth over the last decade. In 2008, turnover in the creative industries stood at £5.7 billion, while GVA was £3.0 billion 5. Between 2000 and 2010 GVA in the sector increased by 25% in real terms, compared to 14% in the economy as a whole.
Creative Industries - Turnover and GVA 1998-2008
Exports from the sector have also shown strong growth over 2002-2009, and in 2009 the creative industries accounted for 6% of Scotland's total export sales to the UK and the rest of the world. Despite the strong performance over this longer period, more recently, as the UK and countries around the world entered recession in 2008, output in the creative industries in Scotland has fallen. The most recent data available to the third quarter of 2010 shows a decline of 0.1% in year on year terms, following a sharper fall in the preceding year.
Business and employment in the creative industries
In 2010, there were 9,010 registered enterprises operating in the creative industries sector, representing 6% of all registered businesses in Scotland. The number of enterprises in the sector has increased by 29% over the last decade compared to a growth of 3% across all industries in Scotland.
The sector accounted for a total of 63,000 employee jobs in Scotland in 2008. The creative industries sector is characterised by small businesses. In 2009, 97% of enterprises were small (0-49 employees). Despite accounting for the majority of enterprises however, small firms accounted for just 36% of employment in the sector. Conversely, whilst large firms (250+ employees) represented just 1% of enterprises in the sector, they accounted for 51% of employment in 2009. Medium sized firms (50 - 249 employees) accounted for 2% of enterprises and 13% of employment.