Creative Economy Report 2010

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Chapter
1.1 Evolving concepts and definitions ........................................................................................3 1.1.1 Creativity ......................................................................................................................................3 1.1.2 Creative goods and services ..........................................................................................................4 1.1.3 Cultural industries ........................................................................................................................5 1.1.4 Cultural economics........................................................................................................................5 1.1.5 Creative industries ........................................................................................................................6 1.1.6 The UNCTAD classification of the creative industries ......................................................................7 1.1.7 The creative economy ..................................................................................................................9 1.1.8 The creative class and creative entrepreneurs ..............................................................................10 1.1.9 Creative cities ............................................................................................................................12 1.1.10 Creative clusters, networks and districts ......................................................................................16 1.1.11 Cultural and creative commons....................................................................................................18 1.1.12 Experience economy ..................................................................................................................18 1.1.13 Creative ecology..........................................................................................................................19
1.4 The cross-cutting nature of creative industries..................................................................27 1.4.1 Need for concerted inter-ministerial policies ................................................................................27 1.4.2 Need for dialogue with multiple stakeholders................................................................................28
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1.5 The creative economy in the developed world....................................................................28
2. The development dimension 33
2.1 Policy implications: The Millennium Development Goals ..................................................33
2.2 The creative economy: Linkages and development implications ......................................36 2.2.1 Multifaceted aspects of the creative economy ..............................................................................37 2.2.2 Cultural and technological linkages ..............................................................................................37 2.2.3 Social interactions ......................................................................................................................38
2.4 The creative economy in the developing world and transition economies ......................41 2.4.1 Africa ........................................................................................................................................41 2.4.2 The Asia-Pacific region................................................................................................................47 2.4.3 Central Asia and the Middle East ................................................................................................50 2.4.4 Latin America..............................................................................................................................52 2.4.5 Caribbean ..................................................................................................................................58 2.4.6 Eastern European economies in transition ....................................................................................61
PART 2. ASSESSING THE CREATIVE ECONOMY: ANALYSIS AND MEASUREMENT
3. Analysing the creative economy 73
3.1 The need for systematic analysis ........................................................................................73
3.2 Organization of the creative economy ................................................................................74 3.2.1 Organizational structures ............................................................................................................74 3.2.2 Operational matters ....................................................................................................................74 3.2.3 Locational issues ........................................................................................................................75 3.2.4 The power of social networks ......................................................................................................76
3.4 Structure of the creative industries ....................................................................................83 3.4.1 Predominance of small and medium-sized enterprises..................................................................83
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3.6 An application of production-chain analysis: The music industry in sub-Saharan Africa ..93
4. Towards an evidence-based assessment of the creative economy 95
4.1 Why we need a new information base and why it doesn’t already exist ..........................95
4.2 Towards a reliable benchmark for the creative economy ..................................................96
4.3 The challenge of building an operational model of the creative economy........................97
4.4 Measures: Their limitations and potential ..........................................................................99 4.4.1 Employment................................................................................................................................99 4.4.2 Time use ..................................................................................................................................100 4.4.3 Trade and value added ..............................................................................................................100 4.4.4 Copyright and intellectual property rights issues ........................................................................101 4.4.5 Public investment......................................................................................................................101
4.5 Implementation of a Culture Satellite Account ................................................................101
4.6 Data sources and assessment tools: Why the current data are inadequate ..................103
4.7 The case for a trade model for the creative industries using a product classification methodology................................................................................104
4.8 Comparative analysis of statistical methodologies for international trade of creative and cultural goods ..........................................................................................106 4.8.1 Trade statistics for creative and cultural goods: selected methodologies ......................................106 4.8.2 Summary comparison of statistics methodologies for creative and cultural goods ........................110 4.8.3 Lesson learned from the comparative studyanalysis....................................................................114
4.9 Methodological basis for a unified measure of international trade of creative goods ......117
4.10 Main considerations ..........................................................................................................119
PART 3. INTERNATIONAL TRADE IN CREATIVE GOODS AND SERVICES
5. International trade in creative goods and services: Global trends and features 125
5.1 Setting the scene ................................................................................................................125
5.2 Creative industries: A new dynamic sector in world trade ..............................................126
5.3 Global trends in world trade of creative goods and services ..........................................128 5.3.1 Global trends in world exports....................................................................................................128 5.3.2 Global trends in world imports ..................................................................................................130 5.3.3 Key players in the global market for creative goods ....................................................................132
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5.4 Regional economic groups in world markets....................................................................135
5.5 Prospects for North-South and South-South trade in creative goods and services ......136
5.6 Global trends in international trade of creative industries, by sectors............................139 5.6.1 Heritage....................................................................................................................................139 5.6.2 Performing arts ........................................................................................................................141 5.6.3 Visual arts ................................................................................................................................147 5.6.4 Audiovisuals..............................................................................................................................149 5.6.5 Publishing and printed media ....................................................................................................154 5.6.6 Design......................................................................................................................................155 5.6.7 New media ..............................................................................................................................158 5.6.8 Creative services ......................................................................................................................160 5.6.9 Royalties and licence fees ........................................................................................................162 5.6.10 Related industries ....................................................................................................................163
PART 4. THE ROLE OF INTELLECTUAL PROPERTY AND TECHNOLOGY
6. The role of intellectual property in the creative economy 169
6.1 Introduction ........................................................................................................................169
6.3 Intellectual property and the creative industries ..............................................................171 6.3.1 Geographical indications and appellations of origin ....................................................................172
6.4 Copyright and the creative economy ................................................................................172 6.4.1 Exclusive rights ........................................................................................................................173 6.4.2 Moral rights ..............................................................................................................................173 6.4.3 Related rights ..........................................................................................................................174 6.4.4 Exceptions and limitations to copyright ......................................................................................175 6.4.5 Enforcement of copyright ..........................................................................................................177
6.6 Contribution of the creative industries to the economy ..................................................179
6.7 Copyright, the creative industries and traditional cultural expressions..........................181 6.7.1 Indigenous communities and new technologies ..........................................................................182
6.8 Copyrights and new technologies......................................................................................184
6.9 Possible policy options ......................................................................................................186
7.1 Introduction ........................................................................................................................189
7.3 Measurement issues and creative content........................................................................194
7.4 ICTs and their impact on the creative economy................................................................196 7.4.1 The growing importance of ICTs for the creative industries ........................................................197
7.5 Digitization ..........................................................................................................................198
7.8 Looking to the future ..........................................................................................................203
PART 5. PROMOTING THE CREATIVE ECONOMY FOR DEVELOPMENT
8. Policy strategies for the creative industries 209
8.1 Introduction ........................................................................................................................209
8.3 The policy process ..............................................................................................................213
8.6 Targeted measures for strengthening the creative economy ..........................................226 8.6.1 Non-formal sector ....................................................................................................................226 8.6.2 Creative arts ............................................................................................................................227 8.6.3 Small and medium-sized enterprises ........................................................................................227 8.6.4 Public cultural institutions..........................................................................................................228 8.6.5 Corporate sector ......................................................................................................................228
8.7 Tailoring policy action at the national level ......................................................................228
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9.1 The international policy framework ..................................................................................231
9.2 UNCTAD: Creative industries on the economic and development agenda ......................232 9.2.1 UNCTAD X: Audiovisual services ................................................................................................232 9.2.2 Third United Nations Conference on the Least Developed Countries: Music ................................233 9.2.3 UNCTAD XI: Creative industries — A turning point ......................................................................233 9.2.4 UNCTAD XII: From the creative industries to the creative economy ..............................................234
9.3 WTO multilateral negotiations and implications for creative industries..........................235 9.3.1 The crisis and the international trading system ..........................................................................236 9.3.2 Market access, tariff and non-tariff barriers................................................................................236 9.3.3 General Agreement on Trade in Services ....................................................................................239 9.3.4 TRIPS Agreement ......................................................................................................................241 9.3.5 Implications of regional trade agreements for creative industries ................................................241
9.4 UNESCO cultural-diversity perspective ..............................................................................243
9.5 WIPO Development Agenda ................................................................................................245
9.6 UNDP: Engaging developing countries in the creative economy for development..........246
9.7 ITC: Creating business opportunities for creative industries ..........................................248
9.8 UNEP: Promoting biodiversity benefits for the creative industries ..................................251
10. Lessons learned and policy options 253
10.1 Lessons learned ..................................................................................................................253
1.2 The creative city ......................................................................................................................................13
1.4 Petra: A cultural trip..................................................................................................................................22
2.1 South-South sharing of creative experiences ............................................................................................36
2.2 Brazilian carnivals ....................................................................................................................................39
2.3 Africa remix ............................................................................................................................................42
2.5 A passion for tango ..................................................................................................................................54
2.6 Guatemala: The economic contribution of culture ......................................................................................57
2.7 Brand Jamaica as the home of reggae......................................................................................................59
2.8 The Bolshoi: A sublime gift to the world ....................................................................................................63
2.9 Thai life and tradition: Thai silk..................................................................................................................65
2.10 Bio-trade in Colombia ..............................................................................................................................66
3.1 The tecnobrega case................................................................................................................................79
3.2 Creative clusters ......................................................................................................................................80
3.4 Broadcasting creativity blooms in South Africa ..........................................................................................87
3.5 Properties of creative industries ................................................................................................................90
3.6 Commercial practices and business models particular to the audiovisual and music industries ....................91
4.1 Reality and numbers ..............................................................................................................................120
6.2 The da Vinci Code case ..........................................................................................................................174
6.3 A collaborative approach to creativity and knowledge ..............................................................................176
6.4 Jewellery: A magic marriage between tradition and contemporary design ................................................183
6.5 Collective management of copyright........................................................................................................186
7.3 Eurovision ..............................................................................................................................................204
8.2 Alternative currencies in Brazil ................................................................................................................219
8.3 The Egyptian film industry: The waning of the “Hollywood of the East”? ....................................................220
8.4 The Biennale of Contemporary African Art of Dakar..................................................................................222
8.5 Cultural policy in action: The Nairobi Plan of Action ..................................................................................229
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9.1 Television and soap operas ....................................................................................................................232
9.2 Puppet planet ........................................................................................................................................240
9.3 A breakthrough to promote trade flows of cultural goods and services......................................................242
9.4 Cultural tourism: Impressions of the Peruvian experience ........................................................................244
9.5 A new model leading to sustainability and better futures ..........................................................................247
9.6 Nollywood: A creative response ..............................................................................................................250
9.7 Alphadi: The fashion caravan ..................................................................................................................251
LIST OF TABLES
1.1 Classification systems for the creative industries derived from different models ............................................7
1.2 Estimates of culture employment in selected creative cities........................................................................14
1.3 Creative Cities Network ............................................................................................................................16
1.4 Workers in creative industries in the United States, 2003 ..........................................................................24
1.5 Contribution of the European cultural and creative sector to the European national economies ....................29
1.6 Contribution of the cultural industries to GDP or GVA for five countries, various years..................................30
1.7 Contribution of the cultural sector to the national economies of eight European countries, various years ............31
1.8 Comparison of contribution of creative/cultural sector with contributions of other sectors for eight European countries (% of GDP) ................................................................................................................31
1.9 Estimates of the contribution of creative industries to GDP for five OECD countries ....................................32
2.1 Features of the African music industry ......................................................................................................43
3.1 Value chain in the cultural industries in Canada, 2002 ..............................................................................78
4.1 Comparative analysis of statistical methodologies for international trade of creative/cultural goods defined by UNCTAD/UNESCO ..................................................................................................................110
4.2 Summary of comparative analysis of international trade of creative/cultural goods as defined by UNCTAD/UNESCO ..................................................................................................................................112
4.3 International trade of related creative goods/equipment and supporting materials of cultural goods defined by UNCTAD/UNESCO with the Harmonized System (HS) codes ....................................................113
4.4 Creative services as defined by UNCTAD ................................................................................................113
4.5 Number of reporting countries between different versions of HS codes ....................................................115
4.6 UNCTAD model for creative economy trade statistics ..............................................................................115
4.7 Goods and services of creative industries ................................................................................................116
4.8 Proposed categorization of creative goods ..............................................................................................119
5.1 World exports of all creative industry (goods and services), by subgroup, 2002 and 2008 ........................126
5.2 Creative goods: Exports, by economic group, 2002 and 2008..................................................................128
5.3 Creative goods: Exports, by economic group and region, 2002 and 2008 ................................................130
5.4 Creative goods: Imports, by economic group, 2002 and 2008..................................................................131
5.5 Creative goods: Imports, by economic group and region, 2002 and 2008 ................................................131
5.6 Creative goods: Top 20 exporters worldwide, 2002 and 2008 ..................................................................132
5.7 Creative goods: Top 10 exporters among developed economies, 2008 ....................................................132
5.8 Creative goods: Top 10 exporters among developing economies, 2008 ....................................................133
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5.9 Creative goods: Exports, by regional economic group, 2002 and 2008 ....................................................136
5.10a Creative goods: Exports of South-South trade, by regional group and product group, 2002 and 2008............138
5.10b Creative goods: All creative industries exports of South-South trade, by regional group and China, 2002 and 2008 ....................................................................................................................................138
5.11 Arts crafts: Exports, by economic group and region, 2002 and 2008........................................................140
5.12a Arts crafts: Top 10 exporters among developed economies, 2008 ............................................................141
5.12b Arts crafts: Top 10 exporters among developing economies, 2008 ..........................................................141
5.13 Performing arts: Exports, by economic group and region, 2002 and 2008 ................................................146
5.14 Performing arts: Top 10 exporters among developed economies, 2008 ....................................................147
5.15 Performing arts: Top 10 exporters among developing economies, 2008....................................................147
5.16 Visual arts: Top 10 exporters among developed economies, 2008 ............................................................149
5.17 Visual arts: Top 10 exporters among developing economies 2008 ............................................................149
5.18 Publishing and printed media: Top 10 exporters among developed economies, 2008 ................................155
5.19 Publishing and printed media: Top 10 exporters among developing economies, 2008 ..............................155
5.20 Design: Exports, by economic group and region, 2002 and 2008 ............................................................157
5.21 Design: Top 10 exporters among developed economies, 2008 ................................................................158
5.22 Design: Top 10 exporters among developing economies, 2008 ................................................................158
5.23 New media. Exports, by economic group and region, 2002 and 2008 ......................................................160
5.24 New media: Top 10 exporters among developed economies, 2008 ..........................................................160
5.25 New media: Top 10 exporters among developing economies, 2008..........................................................160
5.26 Reported exports of creative services, 2002, 2005 and 2008 (in billions of $) ..........................................161
5.27 Reported imports of creative services, 2002, 2005 and 2008 (in billions of $) ..........................................162
5.28 Royalties and licence fees: World exports and imports, 2002, 2005, and 2008 ........................................163
5.29 Related goods: Exports, by economic group, 2002 and 2008 (in millions of $) ..........................................164
5.30 Related goods: Imports, by economic group, 2002 and 2008 (in millions of $)..........................................165
6.1 Economic contribution of copyright-based industries using WIPO methodology..........................................180
7.1 Contribution of segments of ICT industries to global GDP, 2003-2007 ......................................................190
7.2 Interconnected dimensions of digital life ..................................................................................................195
7.3 Partnership on Measuring ICT for Development: Core ICT indicators ........................................................195
7.4 Top 20 audiovisual companies worldwide and their 2004 turnover ..........................................................197
8.1 Illustration of Local Exchange Trading Systems-LETS ..............................................................................218
9.1 Creative goods: Imports, MFN applied and bound tariffs, 2002 and 2008 ................................................237
9.2 Creative goods: Imports, by groups of countries, MFN applied and bound tariffs, 2002-2008 ....................237
9.3 Creative goods: Imports, by developed economies, MFN applies and bound tariffs 2002-2008..................238
9.4 Creative goods: Imports by developing economies, by economic group, MFN applied and bound tariffs, 2002-2008 ................................................................................................................................238
10.1 Creative industries policy options ............................................................................................................262
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LIST OF FIGURES
1.1 Creativity in today’s economy......................................................................................................................3
1.2 Interplay of the 5Cs: Outcomes of creativity + 4 kinds of capital ..................................................................4
1.3 UNCTAD classification of creative industries ................................................................................................8
2.1 Development dimension of the creative economy ......................................................................................37
3.1 Creative-industry value chain ....................................................................................................................78
3.3 Stages of a music production chain in sub-Saharan Africa ........................................................................93
4.1 Cultural cycle ..........................................................................................................................................97
4.3 UNESCO 2009 Framework for Cultural Statistics domains........................................................................109
5.1 A summarized version of the online music value-chain ............................................................................145
7.1 Global mobile telephone subscriptions by main country groupings, 2003-2008 ........................................191
7.2 Global Internet users by main country groupings, 2003-2008 ..................................................................191
7.3 Global fixed broadband subscribers ........................................................................................................192
7.4 Global mobile broadband subscribers......................................................................................................193
7.6 Market size and growth of digital content sectors, 2007 ..........................................................................197
8.1 Funding flows to the cultural sector ........................................................................................................215
8.2 Model of monetary circuit applicable to the creative industries ................................................................216
8.3 The creative nexus: The C-ITET model ....................................................................................................225
LIST OF CHARTS
5.1a Creative industries: Exports of creative goods, by economic group, 2008..................................................127
5.1b Creative industries: Exports of creative services, by economic group 2008 ..............................................127
5.2 Evolution of world exports of creative goods and services, 2002-2008 ....................................................129
5.3a Exports of creative goods, by group, 2002 ..............................................................................................129
5.3b Exports of creative goods, by group, 2008 ..............................................................................................129
5.4a Share of economic groups in world exports of creative goods, 2002 ........................................................130
5.4b Share of economic groups in world exports of creative goods, 2008 ........................................................130
5.5a Imports of creative goods, by economic group, 2002, 2005 and 2008 ....................................................131
5.5b Imports of creative goods, by group, 2008 ..............................................................................................131
5.6 Creative goods: Exports from all developing countries, 2002 and 2008 ....................................................133
5.7a Creative goods: Top 10 trade surplus and deficit countries in 2002 ..........................................................134
5.7b Creative goods: Top 10 trade surplus and deficit countries in 2008 ..........................................................134
5.8 Creative industries: Exports of creative goods, by economic group and China, 2008..................................137
5.9 Heritage goods: Exports, by economic group, 2002, 2005 and 2008........................................................140
5.10 Digital music revenues, 2004-2008........................................................................................................144
5.11 Performing arts: Exports, by economic group, 2002, 2005 and 2008 ......................................................146
5.12 Visual arts: Exports, by economic group, 2002, 2005 and 2008 ..............................................................149
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5.13 Audiovisuals: Exports, by economic group, 2002, 2005 and 2008............................................................153
5.14 Publishing and printed media: Exports, by economic group, 2002, 2005 and 2008 ..................................155
5.15 Design: Exports, by economic group, 2002, 2005 and 2008....................................................................157
5.16 New media: Exports, by economic group, 2002, 2005 and 2008 ............................................................159
5.17 Creative services: Exports, by economic group, 2008 ..............................................................................161
5.18a Creative services: Top 10 exporters of personal, cultural and recreational service among developed economies, 2008 ..................................................................................................................162
5.18b Creative services: Top 10 exporters of personal, cultural and recreational service among developing economies, 2008 ..................................................................................................................162
5.19 Royalties and licence fees: World exports and imports, 2002, 2005, and 2008 ........................................163
5.20 Related goods: Evolution of world exports, 2002 and 2008 ......................................................................164
6.1 Contribution of the creative industries to GDP..........................................................................................180
6.2 Contribution of groups of copyright-based industries to total of creative industries ....................................181
STATISTICAL ANNEX
Explanatory Notes ..................................................................................................................................................282
Example of Country Profile: Argentina and Turkey ....................................................................................................288
Distribution of developing economies by geographic region and economic grouping ................................................296
Distribution of developed economies and transition economies by geographic region ................................................299
Distribution of economies by trade group ................................................................................................................300
Part 1. Creative industries — Creative Goods
1.1 Creative goods: World exports, by economic group and country/territory, 2002-2008................................302
1.2.A Creative goods: Exports, by origin and product group, 2002, 2005 and 2008 ..........................................308
1.2.B Creative goods: Imports, by origin and product group, 2002, 2005 and 2008 ..........................................312
1.3. Creative goods: Exports and imports, by trade group, 2002-2008 ............................................................316
1.3.1 Creative goods: Exports, by trade group, as % of total exports of creative goods, 2002-2008....................316
1.3.2 Creative goods: Imports, by trade group, as % of total imports of creative goods, 2002-2008 ..................317
Part 2. Creative industries — Creative Services
2.1.A Exports of all creative services, by country/territory, 2002-2008 ..............................................................319
2.1.B Imports of all creative services, by country/territory, 2002-2008 ..............................................................321
2.2.A Exports of advertising and related services, by economic group and country/territory, 2002-2008 ............323
2.2.B Imports of advertising and related services, by economic group and country/territory, 2002-2008 ............325
2.3.A Exports of architectural and related services, by economic group and country/territory, 2002-2008 ..........327
2.3.B Imports of architectural and related services, by economic group and country/territory, 2002-2008 ..........329
2.4.A Exports of research and development services, by economic group and country/territory, 2002-2008 ......331
2.4.B Imports of research and development services, by economic group and country/territory, 2002-2008 ......333
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2.5.A Exports of personal, cultural and recreational services, by economic group and country/territory, 2002-2008............................................................................................................................................335
2.5.B Imports of personal, cultural and recreational services, by economic group and country/territory, 2002-2008............................................................................................................................................337
2.5.1.A Exports of audiovisual and related services, by economic group and country/territory, 2002-2008 ............339
2.5.1.B Imports of audiovisual and related services, by economic group and country/territory, 2002-2008 ............341
2.5.2.A Exports of other personal, cultural and recreational services, by economic group and country/territory, 2002-2008............................................................................................................343
2.5.2.B Imports of other personal, cultural and recreational services, by economic group and country/territory, 2002-2008............................................................................................................345
Part 3. Related Industries — Related Goods, Royalty and License Fee and Computer and Information Services
3.1 Related goods: World exports and imports, by economic group and country/territory, 2002-2008..............348
3.2.A Related industries: Exports, by origin and product group, 2002, 2005 and 2008 ......................................354
3.2.B Related industries: Imports, by origin and product group, 2002, 2005 and 2008 ......................................356
3.3.A Exports of royalties and licence fees, by economic group and country/territory, 2002-2008 ......................358
3.3.B Imports of royalties and licence fees, by economic group and country/territory, 2002-2008 ......................366
3.4.A Exports of computer and information services, by economic group and country/territory, 2002-2008 ........374
3.4.B Imports of computer and information services, by economic group and country/territory, 2002-2008 ........382
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The United Nations published its first Creative Economy Report…