UK work to date and the use of
allocation factors:
The Problems of Mixed Classes in Economic Classifications
OECD Workshop, Paris, 4-5 December 2006
DCMS – our context
• Government Department with policy responsibility
• Economic measurement focus, rather than social
• Separate from the National Statistics institute (ONS)
• Historical emphasis on 13 ‘Creative Industries’
• Development of Mapping Document & Statistical Bulletin
• Development of an ‘Evidence Toolkit’ for all DCMS sectors
Department for Culture, Media and Sport Improving the quality of life for all
How have we tackled the issue?
‘Creative’ Industries
• “Activities which have their origin in individual creativity, skill
and talent and have a potential for wealth and job creation
through the generation and exploitation of intellectual
property”
• But definition is constrained when using official statistics
• Rigid NACE/SIC system – set definitions, not often updated
• Official sources assign businesses based on ‘principal
activity’
• Survey data – owned by the ONS
• Need to derive and apply allocation factors
Department for Culture, Media and Sport Improving the quality of life for all
How have we tackled the issue?
Allocation Factors
• What is a creative activity/business?
• Different dimensions
Employment, turnover etc.
Regional / International
• Sum of disaggregates ≠ aggregated national figure
• Best-estimates, for indicative purposes
• Planning to review by analysing micro-data
• Wider footprint – even harder to identify
Department for Culture, Media and Sport Improving the quality of life for all
How have we tackled the issue?
Allocation Factors - Examples
• Classes are clear (100%)
92.32 Operation of arts facilities
• (5 digit) class exists, but survey data not available
74.20 Architecture and engineering activities…
 74.20.1 Architecture activities
• Class too broad – activity is ‘hidden’
22.15 Other publishing
52.50 Retail sale of second-hand goods in
stores
Department for Culture, Media and Sport Improving the quality of life for all
What have we found?
Value of UK Creative Industries - Headline Findings
Total GVA Contribution
7.3%
By selected sector…
…Software, Computer Games & Electronic Publishing
2.7%
…Publishing
1.2%
…Designer Fashion
Exports
Employment
0.05%
£13bn
1.8m
…in Creative Industries
1.0m
…in other creative occupations
0.8m
Number of Businesses
117,500
Department for Culture, Media and Sport Improving the quality of life for all
How have we tried to develop?
Development of an Evidence Toolkit
Establish a definition that is robust on a conceptual and
technical level
Propose consistent approach / methodologies
Covers all DCMS sectors (culture, media, sport, tourism)
Based on NACE / SIC
Framework based on domains and functions
‘Cultural cycle’ - covering the production part
Department for Culture, Media and Sport Improving the quality of life for all
Toolkit: ‘Cultural Cycle’
Education &
Understanding
Archiving & Presentation
Exhibition &
Reception
Creation
Making
Dissemination
Department for Culture, Media and Sport Improving the quality of life for all
Where have we got to?
Universal agreement impossible, but have frameworks
Good ground work that now needs developing
Consistent series for the Creative Industries
Attempting to ‘close down’ old arguments
Department for Culture, Media and Sport Improving the quality of life for all
Issues still facing us…
Why do we need data? Who uses it?
• Advocacy – Government & Industry
• To manage or direct policy
• To add (more) credibility to what we say
But…
• How accurate do we need to be?
• Are we going over old ground?
• How can we expand & develop?
Department for Culture, Media and Sport Improving the quality of life for all
Other ways to take forward…
• Satellite Accounts
 National Statistics institute suggested
 Support idea, but how use?
 Needs expertise / resource
• More industry involvement?
 Data collection?
• Improve credibility
 Need to make comparisons (within UK /
international)
 More consistency in approach
Department for Culture, Media and Sport Improving the quality of life for all