2nd WIPO SEMINAR ON INTELLECTUAL PROPERTY AND CREATIVE SMALL AND MEDIUM-SIZED ENTERPRISES IN THE DIGITAL ENVIRONMENT May 18 to 20, 2009, Geneva Assessing the Economic Contribution of Creative Industries: Experience of WIPO Christopher Kalanje, Counsellor, Creative Industries Division, WIPO May 18, 2009 Road Map Creativity and Creative Industries Defining Creative Industries Economic Contribution of Creative Industries WIPO Creative Industries Agenda Creativity and Creative Industries • Competition is intensive • To be competitive a company need to be creative • Creativity is therefore at the core of business survival Creativity and Creative Industries • Not all companies can be categorized as creative industries – Beverage – footwear – Transport equipment (Motor vehicles) – e.t.c Defining Creative Industries Creative Industries - Relatively new - Closely linked to cultural industries. Sometimes used interchangeably - Broader than cultural industries. Goes beyond • performing arts and • handicrafts Defining Creative Industries contd. From Cultural to Creative Industries -1944 Adorno & Horkheimer - 1970s and 1980s. A positive view different from UNESCO - 1990s-current. Wide use of term creative industries Defining Creative Industries contd. • Late 1990s UK department for culture, media and sports (DCMS) established creative industries unit and task force – UK definition “those industries that have their origin in individual creativity, skill and talent and which have a potential for wealth and job creation through the generation and exploitation of intellectual property”* * Creative industries mapping document 2001 Defining Creative Industries contd. UK Creative Industries Advertising; Architecture; Art and Antiques Market; Crafts; Design; Designer Fashion; Film & Video; Interactive Leisure Software; Music; Performing Arts; Publishing; Software and Computer Services; Television & Radio Defining Creative Industries contd. - Australia Creative Industries Definitions - Austria - Hong Kong - New Zealand - Singapore - USA (core copyright industries) Economic Contribution of Creative Industries • Growing interest towards economic contribution of creativity: – Is creativity a driver in the knowledge economy? – Can creativity bring more development? – Can nations capitalize on creative assets? • specific policy objectives leading to specific measurement tools – variety of approaches - social, economic and cultural Economic Contribution of Creative Industries contd. • Clarity is needed on concept, definition and criteria of creative industries at, – International level – National level • Importance of IP in the development and success of creative industries should be highlighted Economic Contribution of Creative Industries contd. • Creativity poses definitional problems • Copyright is a well defined concept – a set of economic and moral rights – a balance between individual and public interests – a financial mechanism to reward creators Economic Contribution of Creative Industries contd. – serves as the basis of huge industries – enhances and enriches cultural heritage and cultural life – can be used a tool to estimate • employment, value added, export e.t.c. Economic Contribution of Creative Industries contd. • The Guide aimed at • linking copyright to quantifiable indicators • developing practical guidelines for measurements • providing consistency of approach • The Studies would enable • positioning of the creative sector in the national economy • international and cross-sectoral comparisons • identification of competitive advantages Economic Contribution of Creative Industries contd. Thus Providing - input for policy formulation - adjustment of national policies and practices A reinforced perspective on IP and copyright Relating copyright to business activities Economic Contribution of Creative Industries contd. A new definition of the copyright-based industries following the extent of use of copyright material A more transparent link to statistical reporting A step-by-step methodology A set of measurement techniques Economic Contribution of Creative Industries contd. • Core – Press & Literature; Music, Theatrical Productions & Operas; Motion Picture & Video; Radio & TV; Photography; Software & Databases; Visual & Graphic Arts; Advertising Services; Copyright Collecting societies • Interdependent – TV sets, Radio, VCRs, CD Players, DVD Players, Cassette Players, Electronic Game Equipment and Other Similar Equipment; Computers & Equipment; Musical Instruments; Photographic & Cinematographic Instruments; Photocopiers; Blank Recording Material; Paper Economic Contribution of Creative Industries contd. • Partial – Apparel, Textiles and Footwear; Jewelry & Coins; Other Crafts; Furniture; Household Goods, China and Glass; Wall Coverings and Carpets; Toys and Games; Architecture, Engineering, Surveying; Interior Design; Museums • Non-Dedicated – General Wholesale and Retailing, General Transportation, Telephony and Internet Economic Contribution of Creative Industries contd. Country % Contr. to GDP % Employment USA (2004) 11.09 8.53 Singapore (2001) Canada (2004) 5.67 5.80 4.7 5.4 Latvia (2000) 4.00 4.40 Hungary (2002) 6.67 7.10 Economic Contribution of Creative Industries contd. % 12 10 8 GDP 6 Employment 4 2 0 USA Singapore Canada Latvia Hungary Economic Contribution of Creative Industries contd. Country % Contr. to GDP % Employment Philippines (1999) 4.82 11.10 Mexico (2003) 4.77 11.01 Bulgaria (2005) 2.81 4.30 Jamaica (2005) 4.81 3.03 Lebanon (2005) 4.75 4.49 Economic Contribution of Creative Industries contd. 12 10 8 GDP Employment 6 4 2 0 Philippines Mexico Bulgaria Jamaica Lebanon Economic Contribution of Creative Industries contd. Country % Contr. to GDP % Employment Australia (2007) 10.30 8.00 Croatia (2004) 4.27 4.64 Romania (2005) 5.55 4.19 Colombia (2005) Russia (2004) 3.30 5.80 6.06 7.30 Economic Contribution of Creative Industries contd. Country % Contr. to GDP % Employment Ukraine (2005) 2.85 1.90 Netherlands (2005) 5.90 8.80 Studies at different stages: Brazil, Colombia, Peru, China, Malaysia, Pakistan, Morocco, Sudan, Kenya, Tanzania, Economic Contribution of Creative Industries contd. Contribution to GDP by Industry 100% 90% 80% advertising 70% cr collecting societies 60% Photography visual and graphic arts 50% motion pidcture and video 40% Music, theatrical productions and opera 30% radio and tv 20% software 10% press and literature U R PE O JA M AI C A BU LG AR IA LE B AN O N C R O A TI A U KR A IN E M A LA YS IA XI C M E ES Y R G A N IL IP PI N PH IA LA TV U H SI N G AP O R E 0% Economic Contribution of Creative Industries contd. 100% 80% advertising 60% cr collecting societies Photography visual and graphic arts 40% motion pidcture and video Music, theatrical productions and opera radio and tv 20% software press and literature 0% LATVIA HUNGARY PHILIPPINES MEXICO JAMAICA BULGARIA LEBANON CROATIA UKRAINE PERU Contribution to Employment by Industry Economic Contribution of Creative Industries contd. • indicative of structural changes in the economy • useful in identifying – competitive advantages – drivers – problem areas Economic Contribution of Creative Industries contd. • Feedback, – Growing interest from Member-States, IGOs and NGOs – Policy and professional interest and support – Indicators are generally acceptable – results are not a function of the overall economic development level of the country – strong influence of economic cycles and classification system Economic Contribution of Creative Industries contd. • Challenges – Relation between an industrial approach and individual creative activities (adjustments to data collection) – It is a production, not consumption based approach – underdeveloped statistical framework adds to the cost of the studies WIPO Creative Industries Agenda • Expand and improve surveys of the economic contribution • Produce guidelines on estimating copyright piracy • Launching a new generation of studies more focus on the qualitative side of creativity, on social and cultural impact of IP WIPO Creative Industries Agenda contd. • Data collection on cultural industries joint project with UNESCO Institute of Statistics (UIS), UNIDO, UNDP Participation in multi agency efforts on developing better cultural indicators satellite accounts for culture WIPO Creative Industries Agenda contd. Produce practical guides on management of IP and creative enterprises – Managing IP in the Book Publishing Industry – Rights, Camera, Action! IP Rights and the Film-Making Process – Managing Creative Enterprises – How to Make a Living from Music Finally Christopher.kalanje@wipo.int