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The Economic Value of Creative Focused Universities and Colleges Summary The Economic Value of Creative Focused Universities and Colleges Summary Executive Analysis of the Social & Economic Impact of Learning November 2016 Foreword The creative industries play a major role in the UK – socially and culturally of course – but also economically. Gov- ernment estimates the contribution of these industries to the UK economy to be more than £84 billion a year. In areas as diverse as film, broadcasting, music, dance, theatre, the visual arts, design, publishing and video games, the UK’s creative industries are leading the way on the world stage. Our international competitors regard our success with envy. So, any education system that focuses solely on sci- ence, technology, engineering and maths – important as they are – does so at its peril. The creative industries are a huge part of our economy, employing hundreds of thousands of people in high value jobs. Creative skills are essential in all sectors, creating leaders who can innovate. Surely, it makes sense for us to broaden out the tra- ditional focus on Science, Technology, Engineering and Maths of STEM, to incorporate Arts subjects, so creating STEAM? An education system that only concentrates on Numeracy and Literacy risks producing two-dimensional young people. Adding the third dimension of Creativity into that system – and seeing it as an equal measure of success – imbues the talent pipeline with the knowledge, skills and experiences that industry leaders repeatedly tell us they are crying out for in their workforce. The study of art, design and performing arts subjects ignite that spark of creativity in a student that will stay with them throughout their career. This report shines a light on the key role that creative focused universities and colleges play in providing that tal- ent pipeline, educating graduates who will go on to lead our creative industries and creatively innovate within society more generally. The figures in the report speak for themselves. The accumulated impact of graduates from creative focused uni- versities amounts to at least £8.4 billion in added income to the UK economy each year. This is supported by a contribution of more than £77.3 million from international students coming to study in the UK. But it’s not just about this powerful contribution to the UK economy. There are also case studies in this report that show these institutions responding to the Government’s wish for Higher Education Institutions to be involved in our society more fully. As pressure continues to grow on local authorities’ budgets, at Arts Council England we increasingly regard the university sector as important custodians of art and culture locally, nationally and interna- tionally. They are our key partners in many towns and cities across the country. Examples highlighted in the following pages include Plymouth College of Art’s free school that ensures that young people in the city get a creative education; the work of Norwich University of the Arts in supporting stu- dents’ employability through its Ideas Factory; and Abertay University in Dundee partnering with the games industry to develop a creative hub. I believe that great art and culture inspires us, brings us together and teaches us about ourselves and the world around us. In short, it makes life better for everyone, from all parts of society. So, as a nation, we must continue to support and invest in arts and culture and the universities and colleges that nurture the talent that makes the UK a world leader in this field. Darren Henley Chief Executive Arts Council England 2 The Economic Value of Creative Focused Universities and Colleges Introduction The UK’s creative industries contribute £84.1 billion to the UK econ- omy. This includes sectors such as films, music, video games, crafts and publishing. Recent figures show the sector growing at almost twice the rate of the wider UK economy. This sector is fuelled in large part by the pipeline of creative graduates coming out of UK universi- ties and colleges. This report helps shine a light on the contribution of creative focused universities and colleges, not just to the creative industries but also to the wider economy. GuildHE, one of the recognised representative bodies for higher education; Ukadia, the association for the heads of specialist art and design institutions and The HEAD Trust com- missioned Emsi to undertake research and analysis measuring the combined economic Acknowledgements impact of 13 specialist creative arts institutions and the creative students at two additional multi-faculty universities with a focus in these areas. In addition to measuring the economic Emsi gratefully acknowledges the impact of these institutions on the economy this report discusses the landscape of creative excellent support of all of the cre- arts across the UK, how a degree in the creative arts prepares students for careers, and anal- ative focused universities and col- yses a selection of universities to see real life examples of their impact on the communities leges in making this study possible. and students they serve. Special thanks go to Alex Bols and Gordon McKenzie for their input on All of these institutions are committed to putting students on the path to success and play this report and to the research staff a key role in helping them increase their employability and achieve their individual poten- at each of the institutions for sup- tial. The provision at these institutions enable students to develop their creativity, acquire plying the data needed to complete qualifications and enhance the skills they need in order to have a fulfilling and prosperous this report. Any errors in the report career. The institutions also provide an excellent environment for students to meet new are the responsibility of the authors people and make friends, while participation in the institutions courses improves the stu- and not any of the above-mentioned dents’ skill base. institutions or individuals. To see full However, the contribution of creative focused institutions consists of more than solely influ- documentation of the study, please encing the lives of students. The provision at creative focused institutions supports a range contact GuildHE. of employment sectors in the UK and supplies employers with the skilled workers needed to make their businesses more productive. Creative focused institutions attract high quality international students that further support the economy through the output and employ- ment generated at firms. Lastly, and just as importantly, the economic impact of creative focused institutions extends as far as the Exchequer in terms of increased tax receipts and decreased public sector costs. To date, comparatively little research has been done to quan- tify the monetary value of these benefits. In this report we assess the economic value of creative focused institutions on the UK’s economy. The study focuses on the economic impacts generated by creative focused insti- tutions on the business community in the UK. Economic impact analysis focuses on a single 3 The Economic Value of Creative Focused Universities and Colleges time period and does not project impacts into the future, nor does it factor in costs incurred by stakeholders. To derive results, we rely on a specialised input-output (I-O) model to calculate the additional income created in the UK’s economy as a result of the added skills generated by creative focused institutions and their students’ spending. Results of the eco- nomic impact analysis are measured in terms of the added income created by the following two impacts: 1) impact of the skills acquired by students still active in the UK's workforce and 2) impact of international student expenditure. The survey demonstrates the economic impact of the creative institutions involved is considerable – and greater still if extrapolated across all institutions providing courses in these subjects. Data and assumptions used in the study are based on several sources, including reports from the institutions, industry and employment data from Nomis official labour market statistics, demographic data from Higher Education Statistics Agency (HESA), and earnings data from the Office for National Statistics (ONS), and Emsi’s input-output model. The study applies a conservative methodology and follows standard practice using only the most rec- ognised indicators of economic impact. Further information on the data used to derive the results are available upon request. CASE STUDY Centre of Excellence for Computer Games Education, University of Abertay University of Abertay in Dundee is the UKs first Centre of Excellence for Computer Games Education (SFC/Creative Skillset, 2009). This accolade recognises the role of the university in helping to grow a sustainable games development cluster in the city and establish Dundee as a global centre for games development. The primary reason for the resilience and longevity of the cluster is the deeply embedded relationship between the university and the local companies that ensures that our students are familiar not just with the technical and creative skills required to succeed in the industry but also with professional processes and practices and commercial imperatives through industry partnership in ‘workplace simulation’ (NESTA). Games students at Abertay undertake a multidisciplinary, client-led games development team project as part of the curriculum. These projects are based on client-led project briefs that promote creativity and innovation in design, technology and application. Games sector sponsors act as both client and mentor to promote professional attitudes and behaviours through the adoption of professional practices and processes. Students develop discipline skills and knowledge in the context of project-led ‘learning by doing’ scenarios while attaining transferable communication and negotia- tion skills in collaborative, multidisciplinary team working. As a result, students achieve a highly relevant understanding of the professional world they will enter and a highly current understanding of the creative, technologi- cal and market conditions that they will operate under.
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