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A Report Prepared By The 1 Economic Impact of the Creative Industries in the Americas A report prepared by for The aim of this research is to 2 assess and demonstrate the economic contribution and potential of the creative and cultural industries in the countries of the Americas and 10 benchmark countries. This report provides an overview of the availability of data and makes recommendations on how to improve the measurement of this important sector. Executive summary 3 The creative and cultural The creative industries are set 1 industries1 constitute one of the to become an increasingly important Reference to the “creative industries” fastest-growing sectors globally. The contributor to GDP growth across the in this report is meant to encompass sector is forecast to play a bigger role region. In the two largest economies both creative and cultural industries. in coming years. If the countries of the of the hemisphere, Brazil and the The term “creative industries” has Americas2 are to achieve a balanced, United States, the creative industries different meanings and uses throughout high-growth economy, it is vital that are estimated to account for over the world; for purposes of this report, the key strengths of businesses in 10% of GDP. To place this in context, the term covers the following sectors: the creative sector are nurtured. 11% of GDP in the US is roughly Advertising; Art Crafts; Audio-Visual Accordingly, the Organization of equivalent to the size of the entire / Film; Cultural Heritage; Design; American States, the Inter-American US manufacturing sector or about Entertainment Software, including Development Bank and the British one-fifth of the world’s manufactures. Video Games; Fashion; Music; Council have commissioned Oxford In other countries in the region the Publishing; Performing Arts; and Visual Economics to undertake this research GDP contribution of the sector is Arts. to better showcase the economic estimated to be smaller between 2% impact and potential of creative to 7% in Argentina, Mexico, and Peru, 2 industries across the Americas and in highlighting the scope for catch up and Reference to the “countries in the comparison with selected benchmark illustrating the high growth potential of Americas” in this report refers to the countries around the globe. The report the sector. With regard to growth the OAS member states (or the non- highlights the need to further develop sector is showing significant promise, benchmark countries) listed on p. 8. common statistical frameworks to with data highlighting that the sector support evidence-based policy-making is accounting for a growing share of that enables the sector to continue national GDP in countries such as to flourish and contribute to growth, Argentina, Brazil, Colombia, Paraguay, employment, and development. and the United States. The creative industries The sector can provide new represent untapped economic potential, employment opportunities. The creative and make a positive contribution to the sector is a major source of dynamism innovation economy and other sectors for the economies of the Americas, of the economy through supply chain growing rapidly with the potential to effects. If the Americas are to continue generate creativity, innovation and to increase competitiveness in this enterprise across a wide range of changing global environment, they need activities. The sector is already an to put in place the right conditions for important provider of employment creativity and innovation to prosper in a in some economies, accounting for new entrepreneurial culture. There is a between 5 to 11% of employment in lot of untapped potential in the cultural Canada, Colombia, Mexico and Trinidad and creative industries to create growth and Tobago, with employment forecast and jobs. Many recent studies have to continue to grow in the sector. shown that the creative industries represent highly innovative companies with a great economic potential and are one of the most dynamic sectors in the Americas. 4 A global market for creative Trends in cultural consumption and Common definitions and goods and services is growing rapidly infrastructure provide the context methodologies are necessary. Efforts and outperforming other exportable for future development. As shown in this direction will lead to a more sectors. The sector is also becoming in changing advertising distribution fluid and effective exchange of increasingly international, with both patterns, the soaring consumption ideas across the Americas, helping creative goods and creative services of videogames, the continual overcome the challenge of producing traded in international markets, disappearance of newspapers, statistics for a sector where there highlighted by growth in global creative and wider access to the Internet, is rapid technological and market exports at over 10% per annum for successful business models are in change. The search for a minimum much of the past decade. The Americas constant evolution. If the Americas are common ground is underway, albeit account for approximately $87 billion of to continue to increase their global far from consolidated. This could be world creative exports, approximately competitiveness and harness the achieved by adopting an internationally 14% of the world total. It is worth dividends of nurturing their creative recognised statistical framework such highlighting that the region accounts economies, policy interventions need to as UNESCO’s published framework for almost two-fifths of global ‘personal, take into account the fluid dynamics of for cultural statistics using detailed cultural and recreational services’ modern creative businesses. International Standard Industrial (which includes audio-visual services) Classification (ISIC) and International exports and over one quarter of global Market intelligence for Standard Classification of Occupations ‘visual arts’ exports illustrating its growing sectors is important to enable (ISCO) codes, or developing a new position as a world leader. ‘evidence-based’ policymaking. There agreed definition for the region using is an evident lack of knowledge ISIC and ISCO codes common to all Creative industries have base on the economic impact of the countries as a base. continued to perform well during the creative industries both nationally recent global recession. Resilience to and internationally. This research has Governments are currently reliant the crisis is also evident in the exports signposted the available evidence to upon non-economic data to provide of creative services; they have grown demonstrate economic contribution and intelligence in many countries. Very at 4.3% per annum since the global potential; further research is required to few countries in the world publish recession began in 2008. As a rapidly better understand the economic impact reliable, continuous, comparable data growing international market, this of the sector. An enhanced evidence of the creative industries. Infrastructure presents an opportunity for countries base could be used to argue in favour and creative consumption variables that are engaged in international trade of measures, policies or initiatives that are used as proxies. Information on of creative goods and services. The would help to encourage growth in the the cultural infrastructure within a sector’s resilience and the evidence creative industries. country can be valuable information that it is an important provider of for policymakers in the absence of the employment opportunities is all the Estimating the contribution availability of GDP and employment in more interesting because creative of culture to the economy across numbers. Cultural atlases, like those sectors have a higher percentage of the Americas poses challenges. The of Argentina, Costa Rica, Ecuador, youth employment than the rest of the lack of an agreed framework for Jamaica, Mexico and Peru are good economy, at a time of record high youth researchers to follow leads to widely examples of this. unemployment in both developed and varying estimates on the scale of the developing countries. sector. Due to the dynamic and diverse nature of the sector, it often does not align well with official statistical measurement frameworks, which tend to use Standard Industrial Classification (SIC) codes or Standard Occupational Classification (SOC) codes. 5 Addressing data gaps and in partnership with other countries leveraging existing sources. There and international organizations are a number of useful data providers working in this field, to ensure that publishing information relating to the the accounts are produced using the creative industries, but with limited same methodology and definition of the country coverage of the smaller states sector to enable accurate comparisons in the Americas. There is an opportunity among countries. to open dialogue with existing data providers to scope the potential for Ensuring best practices in additional countries to be added to statistical methods should also apply improve their data coverage, and help to the creative industries. Experiences national statistics institutes to measure such as cultural atlases and satellite better the creative sector. accounts of culture must be shared and developed across the Americas Cultural satellite accounts cooperatively. This will encourage and are providing invaluable information help smaller countries to catch up for policy makers and represent and coordinate better in the common a comprehensive model for the development of a hemispheric creative
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