Perth’s Creative Industries - An Analysis

EXECUTIVE & REPORT SUMMARY

City of Department of Culture and the Arts Department of Industry and Resources Department of the Premier and Cabinet

Geographical Mapping and Qualitative Analysis – Creative Industries 2007

This report has been prepared by: Telesis Consulting SGS Economics and Planning Pty. Ltd ARC Centre of Excellence for Creative Industries and Innovation Designer Futures ABN 61 164 522 568

Publication Notice The employment and business profi le sections of this report have drawn on data and analysis developed as part of an Australian Research Council Partnership project between the Australian Government Department of Communications, Information Technology and the Arts, the Australian Film Commission and the Queensland University of Technology.

This publication is available from the City of Perth in alternative formats on request. Table of Contents Economic Impact ...... 4 8 The Creativeativee Industry in the Glossary ...... 2 Exports…………...... 4 City of Perth ...... 16 Key Findings ...... 3 Employment Growth ...... 4 9 Creative Conversations ...... 18 Creative Industry Segments ...... 4 10 Approaches for State and Local Executive Summary ...... 4 Metropolitan Perth’s CIs Performance ...... 5 Government Agencies ...... 18 Introduction ...... 4 Geographical Concentrations ...... 5 10.1 Guiding Principles ...... 18 Employment ...... 4 Summary of Key Policy Challenges ...... 5 10.2 Program Suggestions ...... 19

Report Summary ...... 6 Tables 1 The Creative Industries ...... 6 1. Perth’s 2001 Creative Economy 1.1 The Creative Industry Segments ..6 employment across the 1.2 Characteristics of the Creative Creative Trident ...... 9 Industries ...... 6 2. Metropolitan Perth’s Creative 1.3 Characteristics of Metropolitan Industry concentrations and Perth’s Creative Industries ...... 7 growth centres ...... 14 2 The Contribution of Metropolitan 3. Metropolitan Perth’s Employment, Perth’s Creative Industries ...... 8 Density and Creative Industry 3 Creative Industry Employment ....9 segment growth ...... 15 3.1 Within the Creative Industry Segments ...... 9 Figures 4 The Growth in Perth’s Creative 1. Creative Industry segments’ Economy ...... 10 initial and fl ow-on effects ...... 8 5 Whole of Economy Impact ...... 10 2. Bigger Cities have Higher 6 Comparing Metropolitan Perth Density of creative employment ...... 12 with other Cities ...... 12 3. Creative Industries employment, 7 Creative Industry Hotspots in City of Perth LGA 2001 ...... 16 Metropolitan Perth ...... 13 1

Les Corbeaux, Spring Summer 08 Collection, We Need the Eggs. Photographer Penny Lane Perth’s Creative Industries - An Analysis

Glossary of Acronyms and Terms ABN: Australian Business Number Density: the number of workers or fi rms ABR: Australian Business Register per 100,000 of the total number of workers or fi rms. Density is similar to percentage but ABS: Australian Bureau of Statistics in 1,000’s. CAGR: Cumulative Annual Growth Rate GST: Goods and Services Tax or the compounding rate of growth LGA: Local Government Authority CI: Creative Industry Metropolitan Perth: CIs: Creative Industries The entire Perth region including, but not The most widely accepted defi nition is confi ned to, the City of Perth LGA. “activities that focus on creating and Micro Businesses: exploiting intellectual property products. Very small businesses with one or two CO: Creative Occupations workers, generally the owner(s). Used to describe individuals working in Sectors: positions which utilise creative skills and are In this report a distinction has employed in industry classifi cations other been made between the major industry than Creative Industries. sectors (e.g. manufacturing, retail etc.) and Creative Economy: segments within the Creative Industries. Overarching term used to describe all the Segments: The activity areas within the activity within the creative and cultural defi nitions of the Creative Industries industries as well as creative skilled workers examined in the report. employed in non-creative sectors. Value Chain: Originally to describe the Cultural Industries: value-adding activities of an organisation. Public-supported not-for-profi t creative The concept has been extended beyond activities. individual organisations to include whole supply chains and distribution networks.

2 Key Findings • The total economic impact of the creative • The largest employing CI segment is industries is $10.6bn, comprising $4.6bn software, which is also very fast growing. direct and $6.0bn indirect or fl ow-on • Metropolitan Perth’s CIs have an average contribution. annual growth in excess of 5% with • Growth in CI earnings is 25% higher than particularly strong growth in Software, other industry areas. Advertising and Music. • With the current growth rate in CI wages • Assessed in terms of qualifi cations, of 5%, this fi gure is estimated to be at Perth has a wealth of creative talent and $1.92 bn, for 2006. qualifi ed people • The CI workforce has grown at more than • 2.3% of the mining industry’s workforce four times the rate (7.3%) of the state’s is made up of “embedded” creatives. total workforce (1.8%). • Metropolitan Perth is 90% of WA’s total • Perth’s CIs employed over 31,000 people, Creative Employment, compared with a or 5.2% of the total workforce in 2001. 74% share of all employment. • This comprised 9,348 CIs workers • The City of Perth has the highest number employed directly in the CIs and 19,328 of CI workers of any metropolitan LGA. working or “embedded” in other • The City of Subiaco has the highest industry areas. proportion of its workforce in the CIs. • The remaining 11,984 people were • The LGA with the fastest growth rate in employed in business and support roles CIs employment is the City of Belmont. in the CIs. • There are 11,000 CI businesses registered • The total employment in Metropolitan for GST in April 2006, or 6.6% of all Perth’s CIs was estimated at almost industries. 40,000 in 2006. • There are an additional 19,700 CI entities registered on the ABR that are not GST 3 registered. Guixot De 8, Awesome Arts Festival. Photographer Ken Drake. Perth’s Creative Industries - An Analysis

Executive Summary Economic Impact 2001. This was substantially higher than the overall level of growth of Perth’s workforce Introduction Perth’s CIs account for 3.4% of the output of all industries in Metropolitan Perth. over this same period (1.8%). Creative Industries (CIs) are those businesses The value added (i.e. the total value added Total employment in the CIs is divided that turn creative ideas into commercial to the economy calculated by determining roughly equally between creatives working outcomes. fi rms’ total sales after deducting the cost of in CI organisations; non-creatives working The economic, social, industrial and cultural purchases from other fi rms) is $2.6bn. This in CI organisations and creatives working contributions of these industries are accounts for 56% of the direct output (of in non-creative industries e.g. Government increasingly being recognised as essential $4.6bn) from the CIs, signifi cantly higher Administration, Property and Business elements of an advanced and thriving than the average value-added of 44% in Services, and Manufacturing. In 2006 regional economy. non-creative sectors. the salaries of these CI workers were They are vital in determining the image of estimated to be worth $1.92bn. a region, retaining talent to that region and Exports providing positive, substantial benefi ts to Creative Industry Segments Exports from Metropolitan Perth’s CI other industry sectors. Software and Interactive Media segments to other parts of the state and development is the largest employer of overseas are also far higher than for other Employment the 11 CI segments examined in this report. industry sectors. In 2006 CIs generated It is also the fastest growing, followed by In 2006 Metropolitan Perth’s Creative $687 million in exports, or 20% of output, Advertising and Music. Industry (CI) segments employed almost compared to 16% average exports in non- In April 2006, there were 11,000 businesses 40,000 people and contributed $4.6bn to creative sectors. the local economy. The fl ow-on value was registered for GST in Perth’s Creative Economy, representing 6.6% of fi rms across an additional $6bn, bringing their total Employment Growth contribution to more than $10bn. all industries. The number of CI businesses Employment growth in Metropolitan Perth’s and sole operators having an Australian CIs was four times the rate of other industry Business Number (ABN), but which had sectors in the fi rst half of this decade. There not reached the revenue threshold to pay was a 7.3% cumulative annual growth rate GST, more than doubled in the fi ve years 4 (CAGR) between the censuses of 1996 and between 2001 and 2006. Metropolitan Perth’s CI Performance Summaryry of Key Policy Challenges The overall size of Metropolitan Perth’s CIs The fact that the vast majority of CI is broadly on par with other state capitals. organisations are very small and so There is high representation in Publishing suffer a lack of scale, leads to signifi cant and Architecture and the city is in line with shortcomings in business capability, national averages in Visual Arts and Graphic fi nancial capacity and a capacity to Design, Music and Performing Arts. Fewer generate intellectual property (IP). representations are recorded for Software Perth’s isolation distances the city from and Interactive Content, as with Advertising industry decision-makers and investors. and Marketing, Film, TV and Radio. Furthermore, the city’s physical dispersal Metropolitan Perth is the hub of WA’s CI often leads to weak connections between activity. The city encompasses 90% of WA’s creatives. CI associations are inclined to be total creative employment, compared with small, and below the size needed to deliver a 74% share of all employment. Assessed the scope of services required by boutique in terms of professional qualifi cations, Perth CI businesses. Signifi cant benefi ts can be has a wealth of creative talent and qualifi ed reaped by improving the business capacity people. of CIs workers, or their access to business capability, as well as exploiting improved Geographical Concentrations communications technologies. Initiatives likely to offer the greatest The largest number of CIs workers are opportunities to redress existing employed within the City of Perth and the shortcomings include: Global niche Local Government Authority (LGA) with marketing services, business intelligence, the highest proportion of CI workers is the joint venture facilitation and CI business City of Subiaco. The LGA with the fastest skills development. These and other growth rate in CI employment is the City challenges are documented in detail, of Belmont. in the accompanying report. 5

Skadada. Performer photographer Bohdan Warchomij. Arieal Landscape photographer, Richard Wolendorp. Image creation Katie Lavers. Perth’s Creative Industries - An Analysis

Report Summary In Western ’s current situation, 1.2 Characteristics of the an additional priority is to capture and Creative Industries 1 The Creative Industries build on the opportunities presented by The CIs cover a diverse range of Creative Industries (CIs) are increasingly the resources boom. organisational types with differing business recognised as strategically important models and motivations. One clear division drivers for strong national, state and city 1.1 The Creative Industry Segments is between what are sometimes referred to economies. The correlation between as the cultural industries, which have been creativity and innovation is acknowledged, The creative segments studied in this traditionally publicly funded, and creative as are the contributions made by the report are: businesses. creatives to the broad economy. They • Music and Performing Arts; have the unique capacity to create “buzz” • Film, Television and Radio; It is possible to identify some common characteristics of CIs around the world. destinations, as they continually seek • Advertising and Marketing; to differentiate themselves in a globally • There is a traditional focus on craft; many • Software, Web and Multimedia competitive environment. CIs workers tend not to be very business- Development; The recognised importance of the CIs focussed; • Writing, Publishing and Print Media; varies from city-to-city and region-to-region. • The bulk of operations are micro, some • Architecture; In other States and cities, government small and fewer medium-sized. This policy responses are developed on a • Design and Visual Arts; and means there is often a need to partner needs basis to: • Other Creative Arts. on big projects, particularly those which • Stimulate economic growth and diversify The creative segments studied in this require diverse skills, marketing and scale the economy; project can be seen to: “Focus on linking or signifi cant fi nancial resources; • Meet the career aspirations of the creativity with commercial markets…and • Many CI fi rms operate in business-to- next generation; use …creativity as their source of value, business markets; generating ideas into new IP and then using • Regenerate urban areas; • There are generally low entry barriers in and commercialising that IP in innovative terms of capital expenditure, but high • Create a “buzz” that retains and attracts ways − often through industry interaction skills demands which can lead to high skilled and talented people; and on a project-by-project basis”. (intangible) exit barriers; 6 • Enhance regional or city identity, “place making”. • The operations of creative businesses are • Isolationon is seen as a double-edged swordsword. often diffi cult to systematise, expensive to On the one hand a signifi cant drawback brand or licence and as a result they is the distance from national industry are often diffi cult to sell; gatekeepers, decision-makers and larger • Where value does exist in a creative client/audience groupings. On the other business, it will invariably be tied to hand, Perth is seen as a place of vast the IP which has been created; openness and space where there is a sense that anything is possible; • For many creative businesses there is signifi cant management, fi nancial and • The wide dispersion and low-density cultural tension between undertaking of creative activities. This along with fee-for-service contracts and generating the smaller population, reduces the their own IP, which creates diffi culties feedback cycle for creatives both between in balancing short-term necessities with colleagues and audiences; long-term goals; • It appears competition in some segments • Creative businesses are very often is extreme due to the low entry barriers established with “sweat equity” and so and WA’s small market. This places a are under-fi nanced; and drag on business development and in particular, the development of IP; • There is a constant drive and thirst for learning and to be creative. • There is a substantial, and growing number of individual creatives, which 1.3 Characteristics of Metropolitan suggests the emergence of many Perth’s Creative Industries “lifestyle” creatives; • There are a very large number of micro In addition to these generic characteristics fi rms (i.e. those employing one or two Perth’s CIs have a number of unique people); features due to their location, history and industry structure. • A very high concentration of Western Australia’s total CI activity is in 7

Floribots, by Geoffrey Drake-Brockman. Metropolitan Perth; Photo courtesy of PICA Gallery. Perth’s Creative Industries - An Analysis

• There is an important distinction in This fi gure accounts for 56% of direct industry sectors. Perth’s CIs generate a total both the perspective and needs of output (of $4.6bn) from Metropolitan of $687m. in exports, 20% of total output domestically-focussed creatives, i.e. to the Perth’s CIs and is signifi cantly higher than (compared to about 16% average exports Perth audience/market and tending to be the average value-added in non-creative across non-creative sectors). mass market-oriented, and other creatives industries (44%). Software and Interactive Media pursuing export niches; and Exports by Metropolitan Perth’s CI segments Development accounts for one-half (50%) • In many CI segments there are multiple to other parts of the State, as well as of Perth’s CIs. industry associations, and in some overseas, is also far higher than for other instances they have poor or non-existent connections with national bodies. Figure 1 - Creative Industry segments initial fl ow-on effects.

Inital Effects Flow-on Effects Total Effects 2 The Contribution of OUTPUT Metropolitan Perth’s Music and Performing Arts $126m $205m $331m Creative Industries By measuring the contribution of the CIs Film, TV and Radio $453m $656m $1,109m to the Metropolitan Perth economy, the initial output and fl ow-on effects for each Advertising Services $298m $443m $741m segment can be calculated. The direct output for CIs is $4.6bn, and their fl ow-on Software and IMM $2,310m $2,802m $5,112m impacts are $6bn, making the total value of Metropolitan Perth’s CIs segments Publishing $690m $802m $1,572m $10.6bn. CIs’ direct output represents 3.4% of output for all industries in Perth. Architecture $387m $520m $907m The value added – i.e. the total sales of Visual Arts and Design $355m $494m $848m a fi rm after the cost of purchases from other fi rms has been deducted – to the Total $4,609m $6,012m $10,621m 8 Metropolitan Perth economy is $2.6bn.

1. IMM - Interactive Multi-Media. 3 Creative Industry Employment Metropolitan Perth’s Creative Economy and with a slightly higher proportion of represents approximately 5.2% of total business and support employees in the CIs. Across Australia 5.5% of the workforce employment and 8.6% of all enterprises. They contributed over $1.1bn to the Perth are employed in creative occupations. It represents 6.6% of GST paying economy through their annual earnings The industry sector with the largest enterprises and 10% of non-GST paying from wages and salaries. At current (2006) representation of employees in creative roles enterprises. These proportions are close to value, and assuming a continuation of the is Property and Business Services (103,951) those expected, when compared with other growth rates, this is estimated to account followed by Recreation and Cultural State capitals, given Perth’s population. for $1.92bn annually. Services (50,744), Manufacturing (40,489), Education (18,047) and Government When looking at Metropolitan Perth CI Perth, with 74% of Western Australia’s Administration and Defence (15,479). The employment through the Creative Trident, employment, dominates the State’s Creative level of CIs employment in Metropolitan 31,000 people worked in the CIs in 2001. Economy. The Metropolitan area accounts Perth is only slightly below the national The employment was split in roughly equal for 89% of employment and a 94% share average at 5.2%, probably largely due proportions between creatives working of annual earnings. This is similar to the to the State’s relatively small in the CIs themselves; in other industries; pattern seen in most other States. manufacturing sector. Table 1 - Perth’s 2001 Creative Economy employment across the Creative Trident.

3.1 Within the Creative Industry Segments Measuring the CIs impact on the broader Creative Creative Industries economy needs to include both specialist Other Industries Total Percentage CI activity and creatives employed in other Creative Occupations 9,348 9,980 19,328 48% sections of the economy. To capture the full Occupation of range of employment types the “Creative Employment Business and Support Trident” has been developed. It includes Occupations 11,984 11,984 three categories: creative occupations within the core creative industries, creative Total 21,332 9,980 31,312 68% occupations employed in other industries and 9 non-creative occupations employed in CIs. Creative Occupation % 44% 62% 5.2% Perth’s Creative Industries - An Analysis

There were 11,000 businesses registered for The growth rate in average earnings for 5 Whole of Economy Impact GST in Perth’s Creative Economy at the end people working in the Creative Economy The signifi cance of the State’s CIs impacts of April 2006, which was 6.6% of fi rms in was 25%, − higher at 5% CAGR than the on the entire Metropolitan Perth economy. all industries. The number of businesses and Perth average of 4%. The highest growth This occurs either directly, in specialist CI sole operators having an ABN but which was within the segments Film TV and Radio, fi rms, or through the employment of people had not reached the revenue threshold to and Software and Interactive Media at 7% in specifi c creative occupations who are pay GST, more than doubled in the fi ve and 5% respectively. “embedded” within other industry sectors, years between 2001 and 2006. Some observations on the performance of such as Banking, Mining, Education and A signifi cant characteristic of Perth’s CIs the different segments include: Government Services. Almost 1.6% of is the very high proportion – and rapidly • Film TV and Radio show reasonable Perth’s workforce comprises “embedded” growing – number of entities not registered consistency in employment and business creatives, i.e. people employed in creative for GST, i.e. sole operators, micro-businesses growth averaging around 2.5%. occupations across all industries. This fi gure or “hobbyists”. • Music and Performing Arts, Software and is slightly lower than the national fi gure of Interactive Media and General Creative 2% across Australia. 4 The Growth in Perth’s Arts show high employment density Almost 4% of employment within the top- Creative Economy growth but low growth in the density of level labour market statistical categories i.e. In real terms between the censuses of GST registered fi rms. M Division (Government) and D Division 1996 and 2001 there was a 7.3% CAGR • Architecture has consistently negative (Electricity, Gas and Water Supply) are in in Metropolitan Perth’s Creative Economy growth. embedded creative occupations. Between employment. This was substantially higher • Publishing showed no growth in 2.3% and 2.8% of employees in Mining, than the 1.8% overall level of growth employment but some growth in the Communication and Finance Divisions of Perth’s workforce during this period. density of GST fi rms. are creatives. By way of comparison the embedded employment within To account for the overall growth in • Design and Visual Arts with its strong Manufacturing is relatively low at 2%. the number of people employed, or the sole practitioner focus, shows good However this proportion increases to 6.1% number of businesses, the CAGR is most employment and non GST enterprise when the specialist employments within the easily described in terms of the density per density growth, but no growth in the Publishing Industries (that are within the 10 100,000 employees. density of GST registered fi rms. Division) are considered. 11

The Panics. Photographer Janusz Strzelicki. Perth’s Creative Industries - An Analysis

6 Comparing Metropolitan Figure 2 - Bigger cities have higher density of creative employment. Perth with other Cities Studies of CIs repeatedly show a disproportionate concentration of creative

talent and creative activity in a number Darwin Perth of larger cities. Analysis now allows for 16,000 a reliable prediction, given a city’s population or workforce size, of the 14,000 expected density of creative employment and creative enterprises for each of the 12,000 segments, and for the total Creative Economy. The reliable prediction acts as 10,000 a benchmark for performance and is an

aid in determining what other factors, Density 8,000 such as geographical, educational, and historical or policy may be at work. 6,000 Metropolitan Perth has a little less than the anticipated density of creative 4,000 organisation (CO) employment (the red line in Figure 2) and of GST registered fi rms 2,000 (green line). It lags signifi cantly behind the anticipated benchmark for non-GST 0 entities (blue line), despite the fact that this 0 500 1,000 1,500 2,000 category has grown extremely strongly over 2001 Workforce in Thousands the past few years.

GST Density 2006 No GST 2006 CO Employment 2001 12 Clearly, there are different factors at work they have in achieving suffi cient scale to across the CI segments in determining take on challenging creative or business the level of concentration. The infl uences development projects. include the nature of demand for a Through analysis invaluable benchmarking segment’s output. Is it purely or mostly information can be provided. For instance local, such as domestic architecture? Is it the policies of both the Queensland more tightly linked to global markets, or Government and Brisbane City Council more capital intensive such as Software and appear to have borne fruit, with the city Interactive Content? The segment where signifi cantly outperforming the national this effect is least evident is Music and average and its expected population- Performing Arts which has a comparatively adjusted performance. evenly distributed concentration across the capital cities, closely followed by 7 Creative Industry Hotspots Architecture and then Film TV and Radio. in Metropolitan Perth The concentration of Publishing and Architecture in Perth is higher in comparison An important feature of the CIs in to other CI segments. Software and Metropolitan Perth is their wide dispersal. Interactive Content is signifi cantly lower, A number of patterns of location are as is Advertising and Marketing and Film, discernable particularly within certain TV and Radio. Visual Arts and Graphic segments and among types of CI fi rms. Design, and Music and Performing Arts are Probably the most important of these is the approximately in balance. traditional strength of the City of Perth and the lengthening of an “arc of creativity” The conclusion drawn is that these results around the CBD. In addition to traditional indicate the competitiveness of the CIs hotspots, immediately to the west and in smaller cities – often based on price – north of the City of Perth, is the growing and as a result the substantial diffi culties importance of municipalities to the east. 13

Miranda Pollard, . Photographer Micheal Howard. Perth’s Creative Industries - An Analysis

The Cities of Perth and Stirling share the important role of being locations suitable for larger fi rms, employing greater LGA 2001 numbers of people. Together these CO Density Employed in Creative Industries municipalities account for 47% of total Employed in Creative Occupations CI Density CI Density Growth Rate % (CAGR) CO Density Growth Rate % (CAGR) creative occupation employment; 49% of City of Perth 6822 5137 6849 5161 5 5.65 CI-based employment; with 22.5% of GST registered fi rms and 18% of non GST fi rms. City of Stirling 3112 1989 5261 3364 10 9.16 The City of Perth accounts for 34% of all employment within the specifi c creative City of Subiaco 1185 798 8343 5643 10 6.25 occupations and has a mean weekly income 14% higher than Stirling, the next highest Town of Vincent 1041 755 7253 5266 6 8.37 performing area. City of Melville 663 611 2551 2352 2 2.51 Bassendean is the suburb with the highest CAGR at 3%, in terms of density for City of South Perth 601 392 5886 3875 3 1.74 CI fi rms with GST. Although this is an impressive growth rate, it should be treated City of Canning 567 450 1287 1021 2 -0.7 with caution because the recent increase stems from a low base. The City of Stirling, City of Swan 434 371 1452 1240 8 4.13 with a 4% CAGR in real terms, shows a net (or density) CAGR of 1%, while Perth shows City of Bayswater 431 297 2496 1722 5 11.79 no change in its density over the 5 years. City of Nedlands 413 472 2668 3059 10 1.75

Table 2 - Metropolitan Perth’s Creative Industry concentrations and growth centres.

1. “Density” refers to the proportion of creative industry workers as a proportion of the LGAs total workforce. 14 2. “CI” refers to employment growth within the creative segments themselves; “CO” is growth in creative occupations or those working in other sectors of the economy but in creative positions. Creative Highest Highest Highest Segment Employment Density Growth

Software and City of Perth City of Perth City of Stirling (CI) Interactive Content City of Bayswater (CO)

Music and City of Perth Town of East Fremantle City of Melville (CI) Performing Arts City of Bayswater (CO)

Film, TV and Radio City of Perth City of Subiaco City of Melville (CI) City of Bayswater (CO)

Advertising City of Perth Town of East Fremantle City of Bayswater

Publishing City of Perth City of Stirling City of Stirling

Architecture City of Perth Town of Cambridge City of Gosnells

Visual Arts and Design City of Stirling Town of East Fremantle City of Melville

Solo Creative City of Perth City of Subiaco City of Belmont Arts Professionals

Table 3 - Metropolitan Perth’s employment density and Creative Industry segment growth centres.

Looking at the concentrations of employment, density and growth by segment the City of Perth is still the dominant LGA, with a number of other municipalities important in various segments, as set out in Table 3. 15 Perth’s Creative Industries - An Analysis

8 The Creative Industries in Figure 3 - Creative Industries employment, City of Perth LGA 2001. the City of Perth The City of Perth accounts for a third of all Publishing 608 Architecture 687

CI employment in Metropolitan Perth. As Visual Arfts Design 683 could be expected, it is home to most of the larger CI employers and the rates of pay Music and Performing Arts 448 of their employees tend to be higher than colleagues working in other localities. Film, TV and Radio 486 It also has the largest number of CI industry fi rms registered for GST. And even Advertising Services 556 after taking into account the city’s large

workforce, creative workers rank highly as a Software and Interactive proportion of the city’s total workforce. Media Development 5,558 The City of Perth is only slightly behind its neighbours, Subiaco and Vincent – two recognised “creative hotspots” – in the Source: ABS Journey to Work Data with Interpretations from SGS Economics and Planning density of its creatives. In addition, the City of Perth has many of the “anchor companies”, or those which provide strategically critical services to other In 2001, the bulk of CI workers in the City The value of CI output in the City of CI fi rms within its boundaries. of Perth were employed in Software and Perth represents more than $1.7bn, with These factors all contribute to placing the Interactive media development, some 5,558 the software segment making up a very City of Perth unequivocally at the centre of people or 62% of CI employment in the city. signifi cant portion of the output, accounting the State’s Creative Industries. for two thirds of the total (66%).

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‘Marx and Venus’ project. Rob Bygott, Mark Powell and Jan Piantoni. Photographer Megan Lewis. Perth’s Creative Industries - An Analysis

9 Creative Conversations Key Aspirations which are appropriate and supportive Qualitative research was undertaken to • Leverage technology for digital and of the CIs. complement the above data and to gain user content creation; There is no suggestion that government greater understanding of the character • Secure greater access to the Asia/ does not have a role to play. It is rather and issues facing Perth’s CIs. A series of Pacifi c markets; that any initiatives need to be carefully “conversations” were held with Perth’s • Access superior mobile and distance thought through to avoid requiring highly traditional CI stakeholders. communications; and prescriptive outcomes, which lessen the creative opportunities and so limit the The fi rst conversation session involved • Develop new CI education products potential positive effects. industry representatives from the following and services. CIs: Architecture/Urban Design, Fashion, 10.1 Guiding Principles Visual Arts and Craft, Commercial Design, Key Next Steps Electronic Arts and Bio Arts. The second • Wherever possible it is highly desirable – • Establish a CIs organisation; conversation group included stakeholders and more productive – for any initiatives • Create a technology infrastructure on par from Music, Performing Arts, Film, TV to be led by members of the CIs with with Singapore; and Radio. government support. The large number • Access a selection of fi nance/investment Participants envisage Perth as a vibrant of often small industry associations mechanisms for CIs; and talent magnet, where creativity is valued presents a substantial structural problem and adds value. During the conversations, • Enhance and develop new education in achieving this outcome. Nonetheless, the following suggestions were made. products and services. by encouraging a rationalisation of associations, representative groups will become suffi ciently large to be capable of Key Opportunities 10 Approaches for State and fulfi lling a leadership function. • Promote creative city hubs; Local Government Agencies • A lighter, less prescriptive hand needs to The report does not attempt to provide • Network and collaborate to produce be applied in developing programs. The defi nitive recommendations, but rather new and innovative works; range of possibilities for any activity in a generalised series of options and a • Develop “the Perth experience”; and the CIs is immense. Trying to anticipate or discussion of the issues. It also canvasses • Retain investment. specify outcomes in anything more than a 18 the particular challenges involved in broad, general way will invariably limit the developing and implementing approaches outcomes and potentially fail. • Most creative businesses – certainly those 10.2 Programogram Suggestions which tend to be the most “visible” to government – are focussed on meeting Infrastructure – the needs of the domestic market in Perth the key issues are and Western Australia. Test Bed Facilities The other important group are creatives Lack of scale of many software currently working in the domestic market development companies makes it diffi cult either aspiring to become exporters or for them to own test bed facilities, which is already established exporters; or they are essential infrastructure for quality assurance. émigrés choosing to live in the State and continuing to work internationally. This Wireless Broadband second group can “fl y below the radar” because often they are only involved at Easy access to broadband is becoming an a superfi cial level with local customers or increasingly important form of infrastructure clients and rarely connected with industry for all sectors, but none more so than for associations. the CIs. It is therefore critical that Western Australia continues to facilitate access to In terms of providing appropriate and world-class broadband infrastructure, which useful support, each creative segment also includes wireless broadband. requires a very different approach. • There is a need to invest and support Supercomputing / IVEC CIs Fund existing strengths rather than pursue goals to develop or support activities which are Supercomputing research, development unproven. It is important to emphasise the and business access programs could provide use of the word “strengths” rather than creatives with the processing power that “existing activities”. New and innovative is important for any complex image-based Dogstar Animation possibilities should be encouraged. computer work. Lack of scale can hinder Series screen dump, access for smaller fi rms. By Colin South. (Film Finance By focussing on building “existing Corporation Australia Limited, 19 Screen West Inc, Film Victoria strengths”, there are far greater prospects and Media World Pictures Pty Ltd). of nurturing sustainable activities. Perth’s Creative Industries - An Analysis

Good Governance – Coordination across Government acumen. Therefore to grow, expand and the key issues are By their very nature, CIs require new thrive in a competitive market place, many CI professionals require core Relevant Training and Education approaches to coordination across all business skills, such as planning, sales There are few traditional jobs (i.e. as levels of Government. This includes the development, book keeping, cash fl ow employees) for graduates of CI courses integration of cultural and economic planning, and staff planning. and research shows that most are likely development programs in both local and to develop their own independent small State governments, as well as coordination Global Niche Marketing businesses. This suggests a different between these two levels of government. (or Long Roo Tail) Services This is important in leveraging and approach to training and education for • Implementing a combination of web extending the impact of their initiatives. CI students. strategy, business development and web Opportunities also exist for across council construction skills to work with creatives partnerships. Regulatory Hurdles to develop the most appropriate means of delivering content over the internet to A range of regulations can impact on Creative Industry distant audiences. the development of the CIs, such as local Business Development government regulations relating to sound CI businesses require core business skills Business Intelligence abatement, the establishment of home to grow their businesses and expand their • Developing market intelligence, networks, offi ces and small businesses, and liquor markets. These issues are complicated and contacts to enable them to develop licensing laws. by the fact that many CI professionals markets, joint ventures or maintain their run small and micro businesses that face operations at a distance. Supporting Urban Planning particular growth challenges. Joint Venture Facilitation The sympathetic planning of public spaces Unique challenges they face include: and of urban planning generally is an • Understanding how to develop effective area critically important to facilitating the Core Business Skills joint ventures to overcome limitations of development of CIs. • Many CI businesses are founded on scale or capacity so that companies can individual creativity rather than business pursue larger opportunities.

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Strange Attractors Australian Art and Science Exhibition. Photographer Jon McCormack. Perth’s Creative Industries - An Analysis

Initiatives for Consideration Industry Associations Initiatives that could be considered to The role of industry associations is pivotal address the business development needs of given the vast proportion of sole operators the CIs could include, but not be confi ned and micro businesses in the CIs, together to, the following: with the desirability of CI support initiatives • Facilitate the provision of core business being industry-led and government development skills, administrative support supported. and broad-based capacity-building There are a signifi cant number of industry services; associations in the CIs. Many of them are • Support for cross-sector interactions; too small to support operations which extend much beyond holding monthly • Conduct networking events, both within gatherings. Their lack of size prevents them CI segments and in collaboration with from offering higher level services and others; support. It can also inhibit their capacity • Support local and visiting speakers’ to be involved with relevant national programs; organisations and so opportunities for • Introduce local, interstate and contributing to, or participating in, international experts to provide state-of- federal programs are often lost. the-art strategic information; and • Facilitate demonstration events of CIs work to other CI segments and industries.

Claudia Alessi, Black Swan Theatre Company. Photographer: Frances Andrijich. 22 23

Bambuco, Perth International Arts Festival. Photographer Toni Wilkinson. 24

It’s All in the Moment, by Olga Cironis.