CREATE TOGETHER
A CREATIVE INDUSTRIES COUNCIL STRATEGY FOR CROSS INDUSTRY COLLABORATION
THE NEXT 5 YEARS
#CREATEUK #CREATETOGETHER Creative Industries Council OUR MISSION CONTENTS
SECTION 1 02 05 08 USING B RITISH ACKNOWLEDGEMENTS FOREWORD INTRODUCTION
09 10 11 AT A GLANCE AIMS STRATEGIC CREATIVITY GOALS
TO INSPIRE 12 14 MEASURING CURRENT SUCCESS MEASURES THE UK AND OF SUCCESS
SECTION 2 16 18 22 8 DRIVERS DIGITAL DIVERSITY THE WORLD FOR GROWTH INFRASTRUCTURE ADVERTISING ARCHITECTURE ARTS & CULTURE 26 30 34 CRAFT EDUCATION FINANCE INTELLECTUAL DESIGN & SKILLS FOR GROWTH PROPERTY FASHION GAMES MUSIC PUBLISHING TECH 38 42 46 INTERNATIONAL REGIONS REGULATION TV & FILM & CLUSTERS
48 OUR PARTNERS Create Together A Creative Industries Council strategy for Cross Industry Collaboration The next 5 years
Supported by
ACKNOWLEDGEMENTS Chairs Sub-Group Chair (industry and government) (government)
Thank you to the following people who contribute tirelessly to the work of the Creative Industries Council
Strategy Sub-Groups
Digital Infrastructure Bel Reed Design Council International Gwyn Owens DCMS Nicola Mendelsohn CBE The Rt Hon Sajid Javid MP The Rt Hon John Whittingdale Ed Vaizey MP Chair Andy Payne OBE AppyNation Judith Rosser-Davies British Fashion Council (UKTI Sector Advisory Group) Victoria Powell Indielab VP EMEA Facebook Secretary of State for Business, OBE MP Secretary of State Minister of State for Culture Innovation and Skills for Culture, Media and Sport and the Digital Economy Pauline Tambling CBE Creative & Cultural Co Chairs Denise Proctor Noise Festival Hasan Bakhshi MBE Nesta Skills Tim Davie BBC Worldwide Najma Rajah BBC Will Black Federation of Small Businesses Dr Jo Twist OBE UKIE Ed Vaizey DCMS Clare Reddington Watershed Theo Blackwell UKIE George Windsor Nesta Rosina Robson Pact Emilie Boman Virgin Media Annie Warburton Crafts Council Nick Allott Cameron Mackintosh Andrea Stark Foundation for FutureLondon Christopher Chave-Cox Optimity Susie Winter The Publishers Association Joss Croft UKTI Jonnie Turpie MBE Maverick TV CIC and Sub-Group Chairs Emma Collins CBI Julian David TechUK Mark Turpin YogCast (industry) Matthew Evans BroadbandUK Finance for Growth Jo Dipple UK Music Annie Warburton Crafts Council Harriet Finney Creative Industries Federation Chair Caroline Norbury MBE Creative Rosy Greenlees Crafts Council Evelyn Wilson The Culture Capital Exchange Edward Humphrey BFI England Janet Hull OBE IPA Dan Wood UKIE Gill Johnson Arts Council England Oli Hyatt Animation UK Phil Jones Wired Sussex Shaun Beaney ICAEW Stephen Lotinga The Publishers Association Regulation Tim Lefroy Advertising Association Stephen Bristow Saffrey Champness John Mathers Design Council Chair Sue Eustace Advertising Association Skye MacLeod TechUK Matt Brown Innovate UK Nick McDowell Arts Council Garry Miller BT Helen Burrows BT John McVay Pact Maria Balermpa Creative Skillset Jeremy Silver Digital Catapult John Davies Nesta Amanda Nevill CBE BFI Mike Bartley UKTI Till Sommer Internet Service Providers Irene Graham British Bankers Association Caroline Norbury MBE Creative England Max Beverton Sky Hasan Bakhshi MBE Josh Berger CBE Dinah Caine CBE Tim Davie Tony Hall CBE Association Tom Kiehl UK Music Lucy Philippson BBC Worldwide Fiona Clarke-Hackston British Screen Nesta Warner Bros Creative Skillset BBC Worldwide BBC Bill Thompson ThornBurrowThompson Fiona Kilkelly KTN Caroline Rush CBE British Fashion Council Advisory Council Susie Winter The Publishers Association Liam O’Shea Creative England Graham Sheffield British Council Carol Comley BFI Gwyn Owens DCMS Dr Jo Twist OBE UKIE Harriet Finney Creative Industries Diversity Stephen Pegge Lloyds TSB Alan Vallance RIBA Federation Chair John McVay Pact Andy Tomlinson UKIE David Willrich DJ Willrich Kate Foster Advertising Association Jenny Tooth UK Business Angels Association Adrian Wootton Film London Linda Griffin King Julia Bennett Crafts Council Rosa Wilkinson IPO Debra Harding MRS Angela Bonora Creative Skillset Marketing and Communications Group Craig Hepburn BIMA Holly Burton Crafts Council Intellectual Property Chair Janet Hull OBE IPA Helen Keefe BBC Collette Cork-Hurst Arts Council England Chair Geoff Taylor BPI Richard Lindsay IPA Doreen De Bellotte Ravensbourne Esther Carder Kingston Smith Anamaria Missouri COBA John Kampfner Andy Heath MBE Darren Henley OBE Janet Hull OBE Creatrive Industries Tim Lefroy Jo Dipple UK Music Trevor Albery Warner Brothers Giles Crown Lewis Silkin Tom Morrison-Bell Blue Rubicon UK Music ACE IPA Federation Advertising Association Eliza Easton Creative Industries Federation Dawn Ashman Arts Council England Spohie Densham UKIE Madeleine Richards ITV Harriet Finney Creative Industries Federation Liz Bales Industry Trust John Durkan UKTI Nick Stringer IAB Ele Hill UK Music Theo Blackwell UKIE Alex Fleming British Council Zack Thornton DMA Emma House The Publishers Association Emilie Boman Virgin Media Carlos Grande Editorial Consultant Michael Todd Google Abid Hussain Arts Council England Magnus Brooke ITV John Mathers Design Council Andy Tomlinson UKIE Tom Kiehl UK Music Bill Bush Premier League Clara Mercer British Fashion Council Nick Toon Time Warner Seonaid Macleod The Publishers Association Daniel Butler Virgin Media Amie Mulderrig DCMS Neil Watson BFI Anna Mansi BFI Emma Collins CBI James Murtagh-Hopkins UK Music George Windsor Nesta Oliver Morris UK Music Carol Comley BFI Dawn Paine Creative England Anjani Patel Pact Jill Read Crafts Council Carole Cosgrove Technical Working Group Ian Livingstone CBE Jack Powell Creative Industries Federation Michelle De Conto British Fashion Council Jane Saunders Creative Skillset Chair Hasan Bakhshi MBE Nesta Video Games Entrepreneur Stephen Lotinga John Mathers John McVay Amanda Nevill CBE Denise Proctor NOISE Festival Jessica Dickinson CBI Leila Siddiqi IPA and Author The Publishers Association Design Council Pact BFI Tiffany Radmore Crafts Council Jo Dipple UK Music Amber Vassiliou Pact Penny Allen DCMS Jane Saunders Creative Skillset Becky Foreman Microsoft David Ward Arts Council Kion Ahadi Creative Skillset Leila Siddiqi IPA Vicki Geddes BAS Susie Winter The Publishers Association Julia Bennett Crafts Council Dr Jo Twist OBE UKIE Chloe Jago Alliance for IP Steve Woolley CIM Matt Brown Innovate UK Angela Whelan UKTI Tom Kiehl UK Music Helen Burrows BT Deborah Williams BFI Jason Kingsley TIGA Regional Clusters Policy Group Edward Clarke Centre for Cities Dr George Windsor Nesta Adam Kinsley BSKYB Co Chairs Paul Crawford DCMS Daniel Wood UKIE Owen Larter Microsoft Tom Campbell KTN John Davies Nesta Eddie Levitan Alliance for IP John Newbigin OBE Creative England Jessica Dickinson CBI Education & Skills Stephen Lotinga The Publishers Association Karen Fraser Advertising Association Chair Dinah Caine CBE Creative Skillset Ross Lynch IPO Paul Appleby Vidcomms Mary Gregory DCMS John Newbigin OBE Caroline Norbury MBE Andy Payne OBE Denise Proctor Caroline Rush CBE John Mathers Design Council Paul Bristow Arts Council Pippa Hall IPO Creative England Creative England AppyNation Noise Festival British Fashion Council Bridget Beale BIMA George McGeorge Pact Adam Buss Derby Quad Charlotte Holloway TechUK Nikki Christie BFI John McVay Pact Dinah Caine CBE Creative Skillset Luke Hebblethwaite UKIE Nicky Dewar Crafts Council Hugh Milward Microsoft Prof Rachel Cooper OBE Lancaster University Adala Leeson English Heritage Harriet Finney Creative Industries Federation Ian Moss BPI Lou Cordwell Magnetic North Sanjiv Mahajan ONS Kate Foster Advertising Association Siobhan O’Leary BFI Jon Dovey University West of England Ailbhe McNabola Design Council Laura Gander-Howe Arts Council England Lucy Philippson BBC Chris Garcia The Heart of the South West LEP Nicole McNeilly Arts Council Jo Gonzales Chamberlain Creative Skillset Dr Martin Smith Ingenious Media Phil Jones Wired Sussex Lawrie Morgan DCMS Lisa Howe Creative England Tom Thackray CBI Juan Mateos-Garcia Nesta Gwyn Owens DCMS Janet Hull OBE IPA Nick Toon Time Warner Jim Mawdsley Generator Sean Perkins BFI Lynne Kilpatrick OBE DCMS Dr Jo Twist OBE UKIE Lynne McCadden Consultant Najma Rajah BBC Oliver Morris UK Music Neil Watson BFI Ailbhe McNabola Design Council Neil Semple UKTI Jeremy Silver Geoff Taylor Dr Jo Twist OBE Alan Vallance Riccardo Zacconi Gwyn Owens DCMS David Wheeldon BSKYB Ceri Morgan BFI Brian Stockdale BIS Digital Catapult BPI UKIE RIBA King Claire Paul BBC Gen Williams BPI Chris Murray CoreCities Jonathan Todd UK Music Denise Proctor NOISE Festival Susie Winter The Publishers Association Kate Oakley Leeds University Andy Tomlinson UKIE
02 : 03 SECTION 1 FOREWORD
This strategy is developed for and by industry, with It’s an exciting and support from government. pivotal time for the UK It represents a shared vision and is action-oriented. creative industries. We truly believe that our sector is as vital to the Recent statistics show UK’s economy as the more the sector is growing at traditional powerhouse industries. a8.9 year, making% it the second fastest expanding industrial sector. This value spreads beyond these industries into the wider economy.
Nicola Mendelsohn CBE Industry Co-Chair, Creative Industries Council VP EMEA, Facebook 04 : 05 Create Together A Creative Industries Council strategy for Cross Industry Collaboration The next 5 years
Create UK Create Together Our original strategy document, Together we have the potential to take launched 2014, was the first of its kind this success to a new level. for the UK creative industries. Working with business leaders, government Our 2016 strategy refresh is agencies and industry body demanding but attainable, with a representatives, we set out aspirations focus on driving economic value, and plans which, in partnership with through support for business growth, government, could accelerate growth job growth, exports and inward in the creative sector. investment. We seek to build on existing trade relationships and We have not disappointed, and the to unlock the potential of the sector results speak for themselves. in international markets with a primary focus on the USA and key The UK creative industries have been territories in Europe, Asia and the featured in the GREAT campaign, both Middle East. Our forthcoming Nesta/ in advertising and UKTI trade missions Creative England report on the and events. We now have recognition Geography of Creativity promises in all areas of government, including rich content about our regional the Offices of the Prime Minister and opportunity. We are ambitious in the Chancellor of the Exchequer. our desire to increase diversity at Our ties with BIS, DCMS, UKTI and the all levels of practice. IPO are established. We would welcome closer association with the It is a privilege to lead such a talented Department for Education. and committed cohort of industry leaders. Special thanks to Emma Quinn We have celebrated success both for kickstarting this project. through our website portal www.thecreativeindustries.co.uk , I look forward to continuing to work the launch of the creative industries with you to take this action plan online network Hiive, our forward to put the UK creative industries parliamentary receptions and at the heart of the UK economy. our partnership with the hClub 100 Creative Industries Awards.
The support of the Creative Industries Federation has amplified our message to the wider UK creative community Nicola Mendelsohn CBE Industry Co-Chair, Cw including students and academia. VP EMEA, Facebook
For image information see back cover 06 : 07 Create Together A Creative Industries Council strategy for Cross Industry Collaboration The next 5 years
INTRODUCTION 2020 AT A GLANCE
A five year growth strategy The UK creative industries are 2019 for the creative industries admired the world over. They shape its reputation abroad and power its economic growth at home 2018 Their success is no accident and their future can be no gamble. The Creative Industries Council (CIC) in the wider economy. Much has been works to ensure the UK provides the achieved in the intervening period by • Champion eight key drivers conditions in which these industries can recognising common issues and of creative industries growth flourish. At a time of rapid change across opportunities to collaborate across creative 2017 industries, the CIC has refreshed its disciplines. Yet much more remains to be • Work with government to strategy to reflect the challenges and done if the UK is to realise the full potential tackle the fiscal, legal, technical opportunities facing creative businesses. of its creative enterprises. and staffing barriers holding back When the CIC published its first set of creative businesses recommendations (‘Create UK’, 2014), The UK must equip its creative economy the UK creative industries were estimated for new challenges in a fast-moving, • Encourage all parts of the UK to contribute £71.4bn a year to the globalising world. It must encourage all sizes 2016 and its diverse population and all economy and to support 1.68m UK jobs. and types of creative business and all parts types of creative enterprises to In the most recent estimates, these of the UK to participate in economic growth. participate in growth figures were £84.1bn a year and 1.9m And it must ensure that the UK draws from jobs, with a further million creative jobs a rich and diverse creative talent pool. • Foster an exporting culture For these reasons, the CIC has updated its recommendations, using the following principles: among creative companies
• Promote the business value of Guiding Principles collaboration and connectedness Developed for and by industry across creative sectors 01 Industry takes a lead role in shaping, and delivering the strategy • Improve the statistical and Offers a shared vision research base on the creative industries as the basis for policy 02 The strategy is a roadmap for industry and government to help and business planning the creative industries continue to grow over the next five years
Is action oriented 03 The strategy contains specific recommendations for industry and government, and government pledges to work with industry on the strategy's implementation 08 : 09 Create Together A Creative Industries Council strategy for Cross Industry Collaboration The next 5 years Aims & Strategic Goals
AIMS STRATEGIC GOALS
The Creative Industries Council (CIC) In 2014 the CIC set the following goals: works with the UK government to put 01Doubling the value of UK creative services exports from creative businesses at the heart of the £15.5bn to £31bn by 2020 UK’s productivity and growth agenda to: 02 Growing the UK’s share of global inward investment from 10% to 15% by 2020 01Ensure the UK provides the best possible business, regulatory, technical and fiscal infrastructure to enable UK creative businesses to flourish 03 Increasing creative businesses with at least £5m annual turnover as a commercially and to increase overseas investment and trade in the UK percentage of all UK businesses with at least £5m of annual turnover creative industries 04 Ensuring a greater proportion of creative start-ups survive beyond 02 Promote and demonstrate the benefits of collaboration and their first year connectedness across creative sectors as a source of innovation, value creation, and joined-up practice by industry and government 05 Being recognised as a top five country worldwide for digital infrastructure 03 Support a UK intellectual property (IP) environment which encourages In 2016 we’ve added another five: the development of, investment in, commercialisation and protection of IP assets Develop recognition and support for the UK creative industries at all for the future wealth of our creative industries 06 departments and levels of UK government including UK commercial officers
worldwide 04 Engineer support for and achievement of a talented, skilled, and productive creative workforce appropriate to the UK’s current and future needs 07Establish awareness and usage of www.thecreativeindustries.co.uk as the single best source of evidence-based content on the commercial Show how UK creativity is fuelled by access to diverse and geographically 05 performance of the UK’s creative industries for key audiences dispersed talent
Engage with Local Enterprise Partnerships (LEPs) and other key regional Encourage regional creative clusters and work with devolved authorities 08 06 bodies on the growth strategy for the creative industries to ensure all parts of the UK participate in the success and economic rewards of the creative industries 09Improve and share information on UK creative businesses and provide regular updates on the progress of the strategy 10 Increase entrants in creative industries-related subjects studied in schools as a proportion of all entrants to all subjects in schools 10 : 11 Create Together A Creative Industries Council strategy for Cross Industry Collaboration The next 5 years Measuring Success
MEASURING SUCCESS
To assess the progress of the CIC strategy, The CIC will also work to increase and the following will be tracked: improve engagement with the creative industries by: 01The percentage of the UK workforce that is employed in creative occupations in the wider creative economy 01Increasing MP engagement with the Creative Industries Strategy Baseline: DCMS Creative Industries Economic Estimates Baseline: www.dodsinformation.com/Annual MP Panel
02 The share of UK employment and Gross Value Added (ie. the contribution 02 Increasing participation among UKTI commercial officers with to the economy of each individual producer, industry or sector in the UK, provision of content and data including both UK and export revenues) attributable to the creative industries Baseline: Quarterly UK Creative Industries Tracker Survey Response Baseline: DCMS Creative Industries Economic Estimates 03 Providing evidence of better joining up across government departments 03 The number of UK creative industries enterprises as a percentage of the on creative industries issues overall number of UK businesses Baseline: ONS Business Demography and UK Business: Activity, Size and Location 04 Securing the presence of a government minister at all key creative industry events
The increase in numbers of unique visitors to www.thecreativeindustries.co. 04 Raising the profile of cross industry collaboration and international uk with 50% coming from outside of the UK 05 success within the creative industries through initiatives such as the CIC Baseline: Google Analytics Creative Industries Awards with hClub 100 05 Progress on diversity measures and initiatives across creative industries Baseline: Annual progress updates to the CIC by industry representatives
06 An appropriate measure of productivity for the creative industries that demonstrates the level and growth of productivity in the creative industries, relative to others 07The increase in the number of apprenticeships in the creative industries Baseline: Skills Funding Agency Statistical release
12: 13 CURRENT MEASURES OF SUCCESS
57% MP perceptions of the creative industries Employment in the UK creative economy 54% JOBSThe UK creative economy 2015 Proportion of A jobs in the UK creative economy 48% 0.9m The UK creative Non-creative/ by region 2015 support jobs 6% 41% 42% industries are within the (Numbers do not total 100% vitally important creative because of rounding) The UK creative 2.9MILLION JOBS industries B to positive 1m industries 35% perceptions of Creative jobs are vitally The UK creative UK plc/Brand Britain within the 2% important to creative 2% industries internationally industries 8% future economic are vitally IN growth 1m 6% important to Creative Jobs the creation of 1 11 outside the creative new jobs UK JOBS industries 6% C 3% 6% Strongly agree 7% Agree Total 2.9m jobs in the creative economy 7% 5% 6% Neither agree nor disagree creative economy = A+B+C 16% 1% 2% 2% Disagree 9.0 creative industries = A B 8% Strongly disagree OF UK %TOTAL JOBS + 28% Source: www.dodsinformation.com Annual MP Panel December 2015
GVA of UK creative industries 2014 (£m) Total £84.1bn Annual Change in GVA 200K - (GVA) 1997 2014 180K More than 189,362 unique site users since launch SITE VISITS 160K VALUEThe UK creative industries 2014 6.0% 110,000 users in the last 12 months May 2016 140K 120K A YEAR 10,807 100K Film & TV 80K 4.3% 60K % 40K £84.1bn 4,326 Architecture 20K 0 36,578 64 UK 2014 Jan Mar May Jul Sep Nov 2015 Jan Mar May Jul Sep Nov 2016 Jan Mar May AN HOUR IT, Software & Games 3,235 40K 10,180 Design & Monthly page views up 34% in the last 12 months £9.6 m Publishing Fashion 35K 30K 2015/16 288 Crafts % 25K 5,444 20K 13,250 Music & Arts 15K 2014/15
36 views Page Advertising 10K Rest of the world 5K INCREASE8.9 IN GVA OF THE CREATIVE INDUSTRIES UK CREATIVE 0 BETWEEN 2013 AND 2014 % AVERAGE INDUSTRIES Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Source: Google Analytics www.thecreativeindustries.co.uk
Service exports from UK creative industries 2014 (£m) Current overseas sentiment towards creative industries Future overseas sentiment towards creative industries EXPORTS (Services) UK creative industries exports 2014 In the last 3 months, In the next 3 months, has sentiment in your will sentiment in Music & Arts Film & TV 4,724 market towards the your market towards 644 UK creative the UK creative 19.8 bn industries changed? industries change? £ ➜ IT, Software & Games Unchanged Improve VALUE OF EXPORTS A YEAR 8,833➜ Improved Unchanged 32% Design & Fashion 226 44% 52% 60% 9.0% Publishing 2,142 ➜ PERCENTAGE OF TOTAL UK EXPORTS Deteriorate Architecture 446 Deteriorated 8% ➜Advertising ➜2,771 4% +48.9 % ➜ GROWTH IN UK CREATIVE EXPORTS 2014 v 2009 Source: DCMS statistics 2016 Source: Creative Industries Tracker Survey March 2016 ➜ 14: 15 Create Together A Creative Industries Council strategy for Cross Industry Collaboration The next 5 years 8 Drivers for Growth
SECTION 2 8 DRIVERS FOR GROWTH
The CIC has DIGITAL DIVERSITY EDUCATION refreshed its INFRASTRUCTURE & SKILLS strategy to
FINANCE INTELLECTUAL INTERNATIONAL better reflect the FOR GROWTH PROPERTY challenges and opportunities REGIONS REGULATION facing UK creative & CLUSTERS industries
16:17 Digital Infrastructure
DIGITAL A t of the UK’s GDP INFRASTRUCTURE the10% digital economy already accounts for a bigger percentage of the economy than in INTRODUCTION 3 Big Wins any other G-20 country IN ORDER FOR THE UK TO REALISE ITS AMBITION TO HAVE AMONG THE BEST 01Include requirements for to download speeds. Problems faced by In bridging industry and government, DIGITAL CONNECTIVITY IN THE WORLD, digital connectivity in new businesses are often with equipment on we will promote understanding of needs FAST, UBIQUITOUS AND RELIABLE workspace build rules and site or other parts of the chain such as and problems on both sides in this National Planning Guidance from servers for online services. Metrics such fast-moving territory. CONNECTIVITY IS CRITICAL TO THE FUTURE as upload speed and latency can be OF ALL OF THE UK CREATIVE INDUSTRIES. central government. more important to companies than PROGRESS Much of the innovation, regional and international is often appreciated. At the moment, • By 2017, superfast coverage will 02 Local Enterprise investment is still hindered by the have reached 95% of UK premises, growth, via exports, that the UK’s creative Partnerships (LEPs) should support inability of digital infrastructure and mobile operators are expected to enterprises are enjoying is fed and supported local broadband voucher schemes providers to install facilities as a building have achieved 98% 4G coverage. by digital networks. By 2020, major improvements for small businesses, following is built, or delays in getting timely • Recent government initiatives such to digital infrastructure must be in place. To success of national voucher connectivity into newly commissioned as the Broadband Delivery UK (BDUK) ensure all creative organisations and talents, large schemes. sites, in the way that utilities such as Voucher Scheme have helped with and small, and across the UK, benefit from these water are legally empowered to do. this, providing £3,000 to install costs upgrades we must act now to tackle remaining 03 Call on DCMS and Ofcom for businesses. barriers to technology investment and use. to prepare a transparent AIMS • Major commercial providers such as comparison table covering the The CIC recognises that high quality, BT and Virgin Media, as well as smaller digital infrastructure for businesses affordable digital connectivity is crucial players, have announced significant to the potential of creative businesses investment plans which together with in different clusters thus informing to start up, develop and grow in the UK. existing superfast deployments, should local authorities and LEPs of their It also plays a key role in the UK’s ability mean that major improvements to available choices in order to to attract and retain foreign investment the UK’s digital infrastructure will be in support a competitive business and trade into its creative sectors. place before 2020. environment. • There has also been much good We believe that the best way to foster mapping work by Nesta and others to CONTEXT such connectivity is to open up the identify priority areas for investing in The government wants the UK to be broadband business market to greater the nation’s digital infrastructure. among the world’s best markets for competition and investment to improve digital connectivity. It is in the fusion choice and standards, and to tackle RECOMMENDATIONS between creative and digital enterprise connectivity black spots. The focus for the next two years is to that much of the innovation and ensure the creative industries benefit international growth that the creative We welcome government moves to from new technology and digital industries enjoy are taking place. encourage alternative approaches to infrastructure to establish and build connectivity by providers, but want world-beating companies that At 10% of the UK’s GDP, the digital more action to encourage greater collaborate and trade in global markets. economy already accounts for a bigger transparency and understanding of percentage of the economy than in any the connectivity needs of creative As such, our strategic emphasis other G-20 country. To achieve their business users. By acting together should be on business needs of all sizes, full potential, creative businesses of all across the creative industries, we aim from start-ups and micros through to Opposite top: sizes and across the country must have to share learning about the current and those looking to establish Behind the scenes at the the broadband, 3G, 4G, 5G and Wi-Fi future opportunities and obstacles international businesses with the New Vic Theatre Photo © Andrew Billington network connectivity they need. faced by creative organisations in opportunity to boost export earnings. New Vic Theatre However, the experience of broadband reaping the full commercial and Specifically, we recommend that: is patchy at best, and not just in relation creative rewards of digital technology. • The government’s proposed 18 : 19 Create Together A Creative Industries Council strategy for Cross Industry Collaboration The next 5 years Digital Infrastructure
Broadband speeds in Europe 2015
TurkeyGreeceItaly BelarusPolandSpain/PortugalRussia UK GermanyHungaryBelgium France Moldova DenmarkIcelandNetherlandsLatvia LithuaniaSweden Romania 05 10 20 3 0 40 50 60 70 80 9 0 100+ Download speed (Mbps) Source: Ookla broadband investment fund to support alternative network developers should give creative clusters a key role. This fund should be structured as a demonstrator so that all clusters can benefit from insights into how they can best support local creative businesses • LEPs and local councils must treat connectivity provision as a key factor shaping where businesses choose to locate, and must ensure businesses benefit from the most attractive connectivity offers in business rate areas in order to support future growth. Create Studios We encourage LEP and local authorities efficiencies of digital technologies. Digital journeys @ The Steam Museum to investigate ideas such as a To succeed in this area, the UK needs Image copyright jargon-free grading system to permit industry and government to work Create Studios businesses to compare different together to: CASE STUDY commercial broadband offers in an area • Educate and improve understanding more easily of business users’ connectivity needs, The Brighton Digital Exchange • Ofcom, the telecoms regulator, as the ability to assess the options (BDX) shows how smaller players should make available better data on available will help drive efficiency. This can work together in innovative business connectivity as the needs of means finding ways via education and ways to improve the local digital creative tech businesses differ from marketing materials to explain to SMEs business infrastructure. those in other sectors. Such data how connectivity can help their should enable businesses to contrast business models At the heart of BDX is a easily the connectivity of different • Off the back of the success of the cooperatively-owned and run clusters. It would help local authorities BDUK vouchers scheme, which has not data centre, where member and LEPs to attract more businesses been renewed at the national level, businesses can colocate by providing the best possible digital LEPs should consider creating similar, equipment; and from which they infrastructure local schemes, enabling small can provide services to Brighton • National Planning Guidance from businesses to get connected businesses central government for digital • Collaborate to gather data about connectivity should address barriers business needs, creative industry to the provision of connectivity. Digital clusters and broadband and Wi-Fi BDX went live in July 2015. Digital connectivity should be treated not as availability, as well as forecasting of and service provider businesses a separate concern, but a central plank future trends and future demand are invited to join the cooperative of overall infrastructure planning and • Present researched case studies that owns and manages the delivery. As with other utilities, new to show the growth that is possible exchange. Member businesses workspace builds should embed it as when the digital infrastructure needs can buy wholesale access to a planning and building requirement. of creative businesses are met. exchange facilities including rack Even when infrastructure is in place, space, peering LAN and fibre many creative businesses fail to access to business units in New maximise the full benefits and England House. 20 : 21 Diversity
ABOUT OF CREATIVE INDUSTRIES DIVERSITY JOBS were 11.filled by Black, 4 Asian % and Minority INTRODUCTION 3 Big Wins Ethnic (BAME) people INTUITIVELY, WE KNOW THAT DIVERSITY MATTERS. THERE IS INCREASING EVIDENCE 01Aspirational diversity About 11.4 per cent of creative industries INDUSTRY SHOULD THAT IT ALSO MAKES SENSE IN PURELY targets to be set by individual jobs were filled by Black, Asian and • Commit to encouraging businesses Minority Ethnic (BAME) people. This and organisations to measure and BUSINESS TERMS. creative industries figure is higher than the UK economy monitor diversity data, whilst Businesses in the top quartile for gender or racial 02 Government and industry average (10.9 per cent), but below the acknowledging each sector’s distinct to research and promote the BAME proportion of the population, issues and barriers. Comprehensive and and ethnic diversity are more likely to generate particularly in areas such as London detailed workforce and output data will superior financial returns, according to research business benefits of diversity where the BAME proportion is higher. allow sectors to understand the gaps by McKinsey and others. (Source: Creative Industries: Focus on and take action. The TV industry has 03 All sectors to introduce Employment, DCMS, July 2016) created DIAMOND, a standardised More diverse companies are better able to win comprehensive monitoring monitoring system across broadcasters talent and improve customer orientation, The ‘more advantaged groups’ providing comprehensive data on who employee satisfaction, and decision making. CONTEXT (two-thirds of the UK workforce) occupy makes TV and who is on TV. The sectors Given the ideas-based products and services Diversity is a new strand in the CIC’s 91.9 per cent of creative industries jobs. would report back on progress after they sell, creative businesses may stand to growth strategy. Between 2011 and 2015, these groups two years benefit from having culturally diverse workforces experienced more than 20 per cent and leaders even more than other sectors. Research shows that the UK’s creative employment growth in the creative • Set aspirational targets on diversity. workforce does not reflect the industries, compared to just 6 per cent Each industry would create distinct population as a whole. Certain groups growth for the ‘less advantaged’. goals for their businesses or remain under-represented, resulting (Source: Creative Industries: Focus on organisations on workforce diversity in lost opportunities for business. Employment, DCMS, July 2016) for review in 2020. Setting aspirational targets sends out a message about the Freelance and informal hiring practices Work is also needed to monitor and commitment to diversity and creates contribute to lack of transparency and improve the representation of a visible framework from which trade diversity. Much creative work is employees with disabilities in the bodies and organisations can take project-based, with tight deadlines and creative economy. action. It is important to acknowledge unsocial hours, making it difficult to that there isn’t a one size fits all allow flexible working patterns that RECOMMENDATIONS solution here. The games industry for can support diversity. Starting salaries There are bold and exciting initiatives example wants a focus on improving can be low, and particularly in London, in individual industries. But the CIC entry level diversity due to an acute young people from economically members acknowledge that more needs shortage of skilled talent at mid and disadvantaged backgrounds can struggle to be done. senior levels, whilst the IPA has specific to join and stay in creative occupations. goals to have women fill 40 per cent of The objective is to establish guiding senior levels of industry and 15 per These concerns are reflected in principles and a diversity strategy to cent from BAME. Sectors are asked to government statistics. Official data provide a framework for change. Shared report back to the CIC two years after estimates the percentage of women in goals and thinking will highlight a public sign up to review progress Opposite: the creative economy fell from 38.2 commitment and create a platform • Engage leaders across industry. This Ameet Chana, Kiren Jogi, per cent to 37.2 per cent between 2011 for sharing best practice, research and Ayesha Dharker, and Janice principle is vital to the success of Connolly in Anita And Me at and 2015, whereas the average for all intelligence. The challenge for the diversity and inclusion and necessary Birmingham Repetory UK industries remained almost stable Diversity working group is to create Theatre, Photo © Ellie Kurttz for creating engagement and workforce Courtesy of Arts Council at about 47 per cent. (Source: Creative a joined up approach, which also buy-in. Each sector should identify a Industries: Focus on Employment, recognises the unique qualities of each cohort of sector leaders who will report DCMS, July 2016) industry. back to the CIC annually on progress 22:23 Create Together A Creative Industries Council strategy for Cross Industry Collaboration The next 5 years Diversity
The ‘more advantaged groups’ (two-thirds of the UK workforce) occupy
OF CREATIVE INDUSTRIES JOBS
91.9%Aspire to increase diversity on GOVERNMENT SHOULD CASE STUDY • boards using existing advice and best • Commit to working with industry to practice as guidance. The EHRC research, develop and promote the Pact Indie diversity scheme published guidance on this in April 2016 business benefits of diversity. This trainees at the 2015 launch of and the USA has also developed tools should include diversity of workforce, the scheme in London hosted by to help companies, including creating output and the population being served Endemol Shine. a database of senior diverse executives who would be suitable for a board • Consult with the sector to ensure Trainees and participating indies (https://theboardlist.com/) that changes to the apprenticeship – including All3Media, Hat Trick system will help to strengthen and Productions, Warner TV, KEO Films • Commit to creating an online increase diversity in the creative and RDF Zodiak – met and toolkit: a shared resource to help industries mingled over drinks and nibbles. businesses and organisations diversify. This would include recommendations • Work with industry to explore This is the fourth year of the on how to increase workforce diversity, opportunities for funding to improve successful scheme, which is create an inclusive culture, HR talent pipelines through careers road designed to encourage and templates, data collection forms shows, fairs and relevant organisations support 12 trainees – who reflect and methods, legal information, and the diversity of the UK population – examples of best practice • Commit to gathering better sectoral by offering them a six-month data across the creative industries contract at a UK indie, one-to-one • Improve the talent pipeline at all particularly music. The Creative sessions with an industry mentor, levels. Attracting, developing, Industries Economic Estimates Report and bespoke industry training. mentoring, and retaining the next 2016 published by DCMS (Jan 2016) generations of global leaders at all says: “While a good part of the music levels of organisations is vital to industry is implicitly included in the promote diversity. Joint initiatives codes making up the Creative would be to work with the CIC Industries Economic Estimates, the Education and Skills group on a careers industry and occupation codes do not road show to raise awareness of the allow the contribution of music to be jobs available in the sector and to satisfactorily identified as a separate engage stakeholders such as the category.” UK Music is currently NOISE Festival which accesses 40 per working with the ONS and DCMS on cent of young people from the most these areas. deprived postcodes in England for opportunities and awards across all Top creative industries categories The indie diversity scheme trainee launch 2016, with Ed Vaizey MP, Minister of State for Culture and the Digital Economy • Raise awareness by joining forces to create a strong and clear message Bottom Funny Girls: This programme from Creative on the value of committing to diversity England and the BFI NET.WORK found female using social media channels. directors to produce short films, which premiered to a sold out crowd at Londonʼs LOCO Film Festival in the summer of 2016
24:25 Education & Skills
EDUCATION Providing opportunities for young people to study a & SKILLS combination of creative, 3 Big Wins ‘fused’ INTRODUCTION technical, scientific and entrepreneurial subjects THE CIC IS COMMITTED TO BOOSTING Apprenticeship and PROGRESS CREATIVE INDUSTRIES’ COMPETITIVENESS 01 Our specific recommendations: statutory levy reforms consider Much good work followed the INSPIRING THE NEXT GENERATION BY ACHIEVING A SKILLED, TALENTED AND creative industries structures publication of the CIC’s ‘Create UK’ Support for University Technical PRODUCTIVE WORKFORCE. • 2 and skills needs to drive strategy in 2014. The online network Colleges (UTCs) , Studios and Free This requires an industry-led skills system that increase of quality apprentices Hiive (see Case Study overleaf) has Schools with creative industries quickly become a valuable resource specialisation in partnership with enables growth in companies of all sizes and for professionals and new entrants local provision supports individuals from all backgrounds at all 02 Employers collaborate to in the creative industries. • Work with Inspiring the Future 3, to levels of employment. It must be built on an shape new technical education & develop more roundtables of knowledge education system which promotes creativity and joined-up careers information for Roundtables to increase knowledge exchange between schools and employers encourages young people to see the creative jobs in the creative economy between industry and schools have • Encourage schools to achieve Arts industries as a career choice. been piloted. The profile of creative Mark, the kite mark recognising 03 Reform tax rules to apprenticeships has been boosted by high-quality and relevant arts provision encourage freelancers to benefit schemes such as the Creative Pioneers in schools from training programme run by the IPA. • Have a joined-up careers strategy for the creative industries, working 1 CONTEXT RECOMMENDATIONS with the Careers and Enterprise The success of the UK creative Industry and government should Company and the National Careers industries reflects the quality of the celebrate and promote the strength, Service to ensure quality careers advice people in them and the culture that breadth and value of the creative accessible to all has developed them. The UK has a industries for learners, parents and • Create on Hiive functions for teachers reputation as a source of world-class educators. and career advisors to network, access education, talent and skills. But as our relevant information and broker work creative businesses have grown and This means supporting the teaching of experience opportunities. Hiive could evolved, so have their skills needs. creative subjects in the school facilitate a national pool of Creative curriculum, and providing joined-up Careers Champions to advise schools 1 Education and skills policy is careers information across the cultural Employers should collaborate to devolved. This chapter considers AIMS • the needs of the UK-wide and creative industries working with shape the Creative, Design and Digital creative industries but specific In order to raise productivity and recommendations refer to the remain competitive, the UK creative the Careers & Enterprise Company and routes in the government’s reforms education and skills policies in England. We will continue to industries need to up their game on the National Careers Service. Local of technical education for creative consult across the UK Nations structures, like LEPs, City Deals and economy occupations skills. It is vital to have an education 2 UTCs like Salford, Mulberry and careers system that inspires, Local & Combined Authorities, should Continue the dialogue with Ofsted to (East London), Global • (West London), Elstree. equips and nurtures current and future be collaborating with and through the support schools and wider education 3 www.inspiringthefuture.org/ generations to work in the creative CIC to mutually inform and connect providers in a broad and balanced industries and the broader creative nation-wide schemes with local/regional curriculum, providing opportunities economy. skills strategies and projects for for young people to study a ‘fused’ maximum impact, better use of resources combination of creative, technical, Opposite top: Through encouraging employers to and simpler communication with scientific and entrepreneurial subjects. Creative Pioneers 2016 collaborate to meet the needs of companies and individuals. By working graduation ceremony for class of 2015 mobile, project-based workers, the CIC with employers, education and skills APPRENTICESHIPS aims to increase employer investment, providers and government, the CIC Creative industries should commit to Opposite bottom: • Open Doors at Mother, enabling more and better ladders of believes there is an opportunity to build increase apprentices, expanding on work Photo Max Green opportunity, leading to a workforce of on existing initiatives and create new by the BBC, Creative Pioneers, Warner the right size and quality. ones. Bros, Next Gen Academy and others 26:27 Create Together A Creative Industries Council strategy for Cross Industry Collaboration The next 5 years
From architecture to acting, the UK has a reputation as a source of education,world-class talent and skills • The CIC/BIS Apprenticeship working SUPPORTING WITH LADDERS OF CASE STUDY group must ensure that the OPPORTUNITY: Following a CIC recommendation, implementation of the apprenticeship A / NEW ENTRANTS Creative Skillset established levy considers the creative industries’ The CIC urges employers to: Hiive with funding from industry structures and skills needs if they • Advertise vacancies and and the Commission for are to drive up the number of quality development opportunities on Employment and Skills. Hiive is apprentices legitimate sites such as Hiive to ensure a professional networking site • Apprenticeship levy should interact these are filled on merit and for the creative industries. and align with creative sectors’ appropriately remunerated voluntary levies • Use established industry awards • Government should allow the to introduce new talent and It enables people to research ‘pooling’ and transfer of digital pre-employment programmes like the vacancies or courses as well as vouchers through the Digital BFI Academy as progression routes opportunities to showcase Apprenticeship Service and pathways into professional careers individual portfolios or companies, • Vouchers should be used in industry • Sign up to good practice codes and to form communities with recognised quality providers, such as and apply these to their value chain, other creative professionals. Creative Skillset Ticked courses, encouraging a culture of fair Cultural & Creative Industries National recruitment and employment. College and Next Gen Academy • Industry should be able to use B / PROFESSIONALS apprenticeship levy money for • Businesses should create content for developing new standards Hiive, to help progression in the • Delivering an apprenticeship should industry and increase mentoring and be flexible and adaptable to creative CPD opportunities through online labour market trends with many SMEs, training models (MOOCs) and peer-to- In a related vein, the charity self-employed and mobile freelance peer networks NOISE celebrates new creative workers. • All training activities should offer talent by enabling users to show fair access with opportunities for portfolios and providing a platform HIGHER AND FURTHER EDUCATION under-represented groups to apply, for careers events, festivals, and • Support, promote and expand providing training bursaries and equal other opportunities. industry-led course accreditation, like access schemes at national and local the Creative Skillset Tick, that signpost networks to FE and HE courses that best meet • Government should amend or employers’ needs remove HMRC regulation that can use • Government should recognise provision of training to assess industry-led course accreditation in its employment status, as it is a assessment of HEIs under the new disincentive to employers offering Teaching Excellence Framework training to freelancers Develop capacity and excellence of Support people with industry-specific • • Hiive Open Doors – Freelancing in Media, HEIs in key creative industries local management training, eg. Ashridge Photo Max Green clusters by nurturing industry/HE Executive creative industries MBA. Noise Festival Awards, House of Commons, strategic partnerships for teaching, Advertising category winners with Curator Andy research and enterprise development. Bird of Publicis by Marie Claire Ashcroft courtesy NoiseFestival.com 28:29 Finance for Growth
Successes include the establishment by Edge Investments, with support from the British Business Bank of a FINANCE FOR GROWTH £40Million INTRODUCTION 3 Big Wins creative industries-specific investment fund IT HAS NEVER BEEN EASIER TO START A Scale-Up: Focus efforts on AIMS country that have provided businesses CREATIVE BUSINESS IN THE UK THAN IT 01To realise their full potential, buildingthe UK scale creative in the industries UK’s creative The landscape for private sector with practical support and access to IS TODAY, BUT SCALING UP A CREATIVE businesses investment in creative industries professionals and advisers. ENTERPRISE, PARTICULARLY FOR THE need a strategy to enable reflects the UK’s overall business GLOBAL MARKET, IS A QUITE DIFFERENT RECOMMENDATIONS both Incentivisenew and growing investment in and entrepreneurial environment. CHALLENGE 02 IPbusinesses to assist creative in all parts companies of the It requires deep-rooted change to Strengthen sign-posting close the gap between those looking and networks To realise their full potential, the UK creative toUK build to flourish.their asset The base heart of industries need an investment approach that to invest and those with a creative Although resources, both generic and enables both new and growing businesses in this strategy must be an business or idea which could benefit sector specific are increasingly available, all parts of the UK to flourish. At its heart must 03expandedJoin up dialogue government between and from growth capital. Working with it is desirable to improve their visibility be an expanded dialogue between industry, industryindustry, data investors, on the financing of partners in finance and government, by better sign-posting and connections investors, professional services groups and UKprofessional creative businesses services togroups build the CIC aims to help engender this to financial and creative networks. This government with a specific focus on making sure an accurate picture of current long-term cultural shift. is particularly the case outside London small creative businesses can access the fundingand government. needs where private finance networks are less information and support they need to grow from Specifically, we aim to help bridge the well developed and the creative industries start-ups to sustainable businesses. worlds of finance, government and often have a lower profile. CONTEXT industry. We want to improve In 2015, the CIC commissioned a knowledge and skills on all sides, To ensure we maximise existing efforts, business survey about the appetite of ensuring that more creative businesses we recommend: creative businesses for finance. are investment-ready and that the • Forging stronger links among financing options available are creative trade bodies and increasing The results from 75,000 respondents appropriate to creative enterprises. dialogue with finance support demonstrated a worrying lack of organisations such as the British ambition within the sector – most PROGRESS Bankers Association (BBA), Institute creative businesses stated that they did There have been significant successes of Chartered Accountants, England not require or anticipate needing since the 2014 launch of the Creative and Wales (ICAEW) and The British external finance. Yet the survey also Industries strategy. Business Bank (BBB) showed that businesses that are growing These include: • Working with intermediaries – are doing three things, exporting, • Establishment by Edge Investments, accountancy bodies, lawyers, business innovating and actively seeking external with support from the British Business growth coaches – to spread awareness finance. So many creative businesses Bank, of a £40m Creative of available infrastructure are not looking for the vital capital they Industries-specific investment fund More active engagement by industry • Opposite top right: need if they are to scale. We believe • Creation of a new tax credit for and finance partners with regional VCs, Queen of Code: Joining there is a significant opportunity to orchestras and live-action children’s private investors and public agencies forces with Crowdfunder, Creative England put a call expand and help this group of businesses. TV and amendments to make existing (e.g. Arts Council England, Creative out to female games Film and high-end TV tax credits England) to ensure creative businesses developers to make their first IP through a targeted There is a need to build the confidence more competitive are seen as viable investment campaign of our creative enterprises by helping A new prototype fund for opportunities across the country • Opposite bottom: them access and navigate different videogames projects • Regular interaction with Mihaibao – a web portal types of finance and recognise how they Resources such as the ICAEW’s policy-makers to keep creative giving Chinese shoppers • easy access to luxury could help their business. There is also Creative Industries – Routes to industries front of mind, including the western fashion brands a need for the finance community to be Finance, to help creative businesses British Business Bank. more aware of opportunities to invest navigate finance options in creative organisations. • High profile events around the 30 : 31 Create Together A Creative Industries Council strategy for Cross Industry Collaboration The next 5 years
Tax credits have had a significant impact on supporting growth and maintaining the UK’s global competitiveness Support tax and investment enabling the schemes to be applied to CASE STUDY incentives co-productions Tax credits have had a significant Supporting the emergence of new Mihaibao • Jacqueline Lam developed impact on supporting growth and finance models and instruments – such as Mihaibao – a web portal giving maintaining the UK’s global crowd funding and peer-to-peer lending Chinese shoppers easy access competitiveness. They have been – that offer potential real advantages to luxury western fashion brands. applied to film, high-end TV, video for many creative business models. Jacqueline received seed funding games, animation, theatre and as part of the Sheffield Dot.Forge orchestra investments. Their use Improve information and incubator in a programme should be maintained, and potentially policy-making co-funded by Creative England, expanded. Access to relevant financial data, the Sheffield Local Enterprise information and evidence about Partnership and local business More general relief programmes such the creative industries remains a angels. as the Enterprise Investment Scheme challenge. Investors and financiers (EIS) and Seed Enterprise Investment are becoming more informed about She benefited from UKTI Scheme (SEIS) have resulted in the transferability of creative business support and follow up investment increased investment in small creative models, products and services into of £50,000 from Creative England enterprises and projects. It is also other parts of the economy. before securing over £2m in important such support continues. private sector investment to help But there are concerns around the Much more could be done in this area, scale up her company. schemes’ compatibility with creative and we recommend: business models. For example, EIS and • Improved dialogue between SEIS are attributable to one copyright industry and government on data owner and therefore cannot be used pertaining to the creative industries for co-production purposes. In relation sector and investment with a clear to financial incentives for creative policy “ask” focusing on addressing investment, we recommend: barriers to investing in creative and • Increasing timely and regular IP-related businesses dialogue between HMRC, the industry • Segmentation of creative business and advisors to improve visibility of data on a regional basis to enable what is working, what is not, and where better investor insight at the local level, challenges remain and between large and small employers • Aggregating evidence on the impact • Exploring the use of new, less of all creative tax reliefs. This should be formally structured data sources that done with a view to exploring better the aim to track creative business activity case for extending the tax credit and performance in real time mechanism to creative sectors • Ongoing assessment of the • Exploring the Creative Europe effectiveness of current financing proposal for a Creative Loan Guarantee approaches to provide information to Fund with the European Commission and financiers and to devise new UK banks to assess its viability for the UK commercial funding schemes (e.g. • Reviewing how EIS and SEIS schemes creating vehicles to accommodate Jacqueline Lam could incorporate a more flexible investment flows from pension Mihaibao fashion website portal approach to copyright ownership, schemes). 32 : 33 Intellectual Property
INTELLECTUAL PROPERTY PEOPLEseven IN THE UK million INTRODUCTION 3 Big Wins admit to visiting sites offering illegal content A STRONG, CLEAR AND ACTIVELY ENFORCED INTELLECTUAL PROPERTY (IP) FRAMEWORK 01Commit long-term funding PROGRESS portable solutions for consumers and IS ESSENTIAL TO THE FUTURE HEALTH OF to Police Intellectual Property Government and industry have worked can therefore support a portability Crime Unit beyond 2017 closely together on building awareness regulation provided that it is not THE CREATIVE INDUSTRIES. of IP rights. This has included the burdensome and includes safeguards This framework should facilitate UK individuals Ensure EU Digital Single successful launch in 2015 of a major to prevent portability from becoming 02 educational campaign, ‘Get it Right cross border access and businesses of all sizes in creating value by Market (DSM) proposals protect UK from a Genuine Site’, and the work of • The exclusion of audiovisual and protecting and licensing IP, whilst encouraging creative industries, in particular the Intellectual Property Office (IPO) copyright matters from the proposed innovation to benefit artists, organisations, on portability, territorial exclusivity to provide teaching resources for the geo-blocking regulation must be consumers, and the wider economy. Using and text and data mining Cracking Ideas Hub maintained evidence-based, market solutions where (www.crackingideas.com) • The UK government should oppose possible, the UK must work with international 03 Support clarification by the any measures undermining the principle partners and technology companies to tackle EU such that platforms which Industry has taken robust action to deal of territorial exclusivity, which could areas of copyright rights uncertainty and clamp actively host and market content with infringing websites through site damage the ability of UK’s film and down on infringement. are liable for infringing content on blocking orders and delisting from television industries to finance future their services and ensure that search engines. Government committed works, reduce consumer choice, and intermediaries/service providers to fund the Police Intellectual Property hamper SMEs from licensing copyright take reasonable steps to reduce Crime Unit through 2017. effectively • Ensure any new proposed exceptions infringement including via effective The Copyright Advisory Panel has for teaching illustrations and text/data “notice and stay down” systems provided an important forum for the mining protect the interests of British IPO and businesses to discuss market creative companies, particularly our CONTEXT developments and policy initiatives. leading publishing businesses. Intellectual Property (IP) – including In addition, the Copyright Hub has the copyright, designs, patents and potential to increase the efficiency of Enforcement trademarks – is a fundamental content licensing. • Continue to pursue enforcement to mechanism through which individuals protect the UK market for creative and businesses generate value from RECOMMENDATIONS content, including legal actions to block their creativity. UK creative businesses access to illegal websites and increased have adapted successfully to create EU Digital Single Market Review sentencing for online offences and develop global digital markets (Note: This report was written before • Commit to the long-term funding by for content. the UK's EU referendum) government of the Police Intellectual • The review should proceed on an Property Crime Unit beyond 2017 The forthcoming EU review of the agreed set of principles. These must be • Implement a duty of care for online Digital Single Market is potentially the to ensure that EU consumers are intermediaries to take reasonable steps most significant development affecting served by the best possible content to avoid facilitating infringing online the UK’s IP-rich creative industries. services; to allow markets to deliver services solutions; and only to agree changes • Require service providers to AIMS to copyright framework that are based implement “notice and stay down”, The CIC aims to increase awareness and on robust evidence to prevent reposting of content that understanding of IP rights in the UK • Portability and cross border access has already been the subject of and abroad and to ensure the UK has are key elements of the Digital Single infringement notices an IP framework fit for international Market proposals. Many UK creative • Take steps (and encourage other trade in the digital age. businesses already deliver innovative member states) to strengthen 34:35 Create Together A Creative Industries Council strategy for Cross Industry Collaboration The next 5 years Intellectual Property
There is a need to achieve clarification that platforms which host and market content are liable and do not benefit from “safe harbours” enforcement of Article 5 of the — market methods of licensing or E-Commerce Directive. non-legislative solutions have been taken into account; Maintaining an IP framework fit for — incremental policy changes are the digital age reviewed in the context of the cost The CIC recommends that the following and benefits to the creative sector need to be achieved: and the need to support innovation • Industry and government should in the wider economy. continue work to improve legal access to content, in particular for small use Europe and International consumers and businesses The CIC recommends that the • Clarification at EU level that government should: platforms which actively host and • Consult with stakeholders to provide market content are liable for content greater transparency and advisory CASE STUDY on their services and do not benefit input into the positions the UK from “safe harbours” government adopts in European and Making changes to the UK’s • Voluntary schemes, such as the Anti international negotiations IP framework Copying in Design (ACID) Design Data • Ensure that EU trade negotiations Bank, should be encouraged to enable include a requirement for countries Creating a single European the informal registration of design to create and maintain strong IP digital market rights and support micro businesses protection and that any enforcement The European Commission has and SMEs to ensure their rights have assistance given to other nations is identified the completion of the some protection reciprocated. Digital Single Market (DSM) as one • Continued funding of annual of its top 10 political priorities. published research on online The DSM strategy is built on three infringement, to better understand the pillars: motivations of those illegally accessing copyright material in order to develop 1 Better access for consumers evidence-based solutions and businesses to digital goods • A requirement on all internet and services across Europe intermediaries to play an active role 2 Creating the right conditions and in reducing online copyright a level playing field for digital infringement, through agreed networks and innovative services voluntary measures or, if these to flourish cannot be agreed, consideration 3 Maximising the growth potential should be given to appropriate of the digital economy legislative/regulatory action • Before the government introduces legislative proposals that substantively alter the IP framework, it should require Its proponents claim the strategy the IPO to use comprehensive policy could generate an extra appraisal methods to ensure that €415 billion per year for the EU — the intervention is proportionate and and create thousands of new jobs. would not harm rights holders; 36:37 International
Exports of creative industries services hit
INTERNATIONAL BILLION IN 2014 £19.8 INTRODUCTION 3 Big Wins accounting for 9% of total exports of UK services IN ANY DISCUSSION OF THE UK STANDING IN THE WORLD, THE 01UKTI to develop additional AIMS ALLIANCES & CLUSTERS support for new exporters The CIC aims to promote the • The UK’s approach to overseas CREATIVE INDUSTRIES WILL INEVITABLY international growth of the UK’s markets should take the form either FEATURE. 02 Improve visibility of creative industries as measured by of an ‘alliance’, a forum for business regional creative clusters via these industries’ exports and share and policy-makers to address British creativity directly generates of Foreign Direct Investment. It aims road shows and articulating obstacles to trade, or a ‘cluster’, a significant amounts of exports and inward to ensure that all sizes of creative physical co-location of UK creative investment. It also shapes broader benefits of dual, ‘London business and all parts of the UK can firms in an overseas territory +non-London’ resource to perceptions of the appeal of ‘Brand Britain’ participate in this international growth. • Priority high-growth, alliance that benefit diverse other sectors. foreign investors and partners markets up to 2020 are China By bridging industry and government, (including Hong Kong) and Brazil. 03 Create a single and speaking for all the creative Tier-two markets will be India, South Yet the global market for creativity is an sectors, the CIC seeks to demonstrate Korea, Russia, UAE and Japan increasingly crowded place, and the UK government role to co-ordinate and improve creative economy how connectedness and collaboration • The Cluster approach should be taken cannot afford to stand still. data across departments help the UK creative industries realise forward by industry as in future UKTI their international growth potential. will lay less emphasis on the government actively supporting CONTEXT PROGRESS outward investment by UK companies Official figures show that exports Using the three pillar strategy, the UK • Cluster activity should target USA of creative industries services hit has focused on identifying and working and EU hubs (such as New York, LA, £19.8bn in 2014, an increase of in overseas markets with greatest Germany and France), as having the 10.9% from 2013. Exports of creative potential to deliver exports and investment. best potential for continued growth. services accounted for 9% of total In 2015 UK Trade & Investment helped UKTI will prioritise the USA, China, UAE, exports of services from the UK in 2014. 13,000 businesses to export and there Hong Kong and India. Industry will need Inbound Foreign Direct Investment has been specific support for smaller to work with other partners, such as into the creative industries increased creative companies. A dedicated embassies, to reach other markets 20% in 2014-15, significantly above taskforce has worked to increase the • Industry strongly supports UKTI’s the UK average. ability of smaller companies in the proposal to consider a pan-Europe creative supply chain to participate campaign. The EU is often a first step In many creative disciplines, the UK is in major overseas projects. for many small or new exporters to among the very best in the world, and embracing wider export opportunities consistently outperforms comparable RECOMMENDATIONS • It is vital to sustain support for the rivals in terms of the quality of its It is time for a fresh approach that Global Digital Media and Entertainment output and its business success. To deepens co-ordination between industry Alliance i.e. ‘China Alliance’. maintain and grow the international and government, and focuses on strength of the creative industries, the realising the untapped potential of UK HIGH VALUE OPPORTUNITIES UK has a strategy that focuses on smaller and regional creative businesses • More needs to be done to source maximising growth potential through on the global stage. In addition to the opportunities for creative businesses alliances and clusters, high value existing strategy pillars of alliance & within infrastructure projects and to
opportunities, and inward investment. clusters, high value opportunities and engage companies, particularly SMEs, Opposite: But competition is intensifying as rivals inward investment, we recommend across the supply chain. HRH The Duke of Cambridge and the China Alliance at the invest in developing their own creative adding measures on data, SMEs and GREAT Festival of Creativity industries and we need to refresh our communications to the UK growth in Shanghai approach. strategy. 38:39 Create Together A Creative Industries Council strategy for Cross Industry Collaboration The next 5 years International
The priority markets for attracting investment should be: China, Germany, South Korea, France, USA, Japan, India, Canada and the Middle East INWARD INVESTMENT visually illustrating the broader CASE STUDY • The UK creative clusters for focus contribution of UK creative industries The Global Digital Media and should be: London; Bristol/Cardiff/ to the UK’s position in the world. Entertainment Alliance (i.e. South West; Yorkshire/Liverpool/ China Alliance) between the UK Manchester/Newcastle SUPPORT FOR SMEs and China was formed in 2013. • Accelerating the programme of The wider sector eco-system needs to creative ‘road shows’ for international do more to get creative SMEs exporting. UKTI reps and potential inward The CIC specifically recommends: It is designed to promote longterm investors. Where an international • UKTI should create a new work-stream relationships in the digital media element is beneficial, these should align focusing on support for new exporters and entertainment sectors, with the CIC and the Creative Industries and review existing products. It must opening doors for UK and Chinese Federation also maintain existing companies to work together. • There should be clearer articulation programmes to support SMEs with of what cities other than London offer grants to attend international trade international investors and partners. markets, familiarisation trips and A landmark film co-production One method would be to put forward trade missions agreement signed between the a dual offer where appropriate (i.e. • The contact base and insights built two countries in 2015 also made one office in London and one – often up around key international events it easier for qualifying UK for R&D – outside London). (such as GREAT Festivals) should co-productions to gain access be shared with a broader base of to Chinese funding and secure IMPORTANCE OF DATA non-attending UK companies wider distribution to Chinese • The DCMS, Office for National • Change rules to enable a business to audiences. Statistics (ONS) and UKTI must publish apply for a £500 regional grant and a export and inward investment data that Trade Access Programme (TAP) grant is timely and represents all commercial • Ensure effective assistance for SMEs activity from the creative sector. This within the Northern Powerhouse means publishing an export number initiatives (to develop the economic During the Chinese state visit to that encompasses both goods and potential of regions around Leeds, the UK last year, technology and services. It should also encompass Manchester, Sheffield, Liverpool, Hull, creative partnerships worth more inward investment statistics that fully Teesside & Newcastle). than £320million between the UK report the international investment and China were announced. being paid into the UK’s creative MORE EFFECTIVE industries COMMUNICATIONS • DCMS and UKTI to share export and • Better sharing of information - both inward investment data (as well as ONS, from central government to trade reps Nesta and others), subject to and regional bodies, and from those commercial confidentiality. Industry groups to their constituencies sub-sectors must input data and identify metrics to measure progress. One • Work with and leverage the GREAT government project manager should Campaign to support the creative oversee and improve creative data sector, including closer co-operation across government departments with www.thecreativeindustries.co.uk China Alliance Tim Davie CEO BBC Worldwide and the China • The Creative Industries Sector and the ‘Exporting is GREAT’ initiative. Alliance meeting at the Technology Innovators Advisory Group should create a way of Forum in China 40:41 Regions & Clusters
The creative industries have already proven to be
REGIONS & CLUSTERS powerful in regenerating INTRODUCTION 3 Big Wins drivers individual cities and neighbourhoods UK CREATIVITY HAS ALWAYS DRAWN Local infrastructure plans AIMS EDUCATION AND SKILLS FROM A RICH POOL OF CULTURES AND 01 to incentivise growth in the The CIC welcomes the government’s • Better co-ordination to identify and TALENT IN ALL PARTS OF THE UK. creative economy commitment to enabling and promoting address regional skills needs between greater devolution. We anticipate this stakeholders. These stakeholders With rising demand for creative services 02 Local Enterprise will make it easier to achieve a judicious include local authorities, Local globally, it will be vital to strengthen Partnerships (LEPs) to work with balance between policy initiatives at Enterprise Partnerships (LEPs), Higher creative economies in every region to national level that can benefit the Education Institutions (HEIs), Creative local universities, other education growth of creative industries in the Skillset, Creative and Cultural Skills, and enhance the UK’s creativity, productivity providers and employers to regions, and policy initiatives that can national funders such as the BFI, Arts and competitiveness. ensure a sustainable skills pipeline be originated and developed at cluster, Council England and Creative England. for their region city, local authority and regional level. Collaboration should account for the variety of local creative economies and 03 The distinctive contribution PROGRESS seek to foster regional collaboration of the creative industries to the The creative industries have already • Consider ways of developing wider economy of each region proven to be powerful drivers in one-on-one and group mentoring should be recognised, with improved regenerating individual cities and schemes as a way of improving investment flows neighbourhoods, raising their profile, business skills at local and regional making them more distinctive and more level, and as a way of building more attractive and stimulating places for effective creative networks and clusters CONTEXT people to work and live. • Commission work to better DCMS statistics show that since 2011 understand the contribution of HEIs to employment in the creative industries More can be done to work with local local creative economies, and how has grown very quickly in some parts business communities to achieve these Research Council investment might be of England including by 53% in the East broader outcomes and in particular, integrated with growth strategies and Midlands and by 27% in Yorkshire recognise the importance of freelancers cluster development. and the Humber. However these figures and the self-employed to the creative conceal significant inequalities in access economy in many regions. INFRASTRUCTURE to finance, overseas markets, • Consider ways of incentivising local productivity and skills. Such disparities RECOMMENDATIONS authorities to work with broadband are well illustrated by the Core Cities Re-think government business and providers to assist the development of Opposite: large circle • Image from ‘Aareo’ by Mad Group, which estimates that the investment support programmes so creative clusters by provision of local Fellows, a Leamington difference in GVA per capita between that they are better fitted to support hi-speed networks Spa-based games developer which is part of the so-called London and its ten member cities creative SMEs and micros. Initiatives • Re-think procurement powers to ‘Silicon Spa’ area of games represents a loss to the economy of £66bn. should focus on growth through enable and incentivise local authorities companies increasing productivity as much as to procure goods and services locally. Opposite: small circle Devolution must be accompanied with job-generation; and assisting scale-up This should build on the work of Design Production services set shots from ‘Dancing on the Edge’. continued investment. For many regions, and second stage businesses as well as Council, Creative England and others in Creative England works the local business support services key start-ups. This should aim to increase using creative industry skills to with local authorities and LEPs from all over England to the building of creative clusters come connections between private investors re-design and implement local services, to facilitate filming in the from national and European public and business clusters including health and education. Such English regions funding bodies, particularly the European • Consider how existing EIS/SEIS an approach would make it easier to structural and innovation funds. The schemes could be expanded specifically optimise the contribution of the continued levels and effectiveness of to encourage private investment creative sector to the success of the such support will be critical in addressing activity outside of London and the Northern Powerhouse, the Midlands regional imbalances. South East regions Engine, the Great Western Cities and 42:43 .
Create Together A Creative Industries Council strategy for Cross Industry Collaboration The next 5 years Regions & Clusters
Since 2011 creative industries employment growth in some parts of England has been
other initiatives to build regional CASE STUDY capacity • Look at ways of enabling and Building a Production incentivising local authorities and Powerhouse combined authorities to protect and VRTGO Labs (www.vrtgolabs.com), make available physical spaces for based in Gateshead, is Europe’s creative businesses. Typically, this first industry-led centre for Virtual infrastructure includes workspaces, Reality and Augmented Reality exhibition spaces, rehearsal rooms, and research, bringing together other physical infrastructure. Local commercial companies, freelancers authorities are under pressure to and academics from across the maximise revenue from business rates, North-East to collaborate on the potentially to the great disadvantage development and commercial of creative SMEs and micros. application of these cutting-edge technologies. RESEARCH AND EVIDENCE • Using the creative cluster mapping published by Nesta and Creative The centre provides a mix of England as a baseline, improve research office and co-working space to and data gathering on the role of the encourage cross-sector working. creative industries in the supply chain Complementing the space is of other sectors, particularly those that access to the latest VR underpin regional economies development equipment, and a VR • Build on the work of the Design demo room for showcasing work Council, Nesta and others to inform to potential or existing clients - all understanding of the competitive underpinned by high speed open advantage creative industries can bring source broadband. to the wider economy in their region • Commission work to better understand the contribution of HEIs to local creative economies and analyse how Research Council investment might be integrated with growth strategies and cluster development.
VRTGO Labs Image © Secret Sauce
CELIVE 2016 – representing the regions at this flagship London event 44 : 45 Regulation A continuing focus on de-regulation REGULATION is vital to ensuring that barriers to entry for new businesses are low and existing INTRODUCTION 3 Big Wins businesses can thrive A LIGHT-TOUCH, STABLE REGULATORY CLIMATE, WITH A STRONG EMPHASIS ON 01UK to showcase effective regulatory environment and attractive Regulated suppliers are not always SELF-REGULATION, IS CRITICAL TO AN self-regulation and responsible licensing regime have attracted many used, and there is a lack of knowledge business behaviour large creative companies to establish about how to buy intellectual capital ENVIRONMENT IN WHICH THE UK CREATIVE significant UK operations. services supplied by the creative sectors. INDUSTRIES THRIVE. 02 Development of more strategic anticipatory approach to Growing creative businesses also require RECOMMENDATIONS It enables the UK to be seen internationally talent and we want to attract the To foster further success and make the as a competitive and attractive place to do EU policies on creative industries brightest and best to work in the UK. case for a fit-for-purpose regulatory business and in which to invest. Government should consider the impact environment, the creative industries will 03 Government to tap industry of migration policy on the creative continue to work closely with government. best practice in procurement of industries, such as proposed changes to The CIC recommends the following: creative services the regulation of skilled workers. We • Showcasing examples of effective must ensure that growth is not inhibited self-regulation and responsible business by skills gaps that can only be filled in practice. Such examples demonstrate CONTEXT the short term by international talent, in how to reduce the burden on government The creative industries have benefited addition to our important role providing and deliver a better business environment from a business-friendly government. jobs, training and skills to those in the UK. (often involving the innovative use of Policy has helped foster a de-regulatory, The Audiovisual Media Services (AVMS) new technology to tackle issues), which competitive and global marketplace, Directive’s country of origin principle is in turn benefits the public with better support the digital economy, encourage key to the UK's status as a global quality content and services British exports, and promote inward television hub and has resulted in • Working with Ministers and civil investment. However we must be significant economic and cultural servants on developing a strategic and vigilant about new regulatory benefits. It has enabled multinational anticipatory stakeholder approach to interventions both in the UK and the EU. companies to establish substantial UK EU strategies affecting the creative The Digital Single Market (DSM) offers operations and delivered economies of industries and digital economy to many opportunities. There are however scale for infrastructure. It has supported ensure de-regulation where appropriate challenges around the development of a vibrant services sector and created a • Highlighting instances where the DSM – whether these are new talent pool that circulates among government intervention or proposed advertising restrictions or unforeseen businesses. intervention helps or hinders business changes to intellectual property. Such growth to ensure the UK remains the changes have the potential to harm A continuing focus on de-regulation is best destination for employment and creative businesses and to deter global vital to ensuring that barriers to entry investment in the creative industries inward investment. for new businesses are low and existing • Working with government to ensure businesses can thrive. The UK has an smarter public procurement processes The creative industries value the important role to play in setting the EU’s with less red tape and fewer bureaucratic government’s strong preference for strategic agenda to the benefit of the burdens to ensure that best-value effective self-regulation over legal creative industries. Regulatory scrutiny creative services are procured intervention whenever this is sufficient is vital through impact assessments and • Providing examples of where to secure consumer benefits. Strong EU red tape should be reduced. government could act to support small self-regulation, business responsibility Government procurement of creative and medium-sized businesses. For and innovative use of new technology services is fragmented and access to example, government could lower can help deliver a more dynamic appropriate expertise reduced. Money is barriers to market entry or improve competitive marketplace and be a driver spent on lowest-priced options rather government advisory services to help for investment. The UK’s stable than those delivering maximum value. start-up growth. 46:47 Create Together A Creative Industries Council strategy for Cross Industry Collaboration The next 5 years
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For CIC documents, statistics, resources, event news and case studies of success from the UK creative industries go to www.thecreativeindustries.co.uk
Design Morrison Dalley Morrison Design Source: DCMS Economic Estimates 2016 Marc Hoberman Marc BAFTA For the best in creativity, choose the UK. excellence for film, television and games. BAFTA’s iconic awards are asymbol of global gov.uk/ukti
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Picture credits for pages 6 and 7. Advertising: Adidas There will be haters by IRIS, John Lewis’s Tiny Dancer campaign by adam&eveDDB, The Guardian’s Own the Weekend campaign by BHH, This Girl Can campaign by FCB InfernoArchitecture: Eden Project © Jonathan Makepeace / RIBA Library Photographs Collection, The Gateshead Millennium Bridge 2001 Wilkinson Eyre Photo: Mike1024 Arts & Culture: Ai Weiwei in his studio in Beijing Photo © Harry Pearce/Pentagram courtesy of The Space. Courtesy Arts CouncilCraft: work at COLLECT 2015 presented by the Crafts Council, Second Space Traveller Watch George Daniels 1982 Jasper Gough Sothebys (back), Combs Hair Highway Studio Swine 2014 © Studio Swine, Time for Yourself Marcin Rusak in collaboration with Iona Inglesby 2013Design: UK Trade & Investment, Guzzini Hula Hoop by Studio Levien Photo Lux Photodigital Fashion: Alexander McQueen AW16 FOH (Shaun James Cox British Fashion Council), Roksanda AW16, Backstage (British Fashion Council)Games: Land’s End Ustwo Games, LEGO Dimensions WB Games/TT Games, INKS State of Play Games, No Man’s Sky Hello GamesMusic: Brits 2016 John Marshall/ JM Enternational Publishing: In the Cold Dark Ground by Stuart Macbride HarperCollins, Topsy and Tim Jean and Gareth Adamson Ladybird, The Girl on the Train by Paula Hawkins Black Swan, The Movie Doctors by Simon Mayo and Mark Kermode CanongateTech: ©Somethin’ Else, Still from Technology Strategy Board video Creative Industries Tomorrow TV & Film: Indian Summers ® all3media & New Pictures Production for Channel 4 and Masterpiece, Top Gear S23 BBC Worldwide Limited 2016, Poldark from Mammoth Screen, War and Peace © BBC 2015 BBC Cymru Wales production in partnership with The Weinstein Company and BBC Worldwide/Lookout Point