Why is everyone talking about the Creative Economy?

Are the creative industries doing enough to stay ahead?

Addressing: Supporting growth in the creative economy

Designers at work

Department for Culture, Media and Sport and the Department for Business Enterprise and Regulatory Reform

The creative industries play an important role in the UK – we have the largest creative sector in the EU and our creative industries accounted for 7.3 per cent of total UK Gross Value Added (GVA) in 2005.

And recent research by NESTA finds that 34% of the creative workforce is employed in non-creative sectors, making creative activities as embedded in the economy as financial services.

So far so good. But the government is keen to ensure that the creative industries– which, in addition to design, cover advertising, architecture, the art and antiques market, crafts, designer fashion, film and video, interactive leisure software, music, performing arts, publishing, software and computer services, and television and radio –  reach their full potential.

Top facts about the creative industries
Creative businesses are more likely to collaborate and form partnerships than other sectors
Only 35% of creative SMEs use formal business planning techniques
A third of creative businesses with an annual turnover of more than £1 million have no explicit financial goals.

That means a combination of new, joined-up government policies and input from the industries themselves is needed to ensure our creative sector continues to grow and prosper.

What the Design Council has been doing

We’ve been consulting with designers and working with the government and other agencies to make sure the issues facing people who work in the creative sector have been heard. Issues like competition, intellectual property and the exploitation of new technology, to name but a few.

What's in the new strategy?

The Department for Culture, Media and Sport and the Department for Business Enterprise and Regulatory Reform have set out 26 commitments in their Creative Economy Strategy document, Creative Britain: new talents for the new economy. These include commitments that will help to improve the skills of people working in the creative industries, as well as actions that will improve the business support given to small and medium-sized enterprises in the sector, including business skills and access to finance.

How will this affect the design industry?

The commitments and actions in the new strategy document are intended to help all creative industries, but there are elements of the plan which are particularly relevant for designers.

These include

  • Supporting the work on improving professional standards being driven by the Design Council and Creative and Cultural Skills
  • Apprenticeships for up to 5,000 people a year across the creative industries by 2013
  • A plan to improve access to finance for creative businesses and enforce Intellectual Property rights

 

Is there any money behind these promises?

For some of the commitments, certainly.

  • The Technology Strategy Board is providing £10 million for a package of measures specifically designed to engage small creative firms in new and collaborative research & development.
  • It will also launch a Knowledge Transfer Network (KTN) for the creative industries to help industry to access the knowledge and information that will improve innovation.
  • NESTA will launch a £3 million Creative Innovators Growth Programme to improve small and medium-sized creative enterprises’ capacity to innovate.

 

What happens next?

The Design Blueprint outlining the next stages of our work on design skills will be launched in mid-March.
The results of a competitive process to identify the consortium to set up and manage the Knowledge Transfer Network (KTN) for the creative industries will be announced in early 2008.

 

The timeline of events

June 2008

'Designing Sustainable Policy' research is published and for the first time shows the extent of the communications gap between parliament, Government and the design sector in the UK February 2008

February 2008

DCMS and BERR publish the Creative Economy Strategy document, a set of commitments and actions aimed at helping the creative industries reach their full potential

September 2007

Futher evidence and statistical research on the creative industries is published

June 2007

The Work Foundation publishes its report 'Staying Ahead: the economic performance of the UK's creative industries'.

Spring 2007

Industry summits give all thirteen of the creative industries a chance to feed into research by the Work Foundation, which was commissioned to write an economic analysis of the UK's Creative Economy. 

2006

Industry breakfasts and sector summits enable working groups. consulting with their industries, to investigate the effect of these issues on every part of the creative industries sector

November 2005

The Creative Economy Programme is launched, with the aim of making the UK 'the world's creative hub'. Seven issues are identifies as important producitvity drivers for the creative industries

YOUR PERSPECTIVES ON THIS ISSUE

David Kester, Design Council Chief Executive

David Kester

Design Council Chief Executive

 

Quote: This couldn’t come at a better time for the UK design industry. Design is what links creativity and innovation, and British designers such as Jonathan Ive are responsible for some of the world’s most iconic products like the iPod and the iPhone. This plan helps ensure that British talent will stay at the forefront of global design.
Will Hutton, chief executive, The Work Foundation

Will Hutton

Chief Executive, The Work Foundation

 

Quote: There's no doubt that Britain’s creative knack is something to celebrate. The stuff that creates new insights, delights and experiences, that stirs our senses and enriches our lives, is also the stuff that is propelling a larger slice of our economic output. The question is can we continue to supply this growing demand? How we create the architecture that will incubate rather than stunt creative industry growth is a major policy question.