The importance of the creative industries to the global economy at a glance

By Costas Andriopoulos

I am currently finalizing the last chapter (covering the creative industries) of the second edition of my book: Managing change, creativity and innovation (published by Sage books) and I was delighted to discover the continuing contribution of the creative industries to the economy.  

Creative industries account for 3.4% of total world trade, with exports reaching $424.4 billion in 2005 and an average annual growth rate of 8.7% during 2000-2005.[1] In the UK, there were 106.700 creative businesses in 2011 (5.13% of the UK), which represents an increase in business from 4.9% (2009) to 5.1% (2011). During 2009, the creative industries in the UK employed around 1.5 million people and generated revenues in the area of £36.3 billion (Creative Industries Economic Estimates, 2011). The value of creative organizations to the global economy is considerable. 

Some key facts:    
1. Advertising: The worldwide market for the conception and development of advertising campaigns was in the area of £289 billion (2010).[2]
2. Architecture: UK architecture firms’ turnover was around £3.29 billion in 2009.[3] 
3. Art and antiques: The global art market is estimated to be in the area of €46.1billion.[4]
4. Crafts: The UK crafts market employs around 91.983 people.[3]
5. Design: UK design firms generated a fee income of £1.79 billion in 2009, while fees earned abroad amounted to £104 million.[3]
6. Designer fashion: In 2009, British fashion companies grossed approximately £120 million at home.[3]
7. Film, Video and Photography: Globally, the film industry market is around $88.8 billion (2011).[5]
8. Music and Visual and Performing Arts: The global turnover of the music industry is estimated to be around $16.6 billion (2012).[6] Interestingly, the physical format sales slumped by 8.7% globally, falling from a trade value of $11.1 billion in 2010 to $10.2 billion in 2011. Yet, global digital revenues grew around 8.0% to $5.23 billion in 2011 (from $4.84 billion in 2010).[6]
9. Publishing: The UK publishing industry is in the area of £11.5 billion (2009) and employs 243,809 people (2010).[3]
10. Software/Electronic Publishing: The global software industry is estimated to be around $278 billion (2012).[7]
11. Digital and Entertainment Media: The global market for video games is estimated to be worth around $67 billion in 2012.[8]
12. TV and Radio: The global TV revenues in 2010 were in the area of £239 billion, coming from net advertising revenue, TV license fees and subscriptions.[9] 

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[1] Creative Economy Report 2008, UNCTAD 
[2] Ofcon, The Communications Market 2011
[3] DCMS, Creative Industries Economic Estimates 2011 
[4] The European Fine Art Foundation, The International Art Market in 2011
[5] PricewaterhouseCoopers Global Entertainment and Media Outlook: 2012-2016
[6] IFPI Recording Industry in Numbers, 26 march 2012
[7] Srivastava, I. India to be the world’s fastest growing enterprise market: 2016: Gartner, The Times of India, September 29, 2012    
[8] DFC Intelligence Worldwide Market Forecasts for the Video Game and Interactive Entertainment Industry   
[9] Ofcom International Communications Market Report 2011