Scotland’s economy thrives on creativity (28/06/2012)
Scotland’s arts and creative industries sectors add more than £3.2 billion to the country’s economy, according to new research published today.
Scottish Dance Theatre - What on Earth (Photo: Andy Ross)
The research, jointly commissioned by Creative Scotland and Scottish Enterprise, also identifies direct employment in the sectors as at least 84,000, with a further 21,000 working in a creative capacity – for example, those self-employed, or working in a creative role beyond the creative industries.
Where indirect contributions (through the supply chain) and induced effects (spending by both the supply chain and workers within the arts and creative industries) are included, the total gross-value-added contribution rises to £6.3 billion and employment to nearly 130,000.
Overall levels of employment in the creative sectors are believed to be higher still, the researchers conclude, as current classifications may not capture all sole traders, freelancers or other workers.
The impact of the arts and creative industries on local economies across Scotland is also included in the study, and highlights the relative strengths of diverse sectors. Though Glasgow and Edinburgh account for 40% of all employees in the arts and creative industries, other areas also record higher than average levels of employment in those sectors: including the Borders, where textiles and fashion feature as a key sector; in Orkney in crafts and heritage; and Shetland in fashion and textiles and heritage.
The report highlights Scotland’s performance when compared to UK counterparts in the arts and creative industries. London and the South East of England account for more than half of all UK jobs in these sectors, followed by Yorkshire, while Scotland ranks fourth.
Andrew Dixon, Chief Executive, Creative Scotland welcomed the report and added:
‘Scotland’s talent is recognised worldwide and valued at home for high quality work and the joy that a vibrant cultural life brings to our communities. For the first time, the impact that Scotland’s arts and creative industries has on the nation’s economic well-being can now be set alongside these other achievements and is further proof that Scotland thrives on creativity.’
Cabinet Secretary for Culture and External Affairs, Fiona Hyslop, said:
"Scotland is one of the world's most creative nations with a global reputation for innovation and enterprise, a world-class higher and further education system and highly-talented workforce.
"This welcome report, in our Year of Creative Scotland, highlights the significant economic benefits generated by Scotland's arts and creative industries - overall, amounting to 130,000 jobs and £6.3 billion GVA and £12.5 billion in turnover.
"That is why the creative industries is one of the seven priority sectors in the Scottish Government's economic strategy. We are doing all we can to build sustainable economic growth for Scotland and by providing the right public sector support, through Creative Scotland, Scottish Enterprise and the Scottish Creative Industries Partnership, we are ensuring our creative industries are well placed to realise their economic potential at home and abroad."
Linda McPherson, director of Creative Industries at Scottish Enterprise commented:
“We welcome the results of this study, which helps us understand more about the sub-sectors which offer the greatest potential for economic growth. We’ll continue to collaborate with our partners to identify how we can support these sectors to grow further, and particularly to encourage our companies to invest in their growth and maximise the international opportunities the growing global creative industries sector offers.”
The research is the first comprehensive study of the contribution to the wider economy of the arts and creative sectors. Using existing data from the Office of National Statistics, researchers have refined the sector definitions to more accurately reflect contemporary creative practice – identifying 16 distinct industries.
The study forms part of a wider programme of research that Creative Scotland and its partners are conducting – a more detailed study of the Outer Hebrides will be published shortly and further studies are planned on cities, design and film.
The report can be found here: http://www.creativescotland.com/resources/research
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Similarly, recent research for the Computer Games industry appears to be anomalous to other recent research which shows a higher level of employment than the results here identify5. This variance is primarily thought to be due to how such businesses report their activity under industrial classifications – a proportion of firms involved in Computer Games will have been captured within the Software and Electronic Publishing sector, and others may be divisions of non-Games businesses classified elsewhere in economic statistics under the parent company’s code.
5 – The research was commissioned by TIGA and carried out by Games Investor Consulting (GIC) and identified a total of 593 jobs in 2010.
Our aim in using Office of National Statistics SIC classifications were that it’s official publicly-available research, allowing us to replicate the study over time. In order to better represent the full breadth of the ‘arts and creative industries’ we’ve used the SIC classifications which work beyond the ‘standard DCMS 13’ and we agree that more work is needed in clarifying how the games network is represented.
The SIC classifications rely on how businesses report: This variance is primarily thought to be due to how such businesses report their activity under industrial classifications – a proportion of firms involved in Computer Games will have been captured within the Software/Electronic Publishing sector instead. Those included within Computer Games are those in ‘ready-made interactive leisure and entertainment software development’ – SIC 62011 and ‘publishing of computer games’ – SIC 58210. Those within SIC 58290 (other software publishing) have been captured within Software/Electronic Publishing. Furthermore, some firms may also be divisions of non-Games businesses, in which case they will be classified under the parent company’s code. Companies choose which classification they report to. Other potential variances include whether the company is headquartered in Scotland, or if it’s subsidiary of a company reporting under a different SIC classification.
Scottish Arts a& Creative Industries – Direct Employment and Gross Value Added Results (2010)
Audio-Visual including Computer Games2:
Direct Employment – 200
GVA (£M) – 0
AGVA (£M) – 0
2 – Note: due to rounding of the GVA results, Computer Games is recorded as zero in the table above, but the sector does report GVA of less than £10 million.
Creative Scotland is a corporate member of TIGA which also hosts annual awards across all sectors of the gaming industry and we believe offers significant recognition for the gaming sector. TIGA makes an important and necessary contribution to ensuring the role of the games industry is recognised throughout the UK, which, as a member, Creative Scotland endorses.
Creative Scotland has a role to monitor developments across the arts and creative industries. This is our first report that tracks an overall economic value and contribution. As noted above, Creative Scotland acknowledges the limitations of the way the data is classified and any future decision making would reflect that understanding.
The full Economic Contribution Study can be found here: http://tiny.cc/rcf9jw.