Unlocking Growth: The Importance of a Cultural & Creative Industries Strategy
A Cultural & Creative Industries Strategy refers to a plan of action adopted by governments, organizations or regions to support and develop the creative sectors within their respective economies.
An employee printing an advertisement using an antique printing press at Bay View Printing Company.
The creative industries term, which can also be referred to as the creative economy, encompasses the likes of fine art, design, publishing, advertising, architecture, video games, fashion, music, film, and more. It refers to sectors that generate their value primarily through “creativity,” and also encompasses the regional suppliers, manufacturers, distributors and retailers which compose the value chains of these sectors.
Much of what is now understood as being part of the creative industries has been generating economic and social impact for centuries, but the contemporary focus on them is a relatively recent phenomenon.
A History of Creative Industry Strategies
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The OECD estimates that, in G20 countries, cultural and creative sectors account for up to 2% of jobs and up to 3% of value added.
The United Nations first defined the creative industries in 2004. The Sao Paulo consensus included the request for nations to “support national efforts of developing countries to increase their participation in and benefit from dynamic sectors and to foster, protect and promote their creative industries.” From then until the late 2010s the creative industries were considered a major source of economic growth. Between 2002 and 2015, creative economy export growth averaged 7%, often above the growth rate of other industries.
Theatrical Artwork by Laura Fiorucci. Picture by Wilfredor
According to UNESCO, in 2020 the cultural and creative sectors accounted for 3.1% of the global Gross Domestic Product and 6.2% of the global employment. In 2021, arts and culture added $1,016.2 billion to the US economy alone, a 13.7% increase from 2020, and employed 4.9 million people nationwide. In the EU, employment in the cultural industries grew by 4.5% in 2022 compared to the previous year.
Among the United States, Washington State has a very strong creative economy: it accounts for 10.3% of the state's regional GDP and employs 180,000 workers. Another notable example is New Mexico, where the creative economy is accountable for 5.5% of employment. CHOOSE Washington has an individual titled Creative Economy Sector Lead, who works within the Washington State Department for Commerce. New Mexico has been researching and strategizing its creative economy since 2014. In both cases this success is no doubt partially thanks to the fact that these states support their creative economies by centering it in their tourism and economic development strategies and communications.
To support continued growth, some of the key issues that need to be addressed are:
Supporting and sustaining in-person activities.
Creating equitable digital environments.
Addressing AI’s threats and opportunities.
A Strong Creative Ecosystem Strengthens the Economy and Communities
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The G20 is exploring how the creative economy, along with culture and tourism, could contribute to a more inclusive global recovery from COVID-19.
Cities, regions and countries around the world are supporting the creative industries in order to improve the livelihoods of their residents. There are a number of notable international examples worth mentioning. Take the case of the state of Victoria, Australia, which launched its first ever creative industries strategy in 2016, backed with a AU$115 million investment. Discussing the impact of the region’s creative industries strategy in the Creative State 2025 report, Minister for Creative Industries for Victoria, Danny Pearson, said in 2021 that: “a clear and visible strategy – backed by government funding – can galvanise the industry and community, leverage further support, attract investment and talent, and create career pathways and opportunities.”
The Asian Development Bank says that the “revival of the creative economy will be critical to ensuring an inclusive recovery that boosts small enterprises and employment for vulnerable groups in Asia’s rural and urban areas.” That’s why it put together its Creative Economy 2030 strategic document, featuring articles from numerous specialists in the region.
The United Kingdom published its own “2030 Vision” for the creative industries in 2023, stating that “the sector’s output has grown at over one and a half times faster than the rest of the economy and its workforce has grown at almost five times the UK rate.”
In the US, Delaware has announced plans to produce a statewide post-COVID recovery strategy for its creative economy, making it one of the few projects like it in the country (disclosure: Sound Diplomacy has been the agency working on this report). One thing is clear: leaders, agencies and governments around the world are thinking strategically about the creative industries and the benefit they can make to society and the economy.
Research in Australia found that public and private subsidy of arts, culture and creativity has a positive impact on the success of commercial creative enterprises and other businesses.
What Benefits Can Come From a Creative Industries Strategy?
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Research in Australia found that public and private subsidy of arts, culture and creativity has a positive impact on the success of commercial creative enterprises and other businesses.
Creative industries strategies are increasingly viewed as essential planning documents by governments and organizations worldwide. Such a strategy is developed and implemented to bolster the creative industries in a particular place.
Cultural offerings, both contemporary and in the heritage sector, drive tourism. In the UK, for example, music tourism alone accounted for 14.4 million tourists in 2022, of which 13.3 million were domestic and 1.1 million traveled from overseas. UK Music reports that music tourism directly supports 56,000 jobs in the country.
Aside from the economic benefits, there are a number of other benefits a strong creative industries ecosystem can provide, which include:
Innovation and Research & Development
Creativity is a wellspring of innovation. Supporting creative industries can lead to new ideas, products, and services that can benefit other sectors of the economy.
Tourism and Cultural Exchange
A vibrant creative scene can attract tourists and visitors, leading to increased revenue for local businesses, hotels, and restaurants. Cultural exchange through creative works can also foster a deeper understanding between different communities.
Branding and Identity
A strong creative sector can help build a unique and recognizable identity for a region or country, enhancing its international reputation and attractiveness as a destination for talent, investment, and tourism.
Education and Skill Development
A creative industries strategy can encourage investment in education and training for creative professionals, enhancing their skills and increasing the overall talent pool.
Intellectual Property and Export
Successful creative works and products can lead to valuable intellectual property and export opportunities, bringing in foreign revenue and fostering international trade relationships.
Overall, a well-planned and executed creative industries strategy can yield numerous benefits, both economically and culturally, and contribute to the overall growth and development of a region or country.
Are You Benefiting From a Creative Industries Strategy?
As discussed, several countries have been applying a creative industries strategy for many years already, and are famous for their cultural output. South Korea's entertainment industry, including K-pop music, Korean dramas (K-dramas), and Korean films, has gained immense popularity worldwide thanks to the country’s focus on cultural development and export since the 1990s. 3.4% of Colombia’s GDP is driven by the creative economy (which there is referred to as the “orange economy”). In recent years several laws have been passed with the aim of strengthening this part of the economy; these include the Orange Law, designed to boost Colombia’s digital sectors.
At a smaller scale, the Washington State Department of Commerce is paying particular attention to its creative economy with yearly strategic reports. There are examples of cities that have utilized a creative industries strategy to support and promote local arts and culture. Montreal, Canada is well known for its music scene and its entertainment district. Valencia in Spain has attracted visitors through inventive urban design and architecture and hosts various cultural events throughout the year. England’s northern powerhouse city Manchester has been one of the country’s most prominent locations when it comes to promoting the cultural industries and giving itself a distinct character when it comes to its creative economy.
These countries and cities demonstrate how the implementation of strategies to support and promote their creative industries leads to economic benefits, cultural influence, and global recognition. With cities across the globe on the path to post-COVID recovery, a thoughtful creative industries strategy is an essential tool for supporting the health of these industries and spurring the innovation necessary for future growth.