Transcript Assessing the Economic Contribution of Creative Industries

Assessing the Economic Contribution of
Creative Industries
Dimiter Gantchev,
Creative Industries Division,
World Intellectual Property Organization
Geneva, May 20 2008
Outline
• Intellectual property and creativity
• Copyright as a tool for economic analysis
• WIPO’s experience in measuring creative outputs
• Challenges
• WIPO’s Creative Industries Agenda
Creativity in the XXI century
• Creativity as a resource
• Causality relationship with economic growth
• Today as a result of conceptual frameworks such as
copyright and technological developments we can
– transform creative outputs into economic goods
– monitor the supply and demand on creative products
– obtain evidence on the importance of the creative
economy
• The intangible economy is strongly dependent on
knowledge and creativity
• IP is one of the instruments supporting creativity
Mr. D. Gantchev-WIPO
Why Empirical Evidence Matters?
• Growing interest towards measurement of creativity:
– Is creativity a driver in the knowledge economy?
– Can creativity bring more development?
– Can nations capitalize on creative assets?
• specific policy objectives lead to specific
measurement tools
• a possible approach of studying creativity is through
the types of impacts that it produces
• Importance of delimitating creativity to analyze its
relationship with development
Mr. D. Gantchev-WIPO
A Copyright Approach To Measuring Creativity
• Creativity is the subject matter of copyright protection,
but poses definitional problems as such
• Copyright is a well defined concept
– a set of economic and moral rights
– a balance between individual and public interest
– a financial mechanism to reward creators
– serves as the basis of huge industries
– enhances and enriches cultural heritage and
cultural life
Mr. D Gantchev -WIPO
5.
Economic Fundamentals of Copyright
 economic characteristics
 economic functions
 consequences of economic nature
 conditions for economic efficiency of copyright
 monitor and control misuse
 consumer valuation > production and
distribution costs
• Can be used a tool for economic analysis
Mr. D. Gantchev
6.
Creative Markets
Demand
 Consumption unpredictable, quality matters, focus on
superstars
 Demand on local products is often insufficient
 Stronger dependence on income
 Local demand stifled by massive piracy
Supply
 High fixed costs for creation/low marginal cost
 Low entry barriers
 Concentration and tolerance to smaller companies
 Distorted distribution of income and unequal risk
distribution
 Excess of supply
Mr. D. Gantchev - WIPO
7.
The WIPO measurement model
 Objective
- provide a basis for consistency
- enable international and cross-sectoral comparisons
- provide solid data as input for policy formulation
Main features
- a reinforced link to copyright
- relating copyright to economic activities
- new definition of the creative industries
- a more transparent link to statistical reporting
Mr. D. Gantchev
8.
Identifying The Creative Industries
Production of equipment for the consumption
Consumption and use of the work
Marketing and promotion
Distribution materials
Distribution
Production of equipment
Production
Formatting
Creation
Mr. D. Gantchev - WIPO
9.
The Copyright Industries
Core copyright industries
- fundamentally exist to produce/distribute
copyright materials
Interdependent industries
– facilitate the creation, production or use of works
Partial copyright industries
– a portion of the activities is related to copyright
Non-dedicated support industries
 Induced impact, measure spillover effects
Mr. D. Gantchev-WIPO
10.
Mr. Gantchev - WIPO
11.
WIPO Surveys – The Empirical Evidence
Country
USA
Contribution to GDP
% of Employment
11,12
5,70
4,50
8,49
5,80
5,55
Latvia
4,00
4,50
Hungary
6,67
7,10
Philippines
4,92
11,10
Bulgaria
3,42
4,31
Mexico
4,77
11,01
Lebanon
4,75
4,49
Jamaica
4,80
3,03
Russia
6,06
7,30
Romania
5,54
4,17
Croatia
4,42
4,65
Peru
3,60
2,51
Ukraine
3,47
1,91
Korea
8,67
4,31
Singapore
Canada
Ongoing: Brazil, China, Colombia, Kenya, Malaysia, Morocco, Nigeria, Pakistan, Sudan, Tanzania
Source: WIPO
Mr. D. Gantchev
12.
Contribution of Creative industries to GDP and
Employment
12
11.12
11.1
11.01
10
8.67
8.49
8
7.3
7.1
6.67
6.06
5.75.8
6
GPD
5.55
5.55
4.92
4.5
4.5
4.77
4.75
4.49 4.42
4.22
4.31
4
Employment
4.8
4.31
4.19
4
3.6
3.42
3.47
3.03
2.51
1.91
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Findings
The record
• results are not necessarily a function of the overall
economic development pattern
• strong influence of economic cycles
• impressive dynamics – 2 to 3 times the average
• multiplier effects and productivity
• indicative of structural changes in the economy
The perception
• growing interest to surveys underpinning policy
action
– 5 languages, over 24 surveys, new edition
• provide elements for development strategies
Mr. D. Gantchev - WIPO
14.
Limitations Of Applying The Ip Framework
• Scope and coverage
– copyright is limited to what is protectable
– the grey economy is not surveyed
– social and cultural aspects not surveyed
• Statistical issues
– industrial approach/ individual creative activities
– production, not consumption based approach
– underdeveloped statistical framework
• Technical issues
Mr. D. Gantchev-WIPO
Wipo’s Creative Industries Agenda
• Support policy-oriented research
– Enable the positioning of the creative sector in the overall
development strategy
– Promote the development of strategies in related areas
• Contribute to conceptualize the creative industries
– endorse the IP approach
• Methodology development
– improve measurement tools
– guidelines for measuring copyright piracy
– data collection models
• Develop tools for creators in specific creative industries
– music, publishing, film, design, management
Mr. D. Gantchev-WIPO
Final Words
• The evidence promotes understanding the potential of
the creative sector and opens the door for policy
interventions
• Economic development is positively influenced by the
ability to economically exploit creative assets
• Refined instruments and more empirical research are
needed
• International cooperation can help the development of
appropriate tools for studying the multiple impact of
creativity
Mr. D. Gantchev-WIPO
Thank You!
Mr. D. Gantchev - WIPO
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