Transcript SURVEY ON THE ECONOMIC CONTRIBUTION OF THE …

CONTRIBUTION
OF THE
P r e p are d by
VANUS JAMES
Senior Fellow;
Adj.
Distinguished
Professor,
U n i ve r s i t y o f
Te ch n ol ogy, JA
COPYRIGHT
INDUSTRIES TO
DEVELOPMENT
For
W TO Regional
Workshop on
the Creative
Industries and
Intellectual
Property for
countries of the
Caribbean
M od ified for WIP O
Training of
Trainer s, Jam aica
6 / 6 / 201 2
WHAT IS COVERED
 WIPO has engineered a number of studies of the
copyright-based industries around the world.
 They all seek to determine the share of GDP,
employment and trade in the participating country.
 This note:
 Explains the broad grouping of copyright industries used
in measuring the contribution to development
 Reports some of the evidence for Caribbean countries
 Reports some of the benchmark data
 Explains why the data are important for an understanding
of the contribution of the sector to development
MAIN GROUPS OF COPYRIGHT
INDUSTRIES
1. Core Copyright Industries, which exist to create, produce,
and/or distribute copyright materials. Creation and
production
include
performance,
broadcasting,
communication and exhibition. These include
a. Press and literature.
b. Music, theatrical productions, opera.
c. Motion picture, video and sound.
d. Radio and television.
e. Photography, visual & graphic arts, related professional
& technical services
f. Software, databases and new media.
g. Advertising services.
h. Copyright collective management societies.
MAIN GROUPS OF COPYRIGHT
INDUSTRIES
2. Interdependent Copyright Industries, which are engaged
in production, manufacture and sale of equipment whose
function is to facilitate the copyright activities. These
include TV sets, radios, DVD players, electronic game
consoles, computers, musical instruments, photographic
instruments, blank recording material, and paper.
3. Partial Copyright Industries, whose main activities may
not be copyright but include a significant component that
is based on copyright as defined in (1). These include
architecture, engineering and surveying, interior design,
museums, and furniture design and jewelry and coins.
MAIN GROUPS OF COPYRIGHT
INDUSTRIES
4. Non-dedicated Support Industries (not elsewhere
counted), which are the distribution industries that
facilitate broadcasting, communication distribution
or sales of copyright-based activity but which have
not been classified in the core or partial copyright
activities. These are intended to measure spillover
effects of the Core, Interdependent and Partial
Copyright Industries but are in themselves not
normally thought of as copyright activities. The
industries include general wholesale and retailing,
general transportation, telephony and the Internet.
ESTIMATES JAMAICA, T&T
 Jamaica – estimates for Jamaica need to be updated!!!
 2005
 4.8% of GDP
 3.03% of jobs
 Trinidad & Tobago, despite the overwhelming dominance
of the petroleum industry, copyright-based industries
contributed:
 2011
 4.8% of GDP
 5% of jobs
 2007
 4% of GDP
 5.1% of jobs
 2000
 3.6% of GDP
 3.9% of jobs
OECS DATA
 Data for the OECS show a very strong rising trend in the share of
copyright in GDP (St Lucia).
The Share of Copyright in St Lucia GDP, 2000-2010
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Contribution of Copyright Sector by Country Conducting WIPO-Sponsored Studies
No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
Baseline Year
2011
2007
2007
2005
2009
2006
2006
2004
2005
2005
2004
2005
2007
2007
2000
2005
2003
2005
2008
2004
2006
2004
2000
2005
2005
2005
2005
Country
Trinidad & Tobago
USA
Australia
Korea
Hungary
Panama
China
Russia
Netherlands
Malaysia
Singapore
Romania
Kenya
Slovenia
Philippines
Jamaica
Mexico
Lebanon
Bulgaria
Canada
Pakistan
Croatia
Latvia
Peru
Colombia
Ukraine
Brunei
Average
Contribution to GDP (%)
4.8
11.12
10.30
8.67
7.40
6.95
6.41
6.06
5.90
5.80
5.80
5.54
5.32
5.10
4.92
4.80
4.77
4.75
4.54
4.50
4.45
4.42
4.00
3.60
3.30
3.47
2.00
5.53
% of Employment
5.0
8.49
8.00
4.31
7.20
6.35
6.50
7.30
8.80
7.50
5.90
4.17
3.26
6.80
11.10
3.03
11.01
4.49
4.92
5.55
3.71
4.64
4.50
2.51
5.80
1.91
3.30
5.81
WHY RELEVANT TO DEVELOPMENT?
 The share of each sector to GDP, employment, and
trade are the “weights” that determine the impact of
the sector on
 Labour productivity and labour productivity growth.
 Import productivity and import productivity growth
 Productivity growth is the central driver of development.
 Countries like the US extract a high contribution from
copyright to their productivity growth because the
sector contributes a high share to output and
employment.
 US – 11.12% GDP; 8.49% of jobs
 Australia – 10.3% GDP; 8.49% of jobs
DEVELOPMENT WITH COPYRIGHT
 Development combines per capita income, education and
healthcare to raise living standards
 Standard of living depends on both labour productivity and
import productivity.
 Growth of productivity depends on the structure of the economy
– this is a major reason the copyright sector studies are
important
 Structure of economy depends on:
a. a high capital-labour ratio, which is really a multiple of consumption
per worker and the ratio of the output of capital to the output of
consumer supplies,
b. a high capital-import ratio, which is really a multiple of the capitalexports ratio and import productivity in the export sector.
c. both, as is most likely.
 (a) and (b)
cooperation
are
the
keys
to
relevant
development
COPYRIGHT AND DEV, CONT’D
Capital output includes the major capital
services of education, healthcare, housing,
music, press and literature, and the like.
Music, press and such activities, are core
capital outputs of the Copyright-based
sector
 These are high productivity activities
 As their collective share in the economy,
employment and trade grows, so does the
development prospects of the society.
COPYRIGHT AND DEVELOPMENT POLICY
Policy Model Used
Econometric model of the nexus of
profits - labour productivity – import
productivity
Explanatory variables included
Export-output ratio
Import-domestic shipments ratio
PARAMETER ESTIMATES
Parameter estimates show
 Main basis on which copyright sector is likely to
be generating its advantages is
 a rising share of domestic capital in total capital used
 a high ratio of demand for domestic intermediates
through the interindustry system
 High ratio of music exports to total music output –
 note, music is a capital service
 The ratio of domestic capital to imported capital
has the biggest impact on
 the profit share
 the productivity of imports, which then transmit positive
impacts to labour productivity.
POLICY IMPLICATIONS
 The policy implications
 Grow the ratio of output of capital-to consumer supplies
 Grow the capital-exports ratio –> increase exports of
domestic capital
 Focus on growing domestic capital as a share of total
capital
 Focus on growing skills as the main component of the
domestic capital
 Implications are consistent with the suggestions of
the successful players in the industry.
 This approach to policy is not strictly consistent
with trade restrictive approaches to support for the
copyright sector.
POLICY CONT’D
Evidence
sector
suggests
the
copyright
Can thrive and grow in a competitive
global
environment,
without
trade
restrictions.
Should be supported in its efforts to take
advantage of the expanded access to a
global market in the relatively free trading
context.
Should be supported in its efforts to
grows domestic capital, especially for
export.
POLICY FINAL
 The nonlinearities – quadratics - in the estimated model
suggest that there are multiple solutions
 Implies that a strong push to good governance is a necessary
component of the policies required to take advantage of the
potential of the copyright sector.
 In addition, the copyright industries are themselves
democratizing industries, in that a large segment of the
industry wields substantial public education power.
 This suggests that the single largest domestic capital
development project needed is one that develops systems
of governance that promote reliance on the will of the
people.
THANK YOU