Transcript The International Context

Second International Cultural Industries
Forum
A Global Overview of Developments and
Research on the Copyright-Based Industries
Dimiter Gantchev
World Intellectual Property Organization
Beijing, October 26, 2008
Outline
• The international context
• The copyright economic research framework
• The global research evidence
• Lessons
• Future avenues
Mr. D. Gantchev-WIPO
The International Context
• Growing interest towards research
– 50% increase in demand
– Policy driven
– Development-oriented
– Identifying new sources of growth in the knowledge economy
– Geographical spread
• Public interest
• Industry and academic interest
Mr. D. Gantchev-WIPO
The Intellectual Property Context
• Unprecedented level of interest in IP
• Overriding concerns
– how to exploit IP more efficiently
– how to deal with piracy
• IP as a component of development strategies and policies on the
creative sector
• International focus
– soft law
– best practices
• National focus
– technological and policy solutions
– ISP liabilities
– flexibilities
The Copyright Perspective
• Benefits of using copyright:
– clearly defined concept
– no formalities, optional for creators
– widely used as
• legal framework
• financial mechanism
• market access tool
• security incentive
– can be linked to quantifiable indicators to benchmark
creativity
• Need of evidence
– to prove the case for IP and
– to deal with misperceptions
Mr. D Gantchev -WIPO
5.
Tendencies in Research
• Overlapping, competing and converging agendas
• New levels of breadth and depth of the research
• Improvement of
– methodologies, statistical frameworks, data collection practices
• Links to other policy areas
– Competition
– Cultural policy
– Education
– R&D
– Trade
– Traditional knowledge and expressions of folklore
Definitions
• Importance of definitions
– delimit the scope and conceptualize
– serve policies
• Creative, cultural, copyrigth-based…
• Minor differences and great similarities
– The creator at the heart of the definition
– Tendency to focus on core/ periphery models
• different level of coverage, precision and elaboration
– Favouring “Creativity” to enable an economic view on cultural
policy
• WIPO definition: Creative industries are those involved directly or
indirectly in the creation, manufacture, production, broadcast and
distribution of copyright works
The WIPO measurement model
Basic Principles
• Use of copyright as a main criteria for the delimitation
– In-built national adaptation
• Production/industrial approach
– difficult to reconcile with exiting consuption approaches
• Disaggregation of economic activities to the lowest possible
level
• transparent link to statistical reporting
• focus on comparability
– international and cross-sectoral
• provide solid data as input for policy formulation
Mr. D. Gantchev-WIPO
8.
The Copyright Industries
Core copyright industries
-
fundamentally 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
9.
Mr. Gantchev - WIPO
The Empirical Evidence
Country
USA
Singapore
Canada
Contribution to GDP
% of Employment
11,12
5,80
4,50
8,49
5,90
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
Malaysia
5,80
7,50
Colombia
3,30
5,80
Ongoing: Brazil, China, Kenya, Morocco, Nigeria, Pakistan, Sudan, Tanzania, Panama
Mr. D. Gantchev-WIPO
11.
Contribution of Creative Industries to GDP and
Employment (%)
12
10
8
11.1
8.49
8.67
Employment
7.5
4.31 5.8
5.8
3.3
Colombia
Malaysia
GDP
Korea
Ukraine
3.6
2.51 3.47
1.91
Peru
Romania
Jamaica
Croatia
Philippines
Hungary
Latvia
Canada
Singapore
USA
0
6.06
4.31
4.77
4.49
4.75
4.22
3.42
4.42 4.8 5.55
4.19
3.03
Lebanon
2
GDP
7.3
Russia
7.1
5.8
5.55
6.67
5.7
4.5
4.5
4.92
4
Bulgaria
4
11.01
Mexico
611.12
Mr. D. Gantchev-WIPO
Contribution by groups of countries
Average Contribution of the CIs to GDP and Employment
8
7.5
7
6.21
6.04
6
4.8
Employment
Average
5.68
4.79
5
4.04
GDP
Contribution (%) 4
Employment
GDP
Avereage
5.45
3
2
1
0
Developed
In Transition
Developing
Mr. D. Gantchev-WIPO
Contribution to GDP by Industry (2)
6%
1%
9%
press and literature
3%
6%
44%
software
radio and tv
Music, theatrical productions and opera
motion pidcture and video
visual and graphic arts
Photography
9%
cr collecting societies
advertising
12%
10%
Mr. D. Gantchev-WIPO
Contribution to Employment by Industry (1)
100%
80%
advertising
60%
cr collecting societies
Photography
visual and graphic arts
40%
motion pidcture and video
Music, theatrical
productions and opera
radio and tv
20%
software
press and literature
0%
LATVIA
HUNGARY
PHILIPPINES
M EXICO
JAM AICA
BULGARIA
LEBANON
CROATIA
UKRAINE
PERU
Contribution to Emloyment by Industry (2)
press and literature
5% 0%
9%
software
3%
5%
39%
radio and tv
Music, theatrical productions and
opera
motion pidcture and video
visual and graphic arts
12%
Photography
11%
16%
cr collecting societies
advertising
Lessons (1)
• Surprisingly significant contribution
• Results do not follow development patterns
– GDP contribution higher in developed countries
– Employment share higher in the developing world
• Clear drivers – publishing, R/TV, software, music, film, advertising
• Internal repositioning of sectors, indicative of structural changes in
the economy
• Impressive dynamics
• Higher capital and labour productivity in driving sectors v/s traditional
• Cyclical development, higher volatility than traditional sectors and
non-significant time lag
• Strong employment multipliers
GDP share versus per capita gdp
12
10
R2 = 0,3761
gdp
8
6
4
2
0
0
10000
20000
30000
40000
50000
60000
per capita gdp
Slide taken from J. Theeuwes, WIPO Expert
Meeting, Singapore, October 9, 2008
Employment share versus per capita gdp
12
10
empl
8
R2 = 0,0689
6
4
2
0
0
10000
20000
30000
40000
50000
60000
per capita gdp
Slide taken from J. Theeuwes, WIPO Expert
Meeting, Singapore, October 9, 2008
Lessons (2)
• major difficulties in capturing trade in intangibles
• useful in identifying
– competitive advantages
– problem areas
• Constant search for new indicators
– Productivity
– Multipliers
– Compensation of employees
– Contribution to real GDP and employment growth
Variations and Uses of Research
• Variations of scope
– Limiting or extending the scope
– Appropriateness of indicators to national specific circumstances
– Extent of incorporation of analysis and recommendations
• Evolutionary uses
– Various extent of linking to policy action
– Ability to follow up on specific industries
– regular reviews
– capacity building activities
– designing strategies
Future Avenues
• New generations of vertical and horizontal studies
• Issues for further analysis
– Causality
– Impact assessment
– Capture the value of copyright
• Database of results and problem solving experiences
• Methodology development
• Conceptualizing the creative industries
• International cooperation
• Developing and using IP tools for creators for capacity-building
Mr. D. Gantchev-WIPO
Final Words
• Crucial role of the evidence
– promotes understanding the potential of the creative sector
– opens the door for policy interventions
– makes sense if produced on regular basis
• Development is positively influenced by the ability to economically
exploit IP assets
• National strategies should build on a comprehensive analysis of the
relations of the creative sector with other sectors of the economy
• The existence of parallel approaches enriches the analysis of the
creative sector
Mr. D. Gantchev-WIPO
Thank You!
Mr. D. Gantchev - WIPO
24.