Cultural and creative industries in London

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Cultural and creative industries in London

• Alan Freeman

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What good are the arts?
You are a clever, generous man, Dymov, she
would say, but you have one very serious defect.
You take absolutely no interest in art. You don't
believe in music or painting. I don't
understand them, he would say mildly. I have
spent all my life in science and medicine, and I
never had time to take an interest in the arts.
But that's awful, Dymov! Why? Your friends
dont know anything about science or medicine,
but you don't hold it against them. Everyone does
his thing. I don't understand landscapes and
operas, but the way I look at it is that if one
lot of sensible people devote their lives to
them, and another lot of sensible people pay
immense sums for them, they must have a use. I
don't understand them, but thats no reason to
disbelieve them. Anton Chekhov, The Grasshopper
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Statistical framework

• OECD framework 2006
• European Cultural Strategy and measurement
  framework
• http//www.european-creative-industries.eu
• UK Creative Economy Programme and DCMS framework
• www.culture.gov.uk
• London Culture Strategy Mayoral statutory
  responsibility
• Requires an evidence base
• Creativity Londons Core Business
• 2004 update
• 2005 local area study
• 2007 update

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DCMS definition

• DCMS method described as Trident (Cunningham)
• A classification system for enterprises (SIC) and
  occupations (SOC)
• Production of cultural products by creative
  workers
• Production of cultural products by non-creative
  workers
• Production of non-cultural products by creative
  workers
• EG
• Musicians in the music industry
• Stage technicians in the music industry
• Musicians outside the music industry (eg schools)
• Slight differences from European standard
• Excludes heritage
• Visual and performing Arts
• Arts and Antiques
• Fashion

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A large sector

• EU turnover 654 billion in 2003.
• Car manufacturing industry 271 billion in 2001,
  ICT manufacturers 541 billion in 2003
• 2.6 of EU GDP in 2003.
• Real estate 2.1 Food, beverage and tobacco
  manufacturing 1.9 textiles 0.5chemicals,
  rubber and plastic products industry 2.3
• 5.8 million EU employees
• In UK 1.8 million probably more extensive defn
• In London, 1 in every 5 (550,000)
• Only Financial and Business Services is bigger

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A growth sector

• Europe CI GVA growth 19.7 1999-2003
• Average overall 7.4
• Annual world trade growth in cultural products
  1980-1998 8.7
• Average all products 6.2
• London 45 employment growth 1994-2001
• average whole economy 17

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A historical transition
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Two crossovers
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GLA definition

• A common output, produced by a common process,
  using a common resource
• Output culturally differentiated goods and
  services
• Process production to abstract or imprecise
  specification
• Resource creative labour
• Technological driver
• Remote and multiple service delivery
• a productivity revolution in services

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How new are the cultural and creative
industries?

• Theatre
• The Book and Print
• Cotton, Textiles, and the Industrial Revolution
• The Jacquard Loom, Babbage
• Colours, Aniline, and the modern chemical
  industry
• The Film
• The Gramophone
• Modern Times

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Fashion driver of the industrial revolution
The history of dress poses all problems, those
of primary materials, of processes of
manufacture, of cost price, of cultural fixities,
of fashion, and of social hierarchies At
Rumegies rich peasants sacrificed all luxuries
for dress. young men with hats encrusted with
gold and silver, and then the rest girls with
foot-high coiffures and other habits in
proportion. Braudel (1979351) Merchants who
were princes in wealth, rather than by birth,
were able to outstrip true nobility. Extravagance
became so universal that the church and crown
thought it necessary to put a check on the
ostentatious display of the newly rich. - Kippen
(2004)
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Where creative jobs locate
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Total creative jobs
Source ABI, LFS, GLA Economics, Trends Business
Research Total Creative Employment workforce
employment in the creative industries creative
occupations outside the creative industries
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Creative and total employment in London
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Public and private sector employment in London
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Creative industries are more volatile still
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To whom do the creative industries sell their
products?
Source Office for National Statistics
input-output tables 2004
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Business-led creative industries make 42 of
creative output
Sales by broad creative industry groups
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Finance agglomeration
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Creative agglomeration
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A pattern of specialisation
I working in Creative industry O in Creative
Occupation O ? I Total Creative Workforce
industry occupation (DCMS definition) O? I
specialist workforce (any creative occupation
also working in creative industry) O? I /O ? I
Creative Factor Utilisation indicator
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Creative and non-creative manufacturing
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Cultural audit of London

• OECD 2006 conference as base for indicators
• Benchmark Shanghai, Paris, Tokyo, Mumbai, Berlin
• All aspects of cultural consumption and
  architecture
• Cultural inventory (data providers)
• The industry wants to know about itself
• Web 2.0 data-gathering techniques
• Seeking partner cities
• Seeking official statistical support