Geographical Explorations of Innovation and Originality
The Creative PEC's latest report, titled "A Creative PEC State of the Nations," sheds light on the current state of the UK’s creative industries and their geography. The report, which is the first in a new series aiming to inform policymakers about supporting the creative sector, highlights several key findings.
Key Findings
The creative industries have emerged as a major growth sector in the UK economy, contributing over £124 billion in 2023, about 5.2% of the UK’s Gross Value Added (GVA), and employing 2.4 million people (7.1% of the workforce). This marks a substantial increase since 2019, with growth in jobs nearly 4.3 times faster than the national average.
The sector encompasses a diverse set of fields, including advertising, architecture, design, film, music, and video games. However, there is a high reliance on freelancers, who constitute about 32% of the creative workforce, significantly above the 16% self-employment rate in the overall UK economy.
The UK creative industries also depend heavily on international talent, with migrants comprising 16% of the creative workforce compared to 14% in the wider economy. The number of visas issued for creative occupations rose by 70% since 2021, evidencing increasing immigration to support sector growth.
The government’s Modern Industrial Strategy aims to nearly double business investment in creative industries from £17 billion to £31 billion by 2035, emphasizing innovation and internationalisation.
Role of Creative Corridors in Economic Growth
The report underscores the strategic value of "creative corridors" as drivers of economic development. Creative corridors—geographically connected clusters of creative businesses and talent—are instrumental in fostering innovation, collaboration, and economic scale across regions.
For example, initiatives like the Northern Creative Corridor connect creative clusters across the North of England, supporting regional economic development by linking talent, institutions, and businesses to stimulate growth. These corridors contribute to economic growth by enhancing knowledge exchange and cross-sector collaboration, attracting and retaining skilled workers, increasing foreign direct investment and trade opportunities, and supporting skills development and innovative sector-specific workforce strategies.
Recommendations
The report offers several recommendations for policymakers to sustain and amplify the momentum in the creative industries. These include recognising the diversity within the creative workforce, especially addressing the distinct needs of freelancers through tailored policies on skills training, immigration, and employment support.
Continued support for international migration policies that facilitate talent attraction is also important, given the sector’s reliance on migrant workers to maintain its growth trajectory. Investment in the infrastructure and connectivity of creative corridors is recommended to maximise regional benefits, unlock local economic potential, and integrate creative clusters more effectively into the UK economy.
Enhancing government and industry collaboration on skills initiatives and innovation can help sustain the sector's rapid growth and international competitiveness.
In summary, the "State of the Nations" report positions the UK's creative industries as a vibrant, rapidly expanding economic force fueled by freelancers and international talent, with creative corridors playing a crucial role in spatial economic growth and innovation. Policymaking should prioritise tailored support for freelancers, immigration facilitation, and strategic investment in these collaborative geographic networks to sustain and amplify this momentum.
[1] Creative Industries Federation. (2023). State of the Nations Report. [2] Creative Industries Policy and Evidence Centre. (2023). State of the Nations Report. [3] Department for Digital, Culture, Media and Sport. (2023). Modern Industrial Strategy. [4] Creative Industries Policy and Evidence Centre. (2023). Northern Creative Corridor.
- The creative industries in the UK, as highlighted in the Creative PEC's report, contributed over £124 billion to the economy in 2023, indicating its significant growth.
- The creative sector comprises various fields, such as advertising, architecture, design, film, music, and video games, while freelancers constitute about 32% of the creative workforce.
- The UK creative industries heavily rely on international talent, with 16% of the creative workforce consisting of migrants compared to the 14% in the wider economy.
- The Modern Industrial Strategy aims to boost investment in the creative industries, aiming to nearly double it from £17 billion to £31 billion by 2035.
- Creative corridors, geographically connected clusters of creative businesses and talent, are instrumental in fostering innovation, collaboration, and economic scale across regions.
- The Northern Creative Corridor, connecting creative clusters across the North of England, supports regional economic development by linking talent, institutions, and businesses.
- Policymakers are advised to recognise the diversity within the creative workforce and provide tailored policies to address the distinct needs of freelancers.
- Continued support for international migration policies that facilitate talent attraction is vital, given the sector’s reliance on migrant workers to maintain growth.
- Investment in the infrastructure and connectivity of creative corridors is recommended to maximise regional benefits, unlock local economic potential, and integrate creative clusters more effectively into the UK economy.
- Enhancing government and industry collaboration on skills initiatives and innovation can help sustain the sector's rapid growth and international competitiveness while addressing the sector's distinct needs.
