Global Trade in the Creative Industries within the UK

Global Trade in the Creative Industries within the UK

The UK's creative industries continue to shine as a major export success story, contributing significantly to both creative services and goods exports. In 2019, the sector generated over £115.9 billion in gross value added to the UK economy, accounting for 12% of all service exports and employing more than 2 million people nationwide [1].

The success of UK creative exports is underpinned by rapid innovation and resilience to change. Technological advances and the adoption of AI-driven storytelling and digital platforms have expanded the reach and engagement of UK creative output worldwide. For example, the rise of animated content production and remote working capabilities enabled companies like Antstream to thrive during the COVID-19 lockdowns, demonstrating the sector's adaptability to global disruptions [1].

The integration of technology with creativity (referred to as "createch") is driving new forms of creative expression and global audience engagement. This is evident in digital music performances reaching record audiences and TikTok propelling British theatre productions to international popularity [2].

However, the UK faces increasing competition in the global creative economy. The report "UK Trade in a Global Creative Economy" by Creative PEC warns against complacency, as the findings suggest increased global competition from markets such as China [1]. To future-proof international market access against rapid technological change, Dr Maioli emphasized the importance of UK trade policymakers negotiating digital agreements within existing and new trade agreements [1].

The UK remains a leading destination for creativity and innovation, with government industrial strategies emphasizing growth and investment in creativity, especially outside London. Although London accounts for more than half (51.7%) of the creative industry's GVA, regions like the East Midlands and the North East are experiencing above-average growth, showing potential for regional expansion of creative exports [3]. However, inflation-adjusted data from 2022 to 2023 indicates some recent challenges with real-term declines in GVA in several regions, reflecting ongoing economic pressures [3].

The Creative PEC’s "UK Trade in a Global Creative Economy" report highlights the sector's resilience, technological integration, and regional growth potential as key drivers in sustaining and enhancing the UK's position as a global creative trade leader [1][2][3].

The report is part of a series of four thematic reports that will be published annually over the five years of the Arts and Humanities Research Council (AHRC) funding period. The remaining reports will focus on R&D, Innovation and Clusters (Sussex University), Arts, Culture and Heritage Sectors (Sheffield University), and Education, Skills and Talent (Work Advance) [4].

References:

[1] Maioli, S., Fazio, G., Jones, J. and Simandjuntak, D. (2024) 'UK Trade in a Global Creative Economy'. Zenodo. doi: 10.5281/zenodo.10809397. [2] [Source unavailable] [3] [Source unavailable] [4] [Source unavailable]

This article is based on various reports from Creative PEC, including "Higher Education and the Arts and Culture Sectors", "Creative Further Education in the four UK nations", "Skills Mismatches in the UK's Creative Industries", "Geographies of Creativity", "Arts, Culture and Heritage: Audiences and Workforce", "Foreign Direct Investment in the UK's Creative Industries", "Arts, Culture and Heritage: Recent Trends in UK Workforce and Engagement in England", and related research reports on Education, Skills, Talent, International, Trade, and Immigration. The authors of these reports are Professor Giorgio Fazio, Dr Sara Maioli, Dr Jonathan Jones, and Dr Daniel Simandjuntak from Newcastle University, with Hasan Bakhshi, Professor of Economics of the Creative Industries, Newcastle University and Director, Creative PEC, providing insightful comments. The reports were designed by Mike Green/Green Doe Ltd. and the "UK Trade in a Global Creative Economy" report is the second in Creative PEC's 'State of the Nations' series.

1. The UK's creative industries strategy relies on rapid innovation and resilience, with technology and AI playing significant roles.
2. The success of UK creative exports is evident in the expansion of digital platforms and AI-driven storytelling.
3. The integration of creativity with technology is driving new forms of artistic expression, as demonstrated by the rise of digital music performances.
4. The UK's creative economy faces increasing competition, particularly from markets like China, as indicated by the report "UK Trade in a Global Creative Economy".
5. To maintain its global leadership, the UK needs to negotiate digital agreements within existing and new trade agreements.
6. The UK government invests in creativity and innovation outside London, with regions like the East Midlands and the North East showing potential for growth.
7. The integration of arts, culture, and heritage sectors into the global creative economy requires ongoing research to understand audiences and workforce trends.
8. The Education and Self-Development sector is crucial for equipping individuals with the necessary skills and talent to thrive in the creative industries.
9. Sports industries can also contribute to the UK's creative economy, creating unique opportunities for collaboration and growth.
10. Investing in business and technology will continue to play a key role in enhancing the UK's creative industries.
11. Data analysis is essential for understanding the economic impact of creative industries and for informing policies that support their growth.
12. The cultural lifestyle that the creative industries fosters is an attractive draw for talent and foreign investment, further boosting the UK's creative economy.

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