Boost large-scale investments in region-specific strategies to unlock the power of 'Foreign Direct Investment' in the UK's creative sectors, suggests fresh research.

Inbound and outbound Foreign Direct Investment (FDI) in the UK's creative industries is set to remain a key focus for policymakers, according to a new report from the Creative Industries Policy and Evidence Centre (Creative PEC). The report, titled 'Foreign direct investment and the UK's creative industries', was published in 2024 and offers crucial insights into this vital sector.

The UK's position as a global leader in attracting FDI into the creative industries is maintained, according to the research undertaken by the Creative PEC's team at Newcastle University. On average, the creative industries accounted for 10.3% of all inward FDI projects between 2013 and 2023, capturing 9.3% of the global share of creative FDI. These figures highlight the sector's standing as an important destination for foreign investment and its contribution to the UK's economic landscape.

Notably, the United States is the primary source of investment, providing nearly 45% of all creative inward FDI in the UK. This statistic takes on added significance in the context of a new Trump administration.

The creative industries' share of inward FDI has seen a decline from a peak in 2021, indicating that the upcoming UK government industrial strategy would benefit from prioritizing measures aimed at attracting inward FDI and stimulating outward FDI. Inward FDI tends to be concentrated in mergers and acquisitions (M&As), a pattern that contrasts with non-creative FDI.

Regional variation exists within the creative FDI landscape, with advertising and marketing investments often occurring in the South East of England, whereas software and computer services investments are mostly found in major cities. FDI in Architecture, Film, TV, radio and photography, and Publishing is spread across the UK, an indication that regional creative clusters may have an influential role in attracting FDI.

In a statement, Christopher Smith, Executive Chair of the Arts and Humanities Research Council (AHRC), said that the report underscores the need for strategic, place-based investment in the creative industries in order to unlock maximum potential. He noted the significance of regional creative clusters in the attraction of inward investment.

Professor Hasan Bakhshi, Director of Creative PEC, emphasized that policymakers and businesses in the creative industries could benefit from high-quality, granular data on investment, such as the type (greenfield or M&A), origin, geography, and rationale. The report offers a valuable resource for policymakers and businesses as they compete for investment funds and opportunities.

The report is the sixth in the Creative PEC's 'State of the Nations' series, which provides regular reporting on creative economy trends to support robust policymaking. It will be formally launched during an online event at 12 noon on Wednesday 20 November 2024.

For more details on the report, visit the Creative PEC's website. The authors Dr Jonathan Jones, Daniel Simandjuntak, Sara Maioli, and Giorgio Fazio, currently affiliated with Newcastle University, are available for comment and interview. Press contacts for queries can be found in the press release accompanying the report.

The Creative Industries Policy and Evidence Centre (Creative PEC) emphasizes that the UK's creative industries will continue to attract significant Foreign Direct Investment (FDI), as stated in their 2024 report titled 'Foreign direct investment and the UK's creative industries'.
The report provides critical insights into the creative industries' crucial role in the UK's economy, revealing that on average, these industries accounted for 10.3% of all inward FDI projects between 2013 and 2023.
Interestingly, the United States is the primary source of investment for the UK's creative industries, supplying almost 45% of all creative inward FDI.
The decline in the creative industries' share of inward FDI from its 2021 peak suggests that the upcoming UK government should prioritize strategies that encourage inward and outward FDI.
The report highlights regional variations in creative FDI, with advertising and marketing investments predominantly happening in the South East of England, while software and computer services investments are mainly found in major cities.
Christopher Smith, Executive Chair of the Arts and Humanities Research Council (AHRC), underlines the importance of targeted, place-based investment in the creative industries to maximize their potential.
Professor Hasan Bakhshi, Director of Creative PEC, stresses the need for high-quality, detailed data on investment in the creative industries, such as the type, origin, geography, and reasoning, to help policymakers and businesses compete for investment funds and opportunities.

Boost large-scale investments in region-specific strategies to unlock the power of 'Foreign Direct Investment' in the UK's creative sectors, suggests fresh research.