Insights into the United Kingdom's cross-border commerce of artistic productions and services
The creative industries in the UK are a significant contributor to the nation's economy, with a trade surplus in services and a moderate deficit in goods with the EU, according to a report commissioned by the Creative Industries Council. The report, titled "The migrant and skills needs of creative businesses in the UK," offers insights into the sector's international trade potential.
The UK's creative industries, which include sectors such as film, television, music, publishing, and advertising, are characterised by strong intra-industry trade and a high export potential. In 2017, exports of creative goods and services accounted for nearly 45% of the Gross Value Added (GVA) to the UK by the creative industries, while imports accounted for 26% of the GVA.
The Creative Industries Sector Plan aims to maximise this export potential in new and existing markets, maintaining the UK's position as a top-tier destination for creative industries. The plan, which spans from 2021 to 2035, is designed to make the UK the best place globally to invest in creativity and drive innovation and tech adoption.
The plan includes increasing creative trade missions and targeting markets, such as the Asia-Pacific region, to enhance international trade opportunities. Moreover, it aims to nearly double business investment in the creative industries from £17 billion to £31 billion by 2035, supporting regional growth and innovation.
The plan also focuses on increasing innovation, access to finance, R&D, skills, and regional growth, ensuring the sector remains globally competitive and resilient. The report highlights the migrant and skills needs of creative businesses in the UK, but it does not discuss the current state of the UK's balance of payments or the net contribution of the creative industries to it.
It's important to note that the UK's departure from the EU has affected the way British firms trade and work with European counterparts in the creative industries. However, the EU remains the largest trading partner for UK creative goods and services.
Dr Salvatore Di Novo, a Research Associate at Newcastle University, and Professor Hasan Bakhshi MBE, the Professor of Economics of the Creative Industries and Director of Creative PEC, were involved in the research for this report. The report does not provide specific numbers or quantitative data about the impact of Brexit on the creative industries' trade with the EU.
Worldwide exports of creative goods exceeded 500 billion USD in 2015, with a 150% increase since 2002. However, creative services trade are subject to various degrees of regulation across the world, with the restrictiveness of these regulations varying greatly across sub-sector and geography.
In conclusion, the UK's creative industries are a significant contributor to the nation's economy, with a strong global presence. The Creative Industries Sector Plan aims to build on this success, ensuring the UK remains a top destination for creative industries and continues to drive innovation and growth.
- The report, focusing on the migrant and skills needs of creative businesses in the UK, offers insights into the potential of the sector's international trade.
- The Creative Industries Sector Plan targets increasing creative trade, especially in markets like the Asia-Pacific region, to improve international trade opportunities.
- The plan aims to nearly double business investment in the creative industries, supporting regional growth and innovation, with a goal of £31 billion by 2035.
- In addition to increasing investment, the plan focuses on innovation, access to finance, R&D, skills, and regional growth to ensure the sector remains globally competitive and resilient.
- Worldwide, exports of creative goods exceeded $500 billion in 2015, with a 150% increase since 2002, but creative services trade is subject to varying degrees of regulation across the globe.
- Despite the UK's departure from the EU affecting the way British firms trade with European counterparts, the EU remains the largest trading partner for UK creative goods and services.
