Creating Prosperity: the role of higher education in ... - Universities UK

Creating Prosperity: the role of higher educationin driving the UK’s creative economy62.19 More recently, there has been some interest in the contribution that creative industries can maketo economic recovery. A recent Work Foundation report identified creative industries as one of fourkey areas that will drive future economic growth in the UK (Work Foundation, 2010). This reflects notonly their potential for direct business and employment creation, but also their wider role in drivinginnovation in other parts of the economy, from manufacturing to tourism. Without a thriving creativesector, the UK will be a less potent force in the global economy.The policy context2.20 As noted, the creative industries have long been high on the policy agenda in the UK, as elsewherein the world. As more developed economies realise the potential of the creative economy, there isincreasing policy attention on and investment in the creative industries as a way of enhancing futureeconomic competitiveness.2.21 The Green Paper published by the European Commission, Unlocking the potential of the culturaland creative industries, is a recent example of this, and indicates a clear desire on the part of theCommission to develop a strategic approach to the sector at EU level.2.22 In the UK, we are still in the early stages of the new Government and, as a result, specific policypriorities for the creative industries are not yet fully developed. High-level policy pronouncementssuch as the prime minister’s speech on transforming the British economy (May 2010) pledged ongoingsupport for the UK’s creative industries, and the new Secretary of State for Culture, Olympics, Mediaand Sport, Jeremy Hunt, confirmed the Government’s commitment to the sector in keynote speecheson the arts and the media. The important role of the creative industries in the UK’s economic futurewas also mentioned in the chancellor’s recent speech on the CSR (October 2010).2.23 However, the recent CSR outlined very significant cuts in funding for arts and culture. A number ofcultural bodies will be abolished, including the UK Film Council and the Museums, Libraries andArchives Council, and the CSR outlined reductions of 24 per cent to the DCMS budget and 30 percent to the budget for the Arts Council England. The BBC’s licence fee income will also be frozenuntil 2016–17, and greater demands will be placed upon this money to support the developmentof the broadband infrastructure. At the same time, there are plans to reform the National Lotteryto ensure more investment in the heritage and the arts, and the plans to improve ‘super-fast’broadband will help the growth of the creative sector.2.24 This is a somewhat confusing and conflicting policy picture. High-level statements promise ongoingsupport for the creative industries while the sector faces substantial cuts in public funding. Therefore,the policy priorities remain unclear. Indeed, a recent report by the Confederation of British Industry(CBI) has called on the Government to develop a new creative industries strategy (CBI, 2010).2.25 Creative economy policy under the previous Labour Government was largely articulated in two keypolicy documents – Creative Britain and Digital Britain – and through the subsequent Digital EconomyAct (2010), which the Coalition Government has decided not to repeal. While the role of highereducation has been recognised within creative economy policy, it is generally more focused on skillsprovision than on research and knowledge exchange. There is little evidence that the wider role ofhigher education in ideas generation, creative entrepreneurship, regional development and talentattraction is recognised.2.26 As well as tending to underplay the role of higher education, past creative economy policy presentsthis role in an often negative way, stressing the need to address a perceived mismatch betweenindustry demand for skills and training, and education supply.2.0 The context