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

Creating Prosperity: the role of higher educationin driving the UK’s creative economyiiExecutive summaryIntroductionThis report summarises the findings of research commissioned by Universities UK into the role andcontribution of higher education in the UK’s creative economy. The research gathered evidence fromexisting data and research as well as case study analysis and contributions from industry, highereducation and public sector partners.The findings demonstrate not only the crucial role that higher education plays in the UK creativeeconomy, but also why that contribution will become increasingly important to economic recovery.During the latter stages of writing this report, it became evident, through the Independent Review ofHigher Education Funding and Student Finance (Browne Review) and the subsequent announcementsin the UK Government’s Comprehensive Spending Review, that it is likely that all direct public fundingfor teaching in universities, at least in England, could be withdrawn from the majority of subjectswhich support the creative industries. The importance of the creative industries to the economy, andthe importance of the higher education sector in underpinning the strength of the creative industries,means that the arguments presented in this report are even more timely and relevant.Why the creative industries matterAs the economy takes its first tentative steps out of recession, old certainties no longer hold, andthe post-recession economy must be built around knowledge, creativity and innovation if the UKis to remain a significant economic force.q‘The UK has the largestcreative sector in the EU,and relative to GDP probablythe largest in the world.It is a national asset inmultiple ways.’Work Foundation, 2007The creative industries, identified by the Work Foundation 1 as one of four sectors with greatestpotential to support economic recovery, have a central role to play in our future economic success,and were recognised by the chancellor as, ‘a key part of the new economy we are seeking to build’ 2 .This is one of the areas in which the UK can rightly claim to be world-leading. Over a million peoplework in the UK’s creative industries, with a further 800,000 employed in creative occupations inbusinesses outside the creative sector 3 . The sector accounts for more than seven per cent of UK GDPand has shown consistent, above-average growth for more than a decade. It is also proportionatelylarger than any creative sector in Europe (the creative industries account for 2.6 per cent of EU GDP 4 )and consistently punches above its weight in global markets.The creative industries are also important as pioneering sectors of the knowledge economy,developing and harnessing new technologies, and playing a central role in the transition to a digitaleconomy. The pervasive influence of creativity is felt across the economy, and the creative industriesnot only enrich our lives, but make the UK more attractive to businesses, visitors and the highlyskilledpeople that will support future innovation. The case for investing in our creative industriesis both clear and compelling.The UK is not alone in recognising this potential. Countries across the world are making substantialinvestment in the creative industries and their supporting infrastructure, and global competition isaccelerating. This investment ranges from the use of tax breaks and other fiscal incentives, such asthose used to support the games industries in Canada and France, to the massive direct investment innew media cities and clusters in Asia and the Middle East. In this fast moving and highly competitiveenvironment, the UK must look to its strengths, and invest in the development of high-levelknowledge, creativity and skills. This is the essential role of higher education.Executive summary