Creative Economy: A Feasible Development Option

Table 5.28Chart 5.19(in billions of $)200180160140120100806040200Royalties and licence fees: World exportsand imports, 2002, 2005 and 2008Value (in billions of $)2002 2005 2008Exports 83.0 131.5 182.1Imports 90.5 137.3 185.2Source: UNCTAD based on IMF balance of payments statistics.Royalties and licence fees: World exportsand imports, 2002, 2005 and 20082002 2005 2008Source: UNCTAD, based on IMF balance of payment statistics.ExportsImportsindustries, the data for royalties are, therefore, not includedin the total of creative services. The purpose is to avoid anymisinterpretations of overall revenues from creative services.Another consideration in the analysis of the economicimpact of creative industries is the direct relationshipbetween the trade figures for the creative industriesand trends in domestic and foreign investments in the creativesector. In this regard, the UNCTAD World InvestmentReport 2006 emphasizes that creative activity-related ICTsectors were the most important destinations for FDIworldwide, including in the context of North-South andSouth-South trade.Revenues associated with receipts of intellectual propertyrights (IPR) more than doubled between 2002 and 2008.Royalty revenues rose from $83 billion to $182 billion. Asimilar trend is shown for imports, which increased from $91billion to $185 billion during this same period (chart 5.19).5.6.10 Related industriesThere is no single definition of “creative industries”,but there are different approaches to classifying themdepending on the purpose of the analysis, as discussed inchapter 1. For WIPO, 53 the focus is on intellectual property,and thus creative industries are divided into four groupsrelating to intellectual property: “core”, “interdependent”,“partial” and “non-dedicated”. For UNESCO, emphasis isplaced on the cultural products, which are classified as“core” or “related” cultural products. In the case ofUNCTAD, the approach is more trade-oriented,and the focus is on creative goods and creative services.Therefore, the related industries are treatedapart, as an additional economic indicator that isdriven by the creative industries.There are two types of related industries: someserve as inputs in the creation process (e.g., paint fora painting), while others provide supporting equipmentneeded for the consumption or distribution ofcreative content (e.g., television sets for televisionbroadcasting). As they are part of a much broaderset of manufacturing, chemical and electronics sectors,they are not included in the totals of creativeindustries. Our concern is to avoid distortion andover-accounting in the trend analysis of creativegoods and services. Trade of related industries ispresented as an important indicator to identifytrends in the future demand for creative goods and services.Following the path of the world market for creativeindustries, 54 trade in goods from the related industries alsoshowed a remarkable annual growth rate of 10 per cent inthe period 2002-2008. The greatest growth was in relatedindustries linked to the field of new media, where exportsjumped from $133 billion to $263 billion, and then audiovisuals,where exports grew from $141 billion to $249 billionduring this period, reflecting technological advances(tables 3.2.A and 3.2.B in the annex).World exports reached $727 billion in 2008, up from$376 billion in 2002 (table 5.29 and chart 5.20). The spectaculargrowth of exports from developing economies in thisarea — from $134 billion to $400 billion — is noteworthy.This means that developing economies have a slightly largershare than developed economies. Moreover, the fast growth5International trade in creative goods and services: Global trends and features53 The WIPO model of copyright-based creative industries identifies four categories: “core”, “interdependent”, “partial” and “non-dedicated” industries. The UNESCO approach tocultural industries includes “core cultural goods”, “related cultural services” and “related cultural products”.54 See also the general explanatory notes in the annex.CREATIVE ECONOMY REPORT 2010163