Creative Economy: A Feasible Development Option

Figure 7.4Subscribers per 100 inh.40035030025020015010050035302520151050Global mobile broadband subscribers by main country groupings,2003 – 2008 (millions and per 100 inhabitants)Developed Developing EIT % ChangeWorld Developed Developing EIT2003 2004 2005 2006 2007 2008Source: UNCTAD, based on ITU and national datamobile. Developments in the creative economy go hand-inhandwith the evolution of these ITC technologies.The EU Digital Agenda is one of seven flagship initiativesof the Europe 2020 strategy. The EuropeanCommission is committed to creating a true single marketfor online content and services, with borderless and safe EUweb services and digital content markets, high levels of trustand confidence, a balanced regulatory framework governingthe management of intellectual property rights, measures tofacilitate cross-border online content services, the fosteringof multi-territorial licenses, adequate protection andremuneration for rights holders and active support for thedigitization of Europe’s rich cultural heritage. 4100%90%80%70%60%50%40%30%20%10%0%Figure 7.5199820071998 and 2007, the value of ICT goods exports rosefrom $813 billion to $1.73 trillion. Recently, developingcountries have gained market share in the worldtrade of ICTs, increasing from 38 per cent in 1998to 57 per cent in 2007. This surge was almost entirelyattributable to Asian developing countries. South-South trade has also gained in importance, reachingmore than 32 per cent of global ITC exports in2007. 5 The top five exporters of ITC goods areChina, United States, Hong Kong China, Japan andSingapore, which together accounted for over half theglobal market. The rise of China and the rest of Eastand Southeast Asia as an export platform for ICTgoods results from an increasingly integrated globalproduction system. ICT goods production has graduallyconverged in locations that offer a combinationof relatively high human capital in terms of skills andrelatively low labour costs. Figure 7.5 provides a pictureof trade flows of ICT goods by main regions,including South-South and South-North.South-South investment is already a major source offunding for developing country mobile networks, andthis is likely to continue despite the economic down-24%19%Exports of ICT goods by main regions, 1998 and 2007 (per cent)32%15%42%26%North to NorthSouth to NorthNorth to SouthSouth to South7Technology, connectivity and the creative economy7.2.4 Global shifts boost South-Southtrade and investment in ICT goodsWorld trade in ICT goods has fluctuated during thepast decade. While ICT goods belonged to the most dynamicareas of world trade until 2000, they have subsequentlyexpanded less rapidly. According to UNCTAD, between26%16%Source: UNCTAD, based on COMTRADE data.Note: Economies in transition are included in the “South.”North to NorthSouth to NorthNorth to SouthSouth to South4 European Commission (2010). “Unlocking the potential of cultural and creative industries.5 UNCTAD (2009). Information Economy Report 2009 – Trends and Outlook in Turbulent Times.CREATIVE ECONOMY REPORT 2010193