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A Dynamic Mapping of the UK's Creative Industries

A Dynamic Mapping of the UK's Creative Industries

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Published by Nesta

This paper presents an improved methodology for the classification of creative industries from the one currently used by the UK Department of Culture, Media and Sport (DCMS).

This paper presents an improved methodology for the classification of creative industries from the one currently used by the UK Department of Culture, Media and Sport (DCMS).

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Published by: Nesta on Jan 10, 2013
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03/12/2014

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A DYNAMICMAPPINGOF THE UK’S CREATIVE INDUSTRIES
 
Hasan Bakhshi, Aan Freeman and Peter HiggsThis version January 2013
 
About Nesta
Nesta is the UK’s innovation oundation. We help people and organisations bringgreat ideas to lie. We do this by providing investments and grants and mobilisingresearch, networks and skills.We are an independent charity and our work is enabled by an endowment romthe National Lottery.
Nesta Operating Company is a registered charity in England and Wales with company number 7706036 andcharity number 1144091. Registered as a charity in Scotland number SC042833. Registered oce: 1 Plough Place,London, EC4A 1DE
 .nesta.org.uk © Nesta 2013.
 
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A DYNAMIC MAPPING OF THE UK’S CREATIVE INDUSTRIES
ExECUTIVE SUMMARY
This paper argues that, despite its strengths, the UK Department o Culture, Media andSport (DCMS) classication o the creative industries contains inconsistencies which needto be addressed to make it ully t or purpose. It presents an improved methodologywhich retains the strengths o the DCMS’s approach while addressing its deciencies. Weocus on
creative intensity 
: the proportion o total employment within an industry that isengaged in creative occupations.Our analysis brings to light inconsistencies that undermine the strengths o the DCMSdenition as a
de acto
world standard, and will detract rom the understanding which ithas brought to the study o the creative economy, above all under conditions o structuraleconomic change, such as digitisation.Using the list o occupations which DCMS treats as ‘creative’, the intensity o the industriesit denes as creative alls within a narrow range – with only minor exceptions – thatis on average over 25 times greater than in the rest o the economy. This is a deningcharacteristic o such industries. However, DCMS’s choice o industries excludes importantcodes with high creative intensity that account or large amounts o employment.In addition, DCMS’s choice o occupations is itsel open to question, because the criteriaby which they are classied as ‘creative’ are not clear. We propose a rigorous method ordetermining which occupations are creative, scoring all occupations against a ‘grid’ o vetheoretically grounded criteria. The grid score o those occupations that DCMS considersas creative also lies in a range signicantly above the grid scores o other, non-creativeoccupations. However, as with its choice o industries, DCMS’s choice o occupationsexcludes codes that account or signicant employment and which, on the strength o arigorous classication, should be included. It also includes a small minority o codes whichshould be excluded.We then propose a ully consistent classication by using these occupations to identiy,on grounds o creative intensity, those industries that appear inappropriately included andexcluded in the DCMS industrial classication (our ‘baseline’). We conduct a sensitivityanalysis to show that this classication lays the basis or a robust and consistent selectiono industry codes. This accords with the reality, which should be squarely aced, thatuncertainty is a dening eature o emergent areas subject to persistent structural changelike the creative industries, and should be dealt with in a systematic way.Our baseline classication suggests that the DCMS inappropriately excludes a large (andgrowing) sotware-related segment o the creative industries. We argue that signicantnumbers o new digital creative businesses in act reside within this segment, refectingan increasingly tight interconnection between content production and its digital interace.Our baseline estimates suggest that in its 2011 Statistical Release, the DCMS understatedthe size o creative employment in the UK by 997,500 o which 460,000 alls within thecreative industries and 537,500 outside the creative industries.Our estimates, like the DCMS’s latest published estimates, are computed using the ONS’sSOC2000 classication o occupations. In 2013, the DCMS will adopt the Oce orNational Statistics’ new SOC2010 classication which, in general, permits an improved

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