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Impact Analysis: UK Creative Sectors in Global Trade Scenario

Explore the Policy Document: Global Trade Impact on the UK's Creative Sectors

Investigate the Policy Brief: Global Trade Impact on the United Kingdom's Artistic and Culture...
Investigate the Policy Brief: Global Trade Impact on the United Kingdom's Artistic and Culture Sectors

Impact Analysis: UK Creative Sectors in Global Trade Scenario

Grab the Policy BriefThis policy brief dives into the global trade dynamics surrounding the UK's creative industries. Drawing insights from our UK Trade in a Global Creative Economy State of the Nation report, this brief spotlights key trends and offers strategic suggestions to fortify the sector and enhance its competitiveness on the world stage.

Key Highlights:

  1. Soaring export growth: Since 2010, creative industries service exports have climbed at a staggering three times the pace of overall UK services. In 2021, the UK shipped out a whopping £45.6 billion in creative services and £9.1 billion in creative products.
  2. Shifting export landscapes: Although Europe continues to dominate as the primary market for UK creative exports, a dramatic shift towards North America has occurred since the Brexit referendum, particularly in service exports.
  3. Digital trade explosion: UK digital exports skyrocketed from a mere 9% of total trade in 2016 to a mind-blowing 28% in 2021. Notably, creative industries accounted for a staggering 67% of digital exports by 2021.
  4. Concentrated, yet transforming export landscape: Fewer UK creative firms engage in exports today compared to the past, but those that do are increasingly deepening their trade connections. London and the South East still dominate the export scene, though emerging regions like Northern Ireland are making significant strides.
  5. Remaining comparative advantage: Despite a slight erosion since 2020, the UK maintains a strong edge in creative services when compared to most rival nations.

Policy Suggestions:

  1. Standardized Digital Trade Metrics: Form an independent Commission with key departments (ONS, DCMS, DSIT, DBT) to establish a unified method for measuring digital trade, drawing on international expertise.
  2. Creative Industries as Priority in Trade Deals: Feature creative sector issues at the forefront of new Free Trade Agreements. This includes tough intellectual property protections, facilitated skilled worker mobility, and mutual acknowledgment of qualifications.
  3. EU Trade Barriers Reduction: Prioritize creative industries in the upcoming review of the UK-EU Trade and Cooperation Agreement, focusing on easing export barriers and addressing challenges for creative workers operating within the EU.
  4. Robust Export Support: Offer tailored support for creative firms that strive to export, especially at the regional level. This could include emphasizing exports in programs like the Create Growth Programme and integrating export strategies into devolution deals.

This brief underscores the crucial part creative industries play in fueling UK exports and fostering economic growth. It emphasizes the need for targeted policies designed to tackle the sector's distinctive challenges and seize the opportunities presented by the rapidly changing digital landscape. By adopting these strategies, the UK can work towards maintaining its leading position in the global creative economy and unlock new avenues for growth and innovation nationwide.

For more insights, delve into the full UK Trade in a Global Creative Economy report.

Authors

  • Nik Gunn - Policy Advisor
  • Bernard Hay - Head of Policy
  • Hasan Bakhshi - Director

[1] Global Network of Indicator Development - GNID [Accessed 31/03/2023][2] UNESCO - Creative Cities Network [Accessed 31/03/2023][3] DCMS - Government Backing for UK Advertising’s Return to Cannes Lions [Accessed 31/03/2023][5] Crafts Council - High Value Crafts [Accessed 31/03/2023]

  1. The creative industries' significant contribution to the UK's economy is highlighted in the Policy Brief, revealing an export growth triple the rate of overall UK services since 2010.
  2. The policy brief reveals a shift towards North America as the primary market for UK creative exports since the Brexit referendum, particularly in service exports.
  3. The UK's digital exports have witnessed a remarkable surge, with creative industries accounting for a substantial portion of this growth.
  4. Fewer UK creative firms currently engage in exports, but those that do are strengthening their trade connections, with London and the South East remaining the dominant players, though Northern Ireland is making considerable strides.
  5. Despite a slight erosion since 2020, the UK still maintains a comparative advantage in creative services compared to most competing nations.
  6. Strategic suggestions to strengthen the creative sector include establishing standardized digital trade metrics and featuring creative sector issues at the forefront of new Free Trade Agreements.
  7. The brief encourages easing export barriers and addressing challenges for creative workers operating within the EU, as well as offering tailored support for creative firms striving to export.
  8. By implementing these strategies, the UK can secure its leading position in the global creative economy and stimulate growth and innovation across the nation.
  9. The full UK Trade in a Global Creative Economy report offers further insights into this critical topic.
  10. Policy Advisor Nik Gunn, Head of Policy Bernard Hay, and Director Hasan Bakhshi are the authors of this insightful Policy Brief.
  11. The Global Network of Indicator Development, UNESCO's Creative Cities Network, the Department for Digital, Culture, Media and Sport, the Government Backing for UK Advertising's Return to Cannes Lions, and the Crafts Council serve as valuable resources for understanding the broader context of the creative industries.
  12. The policy brief emphasizes the role of innovation in shaping the future of the creative industries and the economy.13.Key areas of growth for the creative industries in the coming years include data and cloud computing, fashion-and-beauty, food-and-drink, and sports betting.14.Strategic cooperation with the finance industry can help spur growth in the creative industries, as well as fostering partnerships with businesses and personal-finance providers.15.Education and self-development, career development, and home-and-garden industries also hold significant potential for collaboration with the creative industries.16.The creative industries can play a pivotal role in advancing lifestyle trends, with a focus on sustainability, technology, and community engagement.17.Opportunities for investment in the creative industries abound, with potential returns in sectors ranging from cars and racing to tennis, sports analysis, weather forecasting, mixed-martial-arts, and baseball.

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