UK inward investment report 07/08 - creative industries

Creative industries are an essential part of the nation’s economy – and valued accordingly. In 2005 (latest figures in 2008), the creative industries generated 7.3 per cent of gross value added (GVA), and accounted for 4.5 per cent of all exports. Creative industries in the UK employed 1.9 million people at the last count – this figure is rising three times faster than the rate for the economy overall.

Behind those statistics are established names such as writer Sebastian Faulks – who was commissioned to write the most coveted commission in publishing, an official new James Bond story to mark the centenary of Ian Fleming’s birth: Devil May Care – the Rolling Stones, Rockstar Games and designer and choreographer Matthew Bourne – as well as newer names such as the band Arctic Monkeys – and new names like Welsh singer Duffy, who entered the US album chart at number four with her debut record Rockferry (May 2008).

As New York-based fashion designer Donna Karan put it, “I have always felt that the British are encouraged to flourish in their creative thinking, and consequently 90 per cent of my staff are from the UK.”

A creative mindset

This mindset is deeply embedded in the UK’s culture. One of that culture’s main characteristics is a strong belief in individuality and originality and a willingness to challenge and provoke. The success of Mark Wallinger and Banksy in the visual arts, Radiohead and Amy Winehouse in music and Wale Adeyemi in fashion bears this out.

The approach, which challenges established ways of doing things and values novelty and innovation, leads to results beyond the realms of music and art. It is no coincidence that the inventor of the World Wide Web, Sir Tim Berners- Lee grew up in the UK’s culture of creativity. So did Jonathan Ive, principal designer of the iPod.

Their success demonstrates that the creative industries in the UK are quick to adopt new ideas and technologies. One of the latest is the concept of biomimesis, which uses designs from the natural world adapted to architecture and industrial design.

This accords with the views of renowned Italian designer Alberto Alessi, who says, “I have great admiration for British design and its history. It’s the richest in the world. Britain is the home of design.”

UK creativity also helps to push the boundaries in consumer goods, where shifting tastes require constant new product development and new methods of delivery such as Harry Potter, created by JK Rowling, moving from a book across platforms to a fi lm and then to a game for both consoles and mobiles.

In the fast-developing gaming market, UK talent is responsible for such genre-defining, global blockbusters as Grand Theft Auto IV, the biggest selling game in recent history with UK first-day sales of 609,000.

At the same time, the UK is the world’s fifth largest market and an essential export destination for creative companies throughout the world. That is why the UK is so often chosen for the launches of Hollywood films and computer game consoles as well as new advertising campaigns and groundbreaking theatrical and musical events and products. Universal Music, for example, selected the UK as the test market for its plan to release singles in USB format.

New talent and new investment

Another reason for the UK’s leadership in the creative sector is its success in incubating new talent.

Part of this is down to education. The UK offers unrivalled support for creative training and professional development. In the arts, for example, world-class institutions include Central Saint Martins, the College of Art and Design and the Royal Academy of Music.

More widely, the UK invested US$824 million in the arts in 2007 – a 73 per cent increase in real terms from a decade before and a real boost to a culture of creativity.

The benefits of all this reach well beyond the UK’s borders. National and regional regeneration bodies have embarked on a variety of programmes to encourage international creative talent to settle in the UK, often forming regional centres of excellence that themselves serve as magnets for even more talent.

Brighton, for instance, is one of the UK’s oldest seaside resorts and newest cities. However, its two universities and labour supply of computer and language skills has attracted a number of foreign companies. For example, Brighton is the home to NCsoft from Korea, which has expanded its European headquarters, and US-based Linden Lab, creators of 3D virtual world Second Life.

Similarly, North-West England is building on its existing attractions as a media centre through the development of MediaCity:UK. A partnership developed by Peel Holdings, Northwest Regional Development Agency, Central Salford Urban Regeneration Company and Salford City Council, MediaCity:UK will provide a stimulating home to five BBC departments as well as other leading media companies from the UK, Europe and beyond.

Convergence and protection

Just as media will be converging on Greater Manchester in the years ahead, so the trend for sector convergence is already exploiting one of the UK’s greatest creative sector strengths: the proven ability to identify and exploit commercial opportunities by working in cross-disciplinary collaborative teams.

All this and indeed the commercial basis of creative output relies on the integrity of intellectual property (IP). Such protection has been firmly embedded in UK law since 1852 and has kept pace with the growth of new 21st century media and applications. A sophisticated industry of world-leading patent agents, specialist solicitors and barristers helps to ensure protection for the creative industries. In addition, the UK Government is at the forefront of international efforts to generate and improve IP protection globally, supporting and contributing to a range of multilateral forums.

Taken together, an enduring culture of innovation, unrivalled education and training, proven commercial application and secure IP protection – all within a vast and vibrant market – make the UK a natural home for creative industries no matter where they originate.