Is it possible to determine the ‘true’ value of culture and creative industries through empirical research? Dorota Weziak-Bialowolska [email protected] Joint Research Centre, European Commission Econometrics and Applied Statistics Unit Berlin, 23rd October 2014 1 AGENDA 1. Data 2. Composite indicators 3. Creativity 2 Data The direct contribution of cultural and creative sectors to growth and job In 2010 over 3% of GDP and 6.7 million jobs (EU estimate, European Competitiveness Report, 2010). Very often cited but based on considerably old data WHY? 3 Data Data on cultural and creative industries (CCIs) are not easily available Examples: • the Labour Force Survey – the ISCO and the NACE codes not only are not made available in detailed enough form but they are not even gathered in detailed enough form • Structural business statistics but they do not cover agriculture, forestry and fishing, nor public administration and (largely) non-market services such as education and health. Exception: the United Kingdom See: for example a bunch of the various reports produced by the NESTA London, Creative Industries 4 Data But there is hope Recently the Modernization and Social Statistics Unit has been set up in the Eurostat to deal with cultural data. It will be responsible for providing on a regular basis culture-related data on (1) employment, (2) business, (3) expenditure, (4) external trade, (5) practice and participation; Expert group on cultural statistics (composed of National Statistical Offices and possibly Ministries of Culture) will start working in April 2015; The range of statistics in the field of the CCIs will be extended. The methodology will be based on the report of the ESS-Net culture (November 2012). 5 Composite indicators Indicators 6 Composite indicators Composite indicators created in house DG ENTR • Small Business Act Principles • Regional Innovation DG RTD • New Innovation Indicator Composite indicators: About sixty partnerships in the last 10 years Composite indicators audited by the JRC COIN • Global Innovation Index • Global Talent Competitiveness Index Composite indicators 9 Composite indicators National Arts Index 2013: An Annual Measure Of The Vitality Of Arts And Culture In The United States: 20002011 10 Composite indicators JRC possible input  Building indicators Supporting European Cultural Foundation and the Boekman Foundation in constructing the European Arts Index Creativity a positive impact of cultural investment on the growth rate and income for countries where a large level of cultural capital has already been accumulated therefore enabling available human capital to be used in innovative and creative ways Bucci, A., Sacco, P. L., & Segre, G. (2014). Smart Endogenous Growth: Cultural Capital and the Creative Use of Skills. International Journal of Manpower, 35(1/2), 33–55 12 Creativity human capital, skills and creativity are the primary drivers of economic growth at the regional and national levels… Richard Florida 13 Creativity ranks among the top five skills that U.S. employers believe to be of increasing importance BUT definition of creativity is different for educators and employers. Educators say “problem solving” best demonstrates creativity, while employers say “problem identification or articulation” is the best evidence of creativity. Arts programs are optional, and employers who say they want to hire creative people rarely go beyond subjective judgment to assess interviewees’ creativity. Lichtenberg, J., Woock, C., & Wright, M. (2008). Ready to Innovate. Key findings. The Conference Borad. Research Report 1424 14 Creativity STEM education (Science, Technology, Engineering, and Math)  makes industries faster, cheaper, better, bolder  makes people more efficient BUT it is not good at growing people’s curiosity or imagination Creative thoughts give individuals innovative edge Innovators are more likely to create high-growth, high-paying jobs 15 Creativity What should be done? Integration of science and technology with arts STEAM education (Science, Technology, Arts, Engineering, and Math)  this is the trend which become more common in the US; Is it the same in Europe? 16 People employed in the CCI possess significantly higher level of NUMERACY, LITERACY AND PROBLEM SOLVING Source: own computations based on the data from the Programme for the International Assessment of Adult Competencies (PIAAC) 17 Creativity Creativity can be ‘taught’ Creative skills need to be encouraged from an early age and the adoption and development of these skills needs to be supported by national education systems 18 19