Posts Tagged 'creative industries'

Mixed news for Scotland’s creative and high tech industries

The latest analysis of the UK’s creative and high-tech economy by NESTA (‘The Geography of the UK’s creative and high tech economies’ ) aims, amongst other things, to apply a more rigorous set of definitions to creative occupations/industries and to develop the distinction set out in their earlier report between the jobs and value added of the creative industries (those industries which have high proportion of creative jobs and e.g deliver creative content directly to the public) and the wider creative economy (which contains lots of creative jobs in non-creative industries). As importantly the report looks at the geographical trends in the creative economy and it’s here where warning signs for Scotland emerge.  As we’ve noted before (see june 2014 post) Scotland’s level of creative employment is in the mid range (6.4% of Scotland total employment) of  the UK’s nations and regions,  above Wales (5.7%) and Northern Ireland (5.3%) but below the South West (7.6%) and Eastern (8.4%) regions and of course London (15.5%) and the South East (10.7%).

The real issue however is that  creative employment is, if these figures are accurate, declining in Scotland while it is growing nearly everywhere else, both in the wider creative economy (down 1% in Scotland, up 4.3% across the UK 2011-13) and in the specifically creative industries (down 0.8 % in Scotland while up 5.0% across the UK). And this isn’t, for once, due to the ‘London effect’.  The highest growth rates are not in London but  in the Eastern (9.3% in Creative Economy, 11.5% in Creative Industries) , West Midlands (8.2% and 11.8% ) and North East regions (56% and 9.8%).

There’s better news from the high-tech economy where Scotland is leading growth at 5.1% compared to the UK average of 2.1% and ahead of even London (4.5%).  The NESTA study goes on to look at the intersection of the creative with the high tech economy and the analysis reinforces the  divergence of Scotland from the rest of the UK.  Whereas in the rest of the UK creative industries are growing faster (4.3%) than high-tech industries (2.1%) in Scotland the opposite is true. At the ‘sub-regional’ level (in Scottish terms = ‘regional’) it comes as no surprise that Glasgow and Edinburgh have higher levels of employment in the creative economy relative to other kinds of jobs.  The ‘Location Quotient’ ( the relative proportion of creative jobs in the region where 1.0 would be no different  to the national proportion) gives Glasgow and Edinburgh more than 1.2 and the rest of the country less than 1.0 and mostly less than 0.8.  (Edinburgh comes out particularly highly (7th in the UK) when creative and high-tech jobs are taken together.)

What does it all mean and why does it matter?  Well given employment in the UK creative economy is growing at 4.3% per annum, 3.6 times faster than the UK workforce as a whole (1.2% per annum) Scotland is losing out on almost all of these new jobs, compensated for by doing very well in the high-tech sector (5.1% p.a.) which across the UK is growing at a more modest 2.1%.  If we could secure even half the high-tech sector level growth in Scotland’s creative industries – say 2.5% we could add around 4,000 jobs a year.

Growing Scotland’s film and television – yes please Minister(s)

Though some practitioners are expressing ‘consultation fatigue’ (following the Creative Scotland Film Sector review (which I chaired) and subsequent consultation on its Film Strategy 2014-17, the Scottish Parliament Economy, Energy and Tourism Committee’s enquiryto consider how Scotland can grow sustainable TV and film and video games industries” it is an important opportunity to set out the potential for growth as well as the obstacles facing our screen practitioners and businesses and encourage Parliament to press the Scottish Government  to seriously up its support for the sector if it really wants to see the culture, economic and social benefits from the moving image that other European countries have achieved through concerted action.  My tuppence worth is available along with the other eighteen [since posting the number has risen to 40] written evidence submissions (though one of them seems to have wandered in by mistake!) here. The committee will be taking further evidence from a variety of practitioners and agencies during January starting with Games on the 14th, TV and film on the 21st, public agencies on the 28th and Fiona Hyslop, the Cabinet Secretary for Culture, Europe and External Affairs on the 4th of February. Given the concern for the economic impact of the creative industries it is curious that the Committee, so far at least, doesn’t plan to take evidence from the Cabinet Secretary for Finance and Sustainable Growth, John Swinney.  He’s the person who really holds the key to investment in the sector…having read and heard the evidence from all the above perhaps the committee will then have some questions for him.

UPDATE 4/2/15 in recent days John Swinney’s name has appeared on the agenda alongside Fiona Hyslop to appear in front of the committee today which suggests that the committee members/those giving evidence have successfully upped the ante..

More creative industries jobs in Scotland than we thought but most sectors declining

The DCMS have just released their nations/regions breakdowns of creative industries employment in the UK and the Scottish picture is, relatively speaking, somewhat disappointing even if the figures show the number of creative industries and creative economy jobs (more on that distinction later) in Scotland to be more than most recent Scottish estimates calculate.

Across the UK creative industries jobs (creative and support) grew 10% between 2011 and 2013, while in Scotland there was a slight drop from 103,000 to 102,000 according to the DCMS count.  In the wider ‘Creative Economy’ (which includes creative jobs in non-creative industries) every sub-sector bar two (Architecture and IT) recorded falls in employment with the total dropping from 166,000 in 2011 to 163,000 in 2013. The sectors recording the highest falls were Advertising and Marketing ( -2000 jobs) Crafts (-2000) and Design (-2000) with the highest riser being IT, software and computing services (+8000).  The presence of the latter in Creative Industries statistics is a continuing issues as many of these jobs are not in fact creative industries related at all and as this sector accounts for one third of the total jobs its increase of 7000 jobs over the two years masks the falls elsewhere.

Whereas every other area in the UK shows an increase in creative industries employment as a proportion of total employment between 2011 and 2013 averaging 0.5% and up to 1.2% in the East of England, only Northern Ireland and Scotland record a drop, albeit a statistically insignificant 0.1%.

Scotland’s 102,000 creative industries jobs (NB jobs in the creative industries only, the creative ‘economy – see below) account for 6.3% Scottish employment total compared to the 8.5% UK average (a total of 1.7m jobs).  However setting aside London (16.2%) and the South East (10.1%) that’s on a par with most of the rest of the UK barring the East of England (8.3%) and the South West (7.6%).

With 163,000 of the 2.6m UK Creative Economy jobs (NB ‘Creative Economy’ counts creative jobs in non-creative Industries) Scotland’s share has fallen more (-0.6%) than anywhere other than the East of England (-0.8%).

That these figures are very different from those used in recent discussion of Scotland’s creative industries comes as no surprise to those of us with an unhealthy interest in comparative methodologies but is a real problem in trying to get to any sort of coherent policy discussion about what needs to be done to support both overall growth and the specific needs of individual sectors.

Don’t let our creative talent go to waste

[If you missed it or have difficulty accessing it on the Scotsman site here’s my Tuesday opinion piece on Creative Education with added LINKS TO SOURCES. This article is one of various to be debated at a late June RSA Fellows’ Media, Creative Industries, Culture & Heritage Network event “Visions, Irrespective” [of the Referendum].]

If Scotland post-referendum is to fully realize the cultural, economic and social potential of the arts and creative industries we will have to work harder to encourage young people’s creativity both inside and outside education.

Though no-one seems quite able to agree the precise scope and definition of the creative industries, one thing is indisputable – individual talent and creativity is central to their growth and sustainability. The UK creative industries as a whole grew at a rate three times that of any other major economic sector between 2008 and 2012.  But such a prodigious growth rate won’t be achieved in Scotland without more attention being paid to how we identify, nurture and retain the content producers of the future. Indeed, over that same four year period Scotland’s creative industries have stood still or declined in terms of turnover, gross value added and employment.

Politicians of all stripes continue to assert the importance of creativity – from Jack McConnell’s St Andrews Day speech in 2003 “placing culture at the heart of Government” to Culture Secretary Fiona Hyslop’s belief that “an independent Scotland will be a place where our arts, our creativity and our heritage is collectively celebrated, valued, nurtured and supported across the public, private and third sector”. But are we doing enough to make that vision a reality, particularly in and around our schools and institutions of further and higher education?

The introduction of the Curriculum for Excellence has been an important step towards an environment in which creativity is valued both for its intrinsic value and its growing significance to our economic future while the recent Government and multi-agency ‘Scotland’s Creative Learning Plan’ is a vital step forward but needs real additional investment to achieve its commendable vision.

A good gauge of how seriously an education system, and learners, take a subject is which qualifications are studied. In Scotland, around 9% of Higher entries in 2012 were in ‘creative industries’ subjects (advertising, marketing, drama, media, music photography, visual arts), the same proportion as in 2008. Over the same period in England and Wales A-level entries in creative industries subjects rose from 13 to 14.5% of the total – a significantly higher proportion.  If Scotland is to avoid falling further behind in educating the people who will fuel our creative economy as well as sustain our arts and cultural life, then we need to address our School provision with more determination – and resources.

What happens outside school is equally important and here too there are signs of progress, but still a great deal more to do.  The recently launched National Youth Arts Strategy and the development of regional youth arts hubs will do much to spread Government resources more evenly around the country.  But disciplines which bridge arts and the wider creative industries – such as design or architecture – are still too easily overlooked in strategies focused on visual and performing arts.  Many hope that when the V&A Dundee eventually opens it will stimulate greater interest amongst young people in design as a career.  However, without a truly Scotland-wide commitment to providing young people with access to inspiring design and designers in their local area, we risk failing to mobilise their imaginations and aspirations.

Similarly, Government investment in the Youth Music Initiative has helped mitigate the long term decline in local authority support for instrumental tuition.  But we could do a lot more, nationally, to develop the interface between musical talent, technical and commercial skills – for example ensuring young artists, producers and audio specialists have opportunities to come together to develop, record and market their work.  There is great work of this kind going on, for example between Shetland College and the multi-arts centre Mareel, but many parts of Scotland lack this kind of joined up provision.

Across the country our Further and Higher Education Institutions offer a wealth of opportunities for young creative talent. And talent we undoubtedly have, as my own university’s arts and creative industries degree show, and those of other universities and colleges, will publicly showcase this spring. Nonetheless, the sector remains relatively poorly resourced, while the system which feeds them is still something of a postcode lottery.  The long awaited Skills Development Scotland Investment Plan for the Creative Industries should help focus energies in the skills sector.  Rightly so. Because both for their intrinsic value and their potential to contribute much more to Scotland’s economy, creative talent can and should be placed much more firmly on the education agenda.

Toronto teaches Edinburgh creative industries a thing or two

The Edinburgh Toronto creative industries trade mission (for the daily despatches see #edintotoronto on Twitter) came to a close Thursday with a visit to nGen, a digital creative incubator in St Catherine’s, Niagara. Like many communities they have struggled to counter the collapse of heavy industries and find ways to grow new jobs. Unlike many such communities the region has a major tourist attraction in Niagara Falls and associated facilities from 5* hotels to upmarket restaurants for the yachting crowd.

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Those amenities make it possible for nGen’s very well equipped but still very recent digital post production facilities companies to attract film and tv makers to edit away from Toronto or Hollywood. Similarly the presence of an established animation company, Keyframe, and supportive University College, help ensure there are skilled people looking to join or startup digital media companies. Perhaps most important of all, these young companies are run by people who want to stay in the area and help it prosper, rather than gravitate to Toronto or Hollywood. By providing access to expensive hard and software at discount rates nGensupports a growing band of ambitious local companies ranging from games and animation to feature film and tv.

This combination of factors echoes some of the points made by Richard Florida and others in analysing what makes regions or cities flourish. At the trip’s closing event we heard from his close associate at the Martin Prosperity Institute Kevin Stolarik, self styled “statistician of the creative class”. It’s one thing to describe the ingredients that have made small cities like St Catherine’s or a megalopolis like Toronto ‘work’ in creative industries terms, quite another to figure out what if anything can be done to repeat the trick in other places or other contexts. However ‘cultural planner’ Greg Baeker of consultants AuthentiCity gave an account of how cultural mapping has led to a positive policy outcome.  The “no let loss” policy he advocated in his 2008 ‘Creative City Planning Framework‘ has been used as a means of protecting the bohemian art spaces which are a vital component in Toronto’s creative and urban ecology, particularly as the city is going through a massive building boom.

The ecology of individual artists, not-for-profit cultural organisations and entrepreneurial digital media companies like the nGen ‘portfolio’ or Temple Street Productions, Canada’s 5th largest indie producer (led by expat Scot John Young), gives Toronto a powerful advantage both within Canada and on an international stage.

Similarly the willingness of industry to engage with the college and university sector on both skills and innovation fronts was very evident. nGen has an ’embedded’ member of Niagara College staff with expertise in VFX and allied areas, helping connect students to the portfolio companies and vice versa. Similarly Pinewood Toronto hosts the Screen Industries Research and Training Centre (SIRT) which in just two or so years has undertaken over fifty innovation projects with film and media companies in areas such as 3D and VFX in partnership with global companies like Autodesk and the major professional bodies like the Canadian Directors Guild. Back in the city cen University hosts the Digital Media Zo) an incubator for digital media start ups where creatives and techs collide and make connections.

None of these great things were the direct result of a grand master plan to make Toronto a creative city but there is a plan to keep it that way. The combination of a supportive city council, provincial tax incentives, dynamic Higher Education institutions, huge ethnic diversity, thriving arts and culture scene, entrepreneurial spirit and sense of collective purpose seems to be particularly fertile in this part of the world.

Edinburgh and indeed Scotland shares many of those characteristics but has further to go in making them connect up. Coming back to the two main reasons for the trip – connecting creative businesses and looking at what we can learn from Toronto’s success in ensuring the City Council and Creative Edinburgh can better support and champion the city’s creative sector – it seems clear to me that we have to make a real effort to broaden and deepen the connectivity between all of the city’s creative sectors from galleries to gamers. We need to identify the really key things that local and national agencies can do but aren’t yet doing to facilitate creative growth, whether that’s in city planning, business support or cultural funding. And we need to enlarge and speed up the contribution that Universities and Colleges are already making to fuelling the furnace.

Our own Institute for Creative Industries at Edinburgh Napier has, like others, made a good start with e.g. over 20 Innovation Voucher partnerships in the last 18 months but having seen where e.g. Sheridan and Ryerson have got to its clear we still have a lot to do. As it happens the timing couldn’t be better with the Scottish Funding Council in the midst of  encouraging Scotland’s Universities to combine in developing an Innovation Centre for the Creative Industries. It has a real chance of becoming a reality and helping to make that crucial connectivity happen.

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A Future for (Scottish) Film?

A Future for British Film’ (Lord), Chris Smith’s Review of UK Film Policy, is packed with recommendations so inevitably commentaries have tended to focus on a selection  – production, exhibition, culture finance etc. and this one is no different.  The significance for filmmakers of suggested changes to the investment environment and recoupment, getting distributors into the financing process earlier etc have been well covered in the trades and elsewhere so let’s take a moment to ask what does it all mean specifically for Scotland?

Firstly this is an independent report setting out to the Westminster Government, the BFI and others recommendations which they may or may not choose to follow.  While the Scottish Government (and key bodies such as Creative Scotland or the NLS where the Scottish Film Archive now sits) have no formal obligation to pay it any heed, it nonetheless has great significance for film in Scotland, from education and training to production, exhibition and archive as it both sets out key issues and challenges and some of the means by which they might be addressed.  In doing so it has the potential to bolster the case made by various interest groups (not always entirely shared) – from educators to exhibitors – for funding and other interventions.

The Review has direct implications for how the BFI may relate in future to Creative Scotland and other Scottish bodies and, in passing, it prompts not a few questions abut how a future Independent, or at least fiscally independent, Scotland would manage some of the matters which are currently reserved to the UK such as tax breaks for film production, the treatment of co-productions and so on.  (Indeed what the role of the BFI might be post independence or devo-max is an interesting but so far entirely unexamined question.)  In its submission to the Review the Scottish Government, amongst other things, called for film lottery funding to be fully delegated to Scotland and suggested that the BFI could also be made accountable to the Scottish Parliament for its activities in Scotland.

Back to the report then and amidst the welter of recommendations on treatment of producer’s equity, piracy, integration of film education and closer working between producers and distributors (now where have we heard that before? Oh yes, in 1997 when the Lottery Film Franchises were established…or even further back in 1980… plus ca change)  there are some which have specific significance for Scotland, vis:

Recommendation 6. (“The Panel recommends that the BFI should co-ordinate a joined-up UK-wide film festival offer, to promote independent British and specialised film and maximise value for money, utilising a mix of public funding and private investment and sponsorship.”) though it doesn’t mention it by name,  implies the continuing  importance of the Edinburgh International Film Festival to the UK film festival ecology but stresses the need for more to be done ‘to understand the role of local festivals and their relationship to international festivals in the UK’.  Growing festivals like Glasgow’s may take heart from that whereas Edinburgh may need to consider what role it wants to play as Scotland‘s centre of excellence in festival programming, curation and so on outside of the few weeks of the Festival itself.

Several commentators have highlighted the Review’s veiled criticism of UK Broadcasters for not doing enough to support the film ecology it benefits from to the tune  of £1.2bn in ‘economic value’ and the fact that 80% of UK film’s audience is via television.  While it resists calling outright for the statutory quotas for film investment or output which are common in outher parts of Europe, it does dangle them as a plan B if a voluntary solution isn’t found: “the Government initiates immediate discussions with each of the major broadcasters – the BBC, ITV, Channel 4, Channel 5 and BSkyB – with the aim of agreeing a Memorandum of Understanding with each broadcaster setting out its agreed commitments to support British film. Should this approach prove unproductive, then the Government should look at legislative solutions, including new film-related licence requirements to be implemented in the new Communications Act.

From a Scottish perspective the question is whether such voluntary or statutory arrangements can produce a commitment to diversity of material and/or a specific commitment to film investment/output in Scotland by the terrestrial broadcasters.  Given the current scale of opt-out programme budgets and available slots this might seem implausible but STV’s drive to opt out of the ITV network more and more, the declining ‘entry cost’ of (low budget) feature film production, wider partnership opportunities with domestic and overseas co-producers and the greater flexibility over release ‘windows’ all make it much easier to envisage Scottish broadcasters part-funding festures for theatrical and near to simultaneous TV release.  Indeed without them it is difficult to imagine a sustainable Scottish film ecology.

Alongside finance and distribution, skills and talent development are crucial to the ‘supply side’ of film-making.  Sustaining the critical mass of craft skills in Scotland needed to support incoming and indigenous filmmaking and nurturing new talent to the point where it can attract investment from near or far remain high priorities (or ought to).  The Smith Review Panel “recommends that the BFI, in partnership with Skillset and BIS, continues to deliver and strengthen a strategy for skills which represents a ‘gold standard’. Such a strategy will help ensure that skills across the sector remain one of the UK’s great strengths, that our skills base continues to act as a powerful incentive for inward investment, and that the indigenous film sector is able to maximise benefits to audiences.”

Our own research has recently uncovered a worrying downward trend in film skills investment in Scotland over the past five years both in absolute terms (due to the cuts in funding to UK skills body Skillset) but also in percentage terms as the ‘centre’ of the industry has been, relatively speaking, protected.

Skillset Nations and regions spend

The Smith Review recognizes the ‘National and Regional Challenge’, noting that “Despite support for out-of-London film activities from National and Regional screen agencies, the UK film industry remains a London-centric business [which] presents challenges for the development of talent and on-screen representation of the UK’s Nations and Regions.”

In recommendation 44 Smith “recommends that the BFI works with and supports Creative England, the National Screen Agencies, Skillset and others to create a strategy to ensure diverse talent is found, supported and nurtured, outside of London. Ways should be found to help ensure that talented people can work, in a sustainable way, wherever they may wish to locate themselves in the UK.

Fine words though there is not much flesh on them in the report itself.  That said one of the concrete recommendations with a potential direct impact in Scotland (here I must declare an interest as Director of Screen Academy Scotland) relates to film schools:

“42. The Panel recommends that the BFI, together with Skillset, HEFCE and the Scottish Funding Council, undertakes a review of the three Skillset Film Academies, with the objective of establishing their readiness to be considered for the equivalent of ‘Conservatoire’ status for delivering world-class skills and training – similar to that enjoyed by leading music, drama and dance academies.”

Since we established Screen Academy Scotland in 2005, transforming the opportunities for film talent to pursue postgraduate, practice-based training in a well resourced, creative and risk-taking space, the goal of sustained funding at a per capita level commensurate with e.g, the National Film and Television School, has remain frustratingly close but just out of reach.  This recommendation by the Smith Review, if heeded, may finally help us close the gap and ensure that the nation’s film and television school does not have to live from hand to mouth, chasing funding on an annual basis.

All in all the Smith Review has much for filmmakers, educators, audiences and policymakers to welcome but of course the real test is what notice the Government(s) and BFI (whose own strategy is due out in a month or so) take of its recommendations and how much pressure is effectively brought to bear on them by the diverse (and largely disparate) interests that make up the audience for this report.

You can count on the creative industries (or what happened to the missing £24bn)

December is the month the busy statisticians in the DCMS release their latest estimates of the size and shape of the UK’s creative industries (CI).  Very useful stuff for policy wonks and arts anoraks like yours truly.  Sadly for those of us doomed to wrestle with SIC and SOC codes, making year-on-year comparisons of  what’s up, what’s down and where is doing better or worse than where else isn’t exactly made easy by the near constant revising of definitions, multipliers, scaling factors and the like.  (To be fair the DCMS do point out that these are experimental stats and they change them in response to feedback from users and in order to make them more fit for purpose, and quite right too).

Less anyone imagines these are just minor technical tweaks  it is worth noting that as a result of the latest changes to the methodology the reported Gross Value Added (GVA) of the UK’s creative industries has plummeted by nearly 50% from £59bn (5.6% of the total) in 2008 to £36bn (2.89%) in 2009!

What this in fact means is that if the current methodology is taken as accurate, the previous statistics were grossly exaggerating the real value of the Creative Industries but we can breathe a sigh of relief as the new figures can be relied on ‘going forwards’.

One of the biggest (and long overdue) revisions concerns the value of software and games which at £26.4bn (46% of the CI total) on the ‘old’ system dwarfed every other sector.  In the new figures, which have stripped out a swathe of ‘non creative’ software consultancy and the like, a more realistic figure of £160m for ‘Digital & entertainment Media’ and £570m for ‘Software and Electronic Publishing’ puts the combined total at 2% of the CI.

So which is UK’s biggest Creative Industry?  Well it may surprise some people to learn that it is Publishing, worth £11.6bn GVA in 2008 and accounting for a third of all CI GVA and almost the same proportion of exports at £2.6bn (in 2009). Advertising comes second at £7bn in 2008 but dropped to £6bn in 2009 as the recession took hold while TV & Radio are in third place at around £5bn.

 

What about Scotland?  Well the full range of data isn’t yet available but a few figures provide some clues as to what may be happening.  Scanning the regional breakdown of registered enterprises (NB this excludes a lot of sole traders) Scotland’s 4,800 creative businesses in 2011, 4.5% of the UK total, have pretty much held steady since 2009.  However there is significant variance by sub-sector with, for example, ‘digital media’ increasing by 100% and advertising by 11% while publishing was down 13% and software down 17%.  However these changes can be misleading: an increase in the number of businesses can mean a lot of new start-ups following the closure of a major employer.  Until we see the Scottish breakdown of turnover and GVA we won’t know.

Closer to home the statistical elves are working away on the past ten years of Lottery and other investment in Scotland’s screen sector and we will be analysing that in the New Year.  Happy Solstice!


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