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4 September 2018

Victoria has taken the lead in preparing a new report on measuring the economic value of creative industries, published by the Meeting of Cultural Ministers (MCM).

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Although cultural and creative industries are increasingly acknowledged as important components and drivers of growth in the modern, knowledge-based economy, it is difficult to determine their true economic value.

The breadth and complexity of the creative industries make them challenging to define and measure—more so than many other industries which are more neatly characterised.

Adding to this, the definitions and descriptions of creative and cultural industries do not align with the definitions used by the government statistical agency, the Australian Bureau of Statistics.

Produced with strong leadership from Victoria, the MCM report navigates the alternative approaches to defining the cultural and creative industries and quantifying their economic value.

The report outlines two major approaches, in particular, that define significantly different creative and cultural industries.

The first approach is the ABS Cultural and Creative Activity Satellite Accounts publication of 2014, which provides the most comprehensive definition of the cultural and creative industries currently.

The second approach is that of the Creative Industries Innovation Centre, based on work done by Nesta in the UK, which defines the creative industries using the concept of creative intensity. The creative intensity of an industry sector is the proportion of total employment within that sector that is engaged in creative occupations.

The MCM report also explores a variety of measures of economic value, including the “value add” concept, which aligns with Gross Domestic Product (GDP) and Gross State Product (GSP). The other common measure is employment in these industries.

Other quantifiable measures of value are also canvassed providing a more complete picture of economic impact.

The MCM report is an important resource for researchers, analysts and economists formulating the economic value of these industries.

Read the MCM report now