Value add is the output of the creative sector less goods and services sourced from other suppliers, and is the sector’s contribution to gross national or state product.
Value add is a standard measure of economic contribution and is used very widely across all economic sectors providing a good mechanism for comparison.
The cultural and creative economy in 2017-18 compares well with other industries in Victoria, for example:
- Manufacturing: $30 billion
- Creative and cultural economy: $31 billion
- Construction: $32.8 billion
- Agriculture, Forestry and Fishing: $9.4 billion
- Mining: $3.3 billion
Gross value add of the cultural and creative economy in Victoria has demonstrated a growth trend in recent years.
Value add is equivalent to output less goods and services sourced from other suppliers (including imports), and is the sector’s contribution to gross national or state product. By excluding goods and service inputs from other industries and imports, value add avoids double counting as it does not include the value-added from other industries.
The cultural and creative economy is defined broadly to include both industries classified as cultural or creative by the Australian Bureau of Statistics (ABS) Australia and New Zealand Standard Industry Classification (ANZSIC), as well as creative and cultural occupations outside creative and cultural industries as defined by the Australian and New Zealand Standard Classification of Occupations (ANZCO) classification.
Gross Value Add for each ANZSIC code is obtained using input-output tables provided by the ABS.
In 2015, the Boston Consulting Group estimated the contribution of the cultural and creative industries to the Victorian economy in 2012-13 to be:
- $22.7 billion in Gross Value Add
- employment of 220,000 people
- exports of $1.4 billion
- contribution of $1 billion from cultural tourism.
Updates of the Gross Value Add and employment to 2017-18 have been developed by Employment, Investment and Trade Policy in the Department of Jobs, Regions and Precincts using ABS 2016 Census and Labour Force data collections. SGS Economics has updated the exports estimates using ABS International Trade publications.