Global

Cultural and creative sectors (CCS) constitute a vibrant economic activity and source of jobs, enterprise turnover and tax revenues. However, the role of culture for local development is more than these direct outputs. Smartly managed culture-led urban regeneration can breathe new life into decaying neighbourhoods. CCS also contribute to increasing levels of regional innovation and productivity, through new product design, new production techniques, new business models, innovative ways of reaching audiences and consumers, and emerging forms of co-production.

 This discussion paper was prepared by the OECD at the request of Indonesia G20 Presidency to support the discussions in the G20 Tourism Working Group on 23 September 2022, and the G20 Tourism Ministers Meeting on 26 September 2022.

This Guide provides a roadmap for local governments, communities and museums on how to define together a local development agenda. It considers five dimensions: 1. Leverage the power of museums for local economic development, 2. Build on the role of museums for urban regeneration and community development, 3. Catalyse culturally aware and creative societies, 4. Promote museums as spaces for inclusion, health and well-being, 5. Mainstream the role of museums in local development.

Cultural and creative sectors are important in their own right in terms of their economic footprint and employment. They also spur innovation across the economy, as well as contribute to numerous other channels for positive social impact (well-being and health, education, inclusion, urban regeneration, etc.). They are among the hardest hit by the pandemic, with large cities often containing the greatest share of jobs at risk. The dynamics vary across sub-sectors, with venue-based activities and the related supply chains most affected.

The creative sector is an important source of growth in the global economy, and digital creative trade has increased sharply in recent years and particularly in the context of COVID-19. Digital content is replacing physical goods in the sector, for example, in music, books and gaming. Digital aggregators like Amazon, Apple, Netflix, Spotify, TikTok and YouTube have fuelled rapid growth and diversified earnings towards streaming, ad-supported income and data monetization. Copyright revenues are also rising, and the share of digital collections is the fastest growth segment.

This report looks at the implications for the Creative Economy of the rapid changes in automated technology and advanced internet communication that came to be known as Industry 4.0. Among the many observations that this report makes, ones that are important from the perspective of sustainable and inclusive development especially that of small developing countries are that: (1) Creative Industry 4.0 can speed-up the transfer of technology; (2) the size of the domestic market will no longer be a limit when it comes to developing a product; (3) new niche market opportunities are emerging.

The creative economy (also known as the orange economy) is an evolving concept based on the contribution and potential of creative assets to contribute to economic growth and development. It embraces economic, cultural and social aspects interacting with technology, intellectual property and tourism objectives: it is a set of knowledge-based, and thus more localized, economic activities with a development dimension and cross-cutting linkages at macro and micro levels to the overall economy. There is not a single definition of creative economy, and the different definitions usually overlap.

The notion of creativity and creative economy is evolving. The definition of creativity builds on the interplay between human creativity, ideas, intellectual property, knowledge, and technology, while creative economy encompasses all the industries relying on creative activities. The concept of the creative economy is closely linked with the “knowledge economy,” a key driver of endogenous growth through investment in human capital.

Cultural and creative sectors are a significant source of jobs and income, and also generate important spillovers to the wider economy. However, the absence of internationally comparable statistics that reveal their full economic and social impacts also means that the sectors remain largely undervalued in the policy debate. As governments across the G20 reconsider growth models in the wake of COVID-19, cultural and creative sectors can be a driver in a resilient recovery.

It is well-established that bringing more women into the formal labor force is critical for economic development. One strategy often cited is further integrating developing countries into global trade, particularly global value chains (GVCs), to contribute to female labor market outcomes through the expansion of female-intensive industries. As a result, a big question frequently debated, is whether the apparel industry – which is the most female-intensive and globally engaged manufacturing industry – can be a key player in this regard.