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UK Creative Industry to Drive Significant Growth in UK Economy
19/02/2009

"Today’s figures point to the creative industries, and specifically the talent we have nurtured within it, becoming a key driver for the UK's recovery from recession."

With Oscar fever around the corner and with British talent expected to shine once again this Sunday evening, new figures released today from NESTA, the National Endowment for Science, Technology and the Arts signal that the UK's creative industries will take centre-stage as a major, high growth contributor to the UK economy over the next five years.

NESTA's analysis suggests that between 2009 and 2013 the UK creative industries - which is responsible for films, music, fashion, TV and video games production - will grow on average at 4% - more than double the rate of the rest of the economy. By 2013, the sector is expected to employ 1.3 million people, likely to be more than the financial sector.

The optimistic medium-term outlook is primarily due to the opportunities for innovation as increasing numbers of creative businesses take advantage of digital technologies to develop new business models. This is illustrated by the digital distribution model which has been exemplified by the success of ‘iTunes'.

By 2013, there may be as many as 180,000 creative businesses in the sector, compared to the current number of 148,000. In the same year, the sector is expected to contribute as much as £85 billion to UK value added, up from £57 billion.

Jonathan Kestenbaum, NESTA's Chief Executive comments: ‘Today's figures point to the creative industries, and specifically the talent we have nurtured within it, becoming a key driver for the UK's recovery from recession. However, we need to keep our eye on the horizon and drive forward 21st Century business models which are key to the future success of this sector.'

Today's figures also show that although gross value added (GVA) in the sector is likely to drop sharply in 2009, perhaps as much as 6 per cent, reflecting the general economic environment, the sector will quickly recover to show stronger than average growth from 2010 when it is expected to rise back to 3 per cent. The creative industries currently account for 6.4 per cent of the UK economy.

Contacts:


For more information, please contact NESTA Media Manager: Jan Singleton 0207 438 2606/ 2500 or [e-mail]

Notes to editors:

The figures released today form part of a larger report, to be published shortly on the UK's growth sectors.

About NESTA

NESTA is the National Endowment for Science, Technology & the Arts. Its mission is to transform the UK's capacity for innovation. NESTA Investments has the largest portfolios of early-stage businesses in the country and is a leading authority on how to grow new ideas. We have strict investment criteria, and work with companies that have high potential for growth, are at seed or start-up stage, and have the potential to attract syndicated support. We also stimulate imaginative solutions to pressing social issues and shape policy to help the UK meet its national innovation challenges. www.nesta.org.uk

The Creative Industries

The Creative Industries include Advertising, Architecture, Arts and Antiques, Crafts, Design, Designer Fashion, Video, Film and Photography, Music and the Visual & Performing Arts, Publishing, Software, Computer Games and Electronic Publishing, Radio and TV, Craft and Design. In 2006 their GVA was £57.3 billion (6.4% of national GVA) and the value of their exports in services amounted to £16 billion. In the summer quarter of 2007 there were 2 million creative professionals working in the UK, of which 1.147 million were employed in the creative sector and 837.000 in other businesses.

About NESTA's Creative Economy Programme

NESTA's Creative Economy portfolio focuses on a series of pilot projects that demonstrate how creative organisations can develop their business innovation capacity to drive growth. We develop and test new ways to:

Support creative SMEs and cultural organisations to catalyse growth through business innovation;
Understand and enhance the innovation benefits that creative activities bring to the wider UK economy;
Support budding entrepreneurs to launch successful creative businesses through our existing Insight Out and Starter for 6 schemes.