Cultural and creative industries in London

Alan Freeman

What good are the arts?

“You are a clever, generous man, Dymov,” she would say, “but you have one very serious defect. You take absolutely

no interest in art. You don't believe in music or painting.” “I don't understand them,” he would say mildly. “I have

spent all my life in science and medicine, and I never had time to take an interest in the arts.”

“But that's awful, Dymov!” “Why? Your friends don’t know anything about science or medicine, but you don't hold it

against them. Everyone does his thing. I don't understand landscapes and operas, but the way I look at it is that if

one lot of sensible people devote their lives to them, and another lot of sensible people pay immense sums for

them, they must have a use. I don't understand them, but that’s no reason to disbelieve them.”

Anton Chekhov, The Grasshopper

Statistical framework

OECD framework 2006

European Cultural Strategy and measurement framework– http://www.european-creative-industries.eu

UK Creative Economy Programme and DCMS framework– www.culture.gov.uk

London Culture Strategy – Mayoral statutory responsibility– Requires an evidence base– Creativity: London’s Core Business– 2004 update– 2005 local area study– 2007 update

DCMS definition

DCMS method described as ‘Trident’ (Cunningham)

A classification system for enterprises (SIC) and occupations (SOC)– Production of cultural products by creative workers– Production of cultural products by non-creative workers– Production of non-cultural products by creative workers

EG – Musicians in the music industry– Stage technicians in the music industry– Musicians outside the music industry (eg schools)

Slight differences from European standard– Excludes heritage– ‘Visual and performing Arts’– Arts and Antiques– Fashion

A large sector

EU turnover € 654 billion in 2003.– Car manufacturing industry € 271 billion in 2001,

ICT manufacturers € 541 billion in 2003 2.6% of EU GDP in 2003.

– Real estate 2.1%;Food, beverage and tobacco manufacturing 1.9%; textiles 0.5%;chemicals, rubber and plastic products industry 2.3%

5.8 million EU employees– In UK 1.8 million [probably more extensive defn]– In London, 1 in every 5 (550,000)– Only Financial and Business Services is bigger

A growth sector

Europe CI GVA growth 19.7% 1999-2003– Average overall 7.4%

Annual world trade growth in cultural products 1980-1998 = 8.7%– Average all products 6.2%

London 45% employment growth 1994-2001– average whole economy 17%

A historical transition

London Employment

0

50

100

150

200

250

300

350

400

45018

41

1861

1881

1901

1921

1941

1961

1981

2001

1841

=10

0

0%

5%

10%

15%

20%

25%

30%

35%

40%

Proportion Total Manufacturing

Source: UK Census,Humphrey Southall (Portsmouth University) and GLA Economics

Two crossovers

100

120

140

160

180

200

220

240

260

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

£b

n a

t c

urr

en

t p

ric

es

Creative productsFood products

0

10

20

30

40

50

60

70

80

90

1994 2004

£b

n a

t c

urr

en

t p

ric

es

Advertising, Architecture, Software

Banking and Finance

GLA definition

A common output, produced by a common process, using a common resource

Output: culturally differentiated goods and services

Process: production to abstract or imprecise specification

Resource: creative labour Technological driver:

– Remote and multiple service delivery = a productivity revolution in services

How ‘new’ are the cultural and creative industries?

Theatre The Book and Print Cotton, Textiles, and the Industrial

Revolution The Jacquard Loom, Babbage Colours, Aniline, and the modern chemical

industry The Film The Gramophone Modern Times

Fashion: driver of the industrial revolutionThe history of dress … poses all problems, those of primary materials, of processes of manufacture, of cost price, of cultural fixities, of fashion, and of social hierarchies… At Rumegies rich peasants sacrificed all luxuries for dress. “young men with hats encrusted with gold and silver, and then the rest: girls with foot-high coiffures and other habits in proportion.” Braudel (1979:351)

Merchants who were princes in wealth, rather than by birth, were able to outstrip true nobility. Extravagance became so universal that the church and crown thought it necessary to put a check on the ostentatious display of the newly rich. - Kippen (2004)

Where creative jobs locate

London32%

Rest of GreatBritain42%

Rest of theSouth East

26%

Rest of theSouth East

23%Rest of GreatBritain62%

London15%

Total creative jobs

300

350

400

450

500

550

600

650

700

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Thou

sand

sof

jobs

900

1200

1500

1800

2100

2400

GB (right scale) London GB excluding London (right scale)

Source: ABI, LFS, GLA Economics, Trends Business ResearchTotal Creative Employment = workforce employment in the creative industries + creative occupations outside the creative industries

Creative and total employment in London

80

85

90

95

100

105

110

115

120

125

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

1997

=100

London jobs total

London creative employment

Public and private sector employment in London

90

95

100

105

110

115

120

125

130

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Wor

kfor

ce e

mpl

oym

ent,

1997

=100

PublicPrivateAll

Creative industries are more volatile still

80

85

90

95

100

105

110

115

120

125

130

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

1997

=100

London mainly private sectors

London Creative Industries

Private Sectors containing Creative Industries

To whom do the creative industries sell their products?

Source: Office for National Statistics input-output tables 2004

These creative industry groups

Sell their

product to:

Invest-

ment

Other

Busi-

nesses

Government

and non-

profit

House-

holds Exports

Total

Demand

Business-led

(Advertising,

Software and

Architecture)

15% 73% 1% 0% 11% 100%

Consumer-led (All

other creative) 3% 26% 0% 61% 10% 100%

All Creative

Industries 8% 47% 0% 34% 11% 100%

Business-led creative industries make 42% of creative output

58%

42%Business-LedConsumer-led

Sales by broad creative industry groups

Finance agglomeration

Creative agglomeration

Borough

Havering 2,744 4,147 6,610 281 3,866 4%Barking and Dagenham 1,948 3,587 5,074 461 3,126 9%Waltham Forest 6,566 6,900 11,726 1,740 5,160 15%Harrow 10,517 8,443 16,466 2,494 5,949 15%Greenwich 7,688 4,939 10,851 1,776 3,163 16%Bromley 16,098 9,654 21,558 4,194 5,460 19%Newham 7,072 4,295 9,417 1,950 2,345 21%Bexley 5,003 3,337 6,848 1,492 1,845 22%Hillingdon 9,961 9,420 15,874 3,507 5,913 22%Ealing 17,849 14,523 26,446 5,926 8,597 22%Croydon 12,256 12,713 20,149 4,820 7,893 24%Enfield 8,638 6,544 11,844 3,338 3,206 28%Kingston upon Thames 11,237 9,657 16,153 4,741 4,916 29%Hounslow 9,536 5,094 11,300 3,330 1,764 29%Redbridge 7,432 8,338 11,953 3,817 4,521 32%Merton 9,995 8,905 14,089 4,811 4,094 34%Lewisham 10,726 10,557 15,780 5,503 5,054 35%Sutton 9,549 7,337 12,435 4,451 2,886 36%Brent 12,721 10,794 17,068 6,447 4,347 38%Richmond upon Thames 18,232 13,535 22,736 9,031 4,504 40%Wandsworth 27,495 22,574 35,658 14,411 8,163 40%Barnet 20,093 15,791 25,479 10,405 5,386 41%Tower Hamlets 9,434 9,121 12,912 5,643 3,478 44%Westminster 21,213 15,893 25,479 11,627 4,266 46%Lambeth 20,237 17,561 25,767 12,031 5,530 47%Hammersmith and Fulham 19,341 14,931 23,344 10,928 4,003 47%Hackney 11,467 10,285 14,756 6,996 3,289 47%Kensington and Chelsea 18,410 14,641 22,243 10,808 3,833 49%Southwark 15,146 14,390 19,565 9,971 4,419 51%Camden 24,555 19,257 28,665 15,147 4,110 53%Islington 15,426 12,234 17,854 9,806 2,428 55%Haringey 18,169 13,750 20,495 11,424 2,326 56%

I = working in Creative industry

O= in Creative Occupation

O I = Total Creative Workforce = industry + occupation (DCMS definition)

O I = ‘specialist’ workforce (any creative occupation also working in creative industry)

O I /O I = ‘Creative Factor Utilisation’ indicator

A pattern of specialisation

Creative and non-creative manufacturing

60

70

80

90

100

110

120

130

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Creative Manufacturing

Non-Creative Manufacturing

Cultural audit of London

OECD 2006 conference as base for indicators

Benchmark Shanghai, Paris, Tokyo, Mumbai, Berlin

All aspects of cultural consumption and architecture

Cultural inventory (data providers)– The industry wants to know about itself– Web 2.0 data-gathering techniques

Seeking partner cities Seeking official statistical support