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«Committee of the Regions Culture and Creativity Europe’s regions and cities making a difference Conference of the Committee of the Regions 29/30 ...»

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Committee of the Regions

Culture and Creativity

Europe’s regions and cities making a difference

Conference of the Committee of the Regions

29/30 January 2014




in cooperation with:

Culture and creativity: The role of Europe’s regions and cities

CoR conference on 29 January 2014

Background note

(1) Executive summary

Europe's creative and cultural sectors represent a significant potential to contribute to sustainable recovery of the economy and to create jobs. With a share of 3.3-4.5% of the EU's GDP and 3-4% of its workforce, creative and cultural institutions and enterprises are an important and – given their above average growth rates during recent years - a very dynamic part of the EU economy with a positive impact on other sectors and citizens' well-being in general. Creative sectors face, however, a number of challenges such as a fragmented cultural market and space, namely due to linguistic diversity, the 'digital shift' of art production and dissemination, difficult access to finance for creative enterprises, 60% of which have fewer than 10 employees, and finally, a lack of comparable data. Tackling these challenges could help to achieve the objectives of the Europe 2020 strategy for growth and jobs at all levels of government.

The cultural and creative sector matters for regions and cities, and vice-versa. On average, subnational authorities are responsible for 65% of public expenditure on cultural activities and for over 30% of support to enterprises. Europe's regions and cities are in charge of cultural heritage - including intangible heritage, providing services to citizens and creative enterprises, hosting cultural events, and developing and maintaining EU-wide networking activities in the fields of culture and creativity. In doing so, they make use of EU support such as the Structural Funds, and other programmes such as the European Capital of Culture, the European Heritage Label and the new Creative Europe programme.

Against the background of new EU funding opportunities for the 2014-2020 period, the Committee of the Regions' conference on 29 January 2014 will bring together policy-makers, experts, creative minds and trend watchers, artists and representatives of European associations and international organisations in order to discuss success stories from cultural and creative sectors and their impact on local development. The event will facilitate 'creative networking' with representatives of selected projects from different cultural and creative institutions, organisations and networks as well as information sessions on the 'Creative Europe' programme.

Conclusions of the conference will be discussed during the CoR plenary session on 30 January, and feed into its contribution to the mid-term evaluation of the Europe 2020 strategy and the CoR's 6th European Summit of Regions and Cities in Athens on 7 and 8 March 2014.

More information about the event including speeches, presentations and videos can be found at: http://cor.europa.eu/en/events/Pages/culture-and-creativity.aspx

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In recent years, the definition of "cultural and creative industries (or sectors)", has been the subject of numerous papers and debates, mainly with a view to collecting reliable data. In the European Commission's Green Paper 1 of 2010, "cultural industries" are defined as those producing and distributing goods or services which at the time of their development are considered to have a specific attribute, use or purpose which embodies or conveys cultural expressions, irrespective of the commercial value they may have. Besides the traditional arts sectors this definition includes performing arts, visual arts, cultural heritage and the public sector, film, DVD and video, television and radio, video games, new media, music, books and press production. This concept is defined in relation to cultural expressions in the context of the 2005 UNESCO Convention2. The Commission's 2010 Green Paper highlights the "strong and distinctive regional dimension" of cultural and creative industries suggesting that policies and support instruments need to be determined locally, building on local specificities and assets and tapping into local resources ("placebased development approach"). Regional strategies should be defined for a mediumto long-term (i.e. 10-20 years) period, combining infrastructure and human capital investments including new business models, creativity and innovation, digitisation, skills and improvement of human capital, and creative partnerships with other sectors.

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Source: AIER/WIFO (2011) Economic activity in the EU's cultural and creative sectors accounts for 3.3% of GDP and employs 6.7 million people (3% of total employment). There is also a 1 European Commission (2010) Green paper. Unlocking the potential of cultural and creative industries, COM(2010) 183 final 2 United Nations Educational, Scientific and Cultural Organisation (UNESCO) (2005) Convention on the protection and promotion of the diversity of cultural expressions, Paris (October ) http://www.unesco.org/new/en/culture/themes/culturaldiversity/diversity-of-cultural-expressions/the-convention/convention-text/ 2 significant contribution from fashion and high-end industries, which account for 3% of EU GDP each and employ 5 and 1 million people respectively. Between 2008 and 2011, employment in the cultural and creative sectors grew above average, but at rates varying according to subsector. Overall employment in creative industries increased by an average of 3.5% a year in the period 2000-2007 compared to 1% a year for the total EU economy. Most of the new jobs in the EU created over the past decade were in the knowledge-based industries where employment increased by 24%. In contrast, employment in the rest of the EU economy increased by just under 6%.3 Some sectors have a high percentage of youth employment4.

It is estimated that 1.4 million SMEs operate in European creative industries with micro-SMEs and free-lancers representing 85% of all actors. With regard to copyright industries, a recent report of the World Intellectual Property Organization5 reviewed 40 national studies conducted and suggested that the creative sector is larger than expected in most countries. Research also indicates that copyright industries make a significant overall economic contribution to GDP and that this contribution varies across countries. In three-quarters of the countries surveyed this contribution was between 4 and 6.5%, with an average of 5.2%. Countries that have experienced rapid economic growth typically have an above-average share of GDP attributed to copyright industries.

Contribution of copyright industries to GDP (2013) Source: UNESCO/WIPO (2013) 3 European Commission (2011) A Single Market for Intellectual Property Rights. Boosting creativity and innovation to provide economic growth, high quality jobs and first class products and services in Europe; Comunication COM(2011) 287 final of 24 May 2011 4 European Commission (2012) Promoting cultural and creative sectors for growth in the EU, Communication COM(2012) 537 final of 26 September 2012 5 World Intellectual Property Organization (2013): World Intellectual Property Indicators 2013, Geneva 3 Employment in the cultural and creative industries at regional level in %, 2006

Source: European Cluster Observatory 2009

A report by the European Cluster Observatory6 confirmed that cultural and creative industries are concentrated in regions with the highest prosperity levels. Of the top 15 regions with significant employment shares, all but two were in capital regions.

Among these, Inner London (5.95% of total employment), Stockholm (5.87%), Prague (5.81%), and Bratislava (5.01%) had the highest shares while other regions showed above-average growth rates including Seville (7.78%), Southampton (7.22%), Valencia (6.25%), Bilbao (6.51%), Galicia (5.45%) and Lithuania (5.79%) during the 2001-2006 period. Moreover the study confirms that the creative and cultural industries are significant generators of intellectual property, in particular copyrights, and that regions with the largest creative and cultural industries are also among the largest employment centres for copyright-based industries. According to a study7 of October 2013, over a third (35%) of European jobs rely on intellectual property rights (IPR) such as patents, trademarks and design rights according to a new pan-European study, and 39% of all European economic activity, worth EUR 4.7 trillion, arises annually from IPR.

6 Power, D./Nielsén, T. (2010) Priority Sector Report: Creative and Cultural Industries, Europe Innova/European Cluster Observatory 7 European Patent Office/Office for the Harmonisation of the Internal Market (2013) Intellectual property rights intensive industries: contribution to economic performance and employment in the European Union, Industry-Level Analysis Report, September 2013, Munich/Alicante 4 The availability of exact data on public expenditure at different levels of government has been subject to repeated concerns. Sources suggest that the average EU level of reported public expenditure on cultural services is in the order of 1.5% of total public expenditure or 0.5% of GDP. On average, 70% of this is expenditure at subnational level, a figure which has remained stable over the past few years.8 It appears that performing arts account for the biggest share of this expenditure, followed by museums and libraries.

Subnational public expenditure by function in % between 2002 and 2009 of total public expenditure, including minimum and maximum shares Source. European Commission (2012) As discussed by Chapain, Clifton and Comunian (2013)9, the importance of regional and local strategies fostering creative industries, the creative economy and the creative class represents a global trend, which started in the mid-1990s in Australia, with the launch of a report10 and then spread to the United Kingdom and North America. In the past ten years, debates have emerged, including at supranational policy levels in Europe11 and the UN12, referring to the EU13, Asia14 and other parts of the world.15 Recently, Sacco et al. (2013)16 have deepened such analysis with regard 8 European Commission (2012) Report on public finances in EMU, Brussels, p. 171; Dexia/CEMR (2011) Subnational public finance in the European Union, Paris (July 2011), p. 12 9 Chapain, C.; Clifton, N., Comunian, R. (2013) Understanding creative regions: bridging the gap between global discourses and national and regional contexts, Regional Studies Vol. 47, No. 2, p. 131–134 10 Department of Communication and Arts (1994) Creative Nation. Commonwealth Cultural Policy, Australia (October) http://apo.org.au/research/creative-nation-commonwealth-cultural-policy-october-1994/ 11 Council of the EU (2007) Contribution of the Cultural and Creative Sectors to the Achievement of the Lisbon Objectives, Conclusions. Cult 29, 9021/07 of 8 May 2007, Brussels; European Commission (2010) Green Paper: Unlocking the Potential of Cultural and Creative Industries, COM (2010)183 final of 27 April 2010, Brussels 12 United Nations (2004) Creative Industries and Development. Eleventh Session, São Paulo, Brazil, 13–18 June 2004; United Nations Educational, Scientific and Cultural Organisation (UNESCO) (2006) Understanding Creative Industries: Cultural Statistics for Public-Policy Making. Global Alliance for Cultural Diversity, Paris; United Nations Development Programme (UNDP)/United Natíons Conference on Trade and Development (UNCTAD) (2010) Creative Economy. Report 2010, Geneva/New York; United Nations Educational, Scientific and Cultural Organisation (UNESCO) (2013) Creative Economy Report 2013. Special edition. Widening local development pathways, Paris 13 Musterd S., Murie A. (2010) Making Competitive Cities, Oxford 14 Kong L. and O’Connor J. (2009) Creative Economies, Creative Cities. Asian–European Perspectives, New York 15 Fonseca Reis A. C., Kageyama P. (2009) Creative City Perspectives. Garimpo de Soluções & Creative Cities Productions, São Paulo 16 Sacco, P.L., Ferilli, G., Blessi, G.T., Nuccio, M. (2013) Culture as an Engine of Local Development Processes: System-Wide Cultural Districts I: Theory, Growth and Change. A Journal for Urban and regional Policy, Vol 44.4, p. 555-570 (December) 5 to the spatial function of clusters introducing “system-wide cultural districts", where cultural production and participation present significant strategic complementarities with other production chains. In the authors' view, culture drives the accumulation of intangible assets such as human, social, and cultural/symbolic capital, thereby fostering economic and social growth and environmental sustainability. For Heinze and Hoose (2013)17, the motives for the growing interest in creative industries can be found in the efforts of individual regions to create a distinctive image for themselves in the context of (international) competition to attract investment. Furthermore, the authors assume that interchangeable concepts on culture and creativity have been adopted by political players driven by the wish to implicitly associate their region or city with positive connotations and creative industries, as well as a promise of societal progress, modern forms of work organisation, economic change and local, regional, national or European identity. With regard to urban development and governance arrangements for the support of cultural and creative sectors, recent analyses were presented by Andres and Chapain (2013)18, Lazzeroni, Bellini, Cortesi and Loffredo (2013)19 and Lysgård (2012).20 (3) EU legislation and institutional responsibilities A competence for culture was conferred on the EU by the Maastricht Treaty in 1992, empowering the Community to safeguard, disseminate and develop culture by promoting cooperation between the cultural operators of the different EU countries, or to complement their activities with a view to highlighting shared cultural heritage.

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