10 September 2025Allianz ResearchThe fertility rate paradox:Education is keyAllianz Research2Content.
2025-09-16
42页
5星级
WTCFWTCFWTCFWTCFWTCFWTCFWTCFWTCFWTCFWTCFWTCFWTCFWTCFWTCFWTCFWTCFWTCFWTCFWTCFWTCFWTCFWTCFWTCFWTCFWTCF.
2025-09-16
108页
5星级
Education at a Glance 2025OECD IndicatorsEducation at a Glance2025OECD INDICATORSThis work is publis.
2025-09-15
541页
5星级
Education at a Glance 2025 Sources,Methodologies and Technical NotesEducation at a Glance 2025 Sourc.
2025-09-15
496页
5星级
THE FUTURE OF TRAVEL 2025From Dreamers to Doers:Indias Global Travel Generation111Executive Summary .
2025-09-15
29页
5星级
The Future of Wellness Tourism 2025Trends defining wellness tourism in 2025 and beyondIntroductionWe.
2025-09-15
42页
5星级
trendHAWKSummer Report:A Look at Trends Shaping Luxury&Lifestyle Travel in 2025 and BeyondtrendHAWK3.
2025-09-15
28页
5星级
Unleashing the Potential of the Cultural and Creative IndustriesResearch and InnovationUnleashing the Potential of the Cultural and Creative IndustriesEuropean CommissionDirectorate-General for Research and InnovationDirectorate D Directorate People,Health,and SocietyUnit D0 DirectorContact Harald HartungEmail RTD-PUBLICATIONSec.europa.euEuropean CommissionB-1049 BrusselsManuscript completed in November 2024 First editionThe contents of this publication do not necessarily reflect the position or opinion of the European Commission.PDFISBN 978-92-68-22179-2doi:10.2777/0306127KI-01-24-083-EN-NLuxembourg:Publications Office of the European Union,2025 European Union,2025The Commissions reuse policy is implemented under Commission Decision 2011/833/EU of 12 December 2011 on the reuse of Commission documents(OJ L 330,14.12.2011,p.39,ELI:http:/data.europa.eu/eli/dec/2011/833/oj).Unless otherwise noted,the reuse of this document is authorised under the Creative Commons Attribution 4.0 International(CC BY 4.0)licence(https:/creativecommons.org/licenses/by/4.0/).This means that reuse is allowed,provided appropriate credit is given and any changes are indicated.For any use or reproduction of elements that are not owned by the European Union,permission may need to be sought directly from the respective rightholders.The European Union does not own the copyright in relation to the following elements:cover:felix_brnnimann#1273045029,2025.Source:EUROPEAN COMMISSIONDirectorate-General for Research and Innovation2025Unleashing the Potential of the Cultural and Creative Industries 2 ACKNOWLEDGEMENTS This report was drafted at the request of Marc Lematre,the Director-General of the European Commissions Directorate-General for Research and Innovation(DG RTD).It gives an overview of the structure of the EU Cultural and Creative Industries(hereafter called CCIs),their strengths and challenges,the possible impact of new information and communication technologies(ICTs)and artificial intelligence(AI)and the current support mechanisms for the sector at EU level.This report aims to help position CCIs in the EU as an engine for sustainable growth and cutting-edge innovation in global competition and for strengthening the social fabric,resilience and values of our societies for our well-being and quality of life.Finally,it could promote a high-level launching event for bringing together a wide range of stakeholders in this field to help place CCIs high on the agenda of the new European Commission and the new European Parliament.This report reflects the opinion and positions of the author,but not necessarily those of DG RTD or those of the European Commission.Special thanks go to Erik Jones,the Director of the Robert Schumann Centre for Advanced Studies at the European University Institute(EUI),for his advice and guidance on the priority areas and emerging trends in CCIs.The author would also like to express his gratitude to Roberto Nocentini,the Director for Budget and Financial Affairs Services at the EUI for his continuous support during the authors stay at this institution.The author also wishes to express his sincere thanks to Dr Christian Ehler,Member of the European Parliament,for the in-depth discussions on the needs and potential of CCIs,which helped in setting the scene for this report.The author received fruitful input in the form of the support,feedback and regular exchanges with Rickard Bucksch and Giuliana Defrancesco from DG RTDs cultural heritage team and the suggestions from Katja Reppel,the head of DG RTDs Democracy,Equality&Culture unit,on the CCIs links with the European Regional Development Fund(ERDF)and the Digital Decade programme.The regular cooperation between DG RTDs cultural heritage team and the CCI specialists of DG GROWs Proximity,Social Economy,Creative Industries unit,under the guidance of Alessia Di Gregorio and Ilona Lelonek Husting,on the follow-up of the 2021 Single Market Report,provided new insights into fostering CCIs.Special thanks also go to Michalis Moschovakos of DG RTDs Health&Social Transitions unit for his suggestions on the latest developments in the sector and his linguistic review of the text.Furthermore,the author wishes to thank,in particular,the following Commission colleagues for their input and critical remarks:Nicoleta Bazgan(ERCEA),Guglielmo Di Cola(EAC),Bernd Fesel(EIT CC),Charlotte Lorentz Hjorth(ekip),Eleni Magklara(EISMEA)Elena Martines(EISMEA),Natlia Petrovov(EIF),Lucia Recalde Langarica(CNECT),Pier Luigi Sacco(EIT CC),Jorge Sanz Gonzalez(EIF),Barbara Stacher(EAC),Maciej Szymanowicz(CNECT)and Andrea Gallelli(ESTAT).Finally,the author wholeheartedly thanks Jade Iafrate and Esther de Jong van den Brand,who undertook the demanding task of reviewing this report and putting it into an attractive format and layout.The author,Harald Hartung 3 Contents ACKNOWLEDGEMENTS.2 EXECUTIVE SUMMARY.6 1.INTRODUCTION.11 2.AN INDUSTRY WITH POTENTIAL.12 2.1.The Cultural and Creative Sector data from Eurostat.12 2.2.The challenges facing the Cultural and Creative Sectors.14 2.3.Supporting the Cultural and Creative Sectors through EU funding schemes.15 2.4.Trends and outlook.16 2.5.Definitions and context.18 2.6.Diverging definitions lead to diverging data.19 2.6.1.Eurostat methodology.19 2.6.2.OECD approach.20 3.ICT AND AI FOR INNOVATION AND GROWTH.22 3.1.The profound impact of new emerging technologies:revolutionising economies and societies.22 3.2.The EUs Digital Decade programme.23 3.3.Leveraging and assessing the potential of AI tools in culture.23 3.3.1.Exploring pivotal technologies and their influence on the CCSs.24 3.3.2.The transformative impact of AI tools in the CCS.26 4.CREATIVE SPILLOVERS.29 4.1.Merging aesthetics with economic returns.29 4.2.Knowledge,industry and network spillovers.30 4.3.From anecdotal spillovers to a systematic transfer of creativity and innovation.33 4.4.Think globally,act locally.34 5.EU SUPPORT AND FUNDING INSTRUMENTS.36 5.1.The EU Recovery and Resilience Facility(RRF).37 4 5.2.Leveraging private investment into the CCS through public guarantees.40 5.2.1.The Cultural and Creative Sector Guarantee Facility(CCS GF)A boost from the past.40 5.2.2.The Cultural and Creative Portfolio Guarantee Product.41 5.3.Equity investment in CCSI.41 5.4.SME pillar of the Single Market programme.43 5.5.EU cohesion policy.43 5.6.The Digital Decade.44 5.7.Audiovisual and media.45 5.8.Reflecting on the impact of EU funding for the sector.45 5.8.1.A steadily growing number of non-coordinated support and funding opportunities for CCSIs.45 5.8.2.Building trust through well-rooted intermediary organisations.46 6.INVESTING IN RESEARCH AND INNOVATION FOR THE CULTURAL AND CREATIVE INDUSTRIES THROUGH THE HORIZON EUROPE PROGRAMME.47 6.1.Horizon Europe.47 6.2.General support through Horizon Europe open to CCSIs.48 6.3.Specific Horizon Europe support for CCSIs.50 6.4.The structuring effect of the European Research Programmes.53 6.5.A European platform for CCSIs.53 6.6.Culture and creativity through the European Institute of Innovation and Technology.55 6.7.A hub for CCIs.57 6.7.1.Filling gaps to strengthen the impact of support through EU funding.57 6.7.2.Promoting better collaboration and local implementation through research funding.58 6.7.3.A holistic approach for a comprehensive CCSI platform Horizon Europes key strategic orientations for 2025-2027.59 7.THE WAY FORWARD.61 7.1.The need for a coherent and comprehensive European ecosystem for CCIs.61 7.2.Long-term support through Horizon Europe Instruments.61 7.3.How to build a comprehensive support cycle for CCIs in Horizon Europe.62 5 7.4.The platform a Europe-wide tool for a comprehensive CCI ecosystem.64 7.5.Conclusions.66 8.LIST OF ACRONYMS-BIBLIOGRAPHY-PROJECTS.68 6 EXECUTIVE SUMMARY Overview of the Cultural and Creative Sector The Cultural and Creative Sector(CCS)is at the heart of the creative economy.Its creativity,transformed into innovation,has made some of Europes CCIs(Cultural and Creative Industries)world leaders,whose innovative power spills over into other sectors of the EU economy1.The sectors 1.2 million companies employ some 8.02 million people and generate a value added of EUR 477 billion2.This is higher than the value added of telecommunications,the pharmaceutical industry or the automotive industry.The CCS employs 3.8%of the EUs workforce.In the decade before the COVID-19 pandemic,cultural and creative employment rates grew faster than overall employment rates in most OECD countries(by 13.4%vs by 9.1%).The educational level in the cultural sector,where 60.6%of workers have a tertiary education,is significantly higher than the EU average of 37.1%.During the pandemic,CCIs developed innovative collaboration methods,such as co-working spaces,co-location centres and creative labs,which adapted rapidly to market shifts,and which have now been adopted by other EU industries.By leveraging new technologies and AI,CCIs pioneered virtual and augmented realities in the audiovisual sector,digital installations in museums,and interactive content in gaming and entertainment.Challenges in exploiting CCIs full potential CCIs in the EU have great potential.Flagship companies like LVMH showcase CCIs economic strength and the sectors growth potential.However,CCIs in the EU are still far from being as effective as they could be to their inability to exploit and capture the full commercial and cultural value of their creations and the large number of small and microbusinesses,as well as the financial struggles experienced by many of these companies.The vast majority of SMEs in the CCIs are still operating on a local or regional level.The CCIs market is still fragmented along national and linguistic borders.CCI companies are failing to make the single market their home base,and to operate from there at an international level.Financing is one of the CCI companies main challenges because of their small size,their lack of classic assets and the project-oriented nature of their business planning and cycles.There is a wealth of support mechanisms,structures,and institutions,but each of them follows its own logic,its own procedures,and its own timetables.Thus,there is a risk that they will not meet a CCI companys specific needs at a specific point in its life cycle.Growth and access to financing are often intertwined.The small size and scattered landscape of the small enterprises and microenterprises that make up 99%of the sector,mean that they fail to achieve their creative and innovation potential.1 In this report,we use the term Cultural and Creative Industries(CCIs)mainly for the enterprises of the sector.The terms Cultural and Creative Sectors(CCSs)and Cultural and Creative Sectors and Industries(CCSIs)are used for the entire sector,including non-commercial operators and institutions.For further information about the terms,definitions and data related to the sector,see Sections 2.5 and 2.6 of Chapter 2 An Industry with Potential.2 Commission Staff Working Document Annual Single Market Report 2021 Accompanying the Communication from the Commission to the European Parliament,the Council,the European Economic and Social Committee and the Committee of the Regions Updating the 2020 New Industrial Strategy:Building a stronger Single Market for Europes recovery-SWD/2021/351 final https:/eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX:52021SC0351.7 They often remain confined to local and linguistic markets.This situation is made worse by the fact that rules on intellectual property rights and on the audiovisual market in the EU still diverge.Furthermore,since public administrations in the EU are more risk-averse than in other regions in the world,there are sometimes disproportionately burdensome and long procedures for obtaining public financing.However,the introduction of market approaches combined with public guarantees(i.e.the approach taken by the CCS Guarantee Facility of the European Investment Fund(EIF),is starting to achieve promising results and significant leverage effects in raising capital for the CCIs.Opportunities provided by new technologies The COVID-19 pandemic hit the CCS particularly hard and made its weaknesses apparent.The entire sector saw a 31%drop in its turnover,a 76%drop in attendance at music venues and a drop of 70%in box-office sales for cinemas.At the same time,those subsectors radically changed their approach and found groundbreaking new and engaging ways of collaborating,and of reaching out to and capturing the attention of their public.Their new ways of working together,adopted mainly in response to the pandemic and the need to reduce costs,have now developed into vibrant new hotspots for creativity and innovation.They will be at the heart of new forms of business models for the CCIs,which will have a strong spillover effect to other sectors of the European economy.During the pandemic,small enterprises(in particular,those in these areas)started experimenting with and adopting new technologies.These new technologies are blurring the distinction between producers,distributors and consumers.This will give rise to start-ups that combine these new technologies with culture and creativity and new forms of collaboration between the CCS and high-tech enterprises and novel and innovative business models in the CCIs.This will lead to the production and distribution of new content.More immersive experiences attract more non-traditional audiences.As a result,digital consumption of performing arts content generates new revenue opportunities.Immersive content has the potential to add about EUR 1.3 trillion to the global economy by 2030.While in many cases,these new technologies gave rise to initial fears when first introduced,they have the potential to respond precisely to the needs of the CCS and its companies.For example,virtual and augmented realities increase the reach of musicians and live performances exponentially by opening up new dimensions in the performing arts,exhibitions and museums,and unfolding new perspectives in design,architecture and social media.Need for common definitions and metrics The CCIs contribution to and importance for the competitiveness,growth and innovative power of the EU economy is undervalued.This is due to a lack of a commonly accepted definition of the sector,statistics based on that definition and robust methodologies for measuring the spillover effects on a broad scale.There is no generally accepted definition of the CCSs or the CCIs.They are defined in different ways at international,EU and national level.Their definitions change in line with the context.The procedures in place for official definitions and statistics are too cumbersome to capture the rapid changes in this sector in a timely manner,and the various national statistics sometimes diverge considerably from those at EU level.8 Therefore,in parallel to updating and reviewing culture statistics every year,the Commission is looking into complementary sources to fill the data gaps.By analysing specific cultural sectors and continuing to cooperate with EU Member States,international organisations and the relevant stakeholders,the Commission aims to further identify best practices and build the evidence base for developing policies.To identify and evaluate future trends,some of the main studies on the CCS also use informal sources,statistics from professional organisations or collecting societies3 and estimations.Furthermore,the importance of creative skills for the whole economy is highlighted by the fact that 40%of cultural and creative employment takes place outside of CCSs,e.g.industrial designers working in the automotive industry.The importance of research and innovation(R&I)Research paves the way to innovation and to the market.There is a wealth of research results and ongoing projects which provides a solid basis for an evidence-based and comprehensive EU support structure for CCIs.As AI and new technologies will have a profound effect on not only the CCIs,but also our entire economies and societies,there are two main research areas for the future:the influence of new technologies on our societies and the influence of our societies on the development of new technologies.This raises the question of how best to prepare the CCIs to take full advantage of cutting-edge technologies,and how to develop a human-centric approach to new technologies,where the creators of those technologies can still understand,predict,and reliably control the developments that they have triggered.This leads to an additional challenge for research in this field;i.e.the rapid pace of change of technologies.When published,studies in mainstream academic journals are often based on data that are 5-10 years old.The new insights are essentially derived from technologies that are two or three generations old.This calls for new research methods to identify,conceptualise and validate emerging trends to timely cope with the rapid change of technologies.Building a unified ecosystem Currently,there is no cohesive ecosystem for CCIs.Therefore,a coherent and comprehensive ecosystem with enough size,financial firepower,expertise and local anchorage to meet the challenges ahead is needed.The CCS is as diverse as the EU funding and support opportunities available to it.All of these funding opportunities follow their own logic,procedures,and timetables.Although they are growing in volume and in what they offer,they underperform in terms of their output and impact at EU level compared with their combined size and financial capacities.There needs to be better collaboration between the different instruments and activities for,or open to,CCIs in Horizon Europe,and enterprises in the cultural and creative fields need to work closely together to reach their full potential.3 A collecting society is an organization that licenses and manages copyrighted works on behalf of copyright owners like songwriters or composers.They monitor performances and distribution of works on radio,television,in public venues or online.9 Such collaboration requires a Europe-wide platform that hosts tools,services and exchanges to develop and nurture a robust European network for and with CCIs.Information,studies,guidebooks and market analyses could be stored,processed,and managed on such a platform.It should link the different sectoral and regional ecosystems and forums for developing and showcasing best practices for the business models of Cultural and Creative Sectors and Industries(CCSIs).The platform would need to be regularly maintained and updated and produce regular outputs for the stakeholders,the general public and policymakers.Setting up another support system for CCSIs in parallel to what already exists,or is in the making,will not suffice.That would risk further contributing to the fragmentation and patchwork nature of the sector and its associated support initiatives.The transformative potential of CCIs Support for the CCSIs is not a cost;it is an investment.It is an investment in the future of the EU economy and society and its competitiveness and power of innovation.To reach a new level of outreach and impact,there is a need for a more structured approach and for collaboration with CCSI stakeholders,be they institutions,professional organisations,individuals or companies.The Commission Communication on promoting cultural and creative sectors for growth and jobs in the EU sets out a strategy to foster the sectors economic power and societal impact.In its deliberations on increasing the support for CCIs,the European Parliament urges the Commission to increase its funding for the cluster Cultural Heritage and Cultural and Creative Industries.Consequently,the budget for the Horizon Europe Cultural Heritage and Cultural and Creative Industries cluster has been increased to EUR 2.28 billion,which is 80%more than the budget for the previous 2020 Horizon Europe programme.The recently launched EIT Culture&Creativity,of the European Institute of Innovation and Technology,aims to raise some EUR 500 million in support for CCIs.It is supplemented by several support facilities of other EU instruments and initiatives for SMEs in general and for CCIs in particular.These include the Cultural and Creative Sector Guarantee Facility,Media Invest and Creative Europe and the support for the CCSs through the ERDF,which,all together,can create significant impact at EU level.Combining these instruments from all Commission services on one platform and around a commonly defined goal would make a significant difference and have a sizeable impact at European level.As these tasks are multi-faceted,far-reaching and comprehensive,all the Commission services concerned would need to work together.A platform with strongly rooted stakeholder groups and organisations needs to be built gradually to provide a coherent and comprehensive CCI ecosystem.To achieve this,the Horizon Europe programme can provide the legal basis and raise the necessary funds,which can be combined with support instruments from other Commission services and programmes.A more holistic approach founded on joint ownership and strong leadership could make the difference.10 This means tying up the loose ends and building a structure to gather all these complementary support and funding opportunities.There should be regular exchanges between CCI operators,professional organisations,financial intermediaries and policymakers.This collaboration will enable the joint development of coherent strategies and goals,foster lasting cooperation and build an ecosystem where each support and funding instrument meets a specific need in the different phases of the life cycle of a CCI enterprise or operator.The challenges of our economies and of our societies require out-of-the-box solutions.We cannot solve problems using the same mindset that led to their creation in the first place.Unleashing the full potential of the CCSIs can offer new perspectives and opportunities for a competitive and cutting-edge European economy,as well as for the well-being of a resilient,coherent and inclusive society.11 1.INTRODUCTION Cultural and Creative Industries(CCIs)play a vital role in assuring the future prosperity and quality of life in Europe.They are a major engine for growth,competitiveness,and innovation in the EU,while also shaping perceptions and culture,and fostering a sense of belonging.As part of Horizon Europe(the EUs key funding programme for R&I),this report focuses specifically on the potential of CCIs as the engine of a culture-and creativity-driven European innovation ecosystem.By taking a cross-disciplinary approach,this report aims to help draw up a new vision for CCIs,foster a policy dialogue between researchers and policymakers;and assist the next Commission in fully harnessing the potential of CCIs.This report gives an overview not only of the structure of the EU CCIs,and their strengths and challenges,but also of the possible impact of new ICTs and AI.It sets out the economic importance of this industry and of its spillover effects for fostering growth,innovation and competitiveness in other sectors of the EU economy and how CCIs contribute to a resilient society and the well-being of all members of society4.This report points out the growing number of support and financing instruments for CCIs in the EU,the different formats of these instruments and the need for a comprehensive approach along clearly defined goals.Finally,this report sets out the components in such an approach and how existing structures and budgetary allocations could be used to implement the approach.This report should help to position CCIs in the EU as an engine for sustainable growth and cutting-edge innovation in global competition,and for strengthening our societies social fabric,resilience and values to benefit well-being and quality of life.To that end,this report is intended to promote a high-level launching event bringing together a wide range of stakeholders in this field(including representatives from the European Commission,the European Parliament,and the Member States),with a view to placing CCIs high on the agenda of the new Commission and of the new European Parliament to help tackle the economic and societal challenges ahead.4 To facilitate the reading of only a limited selection of chapters,the chapters were drafted in such a way as to be stand-alone units.By doing so,repetition could not be avoided.12 2.AN INDUSTRY WITH POTENTIAL Our performance in 2023 illustrates the exceptional appeal of our Maisons and their ability to spark desire,despite a year affected by economic and geopolitical challenges,declared Bernard Arnaut,chairman CEO of LVMH and,according to an estimate of Forbes of 10 February 2024,the richest man in the world5.In April 2023,LVMH,the most valuable EU company,became the first EU company to surpass USD 500 billion in market value.In 2023,it grew at a rate of 13%.LVMH(as the flagship of the European high-end luxury industry),together with highly profitable multinationals in the audiovisual,music or publishing fields,form the spearhead of the European CCIs.With its 1.2 million companies,the CCS employs 8.02 million people and generates a value added of EUR 477 billion(Commission,2021 Single Market Report).This is higher than the economic contributions of telecommunications,the pharmaceutical industry or the automotive industry.While the big multinationals of the high end luxury industry,and of the audiovisual and publishing industries,are the driving force of the CCS,it is SMEs(which make up over 99%of the sector and cover a vast field of activities ranging from traditional artistic crafts to the latest enhanced reality applications)that form its backbone.This chapter provides an overview of the CCIs in Europe,highlighting their economic impact,challenges,and outlook.The COVID-19 pandemic hit the CCS particularly hard.At the same time,it accelerated major trends in digitalisation,as well as new audiovisual technologies and business models.The challenge is now to foster an environment that helps to transform this potential into concrete outcomes and methodically transfer the creativity,dynamism and innovation potential of the CCIs to other sectors of the European economy.2.1.The Cultural and Creative Sector data from Eurostat This section deals with Eurostats data on cultural statistics6.The 2021 Single Market Report includes the entire advertising and marketing research sector,for example.However,the below-mentioned Eurostat figures on the European CCS do not include all of the 2021 Single Market Reports sectors and estimates.Therefore,the scope of Eurostats cultural statistics is narrower.However,these Eurostat figures give a coherent overview of employment,enterprises,international trade in cultural goods and services and of cultural participation.The general trends illustrated by this data are also confirmed by other sources dealing with data in the cultural field.Sections 2.5 and 2.6 of this chapter provide further details about the different definitions and about how data for the cultural field is obtained.Eurostats cultural statistics from March 2024 indicate that in 2021,the CCSs 1.9 million companies generated a turnover of EUR 448 billion with a value added of EUR 183 billion7.This marked a significant recovery from 2020,when the 1.2 million companies of the CCS generated a turnover of EUR 363 billion(which is 1.5%of the total non-financial EU economy)with a value added of EUR 147 billion(which is 2.5%of the non-financial sector).This was slightly higher than the motor trade sectors value added of EUR 145 billion.58.9%of the CCSs value added was produced by Germany(30.2%),France(18.6%)and Italy(10.1%),which,together,produced 56.5%of the sectors total turnover.These data for 2020,when the entire CCS was hit by the COVID-19 pandemic,illustrate a low point in the sectors development in the EU.The CCS was affected much worse than the rest of the European 5 CNBC,Elliot Smith,LVMH shares jump over 12%as earnings point to luxury sector resilience.26 01 2024.6 Despite many attempts at international,EU and national levels,there is no universal definition or consistent terminology for the CCS.Therefore,terms and statistical data for this area can vary considerably.For this part of the report,unless specifically stated otherwise,we have followed the Eurostat definitions and statistics.7 Unless stated otherwise,the data and definitions in this section of this chapter that relate to CCS enterprises are taken from Eurostat,Statistics Explained-Cultural statistics-cultural enterprises and its subsections.Culture statistics-cultural enterprises-Statistics Explained(europa.eu).13 economy.While there was a decline in the overall non-financial EU economys value added(-5.2%)and turnover(-6.5%),there was a sharper decline in the CCSs value added(-7.2%)and turnover(-9.5%).The discrepancies between these figures might diverge even more once the data on creative,arts and entertainment activities(NACE 90)and on libraries,archives,museums,and other cultural activities(NACE 91)are included,as many of those sectors activities had to be cancelled during the pandemic lockdowns8.In 2021,the EU audiovisual market achieved revenue of EUR 91.4 billion after its revenue had fallen by 5.5%from 2019 to 20209.The largest proportion of the enterprises was involved in architectural activities(25%)and design(18.2%).The publishing sector generated the most value added(18.8%),followed by programming,broadcasting and news agencies(17%)and architectural activities(15.8%).By far the most productive sector by business was the publishing sector,generating EUR 25 billion of value added with only 6 820 businesses(0.6%of all the enterprises in the cultural sector).The demography statistics of enterprises also give a good indication of how dynamic economic structures are and how well they adapt to changing market conditions.For enterprises in the services sector in the EU that started their activities in 2015,the average death rate after five years was 45.8%.National data for most cultural activities suggest that the death rate in this sector was lower than that for the EU economy as a whole.The Cultural and Creative Sectors employ 3.8%of the EU workforce In 2022,3.8%of the EU workforce was employed in the CCS.The sector grew continuously from 2013 until 2019 at an average rate of 1.81%per year,until its growth was halted abruptly by COVID-19.In 2020,growth fell by 3%from 2019 levels.Between 2021 and 2022,the sector started a strong recovery,growing by 4.5%in 2022.This resulted in a 7.732 million-strong workforce,but with considerable variations as regards the geographical distribution and cultural sectors.Overall,design,photography and translation,as well as cultural heritage experienced steady long-term growth.On the other hand,the creative and performing arts,which accounted for many live performances,were hit hard by the pandemic.While the employment rate in those areas fell dramatically by 31%,it rebounded impressively to a record high in 2022(according to the Ernst&Young study on rebuilding Europe10).A high level of education in the cultural sector The level of education in the cultural sector,where 60.6%of workers have a tertiary education,is significantly higher than the EU average of 37.1%.In 2021,14.1%of students in tertiary education in the EU were studying culture-related subjects.The proportion of self-employed workers,at 31.7%,is considerably higher than the EU average of 13.8%.However,76.5%of the cultural workers have a full-time job,which is 5.5 percentage points less than the EU average.The OECD points out that 40%of cultural and creative employment takes place outside of the CCSs,e.g.industrial designers working in the automotive industry.This highlights the importance of creative 8 The figures are taken from the 2021 Eurostat final data on cultural enterprises,which are based on Regulation(EU)2019/2152 on European business statistics(EBS).The EBS Regulation extended statistical coverage to the following NACE codes:Division 90(Creative,arts,and entertainment activities);Division 91(Libraries,archives,museums,and other cultural activities);Class 85.52(Cultural education).Due to the changes in the population of the enterprises covered,the 2020 and 2021 figures are not comparable.Historical data(until 2020)can still be accessed under the common Eurostat database code cult_ent_h.9 Commission Staff Working Document,European Media Industry Outlook:SWD(2023)150 final,Brussels,17.5.2023.https:/digital-strategy.ec.europa.eu/en/library/european-media-industry-outlook.10 Lhermitte,M.,Alvarez,H.,Marcout,C.,Nam,Q.,and Sauze,E.(2021).Rebuilding Europe-The cultural and creative economy before and after the Covid-19 crisis.Ernest&Young Teams(2021).https:/www.rebuilding-europe.eu/.14 skills for the whole economy,as indicated by the OECD11.In the decade before the COVID-19 pandemic,growth in cultural and creative employment outpaced growth in overall employment in most OECD countries(13.4%vs 9.1%)(OECD,The Culture Fix,2022).On average,EU households spent 2.6%of their total expenditure on cultural goods and services in 2020.A quarter of that spending went on books and newspapers,and another quarter went on information processing and audiovisual equipment.Households expenditure on culture was greatly influenced by their income levels,with higher-earning households spending more on culture.Households in the highest income quintile spent 1.5 times more on culture than households in the income quintile just below them12.In the OECD,household spending on recreation and culture grew by 18tween 2011 and 2019,which is twice as fast as the growth in overall spending across the OECD(OECD,The Culture Fix,2022).Before the COVID-19 pandemic,growth in the CCS was outpacing general growth in many countries.In the EU-27,for example,cultural employment increased by over 11tween 2011 and 2019 compared with a 5.8%increase in total employment.Between 2011 and 2019,in G20 countries for which data are available13,growth in household final consumption expenditure on recreation and culture also outpaced growth in total household consumption expenditure,increasing by 20%compared with 10%.2.2.The challenges facing the Cultural and Creative Sectors A still-fragmented market The vast majority of SMEs in the CCS are still operating on a local or regional level.The CCSs market is still fragmented along national and linguistic borders.CCS companies are failing to make the single market their home base,and to operate from there at an international level.The fact that intellectual property rights are still split into national markets has been a major stumbling block for growth and outreach for some of the most promising subsectors of this industry.The timely and efficient implementation and application of the 2019 EU Copyright Directive,the update of the EU design protection legislation and the update of the Audiovisual and Media Services Directive14,as well as their rigorous enforcement and monitoring could really help to set CCS companies up for the future15.Workers in the CCS are highly skilled.Their jobs are more future-proof than jobs in the general jobs market(with 10%of CCS jobs being at high risk of automation,compared with 14%of jobs in the general jobs market).At the same time,CCS workers are,on average,twice more likely to be self-employed than workers in the general workforce,and they are also more likely to hold down several jobs,allowing them to combine salaried employment with project work.Contract instability,fluctuations in income and 11 OECD,The Culture Fix:Creative People,Places and Industries,Local Economic and Employment Development(LEED),OECD Publishing,Paris,2022,p.11.991bb520-en.pdf(oecd-ilibrary.org).12 Eurostat,Statistics Explained-Culture statistics-household expenditure on culture Culture statistics-household expenditure on culture-Statistics Explained(europa.eu).13 Factsheets measuring-ccs-eu.https:/www.measuring-ccs.eu/wp-content/uploads/2022/11/MeasuringCCS_Factsheet-EU-27_Final_v1.1.pdf 14 Directive(EU)2018/1808 of the European Parliament and of the Council of 14 November 2018 amending Directive 2010/13/EU on the coordination of certain provisions laid down by law,regulation or administrative action in Member States concerning the provision of audiovisual media services(Audiovisual Media Services Directive)in view of changing market realities,PE/33/2018/REV/1,(OJ L 303,28.11.2018,p.69 http:/data.europa.eu/eli/dir/2018/1808/oj.15 Commission Staff Working Document,2021 Annual Single Market Report Accompanying the Communication from the Commission to the European Parliament,the Council,the European Economic and Social Committee and the Committee of the Regions Updating the 2020 New Industrial Strategy:Building a stronger Single Market for Europes recovery SWD/2021/351 final,pp.97 ff.https:/eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX:52021SC0351.15 limited access to social protection make many jobs in the CCS more precarious than jobs in other sectors(OECD,The Culture Fix,2022).Challenges and opportunities through ever-faster digitalisation Digitalisation is changing business models in the sector,the skills need of its workers,and the ways in which people engage with culture.It has encouraged the development of new business models and new forms of collaboration and opened up new opportunities to sell and disseminate content to larger audiences and reach new markets.Therefore,digital skills and infrastructure support will be essential to take full advantage of these opportunities(OECD,The Culture Fix,2022).Digitalisation increases the opportunity for crossovers between the CCS and other parts of the economy.Such inter-industry collaboration can spur on innovation and growth(OECD,The Culture Fix,2022).Networking and collaboration are particularly important for the CCS,due to the high proportion of microenterprises and project-based activities.Therefore,CCS businesses frequently work collaboratively with freelancers and other businesses in temporary arrangements.The rise of new working methods,such as co-working spaces,co-location centres and creative labs(which enabled companies to reduce their costs significantly during the pandemic),is now encouraging collaboration between sectors and enabling them to adapt quickly to a constantly changing environment.This significant change will be at the heart of new forms of business models for the CCS and will have a strong spillover effect into other sectors of the European economy.The lack of access to financing remains CCS companies biggest problem Financing is one of the CCS companies main challenges because of their lack of classic assets and the project-oriented nature of their business planning and cycles.There is a plethora of support mechanisms,structures and institutions,but they often follow different agendas,timetables and procedures.Thus,there is a risk that they will not meet a CCS companys specific needs at a specific point in its life cycle.Furthermore,since public administrations in the EU are more risk-averse than in other regions in the world,there are sometimes disproportionately burdensome and long procedures for obtaining public financing.However,the introduction of market approaches,combined with public guarantees(i.e.the approach taken by the CCS Guarantee Facility of the EIF),has achieved promising results and significant leverage effects in raising capital for the CCS.2.3.Supporting the Cultural and Creative Sectors through EU funding schemes The European Commission has supported the CCS with numerous financial instruments16.Some of these funding initiatives are specifically designed for the CCS.However,other funding initiatives are linked to other policies and shared competencies in which the link with culture remains predominant through specific and thematic initiatives.These support instruments and programmes are explained in more detail in the Chapter EU support and funding instruments.Following the COVID-19 pandemic,the NextGenerationEU recovery plan had a significant effect on EU funding schemes.The EU Recovery and Resilience Facility(RRF),which is part of NextGenerationEU,is the EUs largest-ever funding instrument.It provides financial support to help the Member States recover from the pandemic and build resilience against future shocks.Some 2%of its EUR 23.8 billion budget is dedicated to the CCS.The Creative Europe programme is the EUs flagship programme for the CCSs.It provides funding for co-creation,skills development,network-and platform-building and knowledge sharing.Its culture and 16 This is a short overview on the main EU instruments in support of the Cultural and Creative Sector in Europe.More detailed information can be obtained from:European Commission,CulturEU funding Guide-EU Funding Opportunities for the Cultural and Creative Sectors 2021-2027(2021)https:/culture.ec.europa.eu/sites/default/files/2021-11/cultureu-funding-guide.pdf 16 media subprogrammes and its cross-sectoral strand also provide funding for mobility and for the distribution and promotion of content.Significant funds from the Creative Europe budget support InvestEUs CCS Guarantee,which is managed by the EIF17.The European Solidarity Corps enables cultural and educational institutions,NGOs and social enterprises to develop volunteering and solidarity projects that can strengthen the social fabric of and a sense of belonging to our societies,active citizenship and ownership by the young generation(Commission,CulturEU,2021).The InvestEU funding programme also aims to secure private investment for infrastructure,innovation and jobs.With a budget of EUR 26.2 billion,the fund will secure EUR 372 billion in investment for the green and digital transition,and for recovery and growth between 2021 and 2027.It will achieve this through the CCS Guarantee,the Media Invest blending facility and the Digital CCS instrument,which are all implemented through the EIF.These instruments provide guarantees and equity investments,mainly funded through the Creative Europe and Digital Europe programmes.The Digital Europe programme brings digital technology to businesses,individuals and public administrations.It complements funding through other EU programmes,such as Horizon Europe,the Connecting Europe Facility for digital infrastructure,the RRF and the structural Funds.The Digital Europe programme funds projects of cultural and creative organisations,thereby enabling those organisations to access the newest digital technologies,from AI to supercomputing,acquire digital skills and take up these new technologies(Commission,CulturEU,2021).Through the Connecting Europe Facility,the Europeana initiative also provides grants to help organisations embrace digital change and to set up partnerships that foster innovation(Commission,CulturEU,2021).The Cohesion Fund and the ERDF can also provide support to the CCS because they aim to strengthen long-term resilience and environmental,social and economic sustainability and turn the impact of the COVID-19 pandemic into an opportunity for transformation(Commission,CulturEU,2021).2.4.Trends and outlook The devastating effect of COVID-19 and a catalyst for radically new approaches The COVID-19 pandemic hit the CCS particularly hard and made its weaknesses apparent.The sectors entire turnover dropped by 31%and the pandemic had an even more devastating effect on some of the subsectors.For example,attendance at music venues dropped by 76%,museums in popular tourist regions suffered losses of up to 75-80%,and box-office sales for cinemas dropped by 70.At the same time,it was those subsectors,in particular,that radically changed their approach and found groundbreaking new and engaging ways of reaching out to and capturing the attention of their public.To overcome the crisis,a growing number of companies,particularly small enterprises,began to experiment with and adopt new technologies.In many cases,these new technologies gave rise to initial fears when first introduced.However,they have the potential to respond precisely to those companies needs through virtual and augmented realities that open up new dimensions in the performing arts,exhibitions and museums and unfolding new perspectives in design,architecture and social media to increase the reach of musicians and live performances exponentially.17 European Commission,CulturEU funding Guide-EU Funding Opportunities for the Cultural and Creative Sectors 2021-2027,2021,https:/culture.ec.europa.eu/sites/default/files/2021-11/cultureu-funding-guide.pdf.18 Lhermitte,M.,Alvarez,H.,Marcout,C.,Nam,Q.and Sauze,E.,Rebuilding Europe-The cultural and creative economy before and after the COVID-19 crisis,Ernest&Young Teams,2021,https:/www.rebuilding-europe.eu/.17 New technologies enhance new ways of working together New technologies are both a great opportunity and a challenge for the CCS.Regardless of how they are perceived by the operators in the sector,they will play an even more central role in the future.Advanced digital technologies lead to new content production and distribution.They make creative content available to larger audiences.More immersive experiences attract more non-traditional audiences.As a result,digital consumption of performing arts content will generate new revenue opportunities19.By 2030,immersive content could add about EUR 1.3 trillion to the global economy.Thanks to its large cultural diversity and highly skilled professionals,the EU has the potential to make the best use of these opportunities(Commission,Market,2021).The architecture and design sector provides a concrete example of the use of new digital tools,such as AR(augmented reality)and VR(virtual reality),which are used in that sector for presenting projects and for the design process.3D printing,automation and AI create new opportunities for architectural design and prototyping.Moreover,this subsector is increasingly exploring new practices to reduce the negative environmental impact of buildings by investigating more efficient and eco-friendly uses of materials and energy.(Deloitte,Market Analysis,2019).The new working methods,like co-working spaces,co-location centres and creative labs(which enabled companies to reduce their costs significantly during the pandemic)have now developed into new vibrant hotspots for creativity and innovation with the flexibility and agility to react on the spot and adapt quickly to changing situations.They will be at the heart of new forms of business models for the CCS and will have a strong spillover effect into other sectors of the European economy.The CCS is at the heart of the creative economy.Its creativity,transformed into innovation,has made some of the European CCIs world leaders,whose innovative power spills over into other sectors of the European economy.At the same time,they contribute to a sense of belonging and shared values,which are critical for the social fabric,resilience and well-being of our societies.How to record the impact definitions and data A universally accepted definition of culture does not exist.The scope of culture statistics is different from the scope of statistics on the CCSs20.The CCS is defined in different ways at international,EU and national level.Furthermore,the terms and definitions used in this context vary according to the goals and needs.Therefore,this chapter explores the definitions and data surrounding the Sector(CCS)and the Industries(CCIs),highlighting the challenges and methods involved in recording their economic impact.19 Deloitte,Market Analysis of the Cultural and Creative Sectors in Europe:A sector to invest in,European Investment Fund,2019,https:/www.eif.org/InvestEU/guarantee_products/ie-ccs-market-study.pdf 20 Eurostat,Guide to Eurostat cultural statistics 2018 edition,PDF:ISBN 978-92-79-97216-4 Print:ISBN 978-92-79-97215-7,p.4,72981708-edb7-4007-a298-8b5d9d5a61b5(europa.eu).18 2.5.Definitions and context At EU level,different terms are used to describe the cultural sector,but consistent trends can be observed.The most commonly used terms include:the Cultural Sector(CS);the Cultural and Creative Sectors(CCSs),as per the Eurostat database;the Cultural and Creative Industries(CCIs),which is used by the European Parliament,and some European Commission services,such as DG RTD21,or the Directorate-General for Internal Market,Industry,Entrepreneurship and SMEs(DG GROW);the Cultural and Creative Sectors and Industries(CCSIs),which has been gradually introduced by the Directorate-General for Education,Youth,Sport and Culture(DG EAC),and is being increasingly used,for example,by The European Institute of Innovation and Technology(EIT)and its Culture&Creativity Knowledge and Innovation Community(KIC)22.Whereas definitions for cultural and creative operators change according to needs,they all have one thing in common:creative expression and/or cultural values are at the heart of their activities,whether they are market or non-market-oriented23.21 In Horizon Europe(in the Culture,Creativity and Inclusive Society cluster),DG RTD uses the definition from the European Parliament Resolution on a coherent EU policy for cultural and creative industries:cultural and creative industries are those industries that are based on cultural values,cultural diversity,individual and/or collective creativity,skills and talent with the potential to generate innovation,wealth and jobs through the creation of social and economic value,in particular from intellectual property;they include the following sectors relying on cultural and creative inputs:architecture,archives and libraries,artistic crafts,audiovisual(including film,television,software and video games,and multimedia and recorded music),cultural heritage,design,creativity-driven high-end industries and fashion,festivals,live music,performing arts,books and publishing(newspapers and magazines),radio and visual arts,and advertising.https:/eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52016IP0486&from=EN.22 Definition of CCSIs by the EIT Culture&Creativity KIC,as set out in the factsheet on the KIC on Cultural and Creative Sectors and Industries(CCSI).(OJ L 189/112,28.5.2021,p.112).https:/eit.europa.eu/sites/default/files/factsheet_on_the_kic_on_cultural_and_creative_sectors_and_industries_ccsi.pdf CCSIs relate to all sectors and industries whose activities are based on cultural values,cultural diversity and individual and/or collective artistic and other creative expressions,whether those activities are market or non-market-oriented,whatever the type of structure that carries them out,and irrespective of how that structure is financed.Those activities include the development of skills and talent with the potential to generate innovation,the creation of wealth and jobs through the production of social and economic value,including from intellectual property management.Those activities relate also to the development,the production,the creation,the dissemination and the preservation of goods and services which embody cultural,artistic or other creative expressions,as well as related functions such as education and management.The cultural and creative sectors include,inter alia,architecture,archives,the arts,libraries and museums,artistic crafts,audiovisual(including film,television,software,video games,multimedia and recorded music),tangible and intangible cultural heritage,design,creativity-driven high-end industries and fashion,festivals,music,literature,performing arts(including theatre and dance),books and publishing(newspapers and magazines),radio and visual arts,and advertising.23 European Investment Fund Deloitte,Market Analysis of the Cultural and Creative Sectors in Europe:A sector to invest in,2019,p.9,https:/www.eif.org/what_we_do/guarantees/cultural_creative_sectors_guarantee_facility/ccs-market-analysis-europe.pdf.19 The terms Cultural and Creative Industries(CCIs)(as used in the legal basis for the Horizon Europe programme),and Cultural and Creative Sectors and Industries(CCSIs)(as defined by the European Parliament)are used throughout this report.Where appropriate,other terms,such as Cultural and Creative Sectors(CCSs)(as defined in the Eurostat legal basis)are used.2.6.Diverging definitions lead to diverging data24 One challenge for statistical analysis in the CCSs is the existence of varying definitions,leading to inconsistencies in the data collected.As set out in the section on the CCIs in the 2021 Single Market Report,there are several descriptive definitions in use,including those in the 2009 United Nations Educational,Scientific and Cultural Organisation(UNESCO)Framework for Cultural Statistics and in the 2010 European Commission Green Paper on unlocking the potential of cultural and creative industries.Article 2 of the new Regulation establishing the Creative Europe programme for 2021-2027 defines the CCS as including architecture,archives,libraries and museums,artistic crafts,audiovisual(including film,television,video games and multimedia),tangible and intangible cultural heritage,design(including fashion design),festivals,music,literature,performing arts,(including theatre and dance),books and publishing,radio,and visual arts(Commission,2021 Single Market Report).2.6.1.Eurostat methodology Eurostat uses the 2012 ESSnet-Culture final report as the reference for cultural statistics in Europe.It includes concepts,definitions,a methodology and a description of ten cultural domains.It also contains recommendations for the future development of European cultural statistics.Eurostats cultural statistics currently focus on cultural employment,cultural enterprises,international trade in cultural goods and services,cultural participation,and expenditure on culture by private households and public bodies.This framework,including the definitions and the statistical scope according to the EU official classifications,is summarised in the Guide to Eurostat cultural statistics(Eurostat,Guide to Eurostat cultural statistics 2018 edition).24 European Investment Fund Deloitte,Market Analysis of the Cultural and Creative Sectors in Europe:A sector to invest in 2019.https:/www.eif.org/what_we_do/guarantees/cultural_creative_sectors_guarantee_facility/ccs-market-analysis-europe.pdf 20 The multidimensional nature of culture requires various methodologies for statistics.For example,the Eurostat cultural statistics working group revised the scope of employment in the cultural sector to bring it closer to the scope used by the UNESCO institute for statistics.Therefore,the scope of cultural employment was extended by some additional NACE and ISCO codes.2.6.2.OECD approach The OECD points out that greater granularity is needed in the reporting of employment and business statistics to produce better data on second jobs,voluntary work,and non-standard forms of employment.Furthermore,the OECD sees the need to explore the integration of complementary data sources,such as online vacancy data,geolocation data,and websites to complement official data sources(OECD,The Culture Fix,2022).The CCS contributes to innovation in many different ways.However,this innovation is underrepresented in official data.The CCS produces new products,services and content,develops new business models and ways of working,and creates and integrates technologies in new ways.Innovation in the CCS also feeds into innovation in other sectors of the economy.However,it is not properly recorded in official statistics,as innovation metrics(such as research and development(R&D)expenditure)often fail to account for the specific characteristics of innovation in the CCS(OECD,The Culture Fix,2022).Reflecting on future data-collection methods The work carried out on cultural statistics is an ongoing process,since data are still lacking at EU level for many indicators and sectors.This concerns the scope,definitions,methodologies,harmonisation with national and international levels as well as the inclusion of new and dynamic subsectors and their impact on the general economy(Eurostat,Guide,2018).In parallel with Eurostats regular work on updating existing cultural statistics every year,the European Commission also investigates complementary sources to fill the data gaps at EU level.By analysing specific cultural sectors namely music,European heritage,and books and through continued cooperation with European Member States,international organisations,and relevant stakeholders,it aims to further identify best practices,build the evidence base for policy,and engage with representatives from across the sector25.As part of the foresight approach developed thanks to R&I,some projects funded by Horizon 2020,i.e.DISCE26 and CICERONE27,have made specific proposals for collecting better and more harmonised data for the CCSIs in the future.Some of the main studies on the CCS also use informal sources and statistics from professional organisations or collecting societies.In addition to hard data,some of these studies also work with estimations to identify and evaluate future trends.Although these differing approaches may be suitable for particular research purposes and objectives,they hinder the comparability of aggregate economic data across the CCS.Following a call for proposals by DG EAC,the Measuring the Cultural and Creative Sectors in the EU consortium,which was actively supported by the Eurostat Working Group on Cultural Statistics,laid the foundation for progress by producing a substantial analysis and offering practical recommendations for advancing the field28.25European Commission,Culture and Creativity Data on the cultural sector,https:/culture.ec.europa.eu/policies/selected-themes/data-on-the-cultural-sector.26 Developing Inclusive&Sustainable Creative Economies|DISCE|Project|Fact sheet|H2020|CORDIS|European Commission(europa.eu).27 Objectives-Cicerone project(cicerone-project.eu).28 The Measuring CCS Consortium,the Final Report Measuring the Cultural and Creative Sectors in the EU,23 November 2022,The-Measuring-CCS-Consortium-publishes-the-Final-Report-Measuring-the-Cultural-and-Creative-Sectors-in-the-EU.pdf.21 They identified the following challenges to be tackled soon.The different scopes of EU statistics and of the statistics of some EU Member States impede a common approach and the comparability of data within the EU,as Eurostat and some Member States classify many activities differently.Another challenge is the inclusion of data from non-official sources,like professional associations,consultancies or intellectual property rights management societies.While these bodies have no legal mandate to produce statistics,they can still add most useful and timely information,also for estimates for future developments.The inclusion of data from administrative sources in some Member States has proved to be quite useful and promising(Measuring,CCS,2022).The third big challenge is the incorporation of the digital economy,which is gaining increasing importance and economic weight in the CCS,but which is insufficiently represented in the current data.Thus,new data-collection methods using data analytics capabilities are also required to capture the vast amount of data and dynamics in this subsector(Measuring the CCS,2022).In this report,we generally use the terms Cultural and Creative Industries(CCIs),as used in the legal basis for the Horizon Europe programme,and Cultural and Creative Sectors and Industries(CCSIs),as defined by the European Parliament(see footnote 19 of this chapter).Depending on the context,other terms like Cultural and Creative Sectors(CCS),as defined by Eurostat,are used in specific cases.In conclusion,while there are significant challenges in defining and measuring the CCS and CCIs,ongoing efforts by organisations like Eurostat and the OECD are essential for harmonising definitions and improving data-collection methods.22 3.ICT AND AI FOR INNOVATION AND GROWTH New technologies profoundly change our economies and our societies.In terms of the way we communicate with each other,mobile phones,social media and the internet increasingly complement and often replace in-person contacts.Digitilisation and AI revolutionise production and distribution chains,as well as business and customer relations.The new technologies are likely to blur the distinction between producers,distributors and consumers and will generate new and innovative business models.3.1.The profound impact of new emerging technologies:revolutionising economies and societies Digitalisation will enable companies to sell more,decrease costs and operate more efficiently Advanced connectivity through mobile technology has made transaction costs fall dramatically.Consequently,data consumption by smartphone surpassed data consumption by fixed broadband for the first time in 2019,and it is set to triple by 2024.Nearly 200 million people accessed the internet for the first time in 2021.The computing power of smartphones has now surpassed that of PCs,and can be used as a base layer for entire ecosystems29.By 2030,there will be 500 billion connected devices with the potential to unlock USD 5.5-12.6 trillion.20-25%of this estimated value will come from home,retail,and office environments,where most of the creative production and consumption takes place(Schneider,Tomorrow,2023).The digital transformation can bring substantial benefits to our economies.Key to this transformation in the EU are its 25 million SMEs,representing 99%of European enterprises.A recent study by Sage suggests that the EU economy could grow by EUR 628 billion if the SMEs with the slowest digital adoption are brought in line with the EU average,making digitalisation the most powerful engine for growth in the EU30.For most SMEs,the main benefits of digitalisation are to sell more,decrease costs and operate more efficiently(Bleeker,Digital 2023).More than 15 000 SMEs in 15 countries were interviewed for the Sage report on digital technologies powering growth.Many of those SMEs say that:(i)they are positive about digitalisation(80%);(ii)it helps them start their businesses(80%),keep their businesses running(81%)and grow their businesses(85%);(iii)it helps them save time(80%);and(iv)it helps them sell more products and services(83%).51%of the respondents say that they have a web design function,46%have accounting software and 44%have payroll software(Bleeker,Digital,2023).As to the challenges,79%consider the lack of financial resources and cash flow,in particular to be their major concern.This is paired with a lack of skills and expertise to implement digital technologies and uncertainty about regulatory requirements(Bleeker,Digital,2023).29 Schneider P.,Tomorrow comes Today Trends shaping the future of the Creative Industries,The Creative Industries Policy and Evidence Centre,August 2023,ISBN:978-1-913095-93-2,pp.11,14.https:/pec.ac.uk/wp-content/uploads/2023/12/PEC-Tomorrow-comes-today-Trends-shaping-the-future-of-the-Creative-Industries-August-2023.pdf.30 Bleeker D.,Digital technologies powering growth:the 628 billion opportunity for the EUs SMEs-Sages Manifesto for EU SME Policy,Sage,2023,https:/ 3.2.The EUs Digital Decade programme To tackle these challenges,the EU created the Digital Decade policy programme for 2030.One of the programmes targets for 2030 is that 75%of EU businesses should adopt advanced technologies like cloud computing,AI and big data.Furthermore,90%of SMEs and 80%of the population should attain at least basic digital skills,while it is planned that 20 million ICT specialists will be employed in the EU.Additionally,all key public services should be accessible online,all Europeans should have access to gigabit connectivity and the EUs share of the global semiconductor market should be doubled by 203031.Although the delay in implementing those targets(which was indicated in the first implementation report)may suggest that these goals will be revised,the Digital Decade programme provides the long-needed framework for digitisation in Europe32.Its success will depend on the concrete implementation of measures,political reforms at all levels and the raising of additional funds for this goal.Digital infrastructures and capabilities are essential for the EUs future.Financing them is one of the most crucial questions in this field.20%of the RRF will be invested in digitalsation,with InvestEU,Creative Europe,Digital Europe and Horizon Europe providing significant funds for digitilisation.However,an estimated investment shortfall of EUR 125 billion per year remains.Access to finance remains one of the sectors key problems.SMEs and start-ups face a financing shortfall of EUR 20-35 billion in Europe,despite substantial support programmes at EU and national level(Commission,Market,2021).3.3.Leveraging and assessing the potential of AI tools in culture AI and big data are at the heart of the digital transformation.Today,more data cross the internet every second than were stored 20 years ago,and this data can be used to train and improve algorithms.Open data that everyone can access,use and share have the potential to unlock USD 3.2-5.4 trillion of value added every year.AI could add USD 11-17.7 trillion to the global economy by 2030(Schneider,Tomorrow,2023).There is an uneven distribution of data.In 2020,the Open Data Institute highlighted that 50%of all the data produced daily feed only 100 companies worldwide.In 2021,it was predicted that the top four leaders in the public cloud infrastructure market would account for over 80%of global revenues(2021 Single Market Report,p.106).This has given rise to the fear of data colonialism to the detriment of the SMEs and microenterprises that make up more than 99%of the sector.To mitigate the impact of scale,generative AI is now being used to create synthetic data,i.e.new artificial data based on key characteristics in a smaller sample of real data.By 2025,the use of synthetic data could reduce by 70%the amount of real data needed for machine learning.This could allow smaller companies to find their place in the dynamic use of big data combined with AI(Schneider,Tomorrow,2023).The digital transformation has profoundly changed the way individuals and companies buy and sell.The global e-commerce market was estimated to be worth USD 3.4-5.7 trillion in 2022.E-commerce penetration in the UK went from 20%to over 30%in two months.The number of companies that integrate social shopping with social commerce sales is expected to triple by 2025(Schneider,Tomorrow,2023).31 European Commission,Europes Digital Decade:digital targets for 2030.Europes digital decade:2030 targets|European Commission(europa.eu).32 European Commission,Report from the Commission to the European Parliament and the Council-First Implementation Report on the Single Digital Gateway,Directorate-General for the Internal Market,Industry,Entrepreneurship and SMEs,November 2023,https:/single-market-economy.ec.europa.eu/publications/first-implementation-report-single-digital-gateway_en#details.24 3.3.1.Exploring pivotal technologies and their influence on the CCS Just as the internet has eliminated certain sources of revenues while creating new ones,the spread of AI-based tools is a challenge for the traditional CCS,which may need to rely more and more on the advancements of new tech firms that produce AI tools to remain competitive33.AI tools can estimate the potential audience of a film,when and where to release it,and can forecast demand.Therefore,in the CCIs,AI combined with big data is being used for production and demand prediction in content industries,in particular,the film industry(where up to 50%of the project budgets go into marketing)and dynamic pricing for tickets for concerts,performing arts or sports events(Schneider,Tomorrow,2023).To better understand and reach out to new audiences,book publishing start-ups are using similar strategies,and now offer new ways of engaging readers through immersive reading experiences and making readers part of the story(European Commission,AI for CCS,2022,pp.31-33).AI can offer tangible support to fashion production too,as it can help to tailor fashion products to customers specifications and to work out exactly how much fabric to use for customers.Another relevant feature is that AI systems can be trained by watching humans carrying out tasks(imitation learning).AI systems can learn to control robot arms,drive cars or craft diamond tools in this way(Tomorrow,2023,p.28).However,despite the significant progress made by the music industry,the production of artistic content by AI is still in its early stages.AI can help artists enhance content production by opening up new and sometimes unexpected dimensions(Commission,AI,2022).In the restoration business,for example,AI can be used to restore the missing edges of a painting after being trained to use a similar style and similar brushstrokes to those used in the painting(Commission,AI,2022).AIs potential is still untapped,in particular,for small stakeholders,like artists and content creators.AI applications can cover the entire value chain for the creation,production and distribution of creative content.Machine learning can be used for data analytics,deep learning for predictions,to support image searches or to develop new subscription models.It can help the CCS to save costs,make decisions,engage new audiences and inspire creation(Commission,AI,2022).AI is not necessarily about replacing artists or creatives,but more about opening up new horizons through new technologies.While several expert studies and research do not predict major job losses in this sector,routine jobs are expected to be replaced by new positions,and job content will undergo significant changes.In general,automation will have a greater effect on specific tasks than on the entire professional field(Commission,AI,2022).Microbusinesses,which constitute the vast majority of businesses in the CCS,frequently operate on a project basis.A steep temporary increase in demand can be very challenging for them as far as their staff,logistics and organisational structures are concerned.Technologies can supply businesses with the necessary expertise,so that they do not have to hire new expert staff or set up full-time management structures that may become redundant when demand subsides(Schneider,Tomorrow,2023).The creative economy is increasingly built on platforms Much of the digital and creative economy is increasingly built on platforms.Setting up a platform is expensive,but the marginal cost of adding another user or carrying out another transaction is negligible.The market capitalisation of the worlds largest platforms corresponds to their power and reach:in August 2023,the market cap of Facebook,Apple,Amazon,Microsoft and Google as a share of the S&P 33 European Commission,Directorate-General for Communications Networks,Content and Technology,Izsak,K.,Terrier,A.,Kreutzer,S.et al.,Opportunities and challenges of artificial intelligence technologies for the cultural and creative sectors,Publications Office of the European Union,2022,p.39.https:/data.europa.eu/doi/10.2759/144212.25 500 was 22.6%.A comparison of the biggest platform and non-platform companies in the S&P 500 with similar revenues showed that the platform companies were twice as profitable and grew twice as fast as their non-platform competitors between 1995 and 2015(Schneider,Tomorrow,2023).The gaming industry has developed from a niche industry into a giant of the CCIs.With a global revenue of EUR 179 billion in 2022,video games are far outpacing other subsectors of the CCI market.In the EU27,the video games market generated revenue of EUR 23.48 billion in 2022.Revenue is expected to reach EUR 34.28 billion by 2027,representing a 45%increase on current levels.In 2020,revenue for the EU video games sector was 5.5 times higher than revenue for e-publishing,4.3 times higher than revenue for digital music and 1.8 times higher than revenue for video-on-demand34.Smartphones have boosted digital video games and,in particular,mobile games,which accounted for 73%of total revenue in the sector in the EU27 in 2022.Over half of the European population(237 million users aged between 6 and 64 years)regularly play video games.While 35%of 45-64-year-olds regularly play video games,80%of 11-14-year-olds are regular video game players(Commission,Video,2023).Opportunities through VR and AR VR and AR alter our perception of the world around us35.Whereas VR replaces the real world with a simulated one,AR overlays the real world with digital content.The typical devices for VR are headsets or goggles,while the devices for AR are tablets and AR glasses or smartphones,which blend the artificial with the real world.Mixed Reality(MR)blends aspects of the physical and virtual worlds to coexist and interact in real time.These technologies offer unique opportunities for collaboration,training,visualisation and simulation in a broad spectrum of fields,ranging from gaming and entertainment,through education and healthcare,to architecture and manufacturing.Between 2018 and 2021,the patents for VR and AR doubled.The global immersive reality market is expected to grow at a compound annual growth rate of some 24%until 2035.According to the website ,the AR and VR market was expected to generate revenue of USD 38.6 billion in 2024.It is expected to grow at an annual rate of 10.77%,resulting in a market volume of USD 58.1 billion in 202836.The gaming and entertainment industries are the most active driving forces behind the use and development of these technologies.New dimensions in this world are opened up by:(i)haptic devices,which convey the sense of touch;(ii)on-body sensors,which accurately reflect users limb movements and their environment;and(iii)microelectromechanical systems,which allow users to physically feel tactile experiences without any wearables.However,progress still needs to be made to achieve the resolution limit discernible to the human eye of 12 000 pixels per inch and a refresh rate of 120 Hz(Schneider,Tomorrow,2023).VR and AR enable cheaper and faster experimentation.In the aviation industry,training with these tools(e.g.flight simulators)has halved the training costs and human-error-related plane crashes since the 1970s(Tomorrow,2023,p.85).VR and AR are also being used to recreate historical environments,landscapes and civilisations in the cultural heritage sector and in the fields of museums,artefacts,excavations,and paintings.VR and AR are increasingly used in the gaming and film industry,as can be seen from the recreation of the historical Tuscan village of Monteriggioni in Assassins Creed(one of the most successful and longest-running VR games),which plunges its players into the world of the 13th-century crusades37.34 European Commission:Directorate-General for Communications Networks,Content and Technology,Understanding the value of a European video games society Final report,Publications Office of the European Union,2023,p.7,https:/data.europa.eu/doi/10.2759/332575.35 Raymond R.Burke,Do you see what I see?The future of virtual shopping,Journal of the Academy of Marketing Science,Fall 1997,Do-You-See-what-I-See-The-Future-of-Virtual-Shopping.pdf().36 S https:/ https:/ Photomontage:Combining VR and history-Assassins Creed:screenshot from with an aerial view of Castle Monteriggioni,source:Tripadvisor.Through its decentralised and immutable ledger,blockchain can facilitate large numbers of transactions in fractions of time.This can be applied to many areas such as copyright licensing,royalty collection,smart contracts,and equities down to fractions of ownership.Given the chronic underinvestment in the CCS,its cash flow problems,the problems in handling intellectual property rights(IP)and the struggle with burdensome and lengthy administrative procedures,blockchain could offer at least part of the solution.Through tokenisation,for example,businesses like Otis Wealth,Masterworks.io and Stanley Gibbons successfully sell fractional shares of fine art,rare books,comics and stamps(Schneider,Tomorrow,2023).3D printing has reshaped the way goods are designed and produced Over the last 20 years,3D printing has achieved an average annual growth rate of 20%.It enables small,customised batches to be created at low cost,which fulfils the needs of many microenterprises.It has reshaped the way goods are designed and produced.The potential of 3D printing still seems to be underexploited.In 2018,it accounted for only a small fraction(0.7%)of the global manufacturing revenues.Once some of the remaining obstacles like post-processing,logistic costs or the speed of 3D printing have been resolved,falling costs and a broader use of established good practice could help the 3D market to expand considerably over the next 5-10 years.The development of new materials for use in 3D production has already produced some initial positive effects(Schneider,Tomorrow,2023).3.3.2.The transformative impact of AI tools in the CCS AI will considerably change the nature of jobs in the creative sectors The advances in AI and automation will change the nature of jobs in the creative sector considerably.Many tasks previously performed by humans can be performed by new technologies,which helps artists and creatives to develop new experiences for their customers,for instance through VR and AR.Deep learning methods,for example,are beginning to learn directly from data,without human intervention(Schneider,Tomorrow,2023).This will increasingly enable machines to replace humans in carrying out routine tasks.At the same time,it can relieve creatives of a number of administrative tasks,help them identify customer preferences,acquire new audiences and focus on the new opportunities offered by new technologies.27 So far,most creative occupations have been more resilient than other occupations in the face of new technologies.Although most studies and research conclude that most of these jobs will not disappear,they will,most likely,undergo considerable change as AI becomes increasingly capable of generating music,videos and designs that are indistinguishable from human production.In The Creative Code,Marcus du Sautoy argues that a considerable number of artworks follow patterns and structures of an almost mathematical nature,which opens up new opportunities for AI in the creative process38.and generate a new kind of tech start-up in the CCS A new kind of tech start-up specialised in specific CCSs has emerged.It combines technology and creative content and can anticipate the areas that new technology is expected to disrupt.To acquire these much-in-demand high-tech skills,managers in many CCS are often unsure whether to invest in team members with the appropriate skills or whether to collaborate with external companies on an ad hoc basis(Commission,AI,2022).Overreliance on the predictions and results of AI can lead to inertia,tunnel vision and possibly to wrong decisions.Outsourcing all matters concerning AI tools and new technology also runs the same risk.AI can provide indicators and figures.However,interpreting those findings,looking behind the patterns discovered,and putting all those results into context,will remain a task for humans and will be an essential prerequisite to retaining a competitive edge in the market(Commission,AI,2022).Therefore,successful long-term business operations in the future will depend on sound and regularly updated general knowledge about the functioning,challenges and opportunities of these technologies in the CCS,and their practical use in specific business contexts.38 du Sautoy,Marcus,The Creative Code Art and Innovation in the Age of AI,The Belknap Press of Harvard University Press,Cambridge,Massachusetts,2019.28 Food for thought research for the future39 AI technologies have a profound effect on the CCIs.This is also true of other groundbreaking technologies,such as additive manufacturing(3D printing),blockchain technologies,robotics,VR and AR,biotechnology,digitisation and hyperconductivity.Predictions of their future impact have mostly been wrong.The technological advances have been much more profound and their implementation and general societal acceptance have been much slower than expected.They will,however,have a deep influence on our societies,on our perceptions and on our values.This leads to two main research areas for the future:the influence of new technologies on our societies and the influence of our societies on the development of new technologies.Technology for CCSIs,i.e.the best way of giving the CCSIs the means to take full advantage of cutting-edge technologies.The goal is to develop policy recommendations for devising smart ways to motivate and empower CCIs to take advantage of these technologies to foster a competitive and cutting-edge EU economy.CCSIs for technology,i.e.the long-term implications of AI to open up new and so-far unimagined opportunities for humankind.At the same time,these opportunities can pose profound risks to society and humanity.Artists,authors and other creatives look at things in a different way.Therefore,they are well placed to explore the possible long-term implications of new technology by looking beyond the immediate horizon,which limits the vision of most individuals and decision makers.The goal is to develop a human-centric approach to new technologies that allows the creators of those technologies to still understand,predict and reliably control the developments they have triggered.39 With many thanks to Rickard Bucksch of the Cultural Heritage team in the Democracy,Equality&Culture unit of DG RTD.29 4.CREATIVE SPILLOVERS The most exciting and groundbreaking innovations are happening at the intersection of disciplines.Carlos Moedas,Commissioner for Research,Science and Innovation(2017)CCIs combine aesthetics with economic returns.They foster revenues,greater value added and jobs(OECD,The Culture Fix,2022).CCIs innovate and support innovation in other sectors through new products,services and content,new business models and means of coproduction,and skills mobility(OECD,The Culture Fix,2022).4.1.Merging aesthetics with economic returns A business needs more than an efficient manufacturing process,tight cost checks and a solid technological base to remain competitive40.Steve Jobs felt that the main challenge of the twenty-first century was to marry creativity and technological innovation.Its in Apples DNA that technology alone is not enough,that its technology married with liberal arts,married with humanities that yields us the result that makes our hearts sing,he emphasised at a major Apple event in 201141.The companys strength lies in combining technology with the human and the artistic.It has built brand empathy by using culture-based creativity,with design and content being given as much consideration as engineering.Today,Apple is the worlds largest capitalised company42.European CCI firms offer great potential,but generally face difficulties in combining culture and creativity with business and in collaborating with businesses outside their field of competence.For that reason,the EU likes to look to Silicon Valley for how cooperation between art,research and industry can work.The connection between the tech industry and the arts in Silicon Valley has proved to be most successful whenever artists have been included in the vanguard of technological development,acting as powerful participants in the process of creating new human experiences.As opposed to merely providing artists with existing tech that is already on the market,Silicon Valley offers artists opportunities to work with companies that are still in the process of developing new hardware.Major companies,including Autodesk,Adobe and Facebook,have engaged in such promising initiatives43.Apple embraced the luxury culture.Its cheapest notebooks are still three times more expensive than similar notebooks from other major producers.It managed to build a brand.The vision of Steve Jobs was that a business should never compete solely on price.In a period of increasingly affluent societies and heightened market satisfaction,companies cannot simply sell things.Customers want to know what a product or service can do for them.Therefore,companies need to create an unforgettable customer service experience44.The digital age has opened up new dimensions for the role of creativity in business.The transformation of marketplaces from physical stores to global online platforms has given companies of all sizes and types hitherto unknown opportunities to showcase their products and services and find customers and partners around the globe at relatively low cost45.40 KEA,Directorate-General for Education and Culture,European Commission,The Impact of Culture on Creativity,June 2009,https:/keanet.eu/wp-content/uploads/2019/09/impactculturecreativityfull.pdf.41 Jobs S.,Apples special event,Youtube,March 2011.42 Kern P.,The Smart Guide to Creative Spillovers,KEA European Affairs,April 2015,p.7,https:/keanet.eu/wp-content/uploads/2019/09/SMARTGUIDE-FINAL-PDF.pdf.43 Hieslmair M.,Involve Artists in the Technology Development Stage,Interview with Nadav Hochman,ars electronica,8 March 2019,https:/ars.electronica.art/aeblog/en/2019/03/08/nadavhochman/.44 Gallo C,The Apple experience,McGraw Hill,2012.45 Clementson J.,Creativity matters,https:/ In this hyperconnected world,businesses face challenges to make their mark in crowded industries.The rise of globalisation means that products and services from various parts of the world are accessible to the average consumer,who is then saturated with choice.Here,the ideas of creativity become indispensable.Creativity in branding and advertising is not merely a strategy,but also necessary in order to carve out a distinctive identity amid the noise.In such saturated markets,creativity in branding makes the difference.It creates deeper connections with the customers and fosters loyalty and success.This goes beyond mere marketing and aesthetics.It is about approaching challenges from new angles.In the process,the combination of creativity and technology can reshape industries and help resolve long-standing problems(Clementson,Creativity).Creative people spur innovation Creative people work in practically all sectors of the economy.They spur innovation and help meet the challenges of the future(OECD,The Culture Fix,2022).Around 40%of cultural and creative employment can be found outside the CCS,e.g.industrial designers working in the automotive industry.This highlights how important creative skills are for the economy as a whole(OECD,The Culture Fix,2022).As a result,when considering the impact of cultural and creative work on economic development it is important to look beyond the CCS itself.Cultural and creative workers move between the CCS and other sectors of the economy.They bring with them ideas,skills,knowledge and attitudes as well as cross-fertilisation between the CCS and the rest of the economy.In addition,increasing numbers of non-CCS businesses are adopting cultural practices and creative approaches,feeding cultural and creative skills directly into innovation across the entire economy(OECD,The Culture Fix,2022).As digitalisation increases the opportunity for crossovers between the CCS and other parts of the economy,interindustry collaborations can spur innovation and growth(OECD,The Culture Fix,2022).Stand-alone CCIs will not benefit from knowledge spillovers or reduced transaction costs.This is where public authorities and policymakers can intervene to help build communities,networks and bridges46.They can do so by providing financial support and/or facilitating the development of platforms and networks.4.2.Knowledge,industry and network spillovers The creative industries are not only a significant driver of economic growth,job creation and social cohesion,but also a hub of managerial innovation and experimentation and new organisational and business practices that stimulate innovation and entrepreneurship in other sectors of the economy47.Therefore,the spillover effects have been broadly outlined in three overlapping categories48.46 Fesel B.,Spillover Effect of Cultural&Creative Industries How big is its value added?,ECBN,2015,https:/www.eesc.europa.eu/sites/default/files/resources/docs/bernd_fesel.pdf 47 Feng Li,How to develop sustainable and scalable business models in the creative industries,CRAIC,Loughborough University,London,2022,https:/craic.lboro.ac.uk/essays/how-to-develop-sustainable-and-scalable-business-models-in-the-creative-industries/.48 These categories have been adopted from Tom Flemings report Cultural and creative spillovers in Europe and are increasingly being used in the discussions about further improving the methodologies for measuring creative spillovers:Tom Fleming creative consultancy,Cultural and creative spillovers in Europe:report on a preliminary evidence review,Arts Council,UK,October 2015,Cultural_creative_spillovers_in_Europe_full_report.pdf(artscouncil.org.uk).31 Knowledge spillovers refer to the new ideas,innovations and processes developed within arts organisations and by artists and creative businesses that spill over into the wider economy and society without directly rewarding those who created them.Industry spillovers refer to the vertical value chain and horizontal cross-sector benefits to the economy and society in terms of productivity and innovation that stem from the influence of a dynamic creative industry,businesses,artists,arts organisations and artistic events.Network spillovers relate to the impacts and outcomes for the economy and society that spill over from the presence of a high density of arts and/or creative industries in a specific location(such as a cluster or cultural quarter).The effects include economic growth and regional attractiveness and identity.Spillovers from the video games industry The video games industry is one of the most dynamic economic sectors in Europe.It generates EUR 23.48 billion in revenue and employs 74 000 people in 5 000 game developers and publishing studios(2022 figures).The cutting-edge technology the sector regularly produces has seen it grow significantly and it is expected to achieve revenue of EUR 34.28 billion by 202749.The key technologies of game engines,VR and AR,controllers as well as input devices and haptics,have fuelled other industrial sectors,among them the automotive industry,furniture and architectural design and medical surgery.Virtual and augmented realities are increasingly used to train pilots,car and lorry drivers as well as police forces and fire fighters.New forms of VR for surgical training have improved procedural accuracy and completion rates by 300%.The merge of VR surgery techniques with haptic feedback has resulted in a 44%increase in surgical accuracy over traditional VR training50.In aviation,audiovisual(AV)and VR training tools such as flight simulators have halved training costs as well as the number of airline crashes due to human error since the 1970s(Tomorrow,2023).In the UK in 2021,the spillover from video game technology generated revenue of GBP 1.3 billion,with a corresponding contribution to GDP of GBP 760 million.This amounts to an additional 13%on top of the UK games industrys total gross value added for 2021.The video game technology spillover in the UK is estimated to have created some 10 000 additional jobs(FTI,Video Game,2023).Creative spillovers are obvious but difficult to quantify Much of this CCS innovation occurs through informal mechanisms.For example,in the visual and performing arts,a great deal of radical innovation is produced through individuated and non-routinised innovation practices.Here,subsidised and non-profit cultural activities can act as R&D labs for commercial businesses,enabling them to take risks with creative content that can then be harnessed by for-profit businesses at reduced risk.Cutting-edge visual arts and experimental cinema,for example,produce innovations that are quickly adopted in advertising,mainstream cinema and entertainment(OECD,The Culture Fix,2022).Only a few countries report R&D expenditure with the level of fine detail required to compile CCS statistics.This makes it difficult to measure the CCSs contribution to innovation internationally.Despite these difficulties,studies at national level suggest that the CCS is highly innovative and contributes to innovation across the economy.As such,CCS businesses provide outputs which are themselves 49 European Commission,Directorate-General for Communications Networks,Content and Technology,Understanding the value of a European video games society Final report,Publications Office of the European Union,2023,https:/data.europa.eu/doi/10.2759/332575.50 FTI Consulting,The Economic Impacts of Video Game Technology Spillover,ukie,November 2023,https:/ukie.org.uk/resources/the-economic-impacts-of-video-game-technology-spillover 32 innovative and deliver results;these then provide inputs for the innovation activities of other businesses(OECD,The Culture Fix,2022)(see box).Quantitative effect of spillovers To illustrate a possible quantitative effect of spillovers from CCIs into other sectors of the economy,the report entitled Creative spillovers:do the creative industries benefit firms in the wider economy?provides initial figures for the UK51.Firms that are more connected to the Creative Industries(CIs)are more likely than other firms to produce product innovations(and novel product innovations that are new to the market).Firms that buy twice the average amount from the CIs(4%of their sales value as opposed to 2%),are 10%more likely to produce product innovations and 15%more likely to produce novel product innovations.Similarly,firms with twice the average proportion of people recruited from the CIs(6%as opposed to 3%),are 9%more likely to produce product innovations and 18%more likely to produce novel product innovations.It is estimated that half of this association is due to spillovers,e.g.firms buying from the CIs are persuaded to be more innovative by their suppliers,and firms recruit people from the CIs who bring with them either knowledge of innovations or an innovative culture and way of thinking.Firms with stronger links to the CIs are more likely to achieve product and novel innovations,because they spend more on research and development and also have a higher probability of successful innovation for the same R&D spend.(Frontiers,Creative spillovers,2023)Such spillovers can take place through interactions with CCI suppliers,through interactions with CCI customers,and by recruiting staff who previously worked in the CIs.(DCSM,creative spillovers,2023)51 Frontier Economics,Creative spillovers:do the creative industries benefit firms in the wider economy?,jointly commissioned by the Department for Culture,Media and Sport and the Creative Industries Policy and Evidence Centre(2023),Creative spillovers:do the creative industries benefit firms in the wider economy?-GOV.UK(www.gov.uk).33 4.3.From anecdotal spillovers to a systematic transfer of creativity and innovation The question now is how to move from anecdotal spillovers,which can happen accidentally,to building solid bridges and achieving a systematic transfer of creativity and innovation from the CCIs and the CCS as such to the wider EU economy.There is no silver bullet or one-size-fits-all solution.However,it is possible to create an environment in which such transfers can take place more easily.There are tools to facilitate this process,which policymakers can promote by helping to set up networks and strengthen the local fabric and by fostering collaborations between their regions research bodies,businesses and public authorities.This support involves helping to eliminate some of the main obstacles,such as a lack of understanding of the artistic world on the part of the business world and vice versa,their different mindsets and vocabularies,a silo approach or a lack of evaluation tools to show the impact of spillovers52.At the same time,such support should facilitate collaborations across sectors,the creation of new places for new forms of collaboration(e.g.co-working spaces,creative hubs,incubators and accelerator labs),foster training and education,and provide new and better forms of access to finance,which is a precondition for growing the businesses(more than 96%of them microenterprises)that make up this sector.The power of design Design is where the merger between art and business has most flourished,as we need everyday objects,but we also like to surround ourselves with meaningful artefacts that provide aesthetic appeal.The trivial can become beautiful.Alessi in Italy has excelled in implementing this idea by employing high-profile artisans to combine everyday objects with aesthetics.Another example is the Finnish company Iittala,which produces iconic glassware across the world by incorporating high-end design in objects for everyday life.The Helsinki Design Museum is filled with their related works of art53.According to economists and sociologists,the economy has entered a new phase in which immaterial value will determine material value.The relationship between the sign and the object is being reversed,according to French sociologist Leo Scher:The sign is becoming more real than the object and the object more virtual than the sign.Designers transform consumer goods into magical and mysterious products and transform buildings into museums or art galleries.The trivial can become beautiful.At Renault,design was initially the preserve of the engineering department.Over time,the number of designers has more than tripled.Today,the chief designer is part of the management board and in charge of everything that can be perceived by the customer(KEA Impact,2009).Although art and design contribute to business,art and commerce have always had a productive,but tense co-existence.Addressing this tension can help to expand the business culture and develop progressive organisational techniques to include art,science and technology crossovers within a new ecosystem to develop critical and unconventional breakthrough processes,services and products(Purg,Ecosystems,2021).52 Kern P.,The Smart Guide to Creative Spillovers,KEA European Affairs,April 2015,https:/keanet.eu/wp-content/uploads/2019/09/SMARTGUIDE-FINAL-PDF.pdf.53 Purg,P.,Cacciatore,S.and Gerbec,J.C.,Establishing ecosytems for disruptive innovation by cross-fertilising entrepreneurship and the arts,in:Creative Industries Journal,16(2),pp.115-145.Doi:10.1080/17510694.2021.1969804.34 4.4.Think globally,act locally Artists and technicians look at things differently.Combining the two different angles has proved to be most valuable for the business world.Breaking down the boundaries between disciplines,and introducing intuition and imagination in business and organisational processes,helps companies to innovate(Fleming,Spillovers,2015).Creative mediators can bridge the gaps between the CCSs and other sectors of the economy.They enable the different sectors to communicate and understand each others languages.This is even more important as vocabulary can create dividing lines.Creative mediators translate different languages and perceptions to enable collaboration(Kern,Smart Guide,2015).Whereas there are general principles and methods for fostering creativity,which can be applied universally,in practice their implementation can only take place locally.This allows the specific assets of a city or region to be brought fully to the fore.In order to support creative spillovers,they need to identify the cultural and creative resources available locally and assess the readiness of such structures to contribute to economic growth,social developm
2025-09-12
80页
5星级
POWERED BY ELIA|EMT|EUATC|FIT EUROPE|GALA|LIND|WOMEN IN LOCALIZATION EUROPEAN LANGUAGE INDUSTRY SUR.
2025-09-11
54页
5星级
Spotlight 1 Centre Street,New York,NY 10007(212)669-3916|ptroller.nyc.gov Tourisms Role in New York.
2025-09-11
14页
5星级
2025ACADEMIC RANKING OFWORLD UNIVERSITIESCopyright ShanghaiRanking ConsultancyContentsAbout ARWU Ran.
2025-09-11
32页
5星级
POWERED BY ELIA|EMT|EUATC|FIT EUROPE|GALA|LIND|WOMEN IN LOCALIZATION EUROPEAN LANGUAGE INDUSTRY SUR.
2025-09-11
58页
5星级
Global Report on TeachersAddressing teacher shortages and transforming the professionUNESCO a global.
2025-09-10
192页
5星级
THE FUTURE OF HIGHER EDUCATIONBridging the skills gap in the AI ageEdition III2025The authors would .
2025-09-09
16页
5星级
U N I T E D K I N G D O M/ResearchRealityWhich sports leagues/tournaments and teams are recording th.
2025-09-08
28页
5星级
A U S T R A L I A3Get in touchExplore our solutionsDiscover brand tracking579The most improved AFL t.
2025-09-08
28页
5星级
A u g 2 0 2 5/Research RInternational traveler sentiment revisitedA fresh outlook on the“Trump effec.
2025-09-08
29页
5星级
I N D I A3Get in touchExplore our solutionsDiscover brand tracking5810The most improved Football tea.
2025-09-08
28页
5星级
IPSOS EDUCATION IPSOS EDUCATION MONITOR 2025MONITOR 2025A 30-Country Ipsos Global Advisor SurveyAugu.
2025-09-05
51页
5星级
Breaking Boundaries toDevelop Hong Kong intoa Mega Sports Events CapitalAugust 2025ContentsExecutiv.
2025-09-04
104页
5星级
罗兰贝格：预见2026：中国行业趋势报告（90页）.pdf
智源研究院：2026十大AI技术趋势报告（34页）.pdf
中国互联网协会：智能体应用发展报告（2025）（124页）.pdf
三个皮匠报告：2025银发经济生态：中国与全球实践白皮书（150页）.pdf
三个皮匠报告：2025中国商业航天市场洞察报告-中国商业航天新格局全景洞察（25页）.pdf
国声智库：全球AI创造力发展报告2025（77页）.pdf
中国电子技术标准化研究院：2025知识图谱与大模型融合实践案例集（354页）.pdf
三个皮匠报告：2025中国情绪消费市场洞察报告（24页）.pdf
中国银行：2026中国高净值人群财富管理白皮书（66页）.pdf
亿欧智库：2025全球人工智能技术应用洞察报告（43页）.pdf
0731-84720580
商务合作：really158d
友链申请 (QQ)：1737380874
最新报告
中英对照
全文搜索
报告精选
PDF上传翻译
多格式文档互转
入驻&报告售卖
会员权益
机构报告
券商研报
财报库
专题合集
英文报告
数据图表
会议报告
其他资源
研报
新质生产力
DeepSeek
低空经济
大模型
AI Agent
AI Infra
具身智能
自动驾驶
宠物
银发经济
人形机器人
企业出海
算力
微短剧
薪酬
白皮书
创新药
行业分析
个股研究
年报财报
IPO招股书
会议纪要
宏观策略
政策法规
其他
人工智能
信息科技
互联网
消费经济
汽车交通
电商零售
传媒娱乐
医疗健康
投资金融
能源环境
地产建筑
传统产业
英文报告
其它
行业聚焦
芯片产业
热点概念
全球咨询智库
人工智能
500强
新质生产力
会议峰会
新能源汽车
企业年报
互联网
公司研究
行业综观
消费教育
科技通信
医药健康
人力资源
投资金融
汽车产业
物流地产
电子商务
传统产业
传媒营销
其它
十五五规划系列报告合集（共48套打包）
2026低空经济/低空产业报告合集（共47套打包）
AI、科技与通信
广告、传媒与营销
消费、零售与支付
HR、文化与旅游
金融、保险与投资
能源、环境与工业
医疗制药与大健康
物流、地产与建筑
其他行业
AI ▪ 科技 ▪ 通信
数字化
金融财经
智能制造
电商传媒
地产建筑
医疗医学
能源化工
其他行业
收藏
下载
2026-02-02
AI查数
行业数据
政策法规
商业模式
产业链
竞争格局
市场规模
产业概述
其它
2026年
AI读财报
年报
一季报
半年报
三季报
IPO招股书
社会责任报告
A股
IPO申报
港股
美股&全球
新三板
微信扫码登录
手机快捷登录
账号登录
