For economists, the arts pose a problem. We know that the value of their contribution to wellbeing exceeds what can be measured in simple GDP. But we do not and perhaps cannot know by precisely how much. Even quantifying the contribution of the arts to GDP itself can be tricky. Fortunately, we are getting better at this.
Oxford Economics are now on the fourth edition of their study for the British Film Institute on the economic impact of the UK film industry. The Arts Council has commissioned a report from the centre for economic and business research to assess the economic contribution of the UK’s culture sector. I am leading a study for UK Music on the contribution of the industry to GDP, exports and jobs.
Culture secretary Maria Miller today said in a speech to arts executives that they must “hammer home the value of culture to our economy.” The studies for the Arts Council, BFI and UK Music suggest that Miller is preaching to the converted.
The onset of 3D printing means that the full impact of the digital revolution on manufacturing is yet to be felt. Music is among the arts industries that have already weathered this revolution and are prospering. They know that the creators have a vital role to play in boosting the UK economy and recognise the value of having economic research that demonstrates the extent of this.
The first task in such research is always defining exactly what is being measured. The music industry is unhappy with how the government defines it. One major problem is that it is grouped with the performing arts in the standard industrial classification (SIC) codes. As such, UK Music is working on an alternative definition of the industry, which will be feeding into the consultation launched by Miller’s department last week on classifying and measuring the creative industries.
In 2011, the think tank Demos identified the creative industries as being among those with the greatest potential for growth. However, in the same report, Risky Business, they bemoaned the way in which the SIC codes neglects these industries, leading to a lack of reliable information and effective policy for the sector. These codes were devised for an industrial economy—they are increasingly unhelpful as we move towards a post-industrial economy. Revisions occur at a glacial pace, lagging way behind changes in the real world.
Nothing has improved since Demos published their report almost 18 months ago. "When times are tough and money is tight, our focus must be on culture's economic impact," stated Maria Miller this morning. If the arts are going to have the economic impact that Miller wants, she needs to ensure that they are classified correctly.
Oxford Economics are now on the fourth edition of their study for the British Film Institute on the economic impact of the UK film industry. The Arts Council has commissioned a report from the centre for economic and business research to assess the economic contribution of the UK’s culture sector. I am leading a study for UK Music on the contribution of the industry to GDP, exports and jobs.
Culture secretary Maria Miller today said in a speech to arts executives that they must “hammer home the value of culture to our economy.” The studies for the Arts Council, BFI and UK Music suggest that Miller is preaching to the converted.
The onset of 3D printing means that the full impact of the digital revolution on manufacturing is yet to be felt. Music is among the arts industries that have already weathered this revolution and are prospering. They know that the creators have a vital role to play in boosting the UK economy and recognise the value of having economic research that demonstrates the extent of this.
The first task in such research is always defining exactly what is being measured. The music industry is unhappy with how the government defines it. One major problem is that it is grouped with the performing arts in the standard industrial classification (SIC) codes. As such, UK Music is working on an alternative definition of the industry, which will be feeding into the consultation launched by Miller’s department last week on classifying and measuring the creative industries.
In 2011, the think tank Demos identified the creative industries as being among those with the greatest potential for growth. However, in the same report, Risky Business, they bemoaned the way in which the SIC codes neglects these industries, leading to a lack of reliable information and effective policy for the sector. These codes were devised for an industrial economy—they are increasingly unhelpful as we move towards a post-industrial economy. Revisions occur at a glacial pace, lagging way behind changes in the real world.
Nothing has improved since Demos published their report almost 18 months ago. "When times are tough and money is tight, our focus must be on culture's economic impact," stated Maria Miller this morning. If the arts are going to have the economic impact that Miller wants, she needs to ensure that they are classified correctly.
