Determining the Value of Determining the Value of Cultural Industries: Cultural Industries:

ConsiderationsConsiderations2014 Berlin Research Symposium on

Culture and Creative Industries

José Pessoa, Head of Culture StatisticsUNESCO Institute for Statistics

Is it possible to determine the ‘true’ value of culture and creative industries through empirical research?

Yes, but…

But, we need to consider;But, we need to consider;Definition of Culture

◦What to include?

Data requirements◦Are the necessary data already available

or do new data need to be collected.

Methodologies for Determining “Value”◦Which value? Which methodology?

Definition of CultureDefinition of CultureIn order to

measure cultural industries, they need to be defined.

At the global level, the 2009 UNESCO FCS provides a model definition for Culture

What is the 2009 UNESCO What is the 2009 UNESCO FCS?FCS?

Categorizing CultureCategorizing Culture

Embody or convey cultural expressions, irrespective of the commercial value they may have

2009 UNESCO FCS 2009 UNESCO FCS DomainsDomains

RELATED DOMAINS

A. CULTURAL and NATURAL

HERITAGE

- Museums (also virtual)- Archeological and Historical Places - Cultural Landscapes- Natural Heritage

B. PERFORMANCE

and CELEBRATION

- Performing Arts- Music- Festivals, Fairs and Feasts

C. VISUAL ARTS and CRAFTS

- Fine Arts - Photography- Crafts

D. BOOKS and PRESS

- Books- Newspaper and Magazine- Other printed matter - Library (also virtual) - Book Fairs

E. AUDIO-VISUAL and

INTERACTIVE MEDIA

- Film and Video - TV and Radio (also Internet live streaming)- Internet podcasting- Video Games (also Online)

CULTURAL DOMAINS

F. DESIGN and CREATIVE SERVICES

- Fashion Design- Graphic Design- Interior Design- Landscape Design- Architectural Services- Advertising Services

INTANGIBLE CULTURAL HERITAGE (oral traditions and expressions, rituals, languages, social practices)

EDUCATION and TRAINING

ARCHIVING and PRESERVING

G. TOURISM

- Charter travel and tourist services

- Hospitality and accommodation

H. SPORTS and RECREATION

- Sports - Physical fitness and well being- Amusement and Theme Parks- Gambling

EQUIPMENT and SUPPORTING MATERIALS

INTANGIBLE CULTURAL HERITAGE

EDUCATION and TRAINING

ARCHIVING and PRESERVING

EQUIPMENT and SUPPORTING MATERIALS

UNESCO FCS DomainsUNESCO FCS Domains6 core cultural domains2 related domains1 core transversal cultural domain2 partial transversal domains1 supporting transversal domain

Cultural Industries

Definition of Cultural Definition of Cultural Industries: what to include?Industries: what to include?

Should “heritage” be included?If yes, what heritage activities

should be included?How do we measure the value of

these heritage activities?

Potential sources of Potential sources of cultural datacultural dataSources of data

◦Administrative Data sources◦System of National Accounts

Culture Satellite Accounts◦Business and Enterprise

Registers/Surveys◦Household Earnings Surveys◦Labor Force Surveys◦Household Expenditure Surveys◦Census◦Time Use Surveys◦Culture Participation Surveys

Data requirements: are the Data requirements: are the necessary data available? necessary data available?

Classifications: measuring culture sector requires more detailed data to be collected (i.e. 3 or 4 digits)◦Existing international classifications are

limited in their ability to collect culture data.

◦Not all countries code data at the necessary levels of detail to allow for more robust analysis of the culture sector

Data ChallengesData ChallengesExisting national sources are not

always designed specifically for measuring culture

Capacity of the national statistical system to produce data varies greatly between countries.

Methodologies for Methodologies for determining “Value”: which determining “Value”: which value?value?‘Economic contribution’ is of most

interest

But should the social dimension or “value” be also be included when measuring “cultural industries”?◦Includes: aesthetic value, social benefits;

social cohesion

How can the “social” value be monetized?

Methodologies for Methodologies for determining “Value”: Which determining “Value”: Which methodology?methodology?Economic contribution of cultural

industries:◦Economic size and structural analysis ◦Cultural Satellite Accounts◦Multiplier analysis

Cultural Industries Mapping◦Mapping exercise

UIS Model for determining the economic UIS Model for determining the economic contribution of cultural industries: contribution of cultural industries: Economic size and structural analysisEconomic size and structural analysis

Indicator Measure Description

Gross value added Gross value added/GDP of cultural industries or sub-sectors

Gross value added/GDP of cultural industries or sub-sectors in absolute terms

Gross value added/GDP of cultural industries in relative terms

Share of cultural industries value added/GDP in GVA/GDP of total economy (%)

Distribution of gross value added/GDP by sub-sectors

Share of cultural industries sub-sectors in total gross value added/GDP of cultural industries in absolute and relative terms

Turnover (alternatively)

Turnover of cultural industries or sub-sectors

Turnover of cultural industries or sub-sectors in absolute terms

Turnover of cultural industries in relative terms

Share of cultural industries turnover in turnover of total economy (%)

Turnover by sub-sectors Share of cultural industries sub-sectors in total turnover of cultural industries in absolute and relative terms

Employment Contribution of cultural industries employment to total employment

Share of cultural industries employees in total employment (%)

Distribution of employment in cultural industries sub-sectors

Share of cultural industries sub-sectors employment in total employment in cultural industries in absolute and relative terms

Volume and share of self-employment

Number of self-employment jobs/share of self-employment in total self-employment jobs in economy

Labour productivity in cultural industries

GVA in cultural industries per employee

Business activity Stock of business Number of businesses by size in cultural industries Distribution of businesses by sub-sectors

Number of businesses by size in cultural industries sub-sectors

Business start-ups Number of new businesses in cultural industries Business mortality Number of closed businesses in cultural industries Distribution of start-ups by sub-sector

Number of new businesses in cultural industries sub-sectors

Distribution of business mortality Number of closed businesses in cultural industries sub-sectors

UIS methodological publicationsUIS methodological publications

Value of cultural industries: Value of cultural industries: some resultssome results Culture sector accounted for 2.2% of value added of

the total economy in France in 2013

In Singapore, the total nominal value-added of the arts and cultural sector increased from $818 million USD in 2003 to $1.23 billion USD in 2009 (MICA, 2011)

In 2012, the direct contribution of the culture sector to the economy was $5.8 billion CDN, or approximately 4.9% of the GDP of the Greater Montréal Region.

In 2011, the production of arts and cultural goods added more than 504 billion USD to the US economy repre4senting 3.25% of GDP

Challenges to Measuring the Challenges to Measuring the Value of Cultural IndustriesValue of Cultural Industries

How to measure Digital cultural products: music, movies/TV, streaming, e-books, social-media in a timely and accurate manner?

Informal cultural economy – how can this part of the economy be captured through the formal statistical system?

Private sector data are not always available to the public or governmental domain

Thank You