Creative Industries on the rise in Germany
Berlin | 03.02.2016 | Cultural and Creative Industries Initiative publishes Monitoring of Economic Key Data in 2014
The creative economy is made up by creative minds. More precisely, “the culture and creative industries comprise all culture and creative enterprises that are mainly market-oriented and deal with the creation, production and/or dissemination through the media of cultural/creative goods and services.”
This definition underlies the report Monitoring of Selected Economic Key Data in Cultural and Creative Industries 2014, which was published by the Cultural and Creative Industries Initiative of the German Government. It is based on the definition proposed by the Conference of Economics Ministers, which places the focus on commercial companies
Audits carried out by institutions in southwestern Germany
Analyzing economic indicators, the monitoring report evaluates the impact of creative industries on the overall economy. The 2014 report builds upon the audits carried out over the past two years. Two institutions in Baden-Württemberg conduct the annual audits: the Centre for European Economic Research in Mannheim and the Fraunhofer Institute for Systems and Innovation Research ISI in Karlsruhe.
Key questions include how the creative sector compares to other more traditional sectors in Germany and which features distinguish the individual submarkets. The report analyzes how the culture and creative industries have developed in terms of core indicators and export activities. Furthermore, it investigates the development of company start-ups and the implementation of innovative activities.
Turnover in the creative industries rises
In 2014, approximately 249,000 companies were active in the culture and creative industries, representing a moderate increase of about 2,000 companies compared to the previous year. This development is accompanied by a rise in turnover of 2.2 percent, which trails behind, however, growth in overall economy.
Employment is on the rise as well, with the number of people employed exceeding 1.6 million for the first time. Concurrently, more jobs are liable to social insurance contributions in particular and marginal employment is declining.
Start-up culture: room for improvement
Although almost 12,000 active companies were set up in the creative industries in 2014, this amounts to only 68 percent of the corresponding figure twelve years ago. The creative industries are not exempt from the prevailing trend in Germany of a dwindling entrepreneurial dynamic.
The decline in start-ups in recent years is mostly due to the overall economic growth, as potential employees have a variety of different options for paid employment in existing companies. Especially in a sector mainly based on small enterprises, such as the creative industries, setting up a company might be considered less rewarding.
Variation across submarkets
The monitoring report stresses the considerable diversity across the culture and creative industries. While the subsectors software and games, design, music and performing arts are thriving, other areas such as such as press, advertising, art and books were marked below average.
Overall, the findings suggest that the culture and creative industries are developing at a steady pace. The report assesses the increase in jobs requiring social insurance contributions as a particular highlight. The recommendation:
“Given the diverse characteristics and market conditions across the CCI sub- markets, a range of differentiated economic policy measures is essential. These measures must be tailored to suit the individual requirements of each submarket.”