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Culture Matters

17 March 2023

There is immense intrinsic value to culture, often unquantifiable within the bounds of extrinsic economic outputs and numerations. However, culture also has its own set of internal values, which contribute further to its external value creation. While the EU remains dedicated to the community-based values ​​of civil rights, freedom, human dignity, justice, equality and democracy, culture has the power to convey these abstract values, communicating them to EU citizens, as well as to the outside world. Beyond passive transmission, culture’s real power is demonstrated through active participation, which has the potential to mobilize citizens and stimulate civic debate. Culture opens minds by showing alternative perspectives and at the same time empowers individuals and communities by strengthening their democratic skills. Grassroots cultural activities, civil society engagement and socio-cultural operations are key in this respect. Culture is therefore capable of preparing EU citizens to support and shape the future of Europe.

Beyond the intrinsic value of and values ​​of culture, cultural activities make a significant contribution to employment and EU-wide and national GDPs. For example, according to the European Commission statistical office, Eurostat Cultural and Creative Industry (CCI) activities accounted for nearly 3.7% of EU employment in 2015 (8.4 million), more than the automotive industry, and 29.5 million worldwide (1% of the active population). These activities contribute 4.2% to EU GDP. Since the CCIs encompass cultural values, as well as artistic and other individual or collective creative expressions, the industry benefits from value creation that extends beyond the production and dissemination stages of industrial and manufacturing operations. As for the CCS, the sector has shown strong value-added numbers through the creative and cultural stages of production. At the EU level, the CCS account for EUR 413 billion in terms of value-added (5.5%). Over the period 2013 to 2017, the value added produced by the CCS generated a compound annual growth rate (CAGR) of 5.1%. The main driver of this growth is the Audio-Visual and Multimedia (AVM) subsector which makes up 2.5% of the EU’s overall figure. Additionally, employment in the CCS and the number of CCS companies have grown steadily at above 4.5% CAGR since 2013. In 2021, there were 7.4 million people in cultural employment across the EU. The main driver of this growth is the Audio-Visual and Multimedia (AVM) subsector which makes up 2.5% of the EU’s overall figure. Additionally, employment in the CCS and the number of CCS companies have grown steadily at above 4.5% CAGR since 2013. In 2021, there were 7.4 million people in cultural employment across the EU. The main driver of this growth is the Audio-Visual and Multimedia (AVM) subsector which makes up 2.5% of the EU’s overall figure. Additionally, employment in the CCS and the number of CCS companies have grown steadily at above 4.5% CAGR since 2013. In 2021, there were 7.4 million people in cultural employment across the EU.

credit: Michelle Ziling Ou

Given the value generated by the CCIs and CCS, it should come as no surprise that the creative economy outpaces many other parts of the global economy and the numbers only show further room for growth. Speaking of added value, the CCS‘ close relationship with the Information and Communication Technology Sectors (ITCS) and Knowledge sectors, among others, gives it an advantage in cross-sectoral collaboration and creation. Not to mention that the CCS is a key driver for local, regional, and national development and tourism. One of the most famous examples of culture-led development is the case of the Guggenheim Museum Bilbao. Since it opened its doors in 1997, the Guggenheim Bilbao has recorded over 8 million visitors, out of which more than 60% are foreigners. in 2005,

Built upon the values ​​of creative expression and artistic freedom, culture and the CCS have demonstrated not only their intrinsic values ​​that better society as a whole but also their ability to generate value creation extrinsically in the economic sense. As a driving force for many sectors and industries in Europe, the value of culture should certainly not be underestimated.

Content in this article references the Pro-CCS project’s “Supporting The Cultural and Creative Sector: A Handbook for financial tutors & business service providers.” Pro-CCS: Microfunding for Cultural and Creative Sectors is a project co-funded by the European Union with partners all over Europe: ENM (Italy), InnoGrowth (Bulgaria), Impact Hub Leipzig, (Germany), Culture Action Europe (Belgium) and Euradia (Italy). Views and opinions expressed do not necessarily reflect those of the European Union.

CCS, CCI, ITCS & CI, Oh My!

10 March 2023
Credit

It can get confusing trying to define exactly what all the parts of the cultural and creative ecosystem are, especially when there are so many acronyms floating around, all of them different, yet still related. One of the biggest distinctions to make is between the cultural and creative sectors (CCSs) and the cultural and creative industries (CCIs). CCSs include sectors whose activities are based on cultural, artistic or creative values. The activities may include the development, creation, production, dissemination or preservation of goods and services which embody cultural, artistic, or other creative expressions.CCIs on the other hand refer to those parts of the modern economy where culture is produced and distributed through industrial means, applying the creativity of individuals and groups to the generation of original cultural products.

There are some fundamental principles that define the CCS and make them different from CCIs. Notably, we can identify the CCS as the resource center for CCI, making the relationship between the two symbiotic rather than oppositional or competitive. CCSs, however, have many intangible, social and non-economic outputs which remain undervalued and invisible, unlike the CCI, which means that quantifying the value of the CCS is often difficult.

There are indeed some financial characteristics that are specific to CCSs and to the type of support they could need from external funders or business service providers. For example, CCSs have a high number of individuals and “businesses” who receive grants rather than loans. CCSs create work that often is not or cannot be duplicated (think in the case of a painting or a performance.) This differs from CCIs, which inherently seek the potential for replication and diversification. Workers in CCSs can often be limited in resources and capacity, which means they are often unable to expand their respective financial toolkits. Lastly, another financial characteristic of the CCS that demands attention is how CCS creatives are often lower-paid, sometimes living in relative poverty.

The CCIs are the umbrella under which the CCS operate. However, if we want to dive further into what distinguishes the CCS from the CCI, we can look at the Information and Communication Technology Sector (ITCS), which has a particularly strong connection to the CCI given its industrial focus. The CCI and the ITCS combine together to facilitate and extract cultural products from the CCS, publishing (digital or otherwise) being a significant example. Where the CCI are by definition focused on the industrial production and capitalization of the cultural product, the CCS as a whole, include the fine arts and the humanities, where outputs may often be less tangible. Namely, the CCI often includes the following industries: Advertising, the Art and Antiques Market, Crafts, Design, Designer Fashion, Film and Video, Interactive leisure software, Music, Performing Arts, Publishing, Software, Computer games, Television, Radio and Digital communication. Of course, definitions of the CCS and the CCI can vary, even at the global level, and there are cases of overlap between the two, such as the publishing subsector. Given the ITCS‘ close connection to the CCI and their deep integration into society, it is safe to say that the CCS has not yet unlocked the full potential of the ITCS in terms of new opportunities and productivity.

To add another layer to the seemingly ever-growing terminology surrounding the CCS and CCI, the UK makes its own distinction with the ‚Creative Industries (CI),‘ a term that according to the British Council “began to be used about twenty years ago to describe a range of activities, some of which are amongst the oldest in history and some of which only came into existence with the advent of digital technology.” In practice today, the CIs focus particularly on design-based activities, digital creative (including game and VFX), and content creation industries.

Breaking down the CCS and its distinctions, as well as connections, from the CCI, ITCS, and CI is crucial for identifying sector-specific needs, especially when it comes to financial services and microfinance. Bridging the knowledge gap between these different entities will undoubtedly result in more visibility and higher productivity, as well as an accurate economic valuation, for the cultural and creative sectors.

Content in this article references the Pro-CCS project’s “Supporting The Cultural and Creative Sector: A Handbook for financial tutors & business service providers.” Pro-CCS: Microfunding for Cultural and Creative Sectors is a project co-funded by the European Union with partners all over Europe: ENM (Italy), InnoGrowth (Bulgaria), Impact Hub Leipzig, (Germany), Culture Action Europe (Belgium) and Euradia (Italy). Views and opinions expressed do not necessarily reflect those of the European Union.

Sticking to Culture and Creativity

3 March 2023

“Cultural and creative sectors are important for ensuring the continued development of societies and are at the heart of the creative economy. Knowledge-intensive and based on individual creativity and talent, they generate considerable economic wealth. More importantly, they are critical to a shared sense of European identity, culture and values. In economic terms, they show above-average growth and create jobs – particularly for young people – while strengthening social cohesion.“ – Creative & Cultural Sector, EC

Cultural and creative sectors include all sectors whose activities are based on cultural values ​​​​or artistic and creative expressions. Essentially, CCSs have an impact on every part of human expression, including education, health and notions of community. Over the past few years, more and more evidence-based analyzes have shown us the importance of CCSs in our economy. 

For example, CCSs are an integral part of the experience economy and tourism, as cultural tourism is estimated to account for up to 40% of European tourism ( KEA ). Tourism is a great example of the “stickiness” of the CCSs. Some cultural practices or products can “stick” to a geographic location, population or community. For example, many regions across Europe have their own specific traditions in terms of food, arts, and tangible or intangible heritage which are location-specific. These include the Pyramids of Egypt, the artisanal know-how and culture of baguette-making in France, Inuit drum dancing and singing in Denmark, as well as numerous other products and practices. 

This “stickiness” adds cultural value, enhancing identity, ownership, and other forms of social cohesion. Italy, for example, is home to the largest number of UNESCO world heritage sites, claiming 58 out of the 1,145. In this case, Italy benefits from the tourism that comes with caring for, maintaining and preserving these sites. These sites, when preserved and maintained by Italian regional and national governments, add to the value of each “cultural product,” extending beyond economic value and fostering a shared global heritage that belongs to everyone.

credit: Michelle Ziling Ou

Another example of this cultural “stickiness“ can be seen inside the French boulangerie. French bakers pushed for a UNESCO designation for the baguette , which resulted in a spot on the intangible cultural heritage list. Speaking on the importance of the heritage designation, “Bakers say the UNESCO listing would protect a know-how that has passed through generations and shield the baguette from imposters around the world.The UNESCO “intangible heritage” marker – meant to recognize oral traditions, performing arts, social practices, rituals and methods of traditional craftsmanship.“

Given the unique nature of the cultural and creative sectors, it is no surprise that there can be knowledge gaps and discrepancies in perceived economic and cultural value between actors inside and outside of the sector. Pro-CCS aims to bridge that gap and push the CCSs to their full potential.

Content in this article references the Pro-CCS project’s “Supporting The Cultural and Creative Sector: A Handbook for financial tutors & business service providers.” Pro-CCS: Microfunding for Cultural and Creative Sectors is a project co-funded by the European Union with partners all over Europe: ENM (Italy), InnoGrowth (Bulgaria), Impact Hub Leipzig, (Germany), Culture Action Europe (Belgium) and Euradia (Italy). Views and opinions expressed do not necessarily reflect those of the European Union.