Dimiter Gantchev, Deputy Director, Culture an Creative Industries Sector, WIPO An Intellectual property Based Approach to Surveying the Economic Contribution

Dimiter Gantchev,Deputy Director, Culture an Creative Industries Sector, WIPO

An Intellectual property Based Approach to Surveying the Economic Contribution of the Creative Sector: A Perspective from the World Intellectual Property Organization

Medellin, Colombia 6 March 2013

Overview

Conceptual frameworkCopyright, creativity and developmentEconomic fundamentals of copyright

The empirical evidenceUnderlying premisesDirect relationships and industry analysis

Challenges

D. Gantchev

Creative Industries on the Policy Agenda

Growing interest by policy makers, industry, civil societyCreativity as a resource and growth factorPolicy demand to

quantify the intangible economyidentify the role of creativity in knowledge societylink creativity to development objectives

Creative industries as a positive agenda

D. Gantchev

Intellectual Property and Creativity

IP is one of the tools to promote creativity IP is a new conceptual framework which allows to:

transform creative outputs into economic goodsmonitor the supply and demandobtain evidence on impact

IP is perceived today as an indicator of development

Mr. D. Gantchev-WIPO

A Copyright Approach To Creative Industries

Creativity is the subject matter of copyright protection, but poses definitional problems as suchCopyright is a well defined concept

a set of rights given to authors to control the use of their worksa financial mechanism to reward creators a basis for the operation of huge industries


Economic Fundamentals Of Copyright

Economic characteristicsEconomic consequencesConditions for economic efficiencyEconomic function

An enabler A market frameworkA measurement tool

Social Functionbalance and access

Cultural functionContribute to cultural diversity and supply of content

Mr. D. Gantchev - WIPO 6.

Source:Daryl Mann, Beijing,Sept 2010

Source: Daryl Man, Beijing, Sept.2010

Working on the Evidence - Major Features of the WIPO Model

Methodology applied consistently since 2003 in over 40 countries with the support of interested partnersCopyright - drivenPolicy - orientedProvides measures of sizeInternationally comparableBased on official dataProduction-based

Typical Uses

Generalraise awarenessproject copyright as a growth factorproject a positive image of the country

Specificquantify the measurable characteristics of industries based on copyrightevaluate and compare size, performance and competitiveness monitor trends and provide policy options, program development and practical measuresassess the impact of policy or economic measures – FTAs, accessions, legislative amendments

Creation

Formatting

Production

Production of equipment

Distribution

Distribution materials

Marketing and promotion

Consumption and use of the work

Production of equipment for the consumption

Identifying the Creative industries

Mr. D. Gantchev - WIPO 11.

Measurement Indicators

Indicators of sizeValue addedEmploymentForeign trade

Dynamic indicators ProductivityMultipliers Contribution to real GDP growth

Constant search for new ones


0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

11%

% Share of GDP

% Share of Employment

Measuring the Size of Copyright Industries

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

GDP contribution

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

Employment contribution

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00%

High Share of GDP,Low Share of Empl.

High Share of GDP,High Share of Empl.

Low Share of GDP,Low Share of Empl.

Low Share of GDP,High Share of Empl.

Q4 Q1

Q3 Q2

% Empl

% GDP

Country Positioning based on %GDP and % Employment

0 50 100 150 200

MEXICOPHILIPPINES

BRUNEIBHUTAN

COLOMBIAPERU

NETHERLANDSDOMINICASLOVENIAMALAYSIATANZANIA

AUSTRALIARUSSIA

JORDANLATVIA

CROATIABULGARIA

FINLANDTRINIDAD AND TOBAGO

CANADACHINA

SINGAPORESOUTH AFRICA

HUNGARYLEBANON

LITHUANIAST VINCENT

PAKISTANGRENADAROMANIA

USAUKRAINE

THAILANDKOREA

JAMAICAKENYA

ST LUCIAPANAMA

ST KITTS/NEVIS

Labor Productivity High

Labor Productivity Low

Labo

r Pro

ducti

vity

Med

ium

Creative Industries Labor Productivity Index

R2 = 0.31

Relationships to Economic Indicators GDP per Capita

Source: The World Bank Development Indicators

Relationships to Economic Indicators International Property Rights Index

R2 = 0.39

Source: WIPO and Property Rights Alliance

Relationships to Economic Indicators Index of Economic Freedom

R2 = 0.31

Source: The Heritage Foundation

Source: The Heritage Foundation / Transparency International

Relationships to Economic Indicators Freedom From Corruption

R2 = 0.39

Relationships to Economic Indicators Global Competitiveness Index GCI (2012)

R2 = 0.23

Source: The World Economic Forum (WEF)

R2 = 0.44

23

Relationships to Economic Indicators Global Innovation Index (2012)

R2=0.49

Source: INSEAD eLab

Summary of correlations

Source: WIPO

Creative Industries' Share of Employment

52.4%

16.6%

14.6%

16.2%

Creative Industries' Share of GDP

54.4%

18.2%

10.3%

17.2%

54%

17%

15%

14%

Core Interdependent Partial Non-dedecated

Contribution of copyright industries to GDP and to Employment

0%

20%

40%

60%

80%

100%

Press and Literature

Music, Theatrical Productions, Operas

Motion picture and video

Radio and Television

Photography

Software and Databases

Visual and Graphic Arts

Advertising Agencies and Services

Copyright Collecting Societies

GDP in the Core Copyright Industries

1.00%9.25%2.37%

22.42%

2.40%

14.75%4.22% 5.42%

38.61%

Employment in the Core Copyright Industries

0%

20%

40%

60%

80%

100%





Photography





43.42%

8.84%5.77%7.04%

2.33%

19.71%

4.85%7.23% 1.56%

28

Creative Diversity

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0%

20%

40%

60%

80%

100%





Photography





29

Copyright Industries Compared with Other Key Industries in Selected Countries

5.3%

4.7%

2.9%

4.8%

5.5%

4.1%

5.5%

6.4%

5.1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Kenya

Croatia

Ukraine

Jamaica

Bulgaria

South Africa

Bhutan

China

Slovenia COPYRIGHT

Agriculture

Education

Health & Social Work

Fishing

Manifacturing

Construction

Electrical & Water

Finance, Real Estate &Business ServicesMining and Quarrying

Transport & Communication

Hotels & Restaurants

Wholesale & Retail Sales

Financial Services

Other

Creative Industries in the Development Context

6.32%

5.14%5.04%

6.62%

5.28% 5.29%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

Developed Transition Developing

Employment Avg. 5.49%

GDP Average 5.26%

Core and Non-Core Creative Industries Contribution in the Development Context

Core Creative Industries Non-Core Creative Industries

2.17% 2.19%

2.54%2.40%

2.02%

2.88%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%


4.15%

2.93%

2.51%

4.25%

3.26%

2.40%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%


Findings

An overall significant contributionDrivers – publishing, R/TV, software, music, advertizing, filmImpressive dynamicsWell interconnected with other industries Higher capital and labour productivityOutput and employment multipliers


Problem areas

Getting informationAnalyzing informationTaking further action I/O tablesExport statisticsRoyaltiesInvolving the industries in the analysisCrosschecking informationParallel studies (EU, UK,UNCTAD…)

Creative Industries in the recessionThe US IP industries – engines of growth

27,7% of US jobs, 34,8% of GDP in 2010growing faster then the rest of the economy 1,6% to 1% (copyright 2,4%, patents 2,3%, trademarks 1,1%)wages were 42% higher than other industries

WIPO statistics points to increased use of the IP system in 2011patent filings - 7,8% growth trademark applications - 13,3% growthInternation registration of designs – 16 % increase global copyright Industries – 5,26% of GDP and 5,49% of employment PCT

CISAC – 1% growth in total worldwide collections (7,6 bln Euro) - royalty collections outpace GDP growth

Source: Intellectual Property and the US Economy, Industries in Focus, March 2012, US Department of Commerce and WIPO statistics, CISAC – On the lookout for growth, 2013.

Copyright Challenges to Creative IndustriesPolicy

Copyright - a national and global policy issueEmpowerment of the prosumer

Economic use and abuse – a state of shockpiracy - threatens the model and requires new strategies

TechnologyConvergence blurs boundaries between sectors and markets

Mr. D. Gantchev

Final Words

The creative industries are expanding and copyright is an important enabling factorTheir performance is enhanced when stimulated by governments, the legal system and the businesses environment. Producing economic evidence on the creative industries facilitates policy making and raising public awareness


Thank [email protected]

37.Mr. D. Gantchev - WIPO

Documents

Dimiter Gantchev, Deputy Director, Culture an Creative Industries Sector, WIPO An Intellectual property Based Approach to Surveying the Economic Contribution