Download 6th Annual Meeting of the Intellectual Property Forum June 8

WIPO-KIPO-KIPA IP PANORAMA
BUSINESS SCHOOL
Geneva, October 06 - 10, 2008
Intellectual Property and Creative Industries: Estimating
the Economic Contribution of Creative Industries
Christopher Kalanje, Counsellor, Creative Industries Division, WIPO
October 10, 2008
Road Map
Creativity and Creative Industries
Defining Creative Industries
Measuring CIs and Empirical Results
WIPO Creative Industries Agenda
Creativity and Creative Industries
• Competition is
intensive
• To be competitive a
company need to
be creative
• Creativity is
therefore at the
core of business
survival
Creativity and Creative Industries
• Not all companies can
be categorized as
creative industries
– Beverage
– footwear
– Transport equipment
(Motor vehicles)
– e.t.c
Defining Creative Industries
Creative Industries
- Relatively new
- Closely linked to cultural
industries. Sometimes
used interchangeably
- Broader than cultural
industries. Goes beyond
• performing arts and
• handicrafts
Defining Creative Industries contd.
From Cultural to Creative Industries
-1944 Adorno & Horkheimer
- 1970s and 1980s. A positive view
different from UNESCO
- 1990s-current. Wide use of term
creative industries
Defining Creative Industries contd.
• In early 1940’s Adorno & Horkheimer
Introduced the concept of cultural industry
(coining the term cultural industry)
• This was in relation to mass production of
cultural products
• They were concerned on how cultural
products were becoming “trend” products
Defining Creative Industries contd.
• 1970 -1980 UNESCO Development of a
more positive way of looking at cultural
industry
• Emerging of the concept of “cultural
industries”
• UNESCO- working on cultural industries
and cultural diversity
Defining Creative Industries contd.
• Late 1990s UK department for culture,
media and sports (DCMS) established
creative industries unit and task force
– UK definition “those industries that have their
origin in individual creativity, skill and talent and
which have a potential for wealth and job creation
through the generation and exploitation of
intellectual property”*
* Creative industries mapping document 2001
Defining Creative Industries contd.
UK Creative Industries
Advertising; Architecture;
Art and Antiques Market;
Crafts; Design;
Designer Fashion;
Film & Video;
Interactive Leisure Software;
Music; Performing Arts;
Publishing;
Software and
Computer Services;
Television & Radio
Defining Creative Industries contd.
- Australia
Creative Industries
Definitions
- Austria
- Hong Kong
- New Zealand
- Singapore
- USA
(core copyright
industries)
Defining Creative Industries contd.
• Demand side
– Price inelastic and income elastic
– Consumption patterns- unpredictable, quality
consideration, focus on superstars (uncertainty on
whether sales will cover “cost of expression” nor
“variable cost” of making copies
– Demand on local products- often insufficient
• The supply side
– High fixed costs for creation/ low marginal cost of
delivery
– Low entry barriers
Measuring CIs and Empirical Results
• Clarity is needed on concept, definition
and criteria of creative industries at,
– International level
– National level
• Important to focus on specific local,
national and regional context
• Importance of IP in the development and
success of creative industries should be
highlighted
Measuring CIs and Empirical Results
contd.
• Core
– Press & Literature; Music, Theatrical Productions &
Operas; Motion Picture & Video; Radio & TV;
Photography; Software & Databases; Visual &
Graphic Arts; Advertising Services; Copyright
Collecting societies
• Interdependent
– TV sets, Radio, VCRs, CD Players, DVD Players,
Cassette Players, Electronic Game Equipment and
Other Similar Equipment; Computers &
Equipment; Musical Instruments; Photographic &
Cinematographic Instruments; Photocopiers; Blank
Recording Material; Paper
Measuring CIs and Empirical Results
contd.
• Partial
– Apparel, Textiles and Footwear; Jewelry & Coins;
Other Crafts; Furniture; Household Goods, China
and Glass; Wall Coverings and Carpets; Toys and
Games; Architecture, Engineering, Surveying;
Interior Design; Museums
• Non-Dedicated
– General Wholesale and Retailing, General
Transportation, Telephony and Internet
Measuring CIs and Empirical Results
contd.
 Objective
– Through
• linking copyright to quantifiable indicators
• developing practical guidelines for measurements
• providing consistency of approach
– Enable
• positioning of the creative sector in the national
economy
• international and cross-sectoral comparisons
• identification of competitive advantages
Measuring CIs and Empirical
Results contd.
 Objective
– Provide
• input for policy formulation
• adjustment of national policies and practices
Measurement of CIs & Empirical
Results
 A reinforced perspective on IP and copyright
 Relating copyright to business activities
 A new definition of the copyright-based
industries following the extent of use of
copyright material
 A more transparent link to statistical
reporting
 A step-by-step methodology
 A set of measurement techniques
Measurement of CIs & Empirical Results
contd.
•
Core Copyright
Industries
Interdependent
Copyright
Industries
Partial
Copyright
Industries
Non-Dedicated
Support Industries
1. Legislative &
Data Review
4. Numerical Methods
Economic Contribution
•Output
•Value Added
•Employment
•Foreign Trade
3. Interviews
2. Industry
Survey
Measurement of CIs & Empirical
Results contd.
Country
% Contr. to
GDP
%
Employment
USA (2002)
11.97
8.41
Singapore
(2001)
Canada (2002)
5.67
5.80
5.38
6.87
Latvia (2000)
4.00
4.40
Hungary (2002) 6.67
7.10
Measurement of CIs & Empirical
Results contd.
Country
% Contr. to GDP % Employment
Philippines (1999)
4.82
11.10
Mexico (2003)
8.07
11.01
Bulgaria (2005)
2.81
4.31
Jamaica (2005)
4.80
3.03
Lebanon (2005)
4.75
4.48
Studies at different stages: Croatia, Romania, Russia, Ukraine,
Brazil, Colombia, Peru, China, Malaysia, Pakistan, Morocco,
Sudan, Kenya, Tanzania,
Measurement of CIs & Empirical
Results contd.
• Feedback,
– Growing interest from Member-States, IGOs
and NGOs
– Policy and professional interest and support
– Becomes an element of the copyright profile
– Indicators are generally acceptable
– results are not a function of the overall
economic development level of the country
– strong influence of economic cycles and
classification system
Measurement of CIs & Empirical
Results contd.
• Challenges
– Relation between an industrial approach and
individual creative activities (adjustments to
data collection)
– It is a production, not consumption based
approach
– underdeveloped statistical framework adds to
the cost of the studies
Measurement of CIs & Empirical
Results contd.
– copyright is limited to what is protectable
• some creative expressions are not covered
– the grey economy is not surveyed
– copyright is shaped by policymakers, not
necessarily by creators
– anti - IP movement
WIPO Creative Industries Agenda
• Expand and improve surveys of the
economic contribution
• Produce guidelines on estimating
copyright piracy
• Launching a new generation of studies
 more focus on the qualitative side of
creativity, on social and cultural impact of
IP
WIPO Creative Industries Agenda
contd.
• Data collection on cultural industries
 joint project with UNESCO, UIS, UNIDO, UNDP
 Participation in multi agency efforts on
developing
 better cultural indicators
 satellite accounts for culture
WIPO Creative Industries Agenda
contd.
 Produce practical guides on management of
IP and creative enterprises
– Managing IP in the Book Publishing Industry
– Rights, Camera, Action! IP Rights and the
Film-Making Process
– Managing Creative Enterprises
– How to Make a Living from Music
Finally