Essential insights into the global exchange of artistic products and services by the United Kingdom
In a comprehensive report titled **"12 facts about the UK's international trade in creative goods and services"**, a team of experts from the UK has provided an in-depth analysis of the UK's role in the global creative economy. The report, authored by Professor Hasan Bakhshi MBE, Professor of Economics of the Creative Industries and Director of Creative PEC, along with Dr Salvatore Di Novo, Research Associate at Newcastle University, and Professor Giorgio Fazio, Research Director of Creative PEC and Chair of Macroeconomics at Newcastle University Business School, highlights the significant impact of the UK's creative industries on the global stage.
1. The UK is a major global exporter of creative goods and services, ranking among the largest exporters worldwide. 2. Creative goods and services constitute a significant share of the UK's trade, representing a substantial portion of both exports and imports. 3. The UK runs a trade surplus in creative goods and services, with the value of its exports in these sectors exceeding imports, contributing positively to the UK’s balance of trade. 4. The top creative exports include audiovisual products, music, and design services, sectors that lead the UK’s international creative trade. 5. The European Union remains a key trading partner for UK creative industries, but the share of trade with non-EU countries is growing, indicating diversification in the UK’s creative trade relationships. 6. The US is an important market for UK creative exports, with close cultural and business ties supporting significant exchange between the two countries. 7. Creative industries depend heavily on digital technologies to reach international markets, with digital distribution channels expanding opportunities for UK creators globally. 8. High-skilled labor is crucial to the UK's success in creative trade, with the creative economy relying on skilled professionals to maintain its competitive edge. 9. Foreign Direct Investment (FDI) in UK creative industries supports their international competitiveness, helping build capacity and innovation. 10. Small and medium enterprises (SMEs) are significant contributors to the UK’s creative export performance, with many small firms successfully accessing global markets. 11. Trade in creative services often involves complex cross-border supply chains, requiring collaboration and outsourcing to deliver creative products internationally. 12. Policy support and trade agreements influence the UK’s creative trade outcomes, with regulatory frameworks and international trade relations affecting market access and competitiveness.
These facts collectively underscore the pivotal role of creative industries in the UK's international trade landscape and the importance of strategic policies to maintain and grow this sector internationally. The report also notes that the Information and Communication Technology (ICT) related sector is the most important in the UK's creative industries in terms of the volume of exports, and that creative services trade are subject to various degrees of regulation across the world, with the restrictiveness of these regulations varying greatly across sub-sector and geography.
The report also touches upon the impact of the UK's departure from the EU on the way British firms trade and work with European countries in the creative industries. In 2017, creative industries accounted for nearly 45% of the Gross Value Added (GVA) from exports and 26% from imports.
If you are interested in accessing the full report or seeking more detailed summaries on particular aspects of the UK's creative trade, feel free to reach out for further assistance.
- The growth of the UK's creative industries is significantly influenced by technological advancements, particularly in the Information and Communication Technology sector.
- The UK's talent and education play a vital role in maintaining a competitive edge in the global creative economy, with a focus on nurturing skilled professionals in creative disciplines.
- Regulatory policies and international trade agreements impact the competitiveness and accessibility of UK creative industries in various regions, necessitating strategic policy actions.
- Investments, both domestic and foreign, in the UK's creative industries contribute significantly to their innovation and international competitiveness, driving growth in exports.
- The creative industries sector is increasingly interconnected with other industries, such as finance, offering opportunities for collaboration and cross-sectoral growth.
- The cultural and business ties between the UK and the US contribute to the strong demand for UK creative exports in American markets.
- Evidence-based research and understanding of the creative industries' economic impact are essential for informing effective policies and strategies to support the sector's growth and competitiveness in the global market.
