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  • Introduction
  • Executive Summaries
  • Global Shifts
    • Stefanie Babst, NATO – Rethinking Our Approach to Global Security
    • Jeremy Bentham, Royal Dutch Shell Plc – Reframing the Climate Change Debate
    • Wayne Best, Visa Inc – Demographics and Demand
    • Jean-Claude Burgelman, European Commission – A “New Deal” on Green Growth
    • Jakkie Cilliers, Institute for Security Studies – Reclaiming Legitimacy in Global Governance
    • Thomas E. Cremins, NASA – A New Space Age
    • Kristel Van der Elst, The Global Foresight Group – Rethinking Ageing
    • Tina Fordham, Citigroup – Vox Populi Risk
    • Julius Gatune, African Centre for Economic Transformation – Rethinking the Informal Economy
    • Jerome Glenn, The Millennium Project – The Age of Conscious-Technology
    • Derrick Gosselin, SCK.CEN – Predictive Analytics
    • Stefan Hajkowicz, CSIRO – The Potential of the Creative Economy
    • Kathleen Hicks, CSIS – New Security Challenges Posed by Megacities
    • Claudia Juech, The Rockefeller Foundation – Economic Opportunities in the 21st Century
    • Katell Le Goulven, UNICEF – Agile Development
    • Chris Luebkeman, Arup Group Ltd – Ambient Technology in Cities
    • Marios Maratheftis, Standard Chartered Bank – Shifting Geo-Economic Power
    • Daizo Motoyoshi, LIXIL Group Corporation – Revival of Japan
    • Herbert Oberhänsli, Nestlé SA – Rethinking Freshwater
    • Seongwon Park, STEPI – The Rising Appeal of a De-Growth Future
    • Rafael Ramírez, University of Oxford – The Possible Future of the Economics Profession
    • Rogerio Rizzi de Oliveira, Hewlett-Packard Company – Improving the Quality of Life in Megacities
    • Nouriel Roubini, New York University – The Third Industrial Revolution
    • Francisco Sagasti, FORO Nacional Internacional – The Changing Nature of Livelihoods
    • Trudpert Schelb, Siemens AG – The Next Stage of Individualization
    • Peter Schwartz, Salesforce – Fundamental Technological Progress Driving Economic Growth
    • Angela Wilkinson, OECD – Progressing Well-Being through Inclusive Growth
    • Jill Wong, Singapore Government – The Impact of Automation on Jobs and Society
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Global Strategic Foresight Community Home Previous Next
  • Report Home
  • Introduction
  • Executive Summaries
  • Global Shifts
    • Stefanie Babst, NATO – Rethinking Our Approach to Global Security
    • Jeremy Bentham, Royal Dutch Shell Plc – Reframing the Climate Change Debate
    • Wayne Best, Visa Inc – Demographics and Demand
    • Jean-Claude Burgelman, European Commission – A “New Deal” on Green Growth
    • Jakkie Cilliers, Institute for Security Studies – Reclaiming Legitimacy in Global Governance
    • Thomas E. Cremins, NASA – A New Space Age
    • Kristel Van der Elst, The Global Foresight Group – Rethinking Ageing
    • Tina Fordham, Citigroup – Vox Populi Risk
    • Julius Gatune, African Centre for Economic Transformation – Rethinking the Informal Economy
    • Jerome Glenn, The Millennium Project – The Age of Conscious-Technology
    • Derrick Gosselin, SCK.CEN – Predictive Analytics
    • Stefan Hajkowicz, CSIRO – The Potential of the Creative Economy
    • Kathleen Hicks, CSIS – New Security Challenges Posed by Megacities
    • Claudia Juech, The Rockefeller Foundation – Economic Opportunities in the 21st Century
    • Katell Le Goulven, UNICEF – Agile Development
    • Chris Luebkeman, Arup Group Ltd – Ambient Technology in Cities
    • Marios Maratheftis, Standard Chartered Bank – Shifting Geo-Economic Power
    • Daizo Motoyoshi, LIXIL Group Corporation – Revival of Japan
    • Herbert Oberhänsli, Nestlé SA – Rethinking Freshwater
    • Seongwon Park, STEPI – The Rising Appeal of a De-Growth Future
    • Rafael Ramírez, University of Oxford – The Possible Future of the Economics Profession
    • Rogerio Rizzi de Oliveira, Hewlett-Packard Company – Improving the Quality of Life in Megacities
    • Nouriel Roubini, New York University – The Third Industrial Revolution
    • Francisco Sagasti, FORO Nacional Internacional – The Changing Nature of Livelihoods
    • Trudpert Schelb, Siemens AG – The Next Stage of Individualization
    • Peter Schwartz, Salesforce – Fundamental Technological Progress Driving Economic Growth
    • Angela Wilkinson, OECD – Progressing Well-Being through Inclusive Growth
    • Jill Wong, Singapore Government – The Impact of Automation on Jobs and Society
  • Videos
  • Acknowledgements
  • Browse by Topic
    • Issues
      • Ageing
      • Cities and Urbanization
      • Economics Growth and Development
      • Employment and Entrepreneurship
      • Environment and Sustainability
      • Science and Technology
      • Security and Governance
    • Industries
      • Aviation and Travel
      • Electronics
      • Engineering and Construction
      • Global Health and Healthcare
      • Infrastructure
      • IT Software and Services
      • Media Entertainment and Information
      • Oil and Gas
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      • Telecommunications
  • Economics Growth and Development
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The Potential of the Creative Economy
An Economic Sector to Support the Realization of Inclusive Economic Opportunities and Social Cohesion

Stefan Hajkowicz, Commonwealth Scientific and Industrial Research Organisation (CSIRO)

 

The creative economy is an underappreciated bright spot of the global economy. The sector continued to expand even during the recent economic crisis and could grow significantly more as technology advances and incomes increase in emerging countries. Such a development could help reduce youth unemployment and poverty, as creative services generate financial returns with minimal production and distribution costs, thereby lowering the barriers to entry into the global economy. Furthermore, creative services could act as an engine of understanding, cooperation and trust between cultures, in much the same way as tourism and trade have historically improved cross-cultural relations. Governments, companies and communities have to find effective ways to ensure that the creative economy’s growth realizes its full potential so as to increase the resulting economic opportunities and social cohesion.

 


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Author

13---Hajkowicz-

 

Stefan Hajkowicz

Principal Scientist in Strategic Foresight, Commonwealth Scientific and Industrial Research Organisation (CSIRO)

Author

13---Hajkowicz-

 

Stefan Hajkowicz

Principal Scientist in Strategic Foresight, Commonwealth Scientific and Industrial Research Organisation (CSIRO)

Disclaimer

All opinions expressed herein are those of the authors. The World Economic Forum provides an independent and impartial platform dedicated to generating debate around the key topics that shape global, regional and industry agendas.

Disclaimer

All opinions expressed herein are those of the authors. The World Economic Forum provides an independent and impartial platform dedicated to generating debate around the key topics that shape global, regional and industry agendas.

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Creative services are an underappreciated bright spot of the global economy

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Creative services are an underappreciated bright spot of the global economy
Creative services continued to grow even during the recent global financial and economic crisis, and could grow significantly more as technology advances and incomes increase in emerging economies. Creative services are important as they generate financial returns with minimal production and distribution costs, help people escape poverty, and bolster cross-cultural exchange and understanding. How can we best ensure they serve these functions?

Creative services are an underappreciated bright spot of the global economy. There is no commonly accepted definition of creative services or the creative economy, terms often used interchangeably; however, according to the definition adopted by the United Nations – which understands it to include arts and crafts, books, graphic and interior design works, fashion, films, music, new media, printed media, visual and audiovisuals – world trade in creative services more than doubled in a decade to reach a record total of $624 billion in 2011.10

Their growth is fastest in developing countries. In the decade to 2011, exports of creative services grew by an average of 12.1% in emerging economies, compared with a global average of 8.8%.11 Creative services appear to be decoupled from the rest of the economy, in that they grew strongly during the global financial and economic crisis of 2008 when many other sectors contracted: in that period, international trade contracted by 12%, while creative services trade continued to grow at an average rate of 14% per annum worldwide.12 This strong performance resulted from: (a) rapid income growth in developing countries; (b) the transition of emerging economies into a services-sector phase; and (c) the rise of ICT.

Current and future demand for creative services can be explained by the growth in internet usage and the increase in disposable income. There is room for further growth as hundreds of millions more people start using the internet. According to the World Bank,13 in low-income and middle-income countries – where the bulk of humanity resides – only 30% of people use the internet, compared with 81% in high-income countries. From 2012 to 2013 alone, an additional 176 million people in low-income and middle-income countries started using the internet for the first time – a 12% increase on the previous year. 

As more people come online, they also have more to spend online. In 1960, the average global income was $455 per person per year in current dollars. In 2012, it was $10,206 per person. Forecasts suggest it could reach $44,000 by 2060, with the same purchasing power as today’s dollar.14

The growth of the internet as a distribution channel and a tool for collaboration also explains the increasing supply of creative services. Digital technology allows a creative product to be reproduced and delivered to a customer at zero marginal cost. As technology improves, so too does our ability to design, produce and distribute creative services tailored to meet individual preferences en masse. Future developments in communications technology – from telepresence systems to virtual reality, voice recognition and artificial intelligence – are likely to further expand the creative economy by enabling the evolution of entirely new kinds of creative services. 

The development of the creative services market could assist in the alleviation of some major global challenges, such as youth unemployment and poverty reduction. Virtual goods can be produced and distributed at a low cost compared with other industries – often all that is required to successfully become part of the global economy is an internet connection and a good idea. 3D printers will increasingly lower production and distribution costs of physical as well as virtual goods by allowing an object of just about any shape to be constructed quickly and cheaply on demand. It will no longer be necessary to own a factory, a wholesale warehouse or distribution mechanisms to capture value in manufacturing – anyone with creative design abilities will be able to do so, further lowering the barriers to entry into the global economy.

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Creative services will change the way the world economy works

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Creative services will change the way the world economy works

Creative services could also play a bridging role across societies and humankind in a world which looks increasingly fragmented. Creative services could be an engine of understanding, cooperation and trust between cultures. Exchanges enabled by tourism and trade have historically improved cross-cultural relations. Can we find ways to increase the likelihood that virtual as well as physical cross-cultural exchanges and trade in creative goods and services will have the same effect?

The creative economy could have a transformative and positive effect on social cohesion and economic growth – if we can find ways to catalyse it. So how can we foster the full potential of its growth? From regulatory environments to awareness creation and investment in education and infrastructure, what are the most effective ways in which governments, companies and communities can create a platform for the creative economy to grow?

10
10 Creative Economy Report − Widening Local Development Pathways. 2013. New York: United Nations Development Programme. 
11
11 Ibid.
12
12 Creative Economy Report – Creative Economy: A Feasible Development Option. 2010. New York: United Nations Development Programme.
13
13 World Development Indicators Database. 2014. Washington DC: The World Bank.
14
14 Economic Outlook No 93 − June 2013 − Long-term baseline projections. 2013. Paris: Organisation for Economic Co-operation and Development.
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