CARDIFF S CREATIVE INDUSTRIES SECTOR PRODUCED BY POLICY & ECONOMIC DEVELOPMENT CARDIFF COUNCIL July 2006
Contents 1.0 Introduction 2 Page 2.0 Sector Overview 2.1 Creative Industries in the UK 2 2.2 Creative Industries in Wales 6 2.3 Creative Industries in Cardiff 11 3.0 Conclusion - the Way Forward 18 References 20 Creative Industries Sector Report 1
Creative Industries Sector Report 1.0 Introduction The term Creative Industries was developed to recognise and quantify the contribution that those engaged in developing creative content make to the economy. In 1998 the Department for Culture Media and Sport (DCMS) produced a mapping document of the Creative Industries, which was the first attempt to measure the economic contribution of the creative industries in the UK. The mapping exercise, which was subsequently repeated in 2001, adopted the following definition of Creative Industries: those industries which 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. This includes advertising, architecture, the art and antiques market, crafts, design, designer fashion, film and video, interactive leisure software, music, the performing arts, publishing, software and computer services, television and radio. This report uses the creative industries definition developed by DCMS and provides an overview of the creative industries in the UK, Wales and Cardiff. 2.0 Sector Overview 2.1 Creative Industries in the UK The importance of creativity to economic growth and prosperity has been increasingly recognised in recent years. Richard Florida a leading academic on regional economic development in his book The Rise of the Creative Class 1, says: Creativity has become a driving force of economic growth. The ability to compete and prosper in the global economy goes beyond trade in goods and services and flows of capital and investment. Instead, it increasingly turns on the ability of [cities] to attract, retain and develop creative people. 1 The Rise of the Creative Class, Richard Florida, 2002 Creative Industries Sector Report 2
Creative businesses have become one of the UK s major success stories. The creative industries make a significant contribution to the national economy and are recognised world-wide for their innovation, creativity and excellence in particular British design, advertising, music and interactive leisure software businesses are considered world class. Creative industries were initially identified as a distinct sector by the UK Government in 1997 with the establishment of the Creative Industries Task Force (CITF) which was charged with identifying what needed to be done to support the sustainable growth of these industries and maximise their economic impact. To underpin this work they commissioned the first mapping exercise of the creative industries in the UK in 1998. The CITF completed its main programme of work by the summer of 2000 and has since been succeeded by the Ministerial Creative Industries Strategy Group, which aims to ensure a co-ordinated response to the needs of these industries. In 1999 the CITF set up a Regional Issues Working Group in England to examine the regional and local issues affecting creative industries and the contribution they make to regional economic regeneration and employment. The working group carried out a series of audits in the English regions and held three workshops during 1999. It published its recommendations for action in Creative Industries: the Regional Dimension (DCMS, 2000) which highlighted the importance of creative industries to the English regional economies and recommended that Regional Development Agencies (RDAs) and their partners should encourage the development of physical clusters and centres of excellence for particular creative industries. Consequently all nine English RDAs, along with Scottish Enterprise and the former Welsh Development Agency (WDA), included creative industries as one of their key sectors/clusters. The UK Government is also geared to supporting this industry sector and has established a number of initiatives. In July 2004 the DCMS launched the Creative Industries Forum on Intellectual Property an initiative to help the UK s creative industries sector. As a cross-government body, including representatives from the devolved administrations and from the industry, the forum brings together key players to discuss the opportunities and threats posed to the UK s creative industries sector resulting from rapid technological developments. By addressing key issues such as Creative Industries Sector Report 3
education and awareness raising, and by developing strategies to maximise opportunities for creative industries in a digital environment, the initiative builds on the sector s contribution to the UK economy and maximises the sector s future contribution to national competitiveness. The creative industries generated 53.4 billion gross value added (GVA) in 2002-8% of the UK s total GVA. They are growing twice as fast as the general economy with average growth of 6% per annum between 1997 and 2002 2, compared with 3% per annum average growth for the economy as a whole. Over this same period, the radio and TV sector increased most rapidly at an average of 12% per annum, while advertising, software and art & antiques also showed above average growth of 8-9% 3. Creative industries were responsible for producing around 4.2% of all goods and services exported from the UK in 2002, contributing 11.5 billion to the balance of trade. Between 1997 and 2002 exports from the creative industries grew by around 11% per annum, while the value of all services exported grew by 7% per annum, and the value of exports of all goods and services grew by just 3% 3. The Interdepartmental Business Register (IDBR) suggests that there are around 121,000 businesses in the creative industries in the UK, which equates to around 7.4% of all enterprises listed on the IDBR. Notably, three quarters of these businesses are accounted for by two sectors software and electronic publishing (54,000) and music and the visual and performing arts (31,000). However, the IDBR only lists those businesses that are above the VAT threshold, or which register voluntarily for VAT. This means that some of the very small creative industry enterprises (e.g. craft) will not be captured by the database and, in reality, the actual proportion of businesses in the creative industries is likely to be higher 3. Labour Force Survey data shows that during the second quarter of 2003, there were an estimated 1.9 million people in creative employment in Great Britain comprising 1.1 million jobs in creative industry companies and 0.8 million creative jobs in 2 Based on 9 of the 13 creative industry sectors for which data between 1997 and 2002 is available: advertising; video; film & photography; music & visual & performing arts; publishing; software, computer games & electronic publishing; radio & TV; arts & antiques; designer fashion. 3 Creative Industries Economic Estimates Statistical Bulletin, DCMS, August 2004 Creative Industries Sector Report 4
companies outside the creative industries. Creative employment rose from 1.5 million in 1995 to 1.9 million in 2003, which equates to an average annual employment growth rate of 3%, compared to 1% for the economy as a whole. Between 1997 and 2003 the software, design (including fashion), and film, video and photography sectors experienced above average increases in employment of 7%, 6% and 4% respectively 3. With 40% of the jobs in the UK s creative industries, London is the UK s creative capital. The creative sector in London is growing faster than all other industry sectors, with the exception of financial and business services, accounting for between a fifth and a quarter of employment growth in the capital between 1995 and 2001. A further 22% of jobs in the creative industries are based in the South East of England with the remaining 38% of jobs dispersed across the rest of the UK 4. As the statistics above highlight, the creative industries have experienced significant growth in recent years. Although London and the South East continue to be major magnets of the creative industries, there is growing recognition within the English regions, Northern Ireland, Scotland and Wales of the sector s contribution to wealth generation, employment opportunities, social inclusion and regeneration strategies. Major strategic agencies at the city and regional level have acknowledged the sector s importance and have moved to provide significant support for initiatives designed to develop the capacity of the sector to grow. A number of UK cities, including Birmingham and Manchester, have dedicated creative industries teams/services to assist the development of the sector. Similarly, regional development agencies across the UK now recognise the industry as a key sector in regional strategies and are committed to its support and promotion. It is widely recognised that these industries play an important part in regeneration, and that creative industries/creative quarters can assist with the revitalisation of towns and cities by making them more attractive to businesses and tourists and helping to attract and retain skilled labour. They also provide employment opportunities and contribute to economic growth, often in areas of high unemployment and decline. A good example of this is the Custard Factory in Digbeth, Birmingham a previously derelict Bird s custard factory that has been transformed into one of the largest complexes for creative activity in Europe, offering 4 London s Creative Sector: 2004 Update, GLA Economics, 2004 Creative Industries Sector Report 5
250,000 sq ft of affordable workspace for up to 1,000 creative people from various sub-sectors. Many other UK towns and cities have also developed cultural/creative quarters with Sheffield s Cultural Industries Quarter, the Lace Market in Nottingham, Manchester s Northern Quarter and the Chocolate Factory in Haringey providing some of the best known examples. 2.2 Creative Industries in Wales The creative industries are a significant part of the Welsh economy. Wales has an extensive creative sector and has been a leader in some areas of the creative industries. The first independent specialist business development agency for the sector Cultural Enterprise was established in 1985 and encourages and supports the creative industries in Wales to achieve their full economic potential. Due to problems with sector definition there is very little official information available on the size of the creative industries in Wales. The establishment of an accurate measurement of the scale of the sector is problematic and there is broad agreement that the sector is underrepresented for numerous reasons including the level of parttime working and the high proportion of micro-businesses in the sector. The most significant piece of research on the economic importance of the creative industries in Wales was commissioned by the Arts Council of Wales (ACW), the then Welsh Development Agency (WDA) and S4C in 1998 and was undertaken by Cardiff Business School s Welsh Economic Research Unit (WERU). The research project assessed the contribution of the arts and cultural industries to the Welsh economy. This research was concurrent with the UK s Creative Industries Task Force (CITF) first Mapping Document of the creative industries, although this applied a broader definition of the sector than that used in the Welsh research. Notably, the Welsh study defined the arts and cultural industries as the performing arts, visual arts, photography, craft, graphic and sector related design, film, broadcasting, other media, literature, publishing, libraries, museums, heritage and community arts. The key findings of the research were published in a report 5 that found that the arts and cultural industries in Wales provided employment for around 29,000 people the equivalent of 2.6% of the working population and had an annual turnover of 1.1 5 The Economic Impact of the Arts and Cultural Industries in Wales, WERU and DCA Cardiff, November 1998 Creative Industries Sector Report 6
billion, making an annual contribution of 314 million to Welsh GDP. In terms of employment, the research found that Wales had a higher proportion of people employed in the arts and cultural industries than most of the other regions outside London and was at least comparable to those regions. Notably, much of the activity in the arts and cultural industries in Wales was found to be located in the South East and in Cardiff. The report also identified a number of sectors with significant growth potential music, visual arts, craft and design, broadcasting and multimedia and set out a framework for the strategic development of the sector based on the three themes of partnerships, creative people and interventions. More recent research by Skillset Cymru (2002) indicated that the audio visual industry defined as TV, film, radio and new media is the most significant of the creative industries in Wales, in terms of economic performance and wealth generation. Wales accounts for 4% of UK employment in the audio visual industry equivalent to around 4,800 employees and 1,500 freelancers and has an estimated 600 businesses with a total turnover of 350 million operating in the industry 6. Interactive media is one of the largest sectors employing over 2,400 people nearly all of which work in offline media or web/internet. Notably, the Welsh TV production sector is one of the largest in the UK. Television provides employment for around 2,500 in Wales (split evenly between the broadcasters and the independent sector) and radio employs around 700, with all other sectors relatively small. Production companies are well represented in Wales with recent productions based, produced or directed in Wales including the TV series Dr Who and the film Very Annie Mary. This has added to Wales growing international reputation in the arts. There are strong clusters of activity in North and West Wales focused on Caernarfon and Llanelli where the industry is a major employer. However, it is anticipated that, as a result of the expansion of new media and multimedia technology, the sector will be less concentrated and become more geographically dispersed across Wales 6. The importance of this sector to the economy of Wales has been increasingly acknowledged by strategic agencies, including the Welsh Assembly Government (WAG) and the former WDA. Consequently there has been an increase in the 6 Skillset Cymru 2002 Census Creative Industries Sector Report 7
provision of significant support for initiatives aimed at enhancing and developing the growth of the sector. Current bodies supporting specialist creative industries in Wales include: Sgrin Cymru Wales media agency for Wales, incorporating the Wales Screen Commission Welsh Music Foundation Cultural Enterprise Services co-funded by WAG and the Arts Council of Wales (ACW) The Welsh Assembly Government has recognised the sector as a priority and has developed a number of strategies in relation to the creative industries. These include the Culture Strategy for Wales 7 and the Creative Industries Strategy 8 both of which identify the creative industries sector as a key economic resource for Wales. The Culture Strategy for Wales, Creative Future, was launched in January 2002 and outlines a ten year plan to promote cultural issues in Wales. It sets out a number of actions and recommendations specific to the creative industries, including the provision of support to the WDA/ACW initiative to develop creative clusters in relation to TV/film production, new media, publishing, recording and art and design. However, the strategy recognises that Wales is yet to realise the full potential of the creative sector to contribute to the wealth of the economy, to quality of life and to the country s international profile. Following this, in November 2004, the Welsh Assembly Government launched a strategy specifically for the creative industries in Wales Creative Success which aims to help Wales-based creative businesses to achieve profitability, sustainability and make a positive contribution to the Welsh economy. This strategy defines creative industries very specifically as those businesses rooted in the exploitation of creative intellectual property (IP) and that creating, retaining and exploiting IP is key to the success of Wales-based creative businesses, the creative industries in Wales as a whole and ultimately the Welsh economy 8. It is targeted at commercial creative businesses that compete in the tradable services sector of the global economy and which make a significant contribution to modern economies. 7 Creative Future: A Culture Strategy for Wales, WAG, 2002 8 Creative Success a Strategy for the Creative Industries in Wales, WAG, 2004 Creative Industries Sector Report 8
In order to encourage Wales-based businesses to create, retain and exploit IP the Welsh Assembly Government proposed the following key elements of public investment: A new 7 million Creative IP Fund designed to secure work for Wales and its creative businesses More and better strategic investment in Wales-based creative businesses A new strategic approach to providing business support for the creative industries the Hub Re-focused education and training. Creative IP Fund The Creative IP Fund is a 7 million investment fund operational from April 2005 delivered via Finance Wales. It aims to help creative businesses create and sell more content in markets outside Wales and in doing so retain and exploit their IP. The fund is available to creative businesses, whether UK or internationally based, that are looking to invest in Wales and will provide gap funding for individual creative IP projects such as films/tv series. In return for such an investment the fund will take a share of the IP generated and will aim to recoup the value of the original investment. Benefits of the fund include attracting more businesses to Wales to stimulate growth in creative industries and putting Wales-based creative businesses in a better position in terms of creating/selling ideas. The Hub A New Strategic Approach to Business Support for Creative Industries Support for the creative industries in Wales has been restructured and unified to create the development of a new Creative Industries Support Service the Hub which is intended to spearhead the development of the sector in Wales. The Hub will become the central focus of support for the creative industries in Wales, providing specialist support, advice and guidance to Wales-based creative businesses. The new service is based on what is termed a hub and spoke structure - as shown in Figure 1 below. The Hub consists of professional advisors with a balance of skills and experience who will work with creative businesses to lead the development of Creative Industries Sector Report 9
the creative industries in Wales, and will be guided by an advisory panel of creative industry figures. Examples of Hub activities include assisting businesses to secure investment, offering support to encourage more business to be conducted with creative businesses based in Wales and helping creative businesses to implement major projects. The spokes are represented by the Welsh Music Foundation, Cultural Enterprises Services and Ffilm Wales these will work under the direction of the Hub. In addition the Hub will collaborate with agencies with which it shares a common purpose such as Skillset Cymru, the Creative and Cultural Industries Sector Skills Council and Finance Wales 9. It is envisaged that this new support structure will provide a one-stop shop for the creative industries in Wales. Figure 1: The Hub and Spoke Structure of the new service for creative businesses Source: WAG, 2005 The Welsh Assembly Government s Creative Industries Strategy acknowledges the potential for developing creative quarters in cities such as Cardiff and Newport, with a preference to link the development of such quarters so that they are complementary rather than competitive 8. Cardiff Council is in discussion with WAG officials on how to take this forward. 9 Welsh Assembly Government, 2005 Creative Industries Sector Report 10
Re-focused Education and Training The strategy also recognises that creative businesses require targeted help with training and skills development. The Welsh Assembly Government is seeking to develop a multi-skilled workforce, offer career advice for those considering working in the creative sector and provide training programmes that are responsive to the needs of creative businesses. The creative industries are represented by Skillset Cymru (film, TV and interactive media) and the recently launched Creative and Cultural Industries Sector Skills Council (music). It is anticipated that the Welsh Assembly Government will work with Sector Skills Councils to identify the specific needs of creative businesses and establish suitable learning provision. For example, Skillset Cymru has launched a new business programme Leading Media Business Programme designed to develop the next generation of creative industry leaders in Wales. The programme will cover strategic leadership, business management skills, finance and developing new ideas. The Creative and Cultural Industries Sector Skills Council will complement the work of Skillset Cymru for sectors such as advertising, design, craft and publishing. 2.3 Creative Industries in Cardiff Cardiff is a key driver of the creative economy in Wales. There is a significant concentration of creative businesses in Cardiff due to presence of major media organisations, such as the BBC and HTV with creative industries accounting for 3.7% of total employment in the city in 2003. Cardiff is favoured as a business location by companies in the sector for various reasons, including available labour pool, proximity to clients and the vibrant image of the city. The sector has a significant impact on the economy of Wales as a whole due to inter-trading and the dominance of small businesses particularly in publishing and media who supply to major organisations. 2.3.1 Employment in the Creative Industries in Cardiff It is widely known that there are difficulties in extracting information on the creative industries from the Standard Industrial Classification (SIC) codes given the nature of the activities that make up the creative industries and the limitations of the SIC classification system. Creative Industries Sector Report 11
The DCMS SIC definition has been used in this section of the report to extract employment information on the creative industries from the Office for National Statistics (ONS) Annual Business Inquiry (ABI). Due to the unavailability of data at the 5-digit SIC level, Art & Antiques have been excluded from the employment figures. It is also not possible to identify craft activities through SIC codes and so these too have been excluded from the data. Therefore, the creative industries employment data in this section of the report encompasses radio & TV, advertising, designer fashion, film, music & the visual & performing arts, architecture, publishing & computer games, software & electronic publishing. Creative industries are characterised by above average levels of self employment but, as the ABI data only relates to employees in employment and does not account for the self-employed or freelancers, the figures in this section of the report will underestimate the total numbers of people employed in the creative industries. Cardiff had 6,600 employees in employment in the creative industries in 2003. Across Wales there were just over 20,000 employees based in the creative industries, which means that around a third (33%) of all Welsh creative industry jobs are based in Cardiff reflecting the significance of creative industries to the city s economy. As shown in Figure 2, the largest proportion of creative industries employment in Cardiff is in the radio & TV sector with 27% of employees engaged in these activities. In addition, 17.2% of individuals are employed in music & visual & performing arts and 12.4% of creative industries employment is in publishing. Figure 2: Creative Industries Employment by Sector Employment in Wales, 2003 Employment in Cardiff, 2003 Advertising 5% Radio & TV 13% Designer fashion 11% Film 5% Music & Arts 17% Advertising 8% Designer Fashion 8% Film 5% Music & Arts 17% Computer games etc. 22% Architecture 12% Publishing 15% Radio & TV 28% Computer games etc. 11% Architecture 11% Publishing 12% Source: ONS, Annual Business Inquiry, 2003 Creative Industries Sector Report 12
At 3.7%, the proportion of employment in creative industries in Cardiff is slightly higher than the British average of 3.5% (Figure 3). As a result, the employment location quotient 10 for the creative industries in the city is 1.06 indicating that there is a strong representation of the creative industries in Cardiff. In comparison, the creative industries account for just 1.8% of employment across Wales. Consequently the employment location quotient for Wales is just 0.52, demonstrating that Wales has a relatively weak representation in the creative industries. Again this demonstrates that much of the creative activity in Wales is located in Cardiff. Figure 3: Creative Industries Employment as a Proportion of Total Employment, 2003 % of total employment 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 3.7 3.5 1.8 Cardiff Wales GB Source: ONS, Annual Business Inquiry 2003 There has been significant growth in employment levels in the creative industries in Cardiff between 1991 and 2003 with employment growth of 50.1%, up from 4,400 to 6,600. This highlights the increasing importance and contribution of the creative industries sector to Cardiff s economy. This growth was considerably higher than that experienced across Wales (40.3%), although slightly below the growth experienced across Great Britain as a whole (54.9%) over the same period. 10 Location quotients show the level of specialisation of a particular industry and are defined as the Cardiff or Welsh creative industries share of total Cardiff or Welsh employment divided by the same industry s share of GB employment. A location quotient of more than 1 indicates a specialisation in that industry, and a location quotient of less than 1 indicates that Cardiff or Wales is relatively underrepresented / under-specialised in that industry. Creative Industries Sector Report 13
Employment in the Creative Industries Employment 1991 Employment 2003 % Change 1991-2003 Cardiff 4,400 6,600 50.1% Wales 14,300 20,050 40.3% Great Britain 578,650 896,500 54.9% Source: Annual Business Inquiry, NOMIS Notably, between 2002 and 2003, employment in the creative industries in Cardiff increased by 9.6%. This compares to a rise of 8.3% across Wales and a marginal increase of 0.9% across Great Britain as a whole over the same period. This again highlights the increasing significance of the creative sector in recent years to both the Cardiff and Welsh economy. 2.3.2 Cardiff s Creative Sector The growth in the scale and significance of the creative industries sector in Cardiff was highlighted in a report 11, published in 2002, which looked at the competitive position of the city s creative sector. An assessment of the scale and rate of growth of the sector as a proportion of the city economy placed Cardiff among the leading cities in the UK. Cardiff was ranked 9 th out of 20 cities above Newcastle, Nottingham, Liverpool and Belfast in terms of the proportion of the local economy contributed by the creative industries, with the creative industries accounting for 3.4% of total employment in 2000. The links between creativity and urban renewal in the UK were considered at the Boho Britain conference in 2003. The conference co-hosted by Demos, the British Urban Regeneration Association (BURA) and the Royal Institute of Chartered Surveyors (RICS) produced a league table of UK cities based on a simplified version of Richard Florida s creativity index 12. Demos ranked the UK s 40 largest cities by creative potential, by combining three factors with equal weighting patent applications per head of population; ethnic diversity, and a proxy measure of gay population. Cardiff was placed 9 th out of the 40 largest cities in the UK in terms of creative potential, demonstrating the robustness of the creative sector in the city. 11 The Impact of Cardiff 2008, Cardiff Business School, 2002 12 The Rise of the Creative Class, Richard Florida, 2002 Creative Industries Sector Report 14
The UK s 10 most creative cities 1 Manchester 2= Leicester / London 4 Nottingham 5 Bristol 6 Brighton and Hove 7 Birmingham 8 Coventry 9 Cardiff 10 Edinburgh Source: Demos, 2003 The film, TV and multimedia sector in particular has a strong representation in the city and is the second largest in the UK after London. Over the period 1991 to 2001 the number of workspaces in this sector grew by 431% and, by 2002, it employed around 3,800 people, primarily through BBC Wales, S4C and HTV together with a number of small and medium enterprises (SMEs). Several companies operate on an international basis such as Barcud Derwen, and there are also a number of new companies such as those located in the @Wales Digital Media incubator in Cardiff Bay. The city also boasts a vibrant and growing independent TV production sector and is home to companies such as Boomerang. The city-regional film and TV industry will be further boosted by the new 300 million Valleywood film studios and theme park that is being built at Llanilid, near Llantrisant. This is due for completion in late 2007 and will be the UK s only purpose-built film, TV and multi-media complex. Cardiff is also developing a new wave of multimedia enterprises in the software and content sub-sectors that have significant growth potential. It is expected that there will be further growth in these sectors over the next decade 13. Some of Cardiff s successful creative businesses are outlined below. Cardiff-based Boomerang Television has grown to become the biggest player in the independent TV sector in Wales following the acquisition of two production houses Alfresco and Fflic in 2005. The company is regarded as the UK s leading extreme sports programme maker and was awarded the best sports show/series category at the Royal Television Society s annual TV Sports Awards held in May 2005. Boomerang is now set to become one of the first independent production businesses in the UK to obtain special funding from the BBC s new regional development fund which is intended to help support and develop independent television companies based outside the M25. 13 The Impact of Cardiff 2008, Cardiff Business School, 2002 Creative Industries Sector Report 15
Barcud Derwen, which has offices in Cardiff and Caernarfon, is the largest television company outside London. Formed as a result of a merger between Barcud and Derwen in 1997, the company has undergone significant expansion and the group is now run as eleven divisions. A new joint venture between Barcud Derwen and Parthenon Entertainment has won a three year contract to run S4C International s programme sales and co-production brokering functions. The new company will trade under the S4C International brand and will be based in Cardiff. Green Bay is an independent production company based in Cardiff whose productions include award-winning history series, observational series for ITV, documentary profiles and arts films as well as a community drama set in the Rhondda Valley. In May 2005, Channel 4 and the WDA announced a 125,000 investment to enable the company to develop an expertise in cutting-edge science and in July 2005 Green Bay was awarded a 140,000 factual development contract from S4C. The management of the award-winning Welsh animation company Siriol Productions has launched a new production company, Calon TV, to work on both animated and live-action features. Calon (which means heart in Welsh) has acquired the rights to several of Siriol s projects and has worked on the third Bobinogs television series. The new company, which operates from offices in Mount Stuart Square in Cardiff Bay, has also acquired the rights to Holly s Helpline, Codelia and Safehouse Hotel. It has been increasingly recognised that clustering of creative activity is an effective way to support creativity, business and regeneration. Cardiff houses a number of creative clusters, including the Chapter Arts Centre. The centre accommodates 60 creative businesses and workspaces including theatre companies, film companies, visual artists and arts agencies, although many more businesses consider the centre to be a focus for their business. The centre provides an important focus for networking and trading between those businesses located within the centre and businesses located outside the centre and assists in further stimulating business activity in the local sector by providing a range of production and support facilities. Chapter s theatres, cinemas and gallery also provide an important community resource. Creative Industries Sector Report 16
The @Wales Digital Media Initiative, a specialist business accelerator located in Cardiff Bay, is Wales largest digital and media cluster. It provides specialised business development support for innovative, high growth early stage businesses. Following the move to a new facility in Cardiff Bay in 2005, it has become one of the most technologically advanced facilities in the UK to further accelerate the growth of early stage digital media companies. Indeed, media is the largest sector in Cardiff as measured by turnover and the city is well placed to hasten the development of a vibrant cluster of media and new media activity. In this respect, the city s growing reputation as an important centre of digital media should be fully developed and exploited. With the exception of London, Cardiff has the highest relative concentration of audiovisual media businesses and employment in the UK. Moreover employment opportunities are good with a high percentage of full-time relative to part-time employment and a high proportion of skilled professionals covering a wide range of functions. Digitalisation offers significant opportunities for the development of the sector and for successfully introducing network solutions to overcome barriers to growth. There is much interest in the growth potential of what has become labelled multimedia business. This covers a range of creative IT activities including designing internet pages, multi-page packages, computer games, animation and interactive services 14. There has been significant investment in the city s ICT infrastructure in recent years - including the roll out of wireless broadband across the City Centre and Cardiff Bay in 2004. This was the first project of its kind in the UK and has assisted the growth of companies within the creative sector. Further development opportunities for the sector will be offered with proposed roll out of BT s 10 billion investment in the next generation of converged communications, with Cardiff and the wider South Wales area, being the first to experience phone calls, broadband and internet-protocol services through BTs 21 st Century Network (21CN). Creative industries in Cardiff will also gain from the new Dragon International film and TV studios development close to the M4 at Llanilid near Llantrisant, which will provide the city with the opportunity to position itself as a major film centre in the UK. Further benefits will arise from the University of Glamorgan s new 35 million stateof-the-art creative and cultural industries campus in Cardiff City Centre that is due to 14 The Impact of Cardiff 2008, Cardiff Business School, 2002 Creative Industries Sector Report 17
open in September 2007. The Cardiff School of Creative and Cultural Industries is the first of its kind in Wales and the UK to be specifically created to service the needs of the creative industries and will focus on turning the creative arts towards the new economy and business applications. It will provide students with an ultra modern learning environment and will be one of the largest such facilities in the UK. The campus will cater for a broad range of courses from drama to recording studio technology to service the expanding creative industry sector in the area. The new School is seeking new partnerships with organisations and businesses to develop work and opportunities at a local, national and international level. It will also be partnering with key industry representatives and agencies to ensure its course development reflects the fast-changing nature of the creative industries sector. 3.0 Conclusion the Way Forward The report has highlighted the importance of the creative industries not only to the UK and Welsh economies but increasingly to the Cardiff economy. With much creative activity focused in the city, Cardiff is now the key driver of the creative economy in Wales. Despite this success, the growth in creative employment in Cardiff in recent years remains lower than the British average suggesting that there is potential for further growth. Moreover, with many UK cities focusing on creative industries as a key sector for future economic growth, Cardiff will have to compete to attract and retain creative talent this remains a key challenge for the city. In recognition of this challenge, a number of initiatives are underway to enhance the creative sector in Cardiff. The Council will take the lead in championing the development of the creative industries in the city and has drafted a new creative industries strategy Building a Creative Capital outlining its future approach to the sector. As part of this new agenda, which also reflects the Welsh Assembly Government s approach to the creative industries, the development of creative clusters or a creative quarter in the city is considered to be essential. This would provide creative companies with the space, facilities and shared services that are critical to the future development and successful growth of the sector. The regenerated Dumballs Road area in Cardiff Bay has been identified as one possible location for the development of such a quarter. Creative Industries Sector Report 18
The Council is also keen to promote partnerships and collaborative working. It is recognised that there is scope for Cardiff to work collaboratively with other Welsh towns and cities particularly Newport and Swansea on a city-region level whereby each city could specialise in a section of the industry and create specific centres of excellence. The Council has recently commissioned a report to advise on the way forward for the creative industries in Cardiff and the strategic role that the Authority can play in the development of the sector. It is anticipated that the report will identify potential high growth creative businesses which the Council could develop and progress. It will provide recommendations to strengthen and create external partnerships or collaboration with the Welsh Assembly Government, the Creative and Cultural Industries Sector Skills Council and the creative Hub, together with subsequent business support arrangements. The findings of this report will also inform the new Competitive Cardiff Framework which recognises the fundamental role that creative industries will play in the future competitiveness of the city s economy. As part of the Council s commitment to the future development of the creative industries in the city, a number of business support measures to sustain the creative industries sector in Cardiff are proposed. These will include targeting support at designated areas of the city with the highest levels of indigenous creativity as well as targeting those creative sectors which promise the greatest economic growth potential it is anticipated that these will include music, technology/new media, graphic design, animation and film. The Council also intends to offer support to startups and SMEs in the creative sector. Ultimately, it is now widely accepted that creativity is at the heart of successful city development creative cities are dynamic, attract investment, retain talent and offer a good quality of life. Regions around the world are discovering that creative enterprises, creative communities and creative economies are not only cultural amenities but also drive economic growth. In view of this, perhaps the creative industries can be viewed as a microcosm of our cities themselves. Like the creative industries, our cities seek to cultivate creativity, skill and talent to generate wealth and growth. As such, it is evident that the future prosperity and competitiveness of Cardiff is closely linked to the development of the creative industries. Creative Industries Sector Report 19
References Cardiff Business School (2002), The Impact of Cardiff 2008 Department for Culture, Media and Sport (2004), Creative Industries Economic Estimates Statistical Bulletin Department for Culture, Media and Sport (2002), Creative Industries Fact File Department for Culture, Media and Sport (2001), Creative Industries Mapping Document Department for Culture, Media and Sport (2000), Creative Industries: the Regional Dimension the Report of the Regional Issues Working Group Florida, R (2002), The Rise of the Creative Class, Basic Books, New York Greater London Authority Economics (2004), London s Creative Sector: 2004 Update Skillset Cymru 2002 Census Welsh Assembly Government (2004), Creative Success - A Strategy for the Creative Industries in Wales Welsh Assembly Government (2002), Creative Future: A Cultural Strategy for Wales Welsh Economy Research Unit and DCA Cardiff (1998), The Economic Impact of the Arts and Cultural Industries in Wales Creative Industries Sector Report 20