Determining the Value of Cultural Industries: Considerations

1. Determining the Value of Cultural Industries: Considerations 2014 Berlin Research Symposium on Culture and Creative Industries José Pessoa, Head of Culture Statistics UNESCO Institute for Statistics

2. Is it possible to determine the ‘true’ value of culture and creative industries through empirical research? • Yes, but…

3. But, we need to consider; • Definition of Culture • What to include? • Data requirements • Are the necessary data already available or do new data need to be collected. • Methodologies for Determining “Value” • Which value? Which methodology?

4. Definition of Culture • In order to measure cultural industries, they need to be defined. • At the global level, the 2009 UNESCO FCS provides a model definition for Culture

5. What is the 2009 UNESCO FCS?

6. Categorizing Culture Embody or convey cultural expressions, irrespective of the commercial value they may have

7. 2009 UNESCO FCS Domains

8. UNESCO FCS Domains • 6 core cultural domains • 2 related domains • 1 core transversal cultural domain • 2 partial transversal domains • 1 supporting transversal domain Cultural Industries

9. Definition of Cultural Industries: what to include? • Should “heritage” be included? • If yes, what heritage activities should be included? • How do we measure the value of these heritage activities?

10. Potential sources of cultural data • Sources of data • Administrative Data sources • System of National Accounts • Culture Satellite Accounts • Business and Enterprise Registers/Surveys • Household Earnings Surveys • Labor Force Surveys • Household Expenditure Surveys • Census • Time Use Surveys • Culture Participation Surveys

11. Data requirements: are the necessary data available? • Classifications: measuring culture sector requires more detailed data to be collected (i.e. 3 or 4 digits) • Existing international classifications are limited in their ability to collect culture data. • Not all countries code data at the necessary levels of detail to allow for more robust analysis of the culture sector

12. Data Challenges • Existing national sources are not always designed specifically for measuring culture • Capacity of the national statistical system to produce data varies greatly between countries.

13. Methodologies for determining “Value”: which value? • ‘Economic contribution’ is of most interest • But should the social dimension or “value” be also be included when measuring “cultural industries”? • Includes: aesthetic value, social benefits; social cohesion • How can the “social” value be monetized?

14. Methodologies for determining “Value”: Which methodology? • Economic contribution of cultural industries: • Economic size and structural analysis • Cultural Satellite Accounts • Multiplier analysis • Cultural Industries Mapping • Mapping exercise

15. UIS Model for determining the economic contribution of cultural industries: Economic size and structural analysis

16. UIS methodological publications

17. Value of cultural industries: some results • Culture sector accounted for 2.2% of value added of the total economy in France in 2013 • In Singapore, the total nominal value-added of the arts and cultural sector increased from $818 million USD in 2003 to $1.23 billion USD in 2009 (MICA, 2011) • In 2012, the direct contribution of the culture sector to the economy was $5.8 billion CDN, or approximately 4.9% of the GDP of the Greater Montréal Region. • In 2011, the production of arts and cultural goods added more than 504 billion USD to the US economy repre4senting 3.25% of GDP

18. Challenges to Measuring the Value of Cultural Industries • How to measure Digital cultural products: music, movies/TV, streaming, e-books, social-media in a timely and accurate manner? • Informal cultural economy – how can this part of the economy be captured through the formal statistical system? • Private sector data are not always available to the public or governmental domain

19. Thank You