Creative Industries in London 1

London’s Core Business

Alan FreemanGreater London Authority

Creative Industries in London 2

These slides present the findings and methodology of Creativity: London’s Core Business, the first Greater London Authority report on London’s Creative Industries, which can be found at http://www.london.gov.uk/mayor/economic_unit/docs/create_inds_rep02.pdf.

They supplement a second presentation, also on Slideshare, which contains further details on methodology and background.

The information in this presentation is mainly for historical interest.There have been four subsequent updates on London’s creative industries, which supersede the data presented here. They will in due course be posted at the author’s open access repository page on http://ideas.repec.org/e/pfr102.html

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The Creative Industries

A growth-led productivity revolution

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Productivity growth

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Productivity

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Job-creating productivity growth

• Creates output• Creates jobs too

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Output Growth

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Job Growth

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Life after banking

• Second largest source of job growth• Third largest job source• Second largest source of output• Fastest output growth rate

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Output

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Jobs

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Job Growth

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London: the UK’s creative capital

• The Creative Industries are growing throughout the UK

• London and the South-East lead this growth• London and the South-East are expanding

together• The re-invention of the UK clothing

industry

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Creative Industry Employment by Region

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Creative Industry Growth Rates by Region

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CI output per head of population (£real 1995)

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Change in Fashion Jobs 1995-2000

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Domestic and global markets for Creative Products

An new, expanding, stable source of demand

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• Leisure goods and services now exceed food in average household expenditure

• This trend dates to 1974 and earlier• Services are the major source of UK export

surplus• Creative Industry products are a central part

of this

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Household Expenditure

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UK Advertising Expenditure

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UK Cinema Admissions

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Trade in services

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Trade in computer and information services

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Trade in audiovisual and related services

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Trade in market research

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The diversity business• What do these industries have in common?• They sell difference.• Exact specification• Short production runs• On time

Performance – the ultimate just-in-time delivery

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London: the UK’s creative factory

• London costs are high• The market is global• Yet business locates in London. Why?• Must be because of supply-side conditions

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Social capital + range of services + connectivity = Delivery

• Service businesses seek proximity to supply-side conditions

• London’s social capital is its biggest asset• A vast range of services (eg print, film, etc but

also translation, culture, world contacts, etc)• The city works when it can place these

suppliers in proximity to each other

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London’s social capital

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Whereabouts?

•Clustered but not so much•A variety of locations•Industry-dependent

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Creative industry growth

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Advertising job Growth

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Fashion jobs growth

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Publishing jobs growth

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Leisure software jobs growth

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Creation: the new sunrise industry