Second International Cultural Industries Forum

A Global Overview of Developments and Research on the Copyright-Based Industries

Dimiter GantchevWorld Intellectual Property Organization

Beijing, October 26, 2008

Outline

• The international context

• The copyright economic research framework

• The global research evidence

• Lessons

• Future avenues

Mr. D. Gantchev-WIPO

The International Context

• Growing interest towards research

– 50% increase in demand

– Policy driven

– Development-oriented

– Identifying new sources of growth in the knowledge economy

– Geographical spread

• Public interest

• Industry and academic interest

Mr. D. Gantchev-WIPO

The Intellectual Property Context

• Unprecedented level of interest in IP

• Overriding concerns

– how to exploit IP more efficiently

– how to deal with piracy

• IP as a component of development strategies and policies on the creative sector

• International focus

– soft law

– best practices

• National focus

– technological and policy solutions

– ISP liabilities

– flexibilities

The Copyright Perspective

• Benefits of using copyright:

– clearly defined concept

– no formalities, optional for creators

– widely used as

• legal framework

• financial mechanism

• market access tool

• security incentive

– can be linked to quantifiable indicators to benchmark creativity

• Need of evidence

– to prove the case for IP and

– to deal with misperceptions

Mr. D Gantchev -WIPO5.

Tendencies in Research

• Overlapping, competing and converging agendas

• New levels of breadth and depth of the research

• Improvement of

– methodologies, statistical frameworks, data collection practices

• Links to other policy areas

– Competition

– Cultural policy

– Education

– R&D

– Trade

– Traditional knowledge and expressions of folklore

Definitions

• Importance of definitions

– delimit the scope and conceptualize

– serve policies

• Creative, cultural, copyrigth-based…

• Minor differences and great similarities

– The creator at the heart of the definition

– Tendency to focus on core/ periphery models

• different level of coverage, precision and elaboration

– Favouring “Creativity” to enable an economic view on cultural policy

• WIPO definition: Creative industries are those involved directly or indirectly in the creation, manufacture, production, broadcast and distribution of copyright works

The WIPO measurement modelBasic Principles

• Use of copyright as a main criteria for the delimitation

– In-built national adaptation

• Production/industrial approach

– difficult to reconcile with exiting consuption approaches

• Disaggregation of economic activities to the lowest possible level

• transparent link to statistical reporting

• focus on comparability

– international and cross-sectoral

• provide solid data as input for policy formulation

8.Mr. D. Gantchev-WIPO

The Copyright Industries

Core copyright industries

- fundamentally produce/distribute copyright materials

Interdependent industries

– facilitate the creation, production or use of works

Partial copyright industries

– a portion of the activities is related to copyright

Non-dedicated support industries

Induced impact, measure spillover effects

Mr. D. Gantchev-WIPO

9.

Mr. Gantchev - WIPO

The Empirical Evidence Country Contribution to GDP % of Employment

USA 11,12 8,49

Singapore 5,80 5,90

Canada 4,50 5,55

Latvia 4,00 4,50

Hungary 6,67 7,10

Philippines 4,92 11,10

Bulgaria 3,42 4,31

Mexico 4,77 11,01

Lebanon 4,75 4,49

Jamaica 4,80 3,03

Russia 6,06 7,30

Romania 5,54 4,17

Croatia 4,42 4,65

Peru 3,60 2,51

Ukraine 3,47 1,91

Korea 8,67 4,31

Malaysia 5,80 7,50

Colombia 3,30 5,80

Ongoing: Brazil, China, Kenya, Morocco, Nigeria, Pakistan, Sudan, Tanzania, Panama 11.

Mr. D. Gantchev-WIPO

Contribution of Creative Industries to GDP and Employment (%)

US

A

Sin

gapo

re

Can

ada

Latv

ia

Hun

gary

Phi

lippi

nes

Bul

garia

Mex

ico

Rus

sia

Leba

non

Cro

atia

Jam

aica

Rom

ania

Per

u

Ukr

aine

Kor

ea

Mal

aysi

a

Col

ombi

a

GDP

8.49

5.8 5.554.5

7.1

11.1

4.31

11.01

7.3

4.49 4.22

3.034.19

2.511.91

4.31

7.5

5.8

11.12

5.74.5

4

6.67

4.92

3.424.77

6.06

4.754.42 4.8 5.55

3.6 3.47

8.67

5.8

3.3

0

2

4

6

8

10

12

GDP

Employment

Mr. D. Gantchev-WIPO

Contribution by groups of countries

7.5

6.04

4.8 4.79

4.04

6.21

0

1

2

3

4

5

6

7

8

Contribution (%)

Developed In Transition Developing

Average Contribution of the CIs to GDP and Employment

GDP

Employment

GDP Avereage

5.45

Employment Average 5.68

Mr. D. Gantchev-WIPO

44%

10%12%

9%

6%

3%6%

1%9%

press and literature

software

radio and tv

Music, theatrical productions and opera

motion pidcture and video

visual and graphic arts

Photography

cr collecting societies

advertising

Contribution to GDP by Industry (2)

Mr. D. Gantchev-WIPO

Contribution to Employment by Industry (1)

0%

20%

40%

60%

80%

100%

LATVIA HUNGARY PHILIPPINES MEXICO J AMAICA BULGARIA LEBANON CROATIA UKRAINE PERU

advertising

cr collecting societies

Photography

visual and graphic arts

motion pidcture and video

Music, theatricalproductions and operaradio and tv

software

press and literature

39%

16%11%

12%

5%

3%5% 0%

9%

press and literature

software

radio and tv

Music, theatrical productions andoperamotion pidcture and video

visual and graphic arts

Photography

cr collecting societies

advertising

Contribution to Emloyment by Industry (2)

Lessons (1)

• Surprisingly significant contribution

• Results do not follow development patterns

– GDP contribution higher in developed countries

– Employment share higher in the developing world

• Clear drivers – publishing, R/TV, software, music, film, advertising

• Internal repositioning of sectors, indicative of structural changes in the economy

• Impressive dynamics

• Higher capital and labour productivity in driving sectors v/s traditional

• Cyclical development, higher volatility than traditional sectors and non-significant time lag

• Strong employment multipliers

GDP share versus per capita gdp

R2 = 0,3761

0

2

4

6

8

10

12

0 10000 20000 30000 40000 50000 60000

per capita gdp

gdp

Slide taken from J. Theeuwes, WIPO Expert Meeting, Singapore, October 9, 2008

Employment share versus per capita gdp

R2 = 0,0689

0

2

4

6

8

10

12

0 10000 20000 30000 40000 50000 60000

per capita gdp

empl

Slide taken from J. Theeuwes, WIPO Expert Meeting, Singapore, October 9, 2008

Lessons (2)

• major difficulties in capturing trade in intangibles

• useful in identifying

– competitive advantages

– problem areas

• Constant search for new indicators

– Productivity

– Multipliers

– Compensation of employees

– Contribution to real GDP and employment growth

Variations and Uses of Research

• Variations of scope

– Limiting or extending the scope

– Appropriateness of indicators to national specific circumstances

– Extent of incorporation of analysis and recommendations

• Evolutionary uses

– Various extent of linking to policy action

– Ability to follow up on specific industries

– regular reviews

– capacity building activities

– designing strategies

Future Avenues

• New generations of vertical and horizontal studies

• Issues for further analysis

– Causality

– Impact assessment

– Capture the value of copyright

• Database of results and problem solving experiences

• Methodology development

• Conceptualizing the creative industries

• International cooperation

• Developing and using IP tools for creators for capacity-building

Mr. D. Gantchev-WIPO

Final Words

• Crucial role of the evidence

– promotes understanding the potential of the creative sector

– opens the door for policy interventions

– makes sense if produced on regular basis

• Development is positively influenced by the ability to economically exploit IP assets

• National strategies should build on a comprehensive analysis of the relations of the creative sector with other sectors of the economy

• The existence of parallel approaches enriches the analysis of the creative sector

Mr. D. Gantchev-WIPO

Thank You!

24.Mr. D. Gantchev - WIPO