Cultural industries in the world's large economies are recognized as one of the engines of economic growth. According to the 2019 report of the World Intellectual Property Organization (WIPO) and the United Nations Conference on Trade and Development (UNCTAD), creative industries account for about 3.4 percent of world GDP; that is, roughly equivalent to 2.5 trillion dollars. This share in some developed countries reaches 8 percent.
The share of cultural industries in the world economy
According to the latest reports, cultural industries, with an estimated value of 4.3 trillion dollars, account for 6.1 percent of the world economy. In 2020, global exports of creative goods rose from 419 million dollars to 524 million dollars, and global exports of creative services rose from 487 billion dollars to about 1.1 trillion dollars. This amount is equivalent to 3 percent of total goods exports and 21 percent of total services exports in the world. It is forecast that by 2030 about 10 percent of global GDP will be accounted for by creative and cultural industries. The World Trade Organization has also reported that exports of cultural and creative products in 2023 reached more than 1 trillion dollars, which compared with other economic sectors shows faster growth, with an average annual growth rate of 7 percent between 2002 and 2015.
Given the growing trend of the share of cultural industries in the world's large economies in 2023 and 2024 and the existence of challenges such as the COVID pandemic and technological transformations, these industries have been able, by adopting innovative approaches and making use of new opportunities, to consolidate their place in the global economy.
The standing of cultural industries in the world's large economies
According to the report of the United Nations Conference on Trade and Development (UNCTAD), the value of global exports of cultural and creative goods and industries rose from 208 billion dollars in 2002 to more than 509 billion dollars in 2015. In the European Union, cultural and creative industries account for about 4.4 percent of GDP.
Cultural industries in the United States of America are also considered one of the main pillars of this country's economy. According to statistics published by the U.S. Bureau of Economic Analysis (BEA), the share of cultural industries in this country's GDP in 2023 was about 4.3 percent, and it is forecast that this figure will rise to 4.5 percent in 2024. In England, cultural and creative industries account for about 6 percent of the economy.
Cultural industries in China are growing at a high speed. The value added of these industries in China rose from 4 percent in 2016 to more than 5 percent of GDP in 2020. According to the report of the Chinese Academy of Cultural Industries, this country's cultural industries revenue in 2023 reached more than 1.2 trillion yuan (equivalent to 174 billion dollars). It is forecast that this figure will cross the 1.4 trillion yuan mark (equivalent to 203 billion dollars) in 2024.
Cultural industries in Japan also hold a special place. According to statistics of Japan's Ministry of Economy, Trade and Industry (METI), the share of cultural industries in this country's GDP in 2023 was about 3.8 percent. This figure is expected to reach 4 percent in 2024.
Cultural industries in Britain have long been one of the strengths of this country's economy. According to the report of the UK Office for National Statistics (ONS), the share of cultural industries in this country's GDP in 2023 was about 3.2 percent. It is forecast that this figure will rise to 3.4 percent in 2024.
Cultural industries in Germany are also of high importance. According to statistics of Germany's Federal Statistical Office (Destatis), the share of cultural industries in this country's GDP in 2023 was about 2.8 percent. This figure is expected to reach 3 percent in 2024. The share of cultural industries in GDP in South Korea rose from 2.6 percent in 2019 to about 3.5 percent in 2023. In France this figure was about 3.2 percent and in Canada about 2.9 percent.
Entrepreneurship of cultural industries in the world
World Bank statistics have announced employment in cultural and creative industries in 2023 at more than 60 million people worldwide; that is, 6.2 percent of total global employment. In the European Union, cultural and creative industries employed more than 8.7 million people (4 percent of total employment) in 2019.
In 2023, in the United States of America creative industries created about 5.4 million jobs, which accounts for about 3.6 percent of total employment in this country. In Britain, employment in cultural and creative industries is more than 2 million people (6.4 percent of all jobs). This figure in Germany is about 1.6 million jobs, which accounts for about 3.8 percent of total employment in this country. In Japan, employment in cultural and creative industries in Japan is about 1.8 percent of total employment in this country and equivalent to 1.2 million jobs. In China, creative industries have created about 4.4 million jobs, which accounts for about 0.6 percent of total employment in this country.
According to research conducted by the International Confederation of Societies of Authors and Composers (CISAC), 11 domains have been introduced as the various branches of creative and cultural industries in the world, which are: advertising and marketing, architecture, books, games, film, music, newspapers and magazines, performing arts, radio, television and visual arts. Of these eleven, three branches—visual arts, television and books—have been able to create the greatest number of jobs at the world level; performing arts with about 7 million jobs, music with about 4 million jobs and books with about 3.7 million jobs have respectively taken first to third place in terms of the number of jobs created. Also, television with 477 billion dollars, visual arts with 391 billion dollars and newspapers and magazines with 354 billion dollars are the three domains that have taken first to third place in economic terms. It should be noted that radio, music and film have also, in economic terms, been placed in the last three places.
Leading countries in cultural industries
Cultural industries in many of the world's advanced countries have taken almost first place in economic terms. For example, on the American continent, the economy of the United States is dominated by cultural industries, and culture in Canada is a dynamic part of the economy.
In Canada's Global Commerce Strategy document in 2005 it is put this way: "In various industries we prefer mainly to be a producer and exporter rather than a mere importer, but in cultural industries it is essential that we not be an importer. Being an importer and consumer of others' culture is in no way acceptable."
The United States of America, China, Japan, Britain and Germany are among the leading countries in cultural industries. These countries, with large-scale investment in cultural infrastructure, support for artists and producers, and also facilitation of exports of cultural products, have been able to consolidate their place in this domain.
In Europe, cultural industries have undergone many transformations. For example in France, the scale of production in the fields of books, film and various cultural products has continuously increased, and the production and distribution of these products in this country has acquired an international character.
In Asia and the Pacific, the Chinese in recent years have paid special attention to cultural industries and have drawn up extensive plans for them. In 2006 one of the most important international exhibitions of cultural industries was held in China. South Korea's cultural domain has a dynamic economy. India's greatest revenue is in the domains of cinema and computer software production. Investment in entertainment and cultural industries is among the most important cultural priorities of the Australian government. Even South Africa has serious, studied strategies in the domain of cultural industries.
Given the examples above we observe that advanced countries are in the lead in cultural industries, but many developing countries, although they have high potential in cultural industries, despite a rich cultural heritage and abundant cultural talents, are mainly counted as marginal players in this arena.
The taste of leading countries in cultural industries
According to UNESCO's definition, a culture industry is any industry that deals with the creation, production and commercialization of intangible contents of a cultural and social nature. In this way the four sides of the square of cultural industries can be considered creative arts, cultural heritage, tourism and cultural products. Citing this definition, the taste of leading countries in cultural industries differs according to the three components of culture, technology and society. The United States with the film and television, music, and art and design industry; Japan in industries related to animation, game design, information technology and traditional art; China growing in the film, music, publishing and cultural tourism industries; Canada with an emphasis on the film, television and music industry; England with industries related to theater, music, film, publishing and fashion design; France renowned for the film, publishing, art and cultural tourism industry; Germany strong in art, publishing and design industries; Italy with a strong history in traditional arts, fashion and design; South Korea in the K-pop music, animation and technology industry; and Australia and New Zealand with the film and television industry have been able to increase their country's cultural influence at the global level and, through the economy of cultural industries, gain an international image and standing.
The world's largest exporters of cultural industries
According to the latest statistics, the largest exporters in the domain of cultural and creative industries in the world are as follows:
1- The United States, the largest, with exports worth 238 billion dollars, is the largest exporter in cultural and creative industries. America's entertainment and art industry, including Hollywood, has had a wide impact across the world.
2- China, too, with exports worth 228 billion dollars, is one of the world's largest cultural markets and is growing rapidly. China's film industry has had substantial growth in recent years.
3- Ireland with exports worth 174 billion dollars.
4- Germany with exports worth 101 billion dollars.
5- Britain, with exports worth 57 billion dollars in cultural industries including film, music and theater, is influential across the world.
In addition to these, Japan, with a lasting record in anime, manga, video games and Japanese pop music (J-Pop), has had a very large impact in the world. South Korea, too, with the K-Pop phenomenon and Korea's film and television industry, is becoming one of the great powers of the world's cultural industries.
The share of cultural industries in Iran's economy
According to the statistics, Iran's share in the cultural and creative economy is less than one percent and less than 4 billion dollars, which includes sectors such as cinema, music, visual arts, handicrafts, publishing and digital media. In the short-term horizon, Iran's creative economy share should rise to three percent. At present, the world's share of the creative industries economy is about 10 percent, and this indicates that Iran needs to develop and increase its share in the creative economy. These domains include tourism, entertainment and game industries, toys, audiovisual industries, digital media, fashion and design, handicrafts, printing, publishing, packaging, visual and performing arts, digital businesses, new technologies of education and learning, public innovation and social engineering, sport and wellness, video games, comics and animation. Increased attention to these domains can help the country's economic growth.
The future of the cultural industries economy
Given the movement of the global economy toward the space of e-commerce and the digitization of many service, cultural and artistic aspects, it appears there is no path other than becoming capable in the culture-economy sector. The winning card will be in the hands of those who can use new technologies for the advancement and development of their cultural industries. These industries, by combining knowledge and technologies based on the domains of art and culture, help produce economic value added.
A prerequisite of having a dynamic cultural economy is having powerful cultural industries. This subject is also aligned and consistent with the category of creative industries. Therefore in this field a fundamental and extensive role should be given to craftspeople and creatives in the arena of culture. As a result of this attention, production as the emergence and manifestation of cultural thought takes form in society, and the ground for a boom is provided. After that, with the development of the ecosystem of creative and cultural industries, the commercialization and export of produced cultural products, relying on intangible capital such as creativity and knowledge, a more sustainable growth model can be presented compared with resource-based industries.
In addition, cultural and creative industries, by creating value added, job creation, attracting investment and strengthening innovation and so on, play an important role in economic growth and increasing the GDP of advanced and emerging countries.
Author: Nahid Hosseini
Machine-translated from Persian by Namafar; the Persian original is authoritative. Read the original in Persian