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Wednesday, 18. October 2017  


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European Competitiveness Report 2010 Innovation and the creative industries in the EU

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The European Commission has today published the 'European Competitiveness Report 2010'. Recovering from a severe recession, the report identifies the main future determinants of EU competitiveness on world markets. One of these determinants is the creative industries sector, which is among the fastest growing sectors in the EU creating new jobs, playing key roles in global value chains and spurring innovation.

Accounting for 3.3% of total EU GDP and 3% of employment, creative industries are one of the most dynamic sectors in Europe with a large growth potential. Empirical evidence shows that creative industries strengthen regional growth and that they are the most potentially innovative of all EU sectors. This has made the EU one of the biggest exporters of creative goods. Creative industries are not only innovators themselves but they are also important drivers of innovation developed in non-creative industries. Creative industries also play a large role, as users of new technologies, in the dissemination of innovations. According to the European Competitiveness Report 2010 there is, however, no place for complacency, action is needed to tackle the specific challenges this sector is facing to unlock its full potential.

Producers of creative industries' goods and services are prone to several market failures. Creative industries face considerable uncertainty and volatility in demand, which makes it difficult for them to attract finance. According to the European Competitiveness Report this can be tackled with a smartly designed public procurement programme. The prime problem is rather the lack of proper markets and the lack of properly functioning price mechanisms. Next to national policies, the EU can also contribute to the flourishing of creative industries by supporting the mobility of creative Europeans, enforcing the implementation of the Service Directive, establishing a true single market for online content and services and by standardisation. Due to the strong link between creative industries and regional development, the Structural Funds could also serve as enablers for the sector.

In conclusion, the European Competitiveness Report 2010 demonstrates that creative industries have a recognized important and transformative role in the EU's economy. It shows that creative industries are the main drivers of innovation and encompass an even bigger potential. To unlock this potential, the main barriers which this sector is facing should be tackled through regional, national and EU policies.

 

 

 

 

 



 

 


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