1 Is it possible to determine the ‘true’ value of culture and creative industries through empirical research? Dorota Weziak-Bialowolska European Commission, Joint Research Centre (JRC) Econometrics and Applied Statistics Unit Composite Indicators Research Group (JRC-COIN) Berlin, 23rd October 2014

2 AGENDA 1.Data 2.Composite indicators 3.Creativity

3 Data

4 The direct contribution of cultural and creative sectors to growth and job - in 2010 over 3% of GDP and 6.7 million jobs (EU estimate, European Competitiveness Report, 2010). Very often cited but based on considerably old data WHY? Data

5 Data on cultural and creative industries (CCIs) are not easily available Examples: the Labour Force Survey – the ISCO and the NACE codes not only are not made available in detailed enough form but they are not always even gathered in detailed enough form Structural business statistics but they do not cover agriculture, forestry and fishing, nor public administration and (largely) non-market services such as education and health. Exception: the United Kingdom See: for example a bunch of the various reports produced by the NESTA London, Creative Industries Data

6 But there is hope Recently the Modernization and Social Statistics Unit has been set up in the Eurostat to deal with cultural data. It will be responsible for providing on a regular basis culture-related data on (1) employment, (2) business, (3) expenditure, (4) external trade, (5) practice and participation; Expert group on cultural statistics (composed of National Statistical Offices and possibly Ministries of Culture) will start working in April 2015; Data

Composite Indicators 7 Composite indicators

DG ENTR Innovation Union Scoreboard 2014 DG RTD New Innovation Indicator Composite indicators Composite indicators created in house

Global Innovation Index Global Talent Competitiveness Index Composite indicators: About sixty partnerships in the last 10 years Composite indicators audited by the JRC COIN

10 Composite indicators

JRC possible input Supporting European Cultural Foundation and the Boekman Foundation in constructing the European Arts Index Composite indicators

Creativity 123 June 2016

13 Richard Florida human capital, skills and creativity are the primary drivers of economic growth at the regional and national levels… Creativity

14 a positive impact of cultural investment on the growth rate and income for countries where a large level of cultural capital has already been accumulated therefore enabling available human capital to be used in innovative and creative ways Bucci, A., Sacco, P. L., & Segre, G. (2014). Smart Endogenous Growth: Cultural Capital and the Creative Use of Skills. International Journal of Manpower, 35(1/2), 33–55 Creativity

Creativity ranks among the top five skills that U.S. employers believe to be of increasing importance BUT definition of creativity is different for educators and employers. Educators say “problem solving” best demonstrates creativity, while employers say “problem identification or articulation” is the best evidence of creativity. Arts programs are optional, and employers who say they want to hire creative people rarely go beyond subjective judgment to assess interviewees’ creativity. Lichtenberg, J., Woock, C., & Wright, M. (2008). Ready to Innovate. Key findings. The Conference Borad. Research Report

16 STEM education (Science, Technology, Engineering, and Math) makes industries faster, cheaper, better, bolder makes people more efficient BUT it is not good at growing people’s curiosity or imagination Creative thoughts give individuals innovative edge Innovators are more likely to create high-growth, high-paying jobs Creativity

17 What should be done? Integration of science and technology with arts STEAM education (Science, Technology, Arts, Engineering, and Math)  this is the trend which become more common in the US; Is it the same in Europe? Creativity

18 People employed in the CCI possess significantly higher level of NUMERACY, LITERACY AND PROBLEM SOLVING Source: own computations based on the data from the Programme for the International Assessment of Adult Competencies (PIAAC)

19 Creativity can be ‘taught’ Creative skills need to be encouraged from an early age and the adoption and development of these skills needs to be supported by national education systems Creativity

20 Dorota Weziak-Bialowolska European Commission, Joint Research Centre