1. Second International Cultural Industries Forum A Global Overview of Developments and Research on the Copyright-Based Industries Dimiter Gantchev World Intellectual Property Organization Beijing, October 26, 2008

2. Outline The international context The copyright economic research framework The global research evidence Lessons Future avenues Mr. D. Gantchev-WIPO

3. 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

4. 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

5. 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 -WIPO 5.

6. 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

7. 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

8. The WIPO measurement model Basic 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

9. 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.

10. Mr. Gantchev - WIPO

11. The Empirical Evidence Country Contribution to GDP % of Employment USA11,128,49 Singapore 5,805,90 Canada 4,505,55 Latvia 4,004,50 Hungary 6,677,10 Philippines 4,9211,10 Bulgaria 3,424,31 Mexico 4,77 11,01 Lebanon4,754,49 Jamaica 4,803,03 Russia 6,06 7,30 Romania 5,544,17 Croatia 4,424,65 Peru3,602,51 Ukraine3,471,91 Korea8,674,31 Malaysia5,807,50 Colombia3,305,80 Ongoing: Brazil, China, Kenya, Morocco, Nigeria, Pakistan, Sudan, Tanzania, Panama 11. Mr. D. Gantchev-WIPO

12. Contribution of Creative Industries to GDP and Employment (%) Mr. D. Gantchev-WIPO

13. Contribution by groups of countries Mr. D. Gantchev-WIPO

14. Contribution to GDP by Industry (2) Mr. D. Gantchev-WIPO

15. Contribution to Employment by Industry (1)

16. Contribution to Emloyment by Industry (2)

17. 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

18. GDP share versus per capita gdp Slide taken from J. Theeuwes, WIPO Expert Meeting, Singapore, October 9, 2008

19. Employment share versus per capita gdp Slide taken from J. Theeuwes, WIPO Expert Meeting, Singapore, October 9, 2008

20. 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

21. 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

22. 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

23. 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

24. Thank You! 24. Mr. D. Gantchev - WIPO