The Economic Contribution of the Culture and - … Economic Contribution of the Culture and Creative...
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Transcript of The Economic Contribution of the Culture and - … Economic Contribution of the Culture and Creative...
The Economic Contribution of the Culture and Creative Industries in Malta
Heritage , 3%
Arts , 7%
Media, 28%Creative Business
Services, 62%
Culture Matters: Valletta 2018 Initial Findings
The Economic Contribution of the Culture and Creative Industries in Malta
Crafts0.3%
Cultural Sites2.6% Visual Arts
(Photography incl.)2.6%
Music2.0%
Performing Arts1.8%
Cultural Education1.0%
Printing and Publishing
22.9%
Audiovisual7.6%
Design8.1%
SoftwareServices36.6%
Creative Services11.7%
Cultural Tourism2.7%
Culture Matters: Valletta 2018 Initial Findings
The Economic Contribution of the Culture and Creative Industries in Malta
• The Culture and Creative Industries – directly contributes to around 5 per cent of GDP;
– employs more than 10,000 persons.
• The industry is predominantly made up of SMEs – traditional visual art sectors mainly made up of
enterprises employing less than 3 people;
– more manufacturing oriented sectors, such as printing and crafts;
– the heritage sector together with audiovisuals and software services employing between 5 and 8 individuals.
Culture Matters: Valletta 2018 Initial Findings
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Sub-sector
Culture Matters: Valletta 2018 Initial Findings
GVA per Employee by sub-sector (2008–2010)
Economic Performance of the CCIs
Pre-EU Post-EU Recession
Crafts 5.3 -8.8 -16.8
Cultural Sites -11.2 -8.1
Visual Arts 27.3 11.8 -0.1
Music -9.0 21.3 -1.9
Performing Arts -5.9 0.2 1.0
Cultural Education 6.4
Printing and Publishing -0.4 3.3 -4.8
Audiovisual 7.1 -25.1 -15.0
Design -14.5 10.8 15.0
Software Services -0.7 29.6 20.0
Creative Services -7.8 5.0 15.6
Cultural Tourism 34.8
CCIs -3.5 7.7 6.2 Total Economy 2.5 6.5 3.9
Growth (%) in GVA by Period and Sub-Sector; 2000/2010
Culture Matters: Valletta 2018 Initial Findings
Design in Project Life Cycle – Value Added
Research Innovation
Design Innovation
Transition into Operational Use
PR
OJE
CT
LIFE
CYC
LE*
CLOSED LOOP OPERATIONS*PMBOK; PRINCE2; Agile Methods
Culture Matters: Valletta 2018 Initial Findings
A Profile of Design Enterprises
• According to the CCI Report, design enterprises:– generated around €50 million in value added;
– account for 0.8% of GDP
– 790 enterprises with an average of 3 people employed
– Profit margins are estimated at around a healthy 24%
• UK Literature suggests that most design activity takes place outside design enterprises and in firms scattered across other sectors of the economy.
Culture Matters: Valletta 2018 Initial Findings
Innovation and Market Size are the main constraints to Malta’s Competitiveness according to the World Economic Forum’s
Global Competitiveness Report
Culture Matters: Valletta 2018 Initial Findings
The proportion of firms carrying out design is relatively high in medium sized and large firms but low in smaller firms.
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Malta Germany Italy Finland Sweden
Proportion of Firms Engaged in Design Activities by Firm Size
10-49 Employees
50-249 Employees
250+ Employees
Source: Community Innovation Survey
Culture Matters: Valletta 2018 Initial Findings
265
2621
571
1594
-100
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Malta Germany Italy Finland Sweden
Average Firm Expenditure on Other Innovation incl. Design by Firm Size
10-49 Employees
50-249 Employees
250+ Employees
But average firm spending on other innovation including design is significantly lower in larger firms, and to a lesser extent in
medium sized firms but relatively high in smaller firms.
Source: Community Innovation SurveyCulture Matters: Valletta 2018 Initial Findings
Expenditure is relatively low in manufacturing (particularly foreign owned sectors suggesting technology transfer
constraints) and financial services
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Malta Germany Italy Finland Sweden
Manufacturing
Innovation core services activities
Transportation and storage
Financial and insurance activities
Culture Matters: Valletta 2018 Initial Findings
Hypothesis of Design Constraints by Firm Size
The fixed cost element of design makes it difficult for
smaller enterprises to undertake design activity in
Malta.
The variable cost element of design dominates the unit fixed costs making it
more affordable to exploit the benefits of design for
medium sized enterprises in Malta
For larger enterprises the cost of design is less
important in Malta's case. The lower expenditure on design suggests that this
could be due to constraints in technology transfer.
Culture Matters: Valletta 2018 Initial Findings
Architecture and Engineering (proxies of design) display notable Type I multipliers suggesting strong linkages with the rest of the economy and limited leakages. Induced effects are lower probably because income is
mostly distributed as profits or self employment income.
0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6
Lowest ranked multiplier (59)
Architectural and engineering activities (21)
Highest ranked multiplier (1)
Industry Value Added Mulitplier(Euro of value added generated)
Direct Effects Indirect Effects Induced Effects
Culture Matters: Valletta 2018 Initial Findings
Main Inputs of Design are Services
0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000
Computer programming and consultancy
Financial services activities
Manufacture of other non-metallic products
Construction
Legal and accounting activities
Architectural and engineering activities
Culture Matters: Valletta 2018 Initial Findings
Main Outputs are not Manufacturing or other Main Service Activities
0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000
Real Estate activities
Public administration and defence
Construction
Mining and quarrying
Repair and installation of machinery and equipment
Architectural and engineering activities
Culture Matters: Valletta 2018 Initial Findings
Research Initiatives on Design
• Economics– Scope of Design Activity and Returns on Investment in Design – Cost Structure of Design Activity – Economies of Scale in Design– Foreign Firms and Local design – a study on the constraints of
technology transfer– The Value Added of Design in selected Manufacture/Service
Industries– Labour Supply and Labour Remuneration in Design
• Marketing and Market Research– The (International/National) Market Demand for Design
Products and Services– Design and Market Research in Maltese Firms
Culture Matters: Valletta 2018 Initial Findings
Research Initiatives on Design
• Labour Studies:– Employability of Design Professions and Returns to Education
• Psychology:– Form over Function? The Psychological Response of Individual
Consumers
• Communications:– Cross-Cultural Investigation of Commercial Communications
– Linguistic Investigation of Verbal Imagery in Commercial Communications
• Education:– Use of Software Tools in Design Education in Malta
Culture Matters: Valletta 2018 Initial Findings
Research Initiatives on Design
• Engineering:– A Near-Market-Ready Design of a B2C High-Tech Artefact –
Mass Size is Primary Focus
– A Near-Market-Ready Design of a B2C High-Tech Artefact –Environmental Performance is Primary Focus
– Input Materials in Maltese Manufacture: A Case for Substitutability
• Information Technology:– Adaptation of Open Source Design Software
• Accounting:– Mergers and Acquisitions of Design Operations
Culture Matters: Valletta 2018 Initial Findings
