Creating innovation

There is a widespread belief that the 'creative economy', as a focal point for creativity, has a particularly important role to play in innovation throughout the economy. But there is little quantitative evidence for this.

This report presents the results of major new research into the role of the creative industries in stimulating and supporting innovation in the UK. Our research investigates and quantifies for the first time how artistic and creative activities link into the wider economy.

The report finds evidence of a significant positive impact from business-to-business (B2B) links with the creative industries on some, but not all, dimensions of innovation behaviour. Our estimates suggest that firms that spend double the average amount on creative products - 6% compared with 3% of their output - are 25% more likely to introduce product innovations either new to their firm or market.

There is also some suggestion that knowledge transfers associated with purchases by firms of creative products may support improvements in their product range and quality.

This suggests that the creative industries may play a more important role in the UK's ecology of innovation than has been recognised to date.

Policymakers should stress the wider benefits of creativity when promoting the contribution that design can make to business performance. Efforts to enable knowledge transfer should also support the exchange of new ideas between creative businesses and firms in other sectors of the economy.

Published
February 2008

Author
Hasan Bakhshi, Eric McVittie and James Simmie

Report
Download the Creating Innovation report (PDF 1Mb)

Working paper: How linked are the UK’s creative industries to the wider economy? (PDF 200Kb)