The UK’s creative industries are a national strength. They account for £91.8 billion of Gross Value Added (GVA) or 5.3 per cent of the whole economy. A high-growth sector, the creative industries grew by 45 per cent between 2010 and 2016, almost twice as fast as the UK as a whole. Consistent with this, the creative industries have been prioritised by the Government in its Industrial Strategy and have negotiated a sector deal. Labour productivity in the creative industries tends also to be higher than in other sectors when comparing firms of equal size.
However, a full account of productivity in the creative industries, and an assessment of what public policy can do to support it, requires a better understanding of how innovation happens in the creative industries, and if and how this differs from other sectors. In this analysis we use data from the Department for Business, Energy and Industrial Strategy’s (BEIS) latest Innovation Survey (wave 9), which covers a wide range of indicators capturing firms’ innovation processes in different sectors over the three-year period (2012-2014).