Creative economy: how culture, creativity and innovation influence finance and minds

What is the creative economy

Design, architecture, education, advertising, new media, painting, cinema, jewellery, music, museums – all these are part of the creative sector of the economy. It already accounts for 3.1 per cent of global GDP and 6.2 per cent of all jobs worldwide, according to the United Nations.

The contribution of the creative economy is significant, although it remains an evolving concept without a single unified definition. Essentially, it is a knowledge-based economic activity forming the foundation of the creative industry.

Creativity in all its forms is not merely an important component of social development – it is a transformative sector of the economy. Creative industries generate employment, attract export revenues and bring substantial income.

According to the United Nations Conference on Trade and Development (UNCTAD), in 2020 creative goods and services accounted for 3 per cent and 21 per cent of total global exports of goods and services, respectively. Moreover, cultural and creative industries provide nearly 50 million jobs worldwide, employing more young people aged 15 to 29 than any other sector.

Today, the creative economy is taking centre stage on the global agenda as one of the most dynamically developing sectors. In 2024, its growth rate doubled that of traditional industries. The global market for creative products reached US$2.9 trillion, and by 2033 it is expected to exceed US$4.3 trillion.

The impact of creative industries on BRICS countries' GDP

According to experts, the establishment of a creative industries market could become one of the key aspects of cooperation within BRICS+, particularly given G20 Insights’ forecast that the global creative economy could reach 10 per cent of world GDP by 2030. For the Global South, however, the importance lies not only in the financial dimension – creative technologies are already helping to solve socio-demographic challenges, preserve cultural identity and even shape international image.

Intelligent manufacturing in China

China is one of the global leaders in the creative economy. The government supports art and culture projects through tax incentives, grants and targeted funding. Educational centres for cultural and creative industry professionals are being established across the country. Nearly 10 per cent of China’s population is employed in this sector, and its contribution to the national GDP – 4.56 per cent – surpasses the global average.

China’s focus is not limited to promoting national culture and socialist values domestically. The export of creative industry goods stands at US$220 billion – one of the highest figures in the world.

State regulation of creative industries in China began in 2001. Today, the country is transitioning from the concept of “Made in China”, associated with industrial production, to “Created in China”, which combines tradition with innovation.

Russia’s “new oil”

Russia is also working to increase the creative economy’s share of GDP to 6 per cent, as mandated by the president. The current level stands at 4 per cent, equivalent to US$82.6 billion.

Experts note that Russia’s approach to developing its creative economy is unique – the focus is not on megacities but on small towns and rural areas.

We live in an era when local identity creates global advantage. Nothing prevents one from living in a small town and selling unique creative products on international marketplaces – or working on computer graphics for clients in Shanghai from a home office overlooking a forest.

With the expansion of global markets and technologies over the next decade, experts predict the rise of local brands, a renaissance of creative professions and breakthroughs in IT – phenomena analysts already refer to as Russia’s “new oil”.

The UAE as the cultural hub of the Middle East

The United Arab Emirates is actively fostering creative thinking, attracting talent and creative entrepreneurs from around the world. The country has introduced a 10-year “cultural visa” for artists, singers, curators, dancers, and musicians. In addition, the UAE hosts 22 free economic zones dedicated to creative industries.

The Emirates regularly host international cultural events, positioning themselves as the cultural hub of the Middle East. As a result, the UAE leads developing countries in creative industry exports – US$9.1 billion, with the sector contributing 2.9 per cent to GDP. By 2031, this figure may reach 5 per cent.

India as a centre for cinema, animation and visual effects

As early as 2017, film industry experts observed that Hollywood was increasingly turning to Indian studios, where labour costs were lower but the quality of animation and visual effects matched Western standards. From that point on, India’s creative economy began attracting more and more skilled professionals.

By 2030, analysts expect India’s share of the global animation and VFX market to grow from 10 to 25 per cent, creating between 75,000 and 125,000 new jobs. Creative industries have a multiplier effect on the wider economy and labour market – one job in the film industry generates an average of 3.7 additional jobs in related sectors such as tourism and transport.

With creative industry exports valued at around US$13.8 billion, India is already among the world’s leading exporters, even though the creative economy currently accounts for only 1.5 per cent of its GDP.

Brazil and innovation

In Brazil, the creative economy is seen as a means to reduce inequality and support cultural diversity. The government has implemented special programmes – Lei Rouanet and Cultura Viva – to assist creative companies and professionals. National measures against piracy have been strengthened, a cultural fund established, and investments directed into education and opportunities for small towns.

Brazil’s economy is among the most innovative globally. Creative industries contribute 2.91 per cent to GDP, generating over US$43 billion annually.

Glocalisation instead of globalisation

Other BRICS countries – Indonesia, Iran, Ethiopia, South Africa and Egypt – are also actively developing their creative economies. Each follows a different path: some focus on traditions, others on innovation. However, one common trend is emerging – glocalisation.

The term “glocalisation” combines “globalisation” and “localisation” and reflects the principle of “think globally, act locally”. Unlike globalisation, glocalisation helps preserve and even strengthen regional distinctions, cultural traditions, and national identities. This is when generations raised on Hollywood films suddenly want to watch and produce their own national cinema.

“The BRICS countries are resolutely advancing their civilisational identity through their creative industries to protect and preserve their cultural heritage, projecting it into the future as a legacy for the next generations, as well as abroad in pursuit of quality tourism,” stated Guillermo Miguel Rocafort Perez, TV BRICS expert in economics and international relations.

While glocalisation does not exclude cultural exchange, it actually promotes it. Experts believe that in the near future, a creative industries market could emerge within BRICS or BRICS+. Cooperation could involve not only the export and import of creative goods but also joint projects such as international cultural festivals.

“Undoubtedly, international cultural festivals are aggregators of cultural and economic value and employment opportunities. Remember the concept of cultural, political and economic cannibalism. An international festival unites people from different countries, languages and cultures, producing and consuming goods, products or services. For example, in Brazil, the Rock in Rio festival gathers from 500,000 to over 1 million people, generating revenues from US$270 to more than US$360 million,” said Marcelo Barbosa Duarte, TV BRICS expert in history and culture.

The International Festival of Theatre Schools of the BRICS countries already exists. It has gained worldwide recognition as the first innovative platform for intercultural exchange among theatre universities. Meanwhile, experts note the potential for future cooperation in IT and the film industry – a field rapidly transforming under the influence of digital technologies, as demonstrated by the remarkable success of streaming platforms.

Such a development offers BRICS nations a unique opportunity to participate in creating a new digital international film industry, jointly launching a streaming service that could help shape a global cultural landscape that is fair, inclusive and diverse.

Photo:  Pict Rider, Ekaterina Chizhevskaya, Dilok Klaisataporn, Igor Kutyaev, Britus, dabldy / iStock