Differentiating Characteristics of Exporters in the Creative Industry: Is Investment in Innovation, Research, and Design Significant?
The impact of Brexit on the UK's creative industries is a topic that has gained significant attention, with a recent discussion paper shedding light on the matter. The study, led by Professor Bruce Tether and Xiaoxiao Yu, focuses on the role of exporting in the creative sector and the factors that set exporter businesses apart from their non-exporting counterparts.
The research defines high-intensity exporters as those creative industries organisations (CIOs) that earn at least a quarter of their sales income from exports. Engaging in both research and development (R&D) and design is more strongly associated with exporting than R&D alone, and productivity and innovation are also significant factors for exporting among CIOs.
The findings reveal that key factors distinguishing exporter businesses from non-exporters include a higher productivity and growth orientation, better access to finance and incentives, market orientation and internationalization strategy, and leadership and capacity constraints. Exporter CIOs are more likely to engage in international trade, have a deeper understanding of export markets, and implement strategic internationalization strategies.
High-intensity exporters, those exporting a substantial portion of their output, further distinguish themselves by their strong market knowledge, financial backing, and integrated branding and distribution capabilities. These firms often have higher production capacity, sophisticated business structures, and better access to tailored financial products.
The UK government is focusing on accelerating UK exporting, including in creative goods and services post-Brexit. The report suggests that targeted financial support, export facilitation, and cohesive internationalization strategies could help boost the growth and export expansion of the creative sector.
The study was based on responses from 625 CIOs to the DCMS's 2020 survey on new product and service development activities. Furthermore, the authors look at how creative workers and students typically understand cooperatives and explore their potential as a creative industry business model.
In addition, the report identifies examples of work taking place across three levels of change - social, economic, and technological - in fashion micro and small enterprises with respect to Net Zero. This research provides valuable insights into the creative industries' role in the Levelling Up agenda and building sustainable regional music industry clusters.
In conclusion, the study underscores the importance of productivity, capacity, access to finance and information, and strategic internationalization efforts in distinguishing exporter CIOs from non-exporters. High-intensity exporters further stand out by their strong market knowledge, financial backing, and integrated branding and distribution capabilities. These findings align with the UK government's approach to supporting the creative sector's growth and export expansion.
- The study, focusing on the creative sector's exporting, highlights productive and innovation-focused companies as significant factors for international sales.
- Engaging in both research and design, in addition to R&D, is more likely associated with exporting among Creative Industries Organizations (CIOs).
- The UK government's strategy includes targeted financial support, export facilitation, and internationalization strategies to boost the growth of the creative sector, particularly post-Brexit.
- Key differences between exporter and non-exporter CIOs include a higher productivity and growth orientation, better access to finance and incentives, market orientation, internationalization strategy, and leadership and capacity constraints.
- High-intensity exporters, CIOs exporting a substantial portion of their output, have strong market knowledge, financial backing, and integrated branding and distribution capabilities.
- The research identifies examples of work focusing on sustainable technologies, innovative business models, and cooperatives in fashion micro and small enterprises, aligning with the UK government's Levelling Up agenda and regional music industry clusters.
- With findings that emphasize the importance of productivity, capacity, access to finance and information, and strategic internationalization efforts, the study supports governmental approaches to bolster the creative sector's growth and export expansion.
- Additionally, the study delves into creative workers and students' understanding of cooperatives as a potential business model for the creative industries and explores the role of arts, creativity, and technology in shaping the economy's future.
