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New report finds hidden innovation in the creative industries
A new study uncovers an array of vibrant innovation activities, particularly technological innovation, in the creative industries. The research - Hidden Innovation in the Creative Industries - jointly published by NESTA (the National Endowment for Science, Technology and the Arts) and Manchester Business School finds that UK creative businesses are taking advantage of new technological platforms and globalisation to develop innovations in business models and product delivery.
The four creative sectors examined - videogames development, product design, advertising and independent broadcast production - showed a particular sophistication in their ability to integrate the experiences of customers in their products and services. In particular, the videogames development sector is a trailblazer in this regard.
At the same time there is evidence that creative businesses face increasing challenges in converting their innovations into commercial success. The report found that many businesses struggle to formalise or even recognise their behaviours as innovation, citing the need for businesses to develop the right management capabilities for innovation such as skills for collaboration and engagement with users.
Dr Lawrence Green, innovation research fellow at Manchester Business School, added:
"As in other sectors where market failures are identified, policy needs to provide more targeted support for innovation. Existing initiatives such as the R&D tax credit do not, at present, acknowledge or support many of the types of innovation that are undertaken by creative businesses. Moreover, much of this innovation remains entirely 'hidden' from the conventional metrics that are used by policy-makers."
Jonathan Kestenbaum, NESTA's CEO commented:
"The creative sectors are one of the most buoyant parts of our economy so it is no surprise that this report identified high levels of innovation activity within creative businesses. However, there remains a need to recognise the value it brings otherwise businesses will neglect the very activities that could propel their businesses at a time when increased competition, from both overseas and at home, makes innovation ever more important."
Hidden Innovation in the Creative Industries is the final publication in a series of reports that NESTA has produced on hidden innovation in the UK. Together they constitute a compelling case for policy-makers who are looking to develop supportive measures that take a much broader perspective on innovation than they have to date. To facilitate this, policy-makers need measures of innovation activity that capture 'hidden innovations' as much as they do traditional research and development activities. NESTA is working closely with partners to develop such innovation metrics.
To download the report please visit http://www.nesta.org.uk/research-reports/
For more information please contact:
Kate Jeffery
kate.jeffery@mbs.ac.uk
0161 275 7090
