A new study launched today, uncovers an array of vibrant innovation activities particularly technological innovation, in the creative industries.
The research report - "Hidden Innovation in the Creative Industries" which is jointly published by NESTA 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.
download: Hidden Innovation in the Creative Industries.pdf (593k)
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. 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.
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".
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 sorts of innovation that are undertaken by creative businesses. Moreover, much of this innovation remains entirely 'hidden' from the conventional metrics that are used by policymakers".