Creative Industries And Economic Value: A Review Of Innovation, Impact, And Policy Support

Abstract

This paper provides a comprehensive review of creative industries, examining their economic impact, innovation potential, and policy frameworks across different national contexts. Drawing from recent research and official reports, it analyzes how creative industries have evolved from traditional cultural activities to become significant drivers of economic growth and innovation in the digital age. The review synthesizes evidence from multiple countries, showing that creative industries demonstrate significant economic contributions, with the UK creative sector contributing £108 billion in GVA and employing 2.3 million people, while countries like South Korea and China report contributions of 6.3% and 4.3% to their respective GDPs. The findings of the review reveal that while creative industries show substantial positive economic impacts, including employment generation and revenue growth, their effects vary across regions and contexts. The paper highlights this sector's crucial role in driving innovation, particularly through digital transformation and new business model development. The paper also examines the critical role of cultural policy in supporting creative industries, finding that countries with dedicated creative industry policies have seen significant increases in sector employment over the past five years. The findings suggest that understanding the multifaceted nature of creative industries is crucial for developing effective policies and support mechanisms in both developed and emerging economies. This review contributes to the literature by providing a systematic analysis of recent developments in creative industries while identifying gaps in current research and suggesting future research directions for the development of creative industries in emerging economies.