Awareness of the contribution of the Culture and Creative Industries to economic growth and social development is increasing.
4.2.3 Cultural/creative industries: policies and programmes
Cultural and creative industries are currently not defined in any of the state's strategy documents. The Czech Republic nevertheless has a "Culture Account", which is maintained by the Czech Statistical Office (CSO) in cooperation with the National Information and Counselling Centre for Culture (NIPOS). Statistics on the field of culture are compiled and updated in response to a government assignment from 2008 that arose out of the adoption of a resolution on State Cultural Policy for 2009–2014. The Culture Account defines the field of culture in conformity and in reference to the outcome and recommendations of the work of the European Statistical System Network on Culture (ESSnet Culture). The ESSnet Culture project, run under the aegis of Eurostat, sets out a new European framework for statistics on culture as the basis for collecting data in the countries of the European Union so that the data from different countries can be compared and analysed.
The Culture Account de facto encompasses the field of Cultural and Creative Industries (CCI) as defined in the Green Paper – "Unlocking the Potential of Cultural and Creative Industries".
In the spring of 2011 the Arts and Theatre Institute (ATI) launched a research project on Czech Cultural and Creative Industries Mapping, which also devotes attention to defining cultural and creative industries in the Czech Republic (see http://www.kreativnicesko.cz/?page_id=10).
In the framework of cooperative work on the Mapping project by the CSO and NIPOS a "tri-sector table" was created under the Culture Account that provides a clear but, given the accessibility and accuracy of the data acquired, for the time being only rough overview of the contribution of individual cultural sectors to the data in the account.
Table 1: Tri-sector table for 2010
Source: Selected indicators in the trisector breakdown of culture for the year 2010 (in thousands of CZK) - Jaroslav Novák, Head of the Department of Statistics on Research, Development and the Information Society. CSO based on definitive data from the Culture Account for 2010.
1 estimate based on calculations from National Accounts data 2) data for retail business relate only to columns 1-5
The Culture Account for 2009, 2010 and 2011 produced the following macroeconomic data:
Culture's contribution to total production in 2009 was an estimated 2.54% (224 816 billion CZK), its contribution to total Gross Value Added (GVA) was 2.55% (85 926 billion CZK) and to GDP was 1.79% (67.6 billion CZK). Employees in the culture sector accounted for 2.17% (83 000) of all employees in the economy in 2009.
For 2010, culture's contribution to total production was an estimated 2.49% (231 263 billion CZK), its contribution to GVA was 2.53% (86 142 billion CZK) and to GDP it was 1.56% (59.5 billion CZK). Employees in the culture sector accounted for 2.2% (84 200) of all employees in the economy in 2010.
From preliminary data for 2011 it is possible to assume a decrease in production in the cultural sector from the preceding year of 6.5%, to 216 200 billion CZK (2.23% of the total production of the Czech economy). GVA also decreased by 2.5% (83 943 billion CZK, i.e. 2.42% of the total estimated) and intermediate consumption (132 258 billion CZK, i.e. 2.12% of the total). There will be a further refinement of preliminary data and there is a question by how much the above-stated estimate will change.
In addition to a definition of CCI at the national level under the Culture Account, there is evidence of an attempt to define CCI at the level of the regions and municipalities of the CR in connection with efforts to map the local performance and situation of CCI. The first basic mapping, and consequently also a definition of CCI, was conducted for the Moravia-Silesia Region in connection with the candidacy of a town in that region for the European Capital of Culture in 2010. The mapping methodology was also elaborated and used in the project CreaClust, a cross-border cluster initiative for the development of creative industries in the Zlín Region (CZ) and the Trenèian Region (SK), which was supported by the Structural Funds and implemented in 2011-2012. Under this project, creative industries were quantitatively mapped and a socio-geographical analysis of results was conducted (Bednáø, Grebeníèek, 2012). Compared to the definition applied in the Culture Account, the definition of CCI in this initiative was much broader and included significantly more categories of economic activity than that in the Culture Account. Of fundamental significance for a wider picture of performance in the CCI sector is the inclusion of production-related activities in the field of software, information technology, information activities and the press. The use of this methodology made it possible to work out an analysis of the positions of individual regions across the Czech Republic.
In February 2013 the City Development Authority of Prague, Department of Strategic Concepts, released a study that defines and maps CCI in the capital city of the Czech Republic (Nìmec, 2013). To analyse economic subjects operating in the City of Prague the study defined, synchronised and observed CCI branches according to CZ-NACE based on the methodology used in the CreaClust project. Rough calculations based on CSO data the wider definition of CCI branches in the 2010 study contributed almost 4.9% to GVA in the CR (cultural industries 1.9% and creative industries 3%). The economic significance of the cultural and creative sector in Prague was found to be approximately double that of the nationwide average. According to the analysis, CCI branches accounted for more than 10% of GVA in Prague and the capital city itself accounted for 53.5% of GVA in the CR created by CCI. Economically the most significant branches in Prague include selected creative activities in the field of information technology (e.g. programming), and, in the cultural sector, the creation of television and radio programmes, broadcasting and publishing activities. According to the analysis, there are a total of 37 617 local units operating in Prague in the CCI sector, which represents 12.6% of their total number in Prague. In Prague CCI are of extraordinary significance both in economic terms (measured as a share of GVA) and in terms of employment. The workplaces of the economic subjects included in the analysis in Prague employ almost 125 000 people, which is an estimated 14% of the total workforce in Prague.
In practice CCI in the Czech Republic can be defined in two ways. The first approach is that adopted by the Culture Account, which de facto encompasses every branch of culture, that is, both those branches that are subsidised with public funding and traditionally fall under the jurisdiction of the Ministry of Culture, and those branches that are profit-oriented, are represented by a commercial entity, and whose activities fall under the jurisdiction of the Ministry of Industry and Trade. Under this concept, CCI can be understood as a new conceptualisation of cultural policy that de facto encompasses strategic support for non-profit and for-profit activities and in political terms is observable primarily through cooperation between the relevant ministries. The first approach to defining CCI is also supported at the level of the European Union. The second approach works with a wider definition that encompasses activities that lie outside the field of culture. These include mainly the fields of software and IT services. However, it is logical that these fields be included in the definition of CCI given the scope of the creative economy and because of the fundamental role that the development of new information technologies plays today. The inclusion of these activities is moreover in conformity with what was referred to in the Green Book as "adjacent sectors". In one sense the second approach is a narrower definition because it does not include such subsidised areas as cultural monuments, libraries, and museums. This means that it focuses primarily on for-profit and commercial activities. Both approaches are justified in their own way and there is no good reason to rule out the use of either one of them. One of the main outcomes of the Mapping project is the formulation of a proposed methodology for mapping that, among other things, involves devising a consensual list of activities for inclusion and a definition of so-called auxiliary and related sectors that could then provide a more complex picture of the economic contribution of CCI.
In 2013 work began on a qualitative and quantitative mapping of CCI in Brno, the second-largest town in the CR. The results of the mapping shall serve as the basis for developing a creative centre (incubator). Responsibility for the project to map and develop a creative centre was assigned by Brno City Hall to the South Bohemian Innovation Centre (one of the best business incubators in the Czech Republic). A pilot qualitative mapping project will also be carried out in cooperation between the Mapping project, the Municipality of Zlín, the Region of Zlín, and the local Chamber of Commerce in Zlín. Some mapping will also be carried out in the town of Pilsen as part of its programme as the European Capital of Culture 2015 and in connection with the intention to create a local creative incubator. Other projects connected with the concept of CCI are also being prepared as part of Pilsen's programme as Capital of Culture 2015 (for instance, a project of cooperation between artists and business people developed in collaboration with the Swedish organisation TILLT; the EverFund project focused on a new method of financing cultural projects and educational courses in the areas of cultural management and marketing).
The activities mentioned above show that the awareness of the contribution of CCI to economic growth and social development in the CR is increasing and there is a rising interest in mapping and adopting strategic measures in support of CCI in the CR at the state and regional levels.
The Mapping project is preparing two key outputs for 2014 and 2015: the Mapping Document and a Mapping Methodology proposal.
As part of the Mapping project, umbrella and professional organisations in CCI are currently engaged in collaboration that will result in more detailed insight into the state of Czech CCIs and above all to identifying the needs of individual branches that could lead to the development of strategic measures. This involves the further elaboration of existing studies on individual branches of cultural and creative industries in the CR that are available in the publications Cultural and Creative Industries in the CR (Kulturní a kreativní prùmysly v ÈR, Žáková et al., 2011). These needs are also being identified in connection with preparation for the next programme period of the Structural Funds (2014-2020). In this context, it can be confirmed that there has been an increase in interest in CCI from other ministries (MEYS, MIT, MRD) and self-governing authorities (e.g. the City of Prague, which is drawing up a new cultural policy and plans to include CCI in this policy).
As regards concrete measures and the individual sectors of CCI in the CR, the film industry is in the best position. With the adoption of the Act on Audio-visual Works and Support for Cinematography (at the end of 2012) the State Cinematography Fund was transformed and now represents a complex and very well-structured and transparent support system with clear criteria and one that is moreover not dependent solely on the state budget. In the future it expects income in the area of approximately 0.5 billion CZK annually, of which 150 million CZK should come from the 2% of revenue generated by advertising on commercial television, 10 million CZK from the 1% of every admission ticket to a cinema, 40 million CZK from the use of works created between 1965 and 1991 which the fund holds the rights to, 10 million CZK from audio-visual services on command (starting in 2016), 25 million CZK from fees equal to 1% of the price of providing a rebroadcast television broadcast. The state budget will inject more finance into the fund to support Czech cinematography and for the administration of the fund as well as subsidies for incentives in the film industry. Film-industry incentives in operation in the CR since 2010 allow producers to recoup one-tenth of their expenditures for foreign actors and crew members and one-fifth of goods and services costs. These incentives draw large foreign production companies and international stars to the Czech Republic. They take into account the exponential economic impact of the local expenditures of foreign crews that spend money in the CR on film shoots, accommodation, restaurants, transport, and renting locations, etc., and for 2013 the state set aside a record 500 million CZK for incentives. The fund's website is: http://www.fondkinematografie.cz/.
Among other specific strategies and programmes perhaps the only one to mention is support in the field of design. Support for industrial design falls within the portfolio of the governmental agency CzechTrade, which since 2008 has run a project called "Design for Export" aimed at an individual consultation service. During its existence approximately 100 Czech manufacturers have made use of the programme's services, while the programme's annual budget in 2008–2010 was just under 4 million CZK. A follow-up programme has now been prepared known as the "Design for Competitiveness" which aims to increase the confidence of commercial subjects in the competitive struggle because they have quality products that the current demanding market is looking for. Through a sophisticated system of interconnected activities the programme will provide assistance with the implementation of design into business strategies and its subsequent effective use.
The agency also supports the promotion of Czech businesses at selected exhibitions and fairs abroad. In addition, the Ministry of Industry and Trade (MIT) runs the programme for the Czech Republic's official participation in international fairs and exhibitions abroad and in 2010 a joint project of the MIT, CzechTrade and the Czech Chamber of Commerce was launched titled "Joint Participation in Specialised Exhibitions and Fairs Abroad".