Creative industries export creativity and import innovationThe International Impact of the Creative Industries
For the creative industries, internationalization means much more than just exporting. They sell products and services abroad, collaborate across borders, source technologies and expertise from other countries, and are quick to pick up on international trends. Internationalization does more than just strengthen individual creative companies. It connects the Austrian innovation system with international knowledge, technology, and creative networks, thereby enhancing the innovation and competitiveness of the entire business location.
The international impact of the creative industries is based on a reciprocal process:
They tap into international markets
- sell products and services,
- reach new customers and audiences,
- build a reputation and increase revenue.
They open Austria up to international influences
- embrace new ideas and technologies,
- develop cross-border partnerships,
- bring trends, knowledge, and new business models to the Austrian economy.
International reach is an integral part of the creative industries’ business model.86% are active internationally
86% of Austrian creative industries companies are active abroad in the strict sense of the term. They purchase products or services abroad, sell their services internationally, or collaborate with foreign companies and organizations. About 70% of these companies are involved in exporting.
- 67% import products from abroad,
- 60% export services at least occasionally,
- 36% export goods and products,
- 38% purchase services from abroad,
- 34% collaborate with foreign companies or institutions,
- Just under 20% outsource processes to foreign companies at least occasionally.
The Effect
Internationalization is not an exception in the creative industries. It is part of an open business model in which services, knowledge, technologies, and collaborations are organized across borders.
The creative industries are a particularly strong export sector within the service sector.19% export share
Austria produced goods and services in the creative industries worth approximately 21.4 billion euros. Of this amount, approximately 4.2 billion euros were generated abroad. This corresponds to an export ratio of about 19%. Thus, the creative industries are well above the average export ratio for the service sector, which stands at 12.5%.
The most important export segment is software and games, with approximately 1.7 billion euros, followed by advertising, with just under 1 billion euros, and books and publishing, with approximately 750 million euros. Software and games, as well as advertising, also recorded the strongest export growth during the period under review.
The Effect
The creative industries generate value beyond Austria’s borders. Digital, scalable, knowledge-intensive, and creative services, in particular, open up international markets without requiring large-scale industrial production structures.
The Effect
The European single market gives even small creative businesses access to larger markets in terms of customers, audiences, and collaboration opportunities. Common standards, geographical proximity, and cultural ties make it easier to take the first step toward internationalization.
Europe is the main market for Austria’s creative industries.70% of exports go to the European Union
Nearly 70% of export revenue from the creative industries is generated within the European Union. Germany is by far the most important export market, followed by the United States, Italy, and Switzerland. The focus on the European single market varies by sector:
- Radio and TV generate about 83% of their exports within the EU,
- Film industry: about 78%,
- Advertising: about 76%,
- Books and publishing, about 75%,
- Software and games: about 69%.
Internationalization brings innovation to Austria.42% are looking internationally for new ideas
The creative industries don’t just expand abroad to increase sales. International activities are also an important source of ideas, technologies, and knowledge. Companies in the start-up and growth phases are particularly open to input from abroad.
The most important procurement-related motivations are:
- 42% are looking for new ideas for products and services,
- 29% are looking for new technologies,
- 29% take advantage of price benefits in international procurement markets.
The Effect
Creative industries are not only exporters of creative services, but also importers of innovation. They identify international trends, applications, and technologies early on, adapt them to the Austrian market, and bring new momentum to their projects, companies, and clients’ industries.
An international presence drives growth and visibility.53% want to reach new markets and target audiences
For the creative industries, internationalization is both a growth strategy and an opportunity to build a reputation and establish a presence in international professional and innovation networks.
- 53% want to expand their sales markets as well as their customer and audience groups,
- 47% want to increase their brand awareness,
- 47% are aiming to increase revenue.
The Effect
International markets do more than just boost sales. They enhance the visibility of Austrian creative work, expand a company’s portfolio, and open the door to new partners, projects, and value chains.
Internationalization is achieved through networks.67% view contacts as a key factor for success
The most important factor for success in international operations is not the product alone, but access to the right people and markets. On the sales side, companies consider the following factors to be particularly important:
- 67% have sufficient connections to networks and partners,
- 60%: the company’s good reputation,
- 56% language skills,
- 54% see a clear competitive advantage in their own services,
- 53% adaptability and flexibility.
On the procurement side as well, connections to networks and partners are most frequently cited as a success factor, at 66 percent.
The Effect
Internationalization is about building relationships. Networks facilitate access to customers, knowledge, technologies, financing, and reliable partners. For the fragmented creative industries, they are a key component of international competitiveness.
The special study on “Internationalization” was published as part of the Eighth Austrian Creative Industries Report. It examines the degree of internationalization of the Austrian creative industries, their exports and imports, their cross-border collaborations, as well as the motivations, success factors, and barriers to international activities.
The study is based, among other things, on the satellite account for the creative industries—which was expanded for the purposes of this analysis—as well as foreign trade and balance of payments data, a survey of more than 500 companies in the creative industries, qualitative case studies, and an analysis of Austrian and European internationalization strategies. Based on this, the study derives recommendations for targeted and sustainable support for internationalization.