How Creative Industries Drive Innovation Across the Entire EconomyThe Creative Industries Effect
The creative industries effect describes the impact of the creative industries on the innovation system. It arises when creative skills—such as design, communication, creativity, user understanding, and interdisciplinary collaboration—are combined with economic, scientific, and technological knowledge. This gives rise to innovations that have an impact far beyond the creative industries and strengthen the innovative capacity of businesses, regions, public administration, and society.
Innovation is the starting point for the creative industries effect.91% develop innovations
91% of companies in the creative industries have developed innovations over the past three years. This reflects a particularly broad understanding of innovation:
- 75% were product or service innovations.
- 57% implemented process or organizational innovations.
- 52% developed process innovations.
- 51% introduced marketing innovations.
- 44% developed innovative business models.
The Effect
Creative industries do not limit innovation to new technologies. They develop new products, services, business models, processes, and organizational structures, thereby laying the groundwork for their impact on other industries.
Open innovation is the innovation method of the creative industries69% incorporate external sources of innovation
For 69% of companies in the creative industries, external sources of innovation are an essential part of their innovation efforts.
The most important sources are:
- 42% collaboration partners
- 40% Media and Trade Media
- 40% new technologies
- 32% events
- 24% Suppliers
- 20% research and educational institutions
- 19% other industries
The Effect
Innovation in the creative industries does not occur in isolation. New ideas emerge through interaction with partners, academia, technology, markets, and other industries. Openness is a central principle of their innovation model.
Collaboration is the innovation model of the creative industries.50% develop innovations through co-creation
About one in two creative industries companies develops innovations in collaboration with partners. The study thus demonstrates that collaboration is not a subsequent step, but rather an integral part of the innovation process. The case studies show that new products, services, business models, and processes emerge precisely at the intersections between the creative industries and other sectors.
The Effect
The particular strength of the creative industries lies in their ability to develop innovations in collaboration with others. Through co-creation, they bring together diverse expertise, perspectives, and industries, thereby creating solutions that no single organization could develop on its own.
The Effect
Creative industries do more than just develop innovations on their own. They transfer creative methods and expertise in design and innovation to other companies, thereby enhancing those companies’ capacity for innovation.
Creative industries make others more innovative.40% support innovations by other companies
40% of companies in the creative industries actively support their clients in innovation processes. They guide companies through the entire innovation process:
- 58% provide support in developing ideas,
- 48% in layout and design,
- 36% in research and development,
- 32% during testing and during production or distribution preparation,
- 57% during the launch and implementation of new products, services, or processes.
This gives small and medium-sized businesses, in particular, access to specialized knowledge and creative expertise that they often cannot develop in-house. The creative industries thus support innovation from the initial idea through to successful implementation.
Creative industries make new technologies applicable.87% turn technology into innovation
87% of companies in the creative industries use innovative products, processes, or technologies developed by other companies.
- 69% use new software applications and Internet technologies.
- For 16%, products or technologies were specifically developed from scratch or significantly modified.
- 25% purchase products or services developed specifically for them, such as in the areas of design, software, or web solutions.
The Effect
Creative industries are key drivers of innovation. They advance digitalization by adopting new technologies early on, further developing them, and transforming them into marketable applications.
The crossover effect extends far beyond the creative industries.5 Channels Through Which the Creative Industries Effect Takes Effect
The creative industries effect describes how the creative industries exert their influence through five interconnected channels:
- Economy – greater competitiveness, investment, and exports.
- Innovation —new products, services, business models, and innovation processes.
- Regional Development – New Networks, Locations, and Innovation Ecosystems.
- Public Administration – Creative Methods for Better Public Services.
- Society – New Solutions for Social Challenges.
The Effect
The creative industries do more than just generate economic value. Their true strength lies in their ability to initiate and accelerate innovation processes in various social systems.
The crossover effect arises from open innovation, co-creation, and knowledge transfer.3 Mechanisms Behind the Creative Industries Effect
Open Innovation
Innovation arises from interaction with partners, technologies, science, and markets.
Collaboration and Co-Creation
New solutions emerge from the combination of different areas of expertise and perspectives.
Transfer of Creative Skills
Creative industries transfer creative methods, design expertise, and innovation capabilities to other companies and industries.
The in-depth study “Innovation and Crossover Effects of the Austrian Creative Industries” was conducted by KMU Forschung Austria in cooperation with the Institute for Industrial Science (IWI) on behalf of Kreativwirtschaft Austria and published in 2017 as the focal point of the Seventh Austrian Creative Industries Report. It examines the innovation performance of the creative industries as well as their crossover effects on the economy, the innovation system, regional development, public administration, and society. The study is based on a nationwide survey of companies, in-depth case studies, and an impact model addressing the innovation and crossover effects of the creative industries.