Creative spillovers: do the creative industries benefit firms in the wider economy?
- hub asean
- Jun 5
- 3 min read
The Hidden Innovation Network
Think about it: when a manufacturing company hires a graphic designer, buys software from a creative tech firm, or employs someone who previously worked at an advertising agency, something interesting happens. Knowledge, creative thinking, and innovative approaches start flowing between sectors.
The research identified three key ways this happens:
1. Creative Suppliers Share Their Magic When businesses buy services from creative companies – whether it's design work, digital solutions, or creative consulting – they don't just get a product. They get exposed to creative thinking and innovative processes.
2. Creative Customers Demand Better Companies selling to creative industries often find themselves pushed to be more innovative to meet the demanding, cutting-edge needs of their creative clients.
3. Creative Talent Brings Fresh Perspectives When someone moves from a creative industry job to a traditional sector, they carry creative problem-solving skills and innovative mindsets with them.
The Numbers Don't Lie
The research looked at thousands of firms and found some compelling evidence:
Companies with stronger connections to creative industries are 5-10% more likely to produce breakthrough innovations
Firms that buy twice the average amount from creative businesses see significant innovation boosts
This isn't just correlation – the researchers found evidence of actual knowledge transfer happening
Here's what's particularly interesting: this boost in innovation happens in two ways. Connected companies both invest more in innovation activities (like R&D) and get better results from the same level of investment. It's like creative industries provide both inspiration and effectiveness.
Why This Matters for Policy
These findings have huge implications for how we think about supporting creative industries:
1. The Ripple Effect is Real Creative industries aren't just important for culture and direct economic contribution – they're actually making the entire economy more innovative. This strengthens the case for creative industry support as economic policy, not just cultural policy.
2. Connections Count The research suggests we should be thinking more about how to strengthen links between creative businesses and other sectors. Innovation vouchers, creative clusters, and knowledge exchange programs could all play a role.
3. National Impact, Not Just Local Surprisingly, the research found these spillover effects work at a national level rather than being concentrated in creative clusters. This suggests the benefits of a thriving creative sector spread widely across the country.
What This Means for Creative Economy Development
For those of us working on creative economy policy in regions like ASEAN and APEC, these findings offer valuable insights:
Investment in creative industries pays dividends across the economy – not just within the creative sector itself
Policies that encourage collaboration between creative businesses and traditional industries could multiply innovation impacts
Creative workforce mobility between sectors should be seen as beneficial for economic development
National creative industry strategies can benefit regional economic competitiveness
The Bigger Picture
This research adds to a growing body of evidence that creative industries are economic game-changers. They're not just about producing cultural content – they're innovation catalysts that make entire economies more dynamic and competitive.
For policymakers, this means creative industry investment isn't just about supporting artists and cultural workers (though that's important too). It's about building the innovation capacity of your entire economy.
As we continue developing creative economy policies across our regions, this research reminds us that the benefits of a thriving creative sector reach far beyond what we might initially imagine. Every creative business supported, every creative cluster developed, and every creative professional trained has the potential to spark innovation across multiple industries.
The creative economy isn't just part of the economy – it's an engine that makes the whole economy more creative.