The Creative Economy Report 2010 from the UN is the second policy-oriented report to present the United Nations perspective on this topic.  The creative economy is now a topic high on the agenda for economic development in both the developed and the developing world.  As the report puts it,

'adequately nurtured, creativity fuels culture, infuses a human centred development and consitutes the key ingredient for job creation, innovation and trade while contributing to social inclusion, cultural diversity and environmental sustainability.'

Bold claims.  In its 400+ pages the report thoroughly reviews research and policy across a range of aspects of the creative economy, looking at the concept and context of the creative economy, its drivers, patterns of international trade in 'creative' goods and services, the role of intellectual property, IT and connectivity, and policy strategies and options for the coming years.

It offers 10 key messages:

• Whilst in 2008 there was a 12% reduction in world trade, exports of creative goods and services continue to grow at an average annual rate of 14% over the past 6 years, with the potential to become one of the most dynamic sectors of the world economy.

• Growth is particularly apparent in 'south-south' trade: trade in creative good and services there grew at an average rate of 20% per annum over the same period, and the creative economy took an increasing market share of south-south trade.

• The right mix of public policies and strategic choices are essential if the potential of the creative economy for economic development is to be achieved.  It is important, especially in developing countries, to develop a functioning 'creative nexus' to attract investors, build creative entrepreurial practices, and offer better IT access and infrastructure.

• Policy strategies must recognise its multi-displinary nature - its economic, social, cultural and environmental linkages.

• It is important for governments to review IP rules to avoid constraints and adapt to new realities.

• The creative economy cuts across arts, business and connectivity, driving innovation and new business models. There should be a drive for better broadband infrastructure especially in the South.

• The creative economy is both fragmented and socially inclusive. Pragmatic policy-making requires a better understanding of who the stakeholders in the creative economy are, how they relate to one another and how the creative sector relates to other economic sectors.

• Policies for the creative economy also have to respond to demands from local communities for education, cultural identity and social inclusion, and environmental concerns.  An increasing number of municipalities are using the concept of creative cities to formulate urban development strategies and reinvigorate growth.

• The firmness of the market for creative goods and services is an indicator of the importance of demand for 'creative products'  in the post recession era, and should attract greater market share.

• Every society is rooted in a creative economy, but each country is different, and needs to think about its particular strengths for development.  There is no one-size-fits-all policy.

A couple of observations.  I am struck first by the relatively little emphasis in the report on the role of higher education in the developing creative economy.  Second, and nevertheless, it is also striking how many of these points are ones to which PASCAL should be able to contribute by assembling relvant experience, investigation and analysis.

Find the full report at http://bit.ly/eRkfdl  .