Technology Innovation Initiatives in the United Kingdom

A new report, commissioned by the Creative Industries Council and conducted by the BFI, sheds light on the economic consequences and potential market failures of the UK's departure from the EU on its trading and working relations with European firms in the Creative Industries. The study, which focuses on Createch businesses, reveals the challenges and opportunities facing the sector post-Brexit.

Createch businesses, an integral part of the rapidly growing creative industries sector, contributed over £124 billion to the UK economy in 2023 and employed 2.4 million people. This sector, which includes industries such as film, animation, video games, immersive technologies, and other technology-driven creative areas, tends to be clustered within major creative hubs in the UK, notably London and other metropolitan areas.

The sector values high-level digital and creative skills, with university degrees being the most common entry route into creative jobs. There is a strong demand for skills related to digital production, coding, animation, immersive technologies, and possibly integration of AI and sustainability-focused design thinking. Additionally, there is an emphasis on fostering investment readiness, leadership, business growth skills, and diversity among entrepreneurs in the sector.

Public investment in Createch businesses is significant but still faces funding gaps. Although 74% of screen-based businesses use some form of external finance, around 83% report unmet finance demand. The UK government supports the sector through strategic investments, such as the DCMS Creative Industries Sector Plan and the BFI Skills Fund, focusing on sustainable growth, skills development, and improving the financing ecosystem. These investments aim to address structural barriers, enhance investment readiness, and support diverse leadership within Createch and broader screen industries.

Sustainability and environmental awareness are emerging as important considerations, with growing expectations for creative graduates and professionals to embed sustainability principles in their work.

The report's findings may influence policy decisions regarding immigration and skills acquisition in the UK's Creative Industries. With worldwide exports of creative goods exceeding 500 billion USD in 2015, and a 150% increase since 2000, the sector's global competitiveness underscores the need for improved funding mechanisms and coordinated policy efforts to sustain innovation and growth.

The report's analysis of Createch businesses highlights the significant contribution they made to the UK economy in 2023, amounting to over £124 billion and employing 2.4 million people.
The creative industries sector, encompassing film, animation, video games, immersive technologies, and other tech-driven areas, is clustered predominantly within major creative hubs in the UK, primarily London and other large cities.
University degrees remain the most common entry route into creative jobs, with a high demand for skills in digital production, coding, animation, immerser technologies, AI integration, and sustainability-focused design thinking.
Despite substantial public investment in Createch businesses, funding gaps persist, as 74% of screen-based businesses use external finance, but around 83% still report unmet finance demand.
The UK government addresses these structural challenges through strategic investments like the DCMS Creative Industries Sector Plan and the BFI Skills Fund, aiming to foster sustainable growth, skills development, and improve the financing ecosystem.
The report's evidence suggests that sustainability and environmental awareness are growing concerns within the sector, as creative graduates and professionals are increasingly expected to embed sustainability principles in their work.
In light of the report's findings, policy decisions related to immigration and skills acquisition in the UK's Creative Industries may be influenced and adjusted.
With worldwide exports of creative goods surpassing 500 billion USD in 2015 and a 150% increase since 2000, the sector's global competitiveness underscores the need for improved funding mechanisms and coordinated policy efforts to sustain innovation and growth.