COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Promoting cultural and creative sectors for growth and jobs in the EU
Date: 2012-09-26
Institutions: European Commission
Subjects: artistic creation, clothing industry, culture industry, film industry, innovation, investment promotion, job creation, luxury products industry, product design, trade promotion

EUROPEAN COMMISSION 

Brussels, 26.9.2012  
COM(2012) 537 final 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

Promoting cultural and creative sectors for growth and jobs in the EU 

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COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

Promoting cultural and creative sectors for growth and jobs in the EU 

1. 

A LARGELY UNTAPPED RESOURCE FOR THE EU 2020 STRATEGY 

At  the  heart  of  our  social  fabric,  culture  shapes  our  identities,  aspirations  and  relations  to 
others and the world. It also shapes the places and landscapes where we live, the lifestyles we 
develop.  Heritage,  visual  and  performing  arts,  cinema,  music,  publishing,  fashion  or  design 
manifest  themselves  strongly  in  daily  life  but  the  contribution  that  cultural  and  creative 
sectors1 can bring to social and economic development in the EU is still not fully recognised. 
Furthermore, major challenges are brought about by globalisation and the digital shift but the 
necessary  adaptations  are  yet  to  be  promoted  to  allow  these  sectors  to  realise  their  full 
potential  and  Europe's  long-standing  excellence  to  be  better  valorised  as  a  comparative 
advantage on the world scene. This Communication proposes a strategy to exploit further the 
potential of these sectors in the EU to contribute to growth and jobs. 

High growth sectors 

The economic performance of the cultural and creative sectors is recognised: in the EU they 
account for 3.3% of GDP and employ 6.7 million people (3 % of total employment)2. 
Figures are also important if one considers the fashion3 and high-end4 industries, which rely 
on a strong cultural and creative input. They account for 3% of the EU GDP each and employ 
respectively 5 and 1 million people, with employment in the high-end industries expected to 
reach 2 million by 20205.  

Between  2008  and  2011,  employment  in  the  cultural  and  creative  sectors  proved  more 
resilient than in the EU economy as a whole6 with growth rates varying however between sub-
sectors.  This  tendency  is  all  the  more  interesting  because  some  sectors  have  a  higher 
percentage of youth employment than the rest of the economy.  

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Covering  in  particular  architecture,  archives  and  libraries,  artistic  crafts,  audio-visual  (including  film, 
television, video games and multimedia), cultural heritage, design (including fashion design), festivals, 
music, performing and visual arts, publishing and radio 
2010 European Competitiveness Report. Other sources have estimated it higher at 4.5% of GDP and 8.5 
million people employed (TERA Consultants, 2010). 
Including design, manufacturing of fashion materials and goods, and their distribution 
Covering  in  particular  high-end  fashion,  jewellery  and  watches,  accessories,  leather  goods,  perfumes 
and cosmetics, furniture and household appliances, cars, boats, as well as gastronomy, hotels and leisure 
Competitiveness of the EU fashion industries, Idea Consult, 2012; The value of the cultural and creative 
industries to the European economy, Frontier Economics, 2012 
Source: Eurostat (EU-LFS) 

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In some cases, at local and regional level, strategic investments in these sectors have delivered 
spectacular  results.  In  particular,  festivals  and  European  Capitals  of  Culture  produce 
important  economic  benefits,  with  sometimes  more  than  ten  times  leverage  for  each  euro 
invested. 

Catalysts for innovation  

Being  at  the  crossroads  between  arts,  business  and  technology,  cultural  and  creative  sectors 
are in a strategic position to trigger spill-overs in other industries. They fuel content for ICT 
and 
applications, 
telecommunication devices. Culture and creativity have also direct impacts on sectors such as 
tourism and are integrated at all stages of the value chain of other sectors such as fashion and 
high-end industries, where their importance as key underlying assets is increasing7. 

sophisticated 

a  demand 

electronics 

consumer 

creating 

for 

More generally, these sectors have an impact on innovation in other industries. As highlighted 
in the Innovation Union8, innovation is increasingly driven by non-technological factors such 
as creativity, design and new organisational processes or business models. It heavily relies on 
creative eco-systems in which the quality and diversity of partnerships across different sectors 
and  types  of  actors  is  decisive.  The  most  obvious  example  is  the  wider  use  of  design  in 
manufacturing industries, adding value to products, services, processes and market structures. 
Firms spending twice the average amount on creative inputs are 25% more likely to introduce 
product innovations9. 

This catalytic  potential can also  constitute a fundamental resource for social innovation and 
responses  to  major  societal  challenges,  such  as  climate  change,  sustainable  development, 
demographic changes or  cultural  diversity10.  For  example,  in  partnership with the education 
and vocational training sector, the cultural and creative sectors can contribute to developing 
the  blend  of  skills  around  creativity  and  entrepreneurship,  critical  thinking,  risk  taking  and 
engagement, which is needed for EU's competitiveness in the knowledge society. 

A key element in global competition and soft power  

Europe's international partners already invest a lot in the cultural and creative sectors. The US 
has been investing in them for decades both as strategic economic sectors and a tool to affirm 
their presence globally. Others, such as China, South Korea or India, are also making massive 
investments  to  boost  their  economic  potential  and  'soft  power'.  To  do  so,  they  enter  into  a 
global  competition  for  creative  talents.  For  example,  in  China,  public  investment  in  culture 
has grown by 23% annually since 2007, and plans are to raise the sectors' share of GDP from 
2.5% to 5-6% by 201511.  
While European fashion and high-end industries contribute increasingly to EU exports12 and 
the  promotion  of  European  excellence  in  the  world,  the  potential  of  other  sectors,  such  as 
cinema or music, is still not strategically exploited abroad. The challenge is both to increase 

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As seen in "fast fashion", bringing to market several new collections a year 
COM(2010) 546 
Creating  Innovation:  Do  the  creative  industries  support  innovation  in  the  wider  economy?,  NESTA 
2008 
Sostenuto  –  Culture  as  a  factor  of  economic  and  social  innovation,  2012.  KEA  European  Affairs  – 
Study on the impact of culture on creativity, 2009 
China 12th Five-Year Plan (2011–2015) 
For instance 62% of all goods manufactured by European high-end brands are sold outside Europe and 
the value of their exports is estimated at € 260 billion (e.g. approximately 10% of all European exports).  

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exports  to  the  benefit  of  EU's  economy,  and  forge  a  dynamic  image  of  an  attractive  and 
creative Europe open to cultures and talents from across the world. 

2. 

TURNING CHALLENGES INTO NEW GROWTH AND JOBS OPPORTUNITIES 

The  cultural  and  creative  sectors  are  faced  with  a  rapidly  changing  environment  driven  by 
the digital shift and globalisation, leading to the emergence of new players, the coexistence 
of  very  big  structures  with  micro-entities,  a  progressive  transformation  of  value  chains  and 
evolving consumer behaviour and expectations. While these changes offer great opportunities 
in  terms  of  lower  production  costs  or  new  distribution  channels,  they  call  for  action  at 
different levels. 

In this changing context, access to finance remains a major difficulty: the banking sector does 
not  have  the  necessary  expertise  to  analyse  business  models  in  these  sectors  and  does  not 
adequately  value  their  intangible  assets.  The  financial  and  economic  crisis  only  makes  this 
situation more critical at the very time when investments are needed to adapt. 

These sectors  are  also characterized by a high fragmentation along national  and linguistic 
lines. While the resulting cultural diversity is a clear European asset, this leads to limited and 
sub-optimal transnational circulation of cultural and creative works and operators within and 
outside the EU, geographical imbalances and - subsequently - a limited choice for consumers. 

Powerful  dynamics  take  place  at  the  borderlines  between  various  sectors  (for  instance, 
through increased linkages between gaming, film and music) and with other industries (such 
as fashion, high-end or tourism). However, the sectors and policies are still often organised in 
sectoral  silos,  limiting  the  scope  for  synergies  and  the  emergence  of  new  solutions  and 
businesses.  

All  these  challenges  affect  the  various  sectors  in  different  ways,  but  they  call  for  a 
comprehensive  strategic  response  involving  all  actors  starting  from  the  local  up  to  the  EU 
level. 

3. 

THE NEED FOR A MULTI-LAYERED STRATEGY – THE ROLE OF MEMBER STATES  

A holistic approach for integrated strategies 

Despite  the  great  diversity  of  national  and  regional  contexts,  the  development  of  successful 
strategies that can turn the challenges above into new growth and jobs opportunities in the EU 
usually follows the same pattern of logical steps13. 

As  a  general  rule  successful  strategies  for  the  cultural  and  creative  sectors  build  on  a  full 
mapping and mobilisation of the cultural and creative resources of a given territory. They are 
holistic,  calling  for  partnerships  between  various  departments  (culture,  industry,  economy, 
education,  tourism,  territorial  planning  etc.)  and  involving  all  relevant  public  and  private 
stakeholders to increase ownership. Strategies must also be underpinned by research to ensure 
effectiveness, efficiency and sustainability. For each relevant issue - from skills development 
to  access  to  finance  or  access  to  world  markets  etc.  -  these  strategies  identify  what  can  be 
tackled by generic policies and instruments and what requires a tailored approach. This is true 
for all levels of governance: the local, regional, national up through to the European level.  

13 

See http://ec.europa.eu/culture/our-policy-development/documents/120505-cci-policy-handbook.pdf 

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In  recent  years,  while  some  Member  States,  regions  and  cities,  such  as  the  UK,  Estonia, 
Wallonia, Puglia, Barcelona, Amsterdam to name a few, have been good at tapping into the 
extraordinary  potential  of  the  cultural  and  creative  sectors  as  a  way  to  promote  socio-
economic  development  and  progressively  developed  ad  hoc  strategies,  others  are  only  just 
starting.  Where  strategies  have  emerged,  they  tend  to  focus  on  the  strengthening  of  these 
sectors and not yet on stimulating partnerships and spill-overs with other sectors. 

Key policy drivers 

To respond to the major challenges identified, concerted action is needed in particular in the 
following key areas. 

Addressing changing skills needs  

There  is  a  need  for  stronger  partnerships  between  the  cultural  and  creative  sectors,  social 
partners  and  education  and  training  providers,  both  through  initial  training  and  continuing 
professional  development.  This  should  provide  sectors  with  the  mix  of  skills  needed  for 
creative  entrepreneurship  in  a  rapidly  changing  environment.  Furthermore,  some  sectors  are 
confronted  with  a  shortage  of  employees  with  technical  and  traditional  skills  and  crafts, 
because young people in particular are less attracted to take up such skills. 

Creative  skills  need  to  be  learnt  from  an  early  age,  in  order  to  lay  the  foundations  for  a 
constant  replenishment  of  creative  talents  and  stimulate  demand  for  more  diverse  and 
sophisticated creative contents and products. In a lifelong learning perspective, creative skills 
and competences can help to respond to changes in requirements of the labour market.  

Partnerships with education can also contribute to a stimulating learning environment, helping 
learners, notably those in difficulty, acquire basic skills and develop competences required for 
their  future  professional  life,  thus  improving  their  employability.  Creative  and  cultural 
initiatives at the local level can contribute to the integration of marginalised communities and 
offer opportunities for people in deprived neighbourhoods.  

Improving access to finance 

The small size of cultural and creative businesses, the uncertainty about the demand for their 
products, the complexity of their business plans and their lack of tangible assets are obstacles 
for obtaining external financing. While equity finance, angel investment, venture capital and 
guarantees are alternative financing possibilities, they remain widely under-used. There is also 
anecdotal evidence of a market gap for export operations financing. 

Therefore, financial institutions need to increase their awareness of the economic potential of 
these sectors and develop their capacity to assess businesses relying on intangible assets. In 
parallel,  entrepreneurs  in  these  sectors  should  be  helped  in  better  understanding  the 
requirements  of  business  planning  and  allocation  of  funds  to  finance  their  activities  and 
growth. 

Enlarging the marketplace: new partnerships and business models 

Cultural  and  arts  institutions  and  services  need  to  strengthen  their  audience  development 
capacity,  seize  new  opportunities  (in  particular  across  borders)  and  respond  to  changes  in 
audience behaviour and expectations. New services exploiting the possibilities offered by ICT 
and online service delivery are emerging, offering ways to better address consumers' demand 

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for  access  to  a  wide  variety  of  contents  and  products  and  for  greater  participation  in  the 
creative process. These new approaches and services should also translate into new revenue 
streams. 

To  push  ahead  with  the  creation,  production  and  distribution  on  all  platforms  of  digital 
content, the cultural and creative sectors must enter strategic and fair partnerships with other 
sectors which can lead to innovative business models, through which content  is accessed in 
different ways, achieving a balance between right-holders' revenues and the general public's 
access to content and knowledge, thus promoting cultural and media literacy. In that context, 
the full potential of Europeana14, the single access platform linking the digital collections of 
Europe's  libraries,  museums  and  archives,  should  be  increasingly  exploited  as  a  basis  for  a 
new eco-system of applications and digital products targeting tourism, education, creation and 
culture. 

Expanding international reach 

Smart internationalisation and export promotion policies are needed to allow a wide majority 
of  small  organisations  and  companies  to  operate  in  a  global  environment  and  reach  new 
audiences  and  markets  worldwide.  It  is  necessary  to  identify  the  most  effective  support 
services,  facilitate  access  to  foreign  markets,  reinforce  regulatory  dialogues  and  assess 
possible  risk  sharing  facilities.  Pooling  of  resources  and  increased  cooperation  between 
various actors in the EU could be further explored to promote a stronger cultural and creative 
presence  of  Europe  on  the  world  scene  and  an  attractive  European  image  bridging  our 
excellence in the field of heritage to vibrant cutting edge creativity. 

Reinforcing cross-sectoral fertilisation 

The cultural and creative sectors need multi-disciplinary environments where they can meet 
with businesses from other industries. Any public intervention aiming to further develop them 
calls  for  cross-sectoral  fertilisation.  This  requires  the  development  and  testing  of  better 
business  support  instruments  and  policies  that  aim  to  facilitate  cross-sectoral  linkages  and 
spill-overs.  It  implies  fostering  change  amongst  the  sectors  themselves  while  adding  new 
skills and competencies into other industries and vice versa. 

It  also  requires  further  cooperation  between  different  policies,  embracing  in  particular 
economic  affairs,  industry,  education,  tourism,  innovation,  urban  and  regional  development 
and territorial planning. 

In  view  of  the  above,  Member  States,  at  all  territorial  levels  and  involving  – when 
appropriate – all relevant public and private stakeholders, are invited to: 

- Fully assess the potential of CCS15 for smart, inclusive and sustainable growth and further 
integrate them in their development strategies at all levels, in particular in the context of smart 
specialisation strategies16 

-  Reinforce  cooperation  across  CCS  and  with  other  sectors  such  as  ICT,  tourism  etc., 
including  through  joint  initiatives  to  foster  understanding  across  sectors  and  contribute  to 
developing a more open, innovative and entrepreneurial mind-set in the economy 

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www.europeana.eu 
Stands for cultural and creative sectors 
See page 10 

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-  Encourage  and  facilitate  the  setting  up  of  platforms,  networks  and  clusters  between  all 
public and private stakeholders that are relevant for CCS 

-  Encourage  structured  partnerships  between  the  CCS,  social  partners  and  all  types  of 
education and training providers, including apprenticeships 

- Promote the recognition of qualifications in informal and non-formal education and training 
in fields that are relevant to CCS 

-  Improve  investor-readiness  of  financial  institutions  and  investment-readiness  of  CCS,  and 
devise dedicated financial engineering instruments, in particular guarantee schemes, including 
through an appropriate use of the forthcoming Creative Europe Programme and the Cohesion 
Policy Funds 

-  Support  CCS  in  exploring  and  testing  new  audience  development  strategies  and  business 
models which are relevant in the digital shift 

-  Support  the  digitisation  of  cultural  content  and  the  development  of  online  platforms  in 
compliance with relevant EU state aid rules 

- Encourage CCS to explore and reinforce their presence on international markets, including 
through the development of international partnerships and cooperation with third countries  

4. 

ADDED VALUE FOR ACTION AT EU LEVEL 

The  EU  has  clearly  a  role  to  play  in  helping  to  put  in  place  the  right  environment  and 
supporting this agenda of adaptation. 

Promoting the right regulatory environment 

As  part  of  the  Small  Business  Act  for  Europe,  the  EU  is  putting  in  place  a  SME  policy 
framework  for  the  EU  and  its  Member  States  aiming  to  improve  the  overall  approach  to 
entrepreneurship17. It is particularly relevant for the cultural and creative sectors where small 
and micro-enterprises are predominant. 

Focusing  on  the  need  to  make  progress  in  the  achievement  of  a  fully  integrated  digital 
European  Single  Market,  the  Communication  "A  Single  Market  for  Intellectual  Property 
Rights"18  sets  out  a  blueprint  for  initiatives  to  deliver  an  EU  IPR  framework  rewarding 
creative efforts and facilitating cross-border activities in the internal market. As a result, the 
Commission  adopted  legislative  proposals  on  orphan  works19  and  collective  rights 
management20.  Assessment  of  the  audiovisual  sector  is  being  taken  forward  following  the 
Green Paper on the Online Distribution of Audiovisual Works in the EU21. The Commission 
is  fostering  a  mediation  process  with  stakeholders  on  private  copying  levies.  Work  is  also 
foreseen  to  improve  the  valuation  of  intangible  assets,  a  crucial  issue  for  access  to  private 
financing. 

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http://ec.europa.eu/enterprise/policies/sme/small-business-act/ 
COM(2011) 287 
COM(2011) 289 
COM(2012) 372 
COM(2011) 427 

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For  those  cultural  and  creative  sectors  relying  on  brands  and  customers'  loyalty, 
modernisation  and  adaptation  of  the  trademark  system  are  crucial.  In  the  context  of  the  EU 
Observatory  on  IPR  infringements,  better  analysis  of  reliable  data  on  IPR  value  and 
infringement,  sharing  of  best  practices  and  awareness-raising  are  needed  to  combat 
counterfeiting  and  piracy  in  an  effective  and  efficient  manner.  Against  this  background,  the 
Commission  facilitates  cooperation  between  intellectual  property  rightholders  and  Internet 
platforms  in  the  context  of  the  Memorandum  of  Understanding  on  the  sale  of  counterfeit 
goods  via  the  Internet,  which  seeks  to  reduce,  at  a  pan-European  level,  the  offer  of  fake 
cultural goods on the internet22.  

Under  the  Digital  Agenda  for  Europe23,  which  includes  actions  to  address  barriers  to  the 
development of Europe's online markets, certain aspects of the initiatives on re-use of public 
sector information can contribute to a better exploitation of and access to cultural assets. 

One of the priority actions set out by the Communication on the future of VAT24 is a review 
of  the  current  VAT  rates  structure.  According  to  one  of  the  principles  guiding  that  review, 
similar goods and services should be subject to the same VAT rate and progress in technology 
should be taken into account, so that the challenge of convergence between the online and the 
physical environment is addressed. 

For  an  efficient  digital  market  also  offering  new  opportunities  to  the  cultural  and  creative 
sectors, the Commission will continue to implement the initiatives set out in the action plan 
on  Digital  Single  Market  for  e-commerce  and  online  services25,  including  an  initiative  on 
"Notice and action" procedures and an initiative on net neutrality. 

In the context of State Aid Modernisation26, exemption from notification will be considered 
for aid in the cultural sector. Furthermore, support to innovation, including non-technological 
innovation, will be considered in the next review of the Community framework for state aid 
for research, development and innovation. 

Facilitating the exchange of good practices and peer-learning 

Initiatives at EU level can accelerate the pace of adaptation, foster the dissemination of good 
practices and improve networking within cultural and creative sectors. Since the adoption of 
the European Agenda for Culture27 in 2007, national authorities have been cooperating in this 
field.  An  Expert  Group  has  been  set  up  to  discuss  and  validate  national  or  regional  best 
practices and make proposals for cooperation initiatives. The group published a handbook on 
strategic  use  of  the  EU  Cohesion  Policy  Funds  to  foster  the  potential  of  culture  for  local, 
regional  and  national  development,  in  particular  by  contributing  to  smart  specialisation 
strategies28. The group will now focus on internationalisation and export strategies. Another 
example  is  the  Policy  Learning  Platform  set  up  under  the  European  Creative  Industries 
Alliance29, in order to promote exchanges and cooperation in better business support, access 
to funding and cluster excellence and cooperation. 

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http://ec.europa.eu/internal_market/iprenforcement/stakeholders/index_en.htm#maincontentSec2 
COM(2010) 245 
COM(2011) 851  
COM(2011)942 
COM(2012) 209 
COM(2007) 242 
http://ec.europa.eu/culture/news/cci_en.htm 
https://www.howtogrow.eu/ecia/ 

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The  Commission  also  intends  to  support  peer  learning  among  city  administrations,  to  allow 
local policymakers to share and compare experience on the impact of culture in the social and 
economic revitalisation of cities.  

Towards 2020: Mobilising a wide range of specific and generic financial supports 

The Commission's proposals for programmes and instruments for the new Multi-annual 
Financial  Framework  2014-2020,  notably  Creative  Europe30,  Erasmus  for  all31,  the 
Cohesion  Policy  Funds32,  Horizon  202033,  COSME34  and  Connecting  Europe  Facility35  can 
make a decisive contribution to support the further development of the cultural and creative 
sectors and strengthen their contribution to the Europe 2020 Strategy for jobs and growth.  

Creative Europe aims to promote cultural and linguistic diversity in Europe and reinforce the 
competitiveness of the cultural and creative sectors. It will: 

- Support cross-border networking, partnership and peer-learning activities to strengthen the 
sectors'  capacity  to  operate  beyond  national  borders  and  help  respond  to  challenges  such  as 
the digital shift, globalisation and fragmented European markets 

-  Set  up  a  dedicated  Financial  Facility,  providing  guarantees  to  make  access  to  bank  loans 
easier  for  small  enterprises  and  organisations;  this  facility,  included  in  the  future  Financial 
Debt Instrument for SMEs together with the Horizon 2020 and COSME Facilities, will also 
seek  to  achieve  a  systemic  impact  on  the  financial  sector,  by  improving  the  capacity  of 
financial institutions to assess cultural and creative projects, pooling current limited expertise 
across national borders, and support initiatives aiming to strengthen the investment-readiness 
in the sectors 

-  Support  actions  for  capacity  building  aimed  at  audience  development  and  the  testing  of 
business models 

- Support measures to help the sectors operate internationally  

Erasmus  for  All  will  support  investment  in  education  and  training,  both  in  the  form  of 
learning mobility, partnerships for innovation and policy support. As part of its endeavour to 
promote  cooperation  for  innovation,  the  programme  will  support  large-scale  partnerships 
(Knowledge  Alliances)  between  higher  education  and  businesses  and  partnerships  between 
vocational  education  and  training  and  businesses  (Sectoral  Skills  Alliances).  This  provides 
important  opportunities  for  partnerships  between  cultural  and  creative  sectors  and  the 
education and training sector. 

Building on the ample opportunities already provided36, the Cohesion Policy Funds will keep 
on supporting investments in the cultural and creative sectors, to maximise the contribution of 
culture as a tool for local and regional development, urban regeneration, rural development, 
employability  and  social  inclusion.  Examples  of  investments  could  include  research, 
innovation, SME competitiveness and entrepreneurship in cultural and creative industries, or 

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36 

COM(2011) 785 
COM(2011) 788 
http://ec.europa.eu/regional_policy/what/future/proposals_2014_2020_en.cfm 
COM(2011) 809 
COM(2011) 834 
COM(2011) 665 
Study on the contribution of culture to local and regional development, 2010 

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the  protection  and  enhancement  of  cultural  heritage  and  landscapes37.  In  addition,  the 
European  Agricultural  Fund  for  Rural  Development  will  continue  its  support  for  the 
upgrade of rural cultural heritage and for improving access to cultural services in rural areas 
by providing investment and training support to cultural and creative businesses, stimulating 
also their networking and cluster development, in particular through LEADER38.  

In  this  context,  the  use  of  dedicated  financial  engineering  instruments  will  be  further 
encouraged,  including  in  relation  to  the  cultural  and  creative  sectors.  In  its  vision  for  the 
future  Cohesion  Policy,  the  Commission  has  pointed  to  these  sectors  in  the  context  of  the 
development of smart specialisation strategies for local and regional development39. This calls 
for  a  stronger  integration  between  strategies  at  local/regional  levels  and  those  at  national 
levels.  The  focus  should  now  be  on  assessing  the  potential  of  the  sectors  in  regional 
development  strategies  in  the  forthcoming  definition  of  Partnership  Agreements  and 
Operational  and  Rural  Development  Programmes,  taking  into  account  the  dynamic  links 
between traditional cultural assets, the development of creative businesses and the response to 
social  and  environmental  challenges,  and  favouring  a  better  mix  of  investments  in 
infrastructure and human capital40. 

COSME  aims  to  strengthen  the  competitiveness  and  sustainability  of  EU  enterprises  and 
SMEs  and  encourage  an  entrepreneurial  culture.  The  Commission  is  proposing  actions  to 
foster  the  development  of  world-class  clusters  and  business  networks,  and  to  accelerate  the 
emergence  of  competitive  industries  based  on  cross-sectoral  activities,  which  is  particularly 
relevant for cultural and creative sectors. Concrete actions are proposed to encourage adoption 
of new business models and commercial use of creative ideas which lead to customised and 
personalised goods and services meeting consumers' demand. The Commission also proposes 
to  develop  actions  linking  and  adding  skills  and  competencies  in  the  fields  of  design, 
creativity and manufacturing. 

Horizon 2020 will govern the EU support to research and innovation activities and promote a 
better  exploitation  of  the  industrial  potential  of  policies  of  innovation,  research  and 
technological  development.  It  aims  to  reinforce  competitiveness  across  a  range  of  emerging 
industries and sectors, which is of particular relevance for cultural and creative sectors. It will 
support  technological  developments  in  relation  to  these  sectors,  such  as  innovative 
technologies for the creation and use of creative content and innovative materials for creative 
industries. Horizon 2020 will also explore new forms of innovation, such as social innovation 
and  creativity,  in  order  to  enhance  positive  inter-cultural  dynamics  in  Europe  and  with 
international partners. 

Connecting Europe Facility aims to boost Europe's transport, energy and digital networks. It 
will  provide  sustainable  funding  to  Europeana  and  will  support  related  activities  such  as 
mechanisms  for  the  exchange  of  rights  information  and  licensing  or  competence  centres  on 
digitisation and preservation of digital cultural heritage. 

At  the  international  level  policy  dialogue  between  the  EU  and  third  countries,  both  at 
bilateral and regional level, can be used to build up trust and open opportunities to engage in 

37 
38  
39 

40 

SWD(2012) 61, part II 
http://enrd.ec.europa.eu/leader/en/leader_en.cfm 
http://s3platform.jrc.ec.europa.eu/c/document_library/get_file?uuid=a39fd20b-9fbc-402b-be8c-
b51d03450946&groupId=10157  
Ibid. 

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win-win partnerships, including for the cultural and creative sectors41. Through cooperation, 
culture  will  continue  being  an  essential  vector  of  socio-economic  development  and  of 
strengthening  human  rights,  democracy,  civil  society  and  other  key  elements  of  good 
governance42. 

The Commission will: 

- Continue to improve the EU regulatory framework for CCS 

-  Negotiate  with  the  European  Parliament  and  the  Council  its  proposals  for  EU  funding 
instruments for 2014-2020, and prepare their implementation 

- Support the exchange of good practices within the EU 

Shorter term actions at EU level to support the key policy drivers 

In a shorter term, efforts deployed in Member States, at all territorial levels, will be completed 
by a number of EU initiatives to support the emergence of creative ecosystems across sectors 
at various stages of the value chain: 

- Addressing changing skills needs 

Knowledge  Alliances  are  being  tested  between  higher  education  and  businesses  to  promote 
innovation. A Cinema and Industry Alliance for Knowledge and Learning43 will report on its 
work in 2013. 

The EU is funding the first phase of a European Sectoral Skills Council in the audiovisual and 
live  performance  sectors44,  and  it  is  also  funding  a  European  Sectoral  Skills  Council  in  the 
textile, clothing and leather sectors45 to analyse skills needs. 

By end 2013, a Member States Expert Group set up in the framework of the European Agenda 
for Culture will produce a report on the promotion of Creative Partnerships between schools 
and cultural and creative businesses and organisations. 

- Improving access to finance 

In  the  framework  of  the  European  Creative  Industries  Alliance,  the  EU  is  funding  two 
partnerships on better access to finance (FAME and C-I Factor) until 2014. 

The  MEDIA  Production  Guarantee  Fund46  is  facilitating  film  producers'  access  to  private 
sources of financing. 

41  

42  

43 
44 
45 
46 

Policy dialogues could in particular be supported under the Partnership Instrument (PI) 

Such  objectives  will  be  supported  both  under  geographical  and  thematic  cooperation  through  the 
Development  Cooperation  Instrument  (DCI),  the  European  Neighbourhood  Instrument  (ENI),  the 
Instrument for Pre-Accession Assistance (IPA) and the 11th European Development Fund (EDF) 
http://ec.europa.eu/education/higher-education/ka1_en.htm 
http://www.pearle.ws/en/projects/detail/16 
http://europeanskillscouncil.t-c-l.eu/eng/ 
http://ec.europa.eu/culture/media/programme/overview/funding/index_en.htm 

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The Commission will assess the possibility of setting up a similar Guarantee Fund for fashion 
businesses. 

Under the IPR Strategy, the Commission will formulate policy proposals aiming to improve 
the economic exploitation of IPR47. 

- Enlarging the marketplace 

In 2012, the Commission will: 

- Fund a preparatory action on the circulation of European films in the digital era48 

- Fund a pilot project on innovative uses of ICT in CCS49 

- Fund a Thematic Network on new business models for publishing in the digital age50 

- Organise a European exchange of practice conference51 on audience development 

- Adopt a recommendation on European film in the digital era 

By end 2012, a Member States Expert Group set up in the framework of the European Agenda 
for  Culture  will  produce  a  report  on  policies  and  good  practices  of  public  institutions  to 
promote better access to and participation in culture. 

In 2013, the Commission will: 

-  Support  the  production  of  more  powerful  and  interactive  tools  for  creative  industries  and 
anticipate  future  trends  in  research  and  innovation  through  interaction  in  and  between 
different segments of these industries52 

- Launch a WORTH Pilot Project to stimulate market oriented support and advice to SMEs in 
fashion or design-based personal goods sector, in order to develop new creative products and 
services through cooperation with designers 

The European Heritage Label53 and the European Capitals of Culture54 initiatives will also be 
further used as laboratories for audience development and citizen participation. 

- Expanding international reach 

In 2012-2013 the Commission will organise in third countries specific matchmaking events to 
support SME internationalisation through clusters, including for CCS. 

Cooperation  on  CCS  under  the  EU-China  Trade  Project  as  a  testing  phase  for  reinforced 
cooperation in this area will continue. 

47 
48 
49 
50 
51 
52 
53 
54 

http://ec.europa.eu/enterprise/policies/innovation/policy/intellectual-property/index_en.htm 
http://ec.europa.eu/culture/media/programme/overview/digitaldistrib/prepaction/index_en.htm 
http://ec.europa.eu/culture/news/12062012-pilotproject-eac10_en.htm 
WP ICT PSP 2012, p.19 
http://ec.europa.eu/culture/news/20120316-conference-audience_en.htm 
WP ICT PSP 2013, pp. 10, 81-85 
http://ec.europa.eu/culture/our-programmes-and-actions/label/european-heritage-label_en.htm 
http://ec.europa.eu/culture/our-programmes-and-actions/capitals/european-capitals-of-culture_en.htm 

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Policy  dialogues  on  culture  with  emerging  partners  will  focus  on  the  environment  for 
cooperation and exchanges in CCS. 

The Commission will also: 

- Test the feasibility of sharing the risk of existing export credit insurance schemes for SMEs 

- Explore in close consultation with EEAS ways and means to strengthen culture in external 
relations 

In 2013, a Member States Expert Group set up in the framework of the European Agenda for 
Culture will produce a handbook on internationalisation support strategies for CCS. 

- Reinforcing cross-sectoral fertilisation  

As of 2012, the Commission has been: 

- Fostering cross-sectoral linkages, under the European Creative Industries Alliance 

-  Supporting  three  large-scale  demonstrators  in  support  of  cultural  tourism  under  the 
European Mobile and Mobility Industries Alliance 

In 2012-2013, it will also:  

-  Establish  a  European  Service  Innovation  Centre  to  provide  advisory  support  to  regional 
organisations on service innovation and creativity for promoting industrial change 

-  Publish  a  Smart  Guide  on  how  to  better  use  Cohesion  Policy  Funds  for  capitalising  on 
service innovation, particularly relevant for CCS 

- Start funding a pilot project supporting two traditional industrial regions in their transition 
towards "European Creative Districts"55 

-  Review  challenges  and  options  for  measures  to  strengthen  competitiveness  of  the  EU 
fashion  and  high-end  industries  and  take  due  account  of  the  corresponding  Staff  Working 
Documents  

- Assess the recommendations to be presented by the European Design Leadership Board in 
2012 and formulate an action plan for accelerating the take up of design in innovation policies 

-  Develop  and  test  under  the  European  Cluster  Excellence  Initiative  training  modules  to 
promote the role of creativity, creative skills and creative sectors for the change of traditional 
industrial activities 

-  Launch  a  stakeholder  consultation  on  the  relevance  of  setting  up  a  European  Experience 
Economy  Alliance,  to  foster  cross-sectoral  interaction  between  CCS,  leisure,  sport  and 
tourism and support the development of new industrial value chains 

55 

http://ec.europa.eu/enterprise/newsroom/cf/itemdetail.cfm?item_id=5782&lang=en 

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5. 

MONITORING PROGRESS 

Harnessing the full potential of CCS can make a major contribution to growth and jobs and 
accelerate  the  shift  towards  a  knowledge  based  innovation  society.  To  realise  this  potential, 
action  is  needed,  at  national,  regional  and  local  level,  and  at  EU  level,  to  support  the 
implementation  of  the  multi-layered  strategy  delineated  above,  focusing  in  the  short  and 
longer terms in particular on the five key policy drivers: developing skills; improving access 
to finance; promoting new business models and enlarging audiences; facilitating cooperation 
with  other  sectors  and  policies;  and  expanding  international  reach.  This  strategy  will  also 
promote  cooperation  with  the  EU's  partners.  It  will  count  on  the  support  of  other  European 
institutions and stakeholders. 

To monitor progress in the implementation of the strategy, the Commission proposes to use 
the existing framework for co-operation, that is the Culture Open Method of Coordination.  

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