Media Cymru’s new campaign, Fuelling the Future, highlights the impact that research, development and innovation (RD&I) investment has had in Wales, playing a significant role in driving productivity, growth and innovation in local and regional economies.
Media Cymru’s latest economic analysis (2023 data) shows an economically valuable, yet fragile, creative industries that support more than 100,000 Welsh jobs – almost 7% of Welsh employment – across 11,740 enterprises. The sector’s turnover of £5bn grew 20% in the period between 2022 and 2023. The sector has grown by an average of 750 businesses per year since 2019, with more than half (54%) of the Welsh creative industries workforce based in the Cardiff Capital Region (CCR).
Creative businesses and freelancers have been supported to grow by place-based economic growth programme Media Cymru, which is part of the UKRI’s flagship Strength in Places Fund programme.
Through a series of targeted funding calls since 2022, Media Cymru has invested more than £4.4 million into the sector via its Innovation Pipeline. In addition, the 22-partner consortium has helped to support an active ecosystem, providing user centred design, commercialisation expertise and bespoke training as well as a range of networking and knowledge sharing opportunities.
Fuelling the Future demonstrates the benefits of harnessing the power of innovation. Media Cymru is now calling for policymakers to prioritise long-term, sustainable investment for innovation activity to support the creative industries, which is a key economic driver.
Professor Justin Lewis, Director of Media Cymru, explains that this latest data reflects not only headline growth, but also the systemic value of RD&I for the creative industries.
Professor Lewis said: “Our data shows not just the rapid rate of growth but also the knock-on effects for the region and wider economy. Creative industries have unique challenges when it comes to innovation, 95% of businesses are small and often lack RD&I capacity. But our work in the Cardiff Capital Region – both with Media Cymru and previously, with the innovation programme Clwstwr – has shown that building a supportive innovation ecosystem can produce tangible economic returns. For every £1 invested in RD&I, £6 is added to the economy. That multiplier speaks to the kind of strategic value this sector can deliver and why it is vital that we have a plan for long-term support for creative innovation.”
Cardiff’s strength in media production has propelled it into the top tier of UK centres for creative output, alongside London and Manchester.
Professor Sara Pepper, Deputy Director of Media Cymru believes ongoing support for innovation is essential to maintain momentum in turning the Cardiff Capital Regional into a global hub for media innovation.
She said: “We’ve seen creative industries businesses weather a wide range of challenges over the past five years. From the impacts of the global pandemic and industrial action in the US to ongoing digital disruption, changes in audience preferences and behaviour and economic uncertainties. The sector has shown extraordinary resilience and while some businesses are feeling uncertain about the long-term future, the industry as a whole maintains its adaptability, creativity and ability to navigate challenges. We are seeing the emergence of a creative cluster in the Cardiff Capital Region that understands and is benefitting from RD&I activity and where investment of this kind is directly linked to growth and productivity. But to sustain this, we need policy frameworks and funding structures that recognise and reinforce the value of targeted innovation activity for the needs of this complex sector.”
