Russia has lost 25% of creative business in five years | 10/29/21
For the fifth year in Russia, the number of organizations working in the creative sectors of the economy has been declining.
The extinction process, which began in 2016, has led to the destruction of one in four creative businesses in the country, follows from counting Institute for Statistical Research and Economics of Knowledge, National Research University Higher School of Economics.
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In 2016, 9.7 thousand organizations of creative industries were closed, in 2017 – 3.7 thousand, in 2018 – 11 thousand, in 2019 – 19.5 thousand, in 2020 – more than 20 thousand.
“The real decline is based on a number of fundamental examples, including: lack of economic growth, insufficient innovation potential, lack of examples of real business success,” the HSE experts note.
In five years, 27% of organizations engaged in advertising and PR, 21% of recording companies, and every third broadcasting business have ceased to exist in Russia.
The economy lost 30% of business in the film and animation sector, 14% of architectural firms. The maximum decline was observed in photography (-73.4%), jewelry (-51.1%) and publishing (-41.6%).
The creative sector survived the pandemic “worse, the Russian economy as a whole, for which the record for the decline fell on organizations in 2019,” the study says.
In 2020, 7.6 thousand organizations in the field of advertising and PR (-18.1%) closed, 4.2 thousand in the field of video games (-6.8%), 2.6 thousand in the field of architecture (-11.3 %), 1.2 thousand – in the publishing sector (-11.4%).
The photography sector lost every fifth business (-22.5%), jewelry – every sixth (-16.6%).
At the same time, employment in the creative sectors increased – from 3.9 million people in 2017 to 4.8 million at the end of the last year.
“These industries provided approximately 70% of growth over the period under review,” the study says.