Accelerate: Reframing culture’s role in productivity 

Summary of findings 

Finding 1

Positive examples exist of cultural and creative engagement supporting the determinants of Australia’s future productivity, including our ‘adaptable workforce’, ‘dynamic business environment’ and ‘data, digital technology and diffusion’. There is also evidence of existing cross-sectoral initiatives in response to climate change, ageing population and healthcare.

Finding 2

Australia’s cultural and creative industries contribute to productivity growth by inventing, introducing and embedding new and improved products in the economy. Prominent examples exist in fashion, technology and music. ‘Skills’, ‘industry associations’ and, to a lesser extent, ‘place’ are identified as channels for diffusing innovation in Australia’s cultural and creative industries.

Finding 3

Digital infrastructure, the productivity of the next generation (human capital) and regulatory settings promoting market openness influence Australia’s competitive position in the future trade of cultural and creative services.

Finding 4

Artificial intelligence and platform work are productivity tools in the cultural and creative industries, but the ‘net impact’ of these tools on all employment remains ‘ambiguous’.

Finding 5

Australia’s five-year productivity inquiry does not measure productivity in the cultural and creative industries. The inquiry’s findings on Australia’s broader ‘non-market sector’ (schools, hospitals, childcare and defence) are relevant to parts of the cultural and creative industries.

Summary of opportunities 

These opportunities seek implementation through the architecture of National Cabinet.

Opportunity 1

Harness the proven benefits of cultural and creative engagement and strengthen the public investment logic for culture and creative activities. Australia’s National Cabinet and relevant ministerial councils across portfolios should consider

• cultural and creative engagement to build an adaptable workforce; harness data, digital technology and diffusion; and create a more dynamic economy
• cultural and creative initiatives that tackle productivity headwinds and specific challenges (climate change, ageing population and healthcare costs)

Opportunity 2

Consider arts, culture and creativity when developing productivity policy and innovation, trade and employment initiatives. This will require coordination of Australia’s three levels of government and the following:

• identification of innovation diffusion channels in the cultural and creative industries (e.g. peak bodies, industry groups, regulatory organisations and code reviewers; see Opportunity 3)
• identification of productive investment needs to support the cultural and creative services trade (see Opportunity 4)
• consultation with platform workers of the cultural and creative industries on any proposed reforms to workplace entitlements and protections, including those relating to safety

Opportunity 3

Strengthen the diffusion of innovation within and from the cultural and creative industries. An early step for progressing this opportunity within the architecture of Australia’s National Cabinet is to make the meeting of Cultural Ministers a Ministerial Council that reports annually to National Cabinet.

Opportunity 4

Bolster Australia’s competitive position in the trade of cultural and creative services by identifying productive investments in human capital and digital infrastructure alongside regulatory settings supporting global trade and investment flows.

Explore investment options ‘where the private sector is unwilling or unable to invest’ including in

• skills that combine technical mastery, broad capabilities and adaptability
• cost-effective provision of digital infrastructure in regional Australia
• work-from-home infrastructure

Two existing groups for exploring such investments are the Skills & Workforce Ministerial Council and the Council on Federal Financial Relations under Australia’s National Cabinet.

Opportunity 5

To foster productivity gains, providers of free-of-charge (or well-below-cost) cultural and creative services (such as government-funded or government-operated cultural institutions) should consider

• adopting ‘flexible’, ‘blended’ and ‘shared’ approaches to financing
• using and reporting benchmark results
• making data-led improvements in the quality and variety of goods and services