The measurement of Brazil's Cultural and Creative Industries (CCI) GDP represents a significant initiative developed as an outreach piece in partnership with the Itau Foundation. It brings together multiple partner institutions, leveraging their expertise in economics, culture, and creative industries to develop a comprehensive measurement framework.
The research process was structured in multiple interconnected phases, beginning with an extensive consultation period. This initial phase included international workshops with four experts from different regions, complemented by two rounds of Delphi methodology consultation with national experts. These consultations were crucial in identifying appropriate methodological approaches and understanding Brazil-specific considerations that must be incorporated into the measurement framework.
In defining the sectors to be included, the research employed a dynamic model, the creative intensity model, rather than a static classification. This approach allowed for a more nuanced understanding of Brazil's creative economy, encompassing sectors such as fashion, artisanal activities, publishing, cinema, radio and TV, music, software and digital games development, IT services, architecture, advertising and business services, design, performing arts, visual arts, and museums and heritage. The dynamic nature of this model acknowledged that creative sectors can evolve differently across economies and periods.
The data collection phase drew from multiple primary databases to ensure comprehensive coverage. These included RAIS for formal employment data, PNADc for household survey information, the Annual Service Survey (PAS), the Annual Trade Survey (PAC), ECAD for digital and streaming revenue data, Rouanet Law reports, and IBGE Resource and Use Tables. This multi-source approach allowed for a more complete picture of the sector's formal and informal economic activity.
Methodologically, the research introduced several innovations. Most notably, it employed an income approach to GDP calculation, expressed through the formula GDP_CCI = WM + PM + TAX + OR, where WM represents Wage Mass (labour remuneration), PM stands for Profit Mass (business surplus), TAX accounts for government revenue from the sector, and OR encompasses other revenues such as digital and copyright income. This income-based approach was chosen over traditional production or expenditure approaches as it better captured the sector's unique characteristics and allowed for a more accurate measurement of informal activity.
The methodology also incorporated several innovative processes for data handling and integration. The research team developed specific correction factors for informal work, created weighting systems based on company size, and implemented adjustments for regional economic differences. They also established controls for outliers in profit calculations, which was particularly important given the sector's diverse nature.
The consultation process represented a methodological innovation, using a two-track expert consultation system. International experts provided global perspectives and best practices, while national experts contributed a crucial understanding of the Brazilian context. The Delphi method was employed to build consensus around key methodological decisions.
In addressing digital transformation, the research made significant efforts to incorporate streaming revenues, digital platform activity, and online cultural consumption into its measurements. This required developing new approaches to capturing and measuring digital economic activity within the artistic and creative sectors.
Data treatment procedures were carefully designed to ensure accuracy and comprehensiveness. This included developing correction factors for informal work, creating weighting systems for company size, adjusting regional economic differences, and controlling for outliers in profit calculations. The research team focused on regional variations, developing state-level measurements and accounting for local cultural specificities.
This methodology represents a significant advance in measuring Brazil's cultural and creative economy, though the research team acknowledged certain limitations and areas for future improvement. These mainly centred around challenges in capturing digital revenue data, measuring informal sector activity, and addressing regional data inconsistencies.
Economic Contribution
The Cultural and Creative Industries (CCI) sector contributed between 2-3.5% of Brazil's GDP in 2020, placing it among the country's top 10 economic sectors
This contribution was calculated through multiple revenue streams including wage mass, profit mass, tax revenue, and other revenues including digital/streaming income
The sector shows significant multiplier effects throughout the broader economy through linkages with other industries
Regional Distribution
São Paulo state dominated the sector with 52.7% of total CCI GDP
Other significant contributors included:
Rio de Janeiro
Minas Gerais
Santa Catarina
Paraná
Rio Grande do Sul
This distribution reveals significant regional inequalities in cultural and creative production and consumption
Pandemic Impact and Recovery
The sector showed notable vulnerability to COVID-19 restrictions
Wage mass data showed sharp decline after Q1 2020
Digital and streaming revenues gained increased importance during the pandemic
By late 2021, recovery trends emerged, particularly in digitally-enabled creative activities
The crisis accelerated digital transformation within the sector
LIMITATIONS AND CHALLENGES
Data Collection Gaps
Digital Revenue Tracking:
Limited visibility into streaming platform revenues
Difficulties measuring international digital transactions
Challenges in capturing value from free digital content
Informal Sector:
Underestimation of informal creative activities
Difficulty tracking intermittent and freelance work
Limited data on secondary income sources
Regional Issues:
Inconsistent data quality across regions
Limited granularity in smaller states
Challenges in measuring cross-state cultural flows
Methodological Constraints
Digital Platform Integration:
Need for better methods to value free digital content
Challenges in measuring platform-based creative work
Limited data on digital exports
Informal Economy:
Current methods may underestimate informal contribution
Difficulty capturing cash-based transactions
Challenge of measuring part-time creative work
RECOMMENDATIONS
Enhanced Data Collection
Microdata Improvements:
Develop better systems for capturing revenue and profit data
Implement more detailed digital transaction tracking
Create specialized surveys for informal sector activity
Digital Measurement:
Establish partnerships with major digital platforms
Develop methods for valuing free digital content
Create frameworks for measuring digital exports
Institutional Framework
Government Initiatives:
Establish formal agreements with digital platforms for data sharing
Create standardized reporting frameworks for creative industries
Implement regular data collection protocols
Cross-sector Collaboration:
Foster partnerships between statistical agencies and cultural institutions
Develop shared methodologies across regions
Create common standards for measuring cultural activity
Methodological Advancement
Measurement Tools:
Refine existing measurement instruments
Develop new tools for digital value capture
Create better methods for informal sector estimation
Integration Approaches:
Better integration of digital and traditional metrics
Improved methods for capturing cross-border flows
Enhanced techniques for measuring informal activity
Future Research Directions
Develop longitudinal studies of sector development
Investigate regional development patterns
Study the impact of digital transformation
Analyse informal sector dynamics
Examine international competitiveness
These findings and recommendations provide a roadmap for improving the measurement and understanding of Brazil's cultural and creative economy, while acknowledging the complex challenges that need to be addressed for more accurate future assessments.