ADB Report: New Strategies Essential for Developing Countries to Harness Digital Creative Economy

Despite strong demand from global entertainment companies for local content and collaboration with local talent, a significant skills gap exists.

A recent report published by the Asian Development Bank (ADB) emphasizes the potential of coherent national strategies in developing talent and expanding digital creative industries, enabling developing countries to tap into the global creative economy. By doing so, these countries can generate high-quality jobs and contribute significantly to economic growth.

“Digital disruption of creative industries can present huge economic potential in Asia and the Pacific,” stated Bruno Carrasco, ADB Director General for Climate Change and Sustainable Development, during the launch of “A Review of Digital Creative Industries in Asia: Opportunities and Policies to Foster Growth and Create High-Quality Jobs.” He noted, however, that the current policy environment often hinders creatives from thriving and integrating into the global value chain.

Opportunities and Challenges

The report, which is based on over 40 interviews with key stakeholders from India, Indonesia, Thailand, and Viet Nam, including industry associations and creative professionals in sectors like film, gaming, and music, identifies a wealth of opportunities for emerging countries. It highlights the urgent need for talent development and policies that foster high-quality job creation.

Despite strong demand from global entertainment companies for local content and collaboration with local talent, a significant skills gap exists. The report finds that there are insufficient skilled local producers, screenwriters, and programmers to meet this demand. To address this issue, it recommends that governments and industry stakeholders:

Define essential knowledge and skills needed for various creative roles.

Establish lifelong training systems for continuous skills development.

Incentivize businesses to invest in upskilling their workforce.

Improve working standards within the creative industries.

Learning from Creative Powerhouses

Long-term strategies implemented in countries such as Canada, South Korea, Singapore, and the United Kingdom have successfully grown their domestic talent pools and attracted foreign investment in their creative sectors. The report distills valuable lessons from these nations that can inform policymakers in developing countries seeking to enhance their creative industries.

Funding Barriers

Another significant barrier highlighted in the report is the severe lack of funding available in the four South and Southeast Asian countries analyzed. This funding gap restricts the growth of local film producers, game developers, and musicians, despite the advantages offered by high-speed internet, streaming platforms, and portable devices, which allow them to access broader audiences.

To combat these funding challenges, the report advocates for the establishment of structured funding facilities, including:

Loans and credit guarantees

Grants

Venture capital financing

Such financial mechanisms can help transform creative ideas into viable projects. With sufficient support from government initiatives or through public-private collaborations, these businesses can receive the financial backing necessary to innovate and expand.

Collaboration with Industry Leaders

The report was produced with support from Netflix, which provided expertise and facilitated access to key stakeholders in the digital creative industry. This collaboration aligns with ADB’s efforts to generate knowledge and bolster the creative industries in Asia and the Pacific.

The findings from this report underscore the critical need for tailored policies and investment in talent development and infrastructure to enable developing countries to harness the immense potential of the digital creative economy, fostering sustainable economic growth and job creation in the process.