Statistical processing

Source data

The statistics are based on a variety of different sources. The ultimate goal is to quantify the share of the cultural and creative industries in already established national accounting concepts, with the starting point being the National Accounts and Input-Output.

To calculate the shares of the activities of the cultural and creative industries within the national accounts' industries, several different primary statistics are used. These are based on 6-digit activity codes from the Danish Industrial Classification 2007, where the first four digits refer to NACE rev. 2. These statistics are used to create several keys.

To assess how much of the underlying activities within the cultural and creative industries contribute to the overall 117 Industry classification in the Danish National Accounts, The General Enterprise Statistics (GF) is used, with turnover data serving as weights for production and gross value added (GVA).

Similarly, the annual work units for employment in the General Enterprise Statistics (GF) are used as weights to calculate the number of employees and full-time employees in the cultural and creative industries. The source for the annual work units in the General Enterprise Statistics comes from the frozen annual versions in the Business Statistics Register (ESR), which records business employment based on income data from Statistics Denmark's eIncome Register.

For import and export, corresponding weights are derived based on data from foreign trade in goods and services.

Frequency of data collection

The statistics regarding the national economic importance of the cultural and creative industries are published three months after the release of the input-output tables, which is coincident with the final annual national accounts published at the end of June each year.

Data collection

Not relevant for these statistics.

Data validation

The statistics use the national accounts' input-output tables as a tool. The full integration of the input-output tables with the final national accounts means, that the data validation of the input-output tables primarily consists of ensuring complete consistency with the national accounts. Based on this validation, culture and the creative industries are extracted as a subset of the total national accounts based on the following industry definition.

Data of turnover and annual work units on a 6-digit activity code level from The General Enterprise Statistics (GF), are used as weights in the statistics. This statistic is based on already validated data. In the production of the statistics, the aggregated levels for turnover and employment are compared with previous counting years.

Data of import and export on a 6-digit activity code level from foreign trade in goods and services are also used as weights in the statistics. Since data validation of these two registers is conducted through several stages before publication, their respective documentation of statistics are linked and referenced: International Trade in Goods and International Trade in Services.

Data compilation

The classification of the cultural and creative industries is based on 6-digit activity codes from the Danish Industrial Classification 2007. To calculate the direct and indirect effects of these sectors on production, gross value added (GVA), employment and exports, it is necessary to map these activity codes to the 117 Industry classification in the Danish National Accounts, each of which covers a range of 6-digit activity codes from the Danish Industrial Classifi­cation 2007.

In cases (mostly) where national accounts activity codes contains more than just cultural and/or creative activities, The General Enterprise Statistics (GF) is used to estimate the proportion of the underlying activities within the cultural and creative industries relative to the overall national accounts industries. These weights allow direct mapping from 6-digit activity codes from the Danish Industrial Classifi­cation 2007 to the [Industry classification in the Danish National Accounts for production, GVA, employees and full-time employees. This way, an estimate is created for the share of the cultural and creative industries within national accounts industries. The same weighting applies to import and export, where the weights are derived from data taken from the foreign trade with goods and services.

The statistics link the production in the cultural and creative industries based on 6-digit activity codes from the Danish Industrial Classifi­cation 2007 to the production in the 117 Industry classification in the Danish National Accounts. This is done, in order to facilitate use of an input-output model based on the 117 Industry classification in the Danish National Accounts to describe the indirect effects in other industries that the cultural and creative production creates.

There is no direct link between the 6-digit activity codes from the Danish Industrial Classifi­cation 2007 and the 117 Industry classification in the Danish National Accounts, so the connection is made using various keys. The link is created with industry keys between the 6-digit activity codes and the 127 industry classification in the Danish Industrial Classifi­cation 2007. From there, further aggregation to a national accounts 107 industry classification is processed, and finally, annual empirical keys are used to link from the 107 industry classification to the 117 Industry classification in the Danish National Accounts. This enables a representation of the cultural and creative activities as shares of the actual national accounts industries. Similarly, information on employment, imports and exports of the cultural and creative industries, drawn from foreign trade statistics at the 6-digit activity codes from the Danish Industrial Classifi­cation 2007, is linked to the national accounts' 117 activity codes. Gross value added (GVA) is also calculated at the 117 activity codes, based on the assumption that the cultural and creative GVA constitutes the same share of GVA in a national accounts industry than the cultural and creative total output does.

The indirect production, imports, and employment in activity codes, which are not a part of the cultural and creative industries, are calculated by creating a shock to an input-output model with the cultural and creative production. We take into account that some of the upstream activity that the input-output model captures, are already included in the calculation as "support" industries. If this were not corrected, it would result in significant double counting. The calculation within the framework of the national accounts allows for benchmarking against the rest of the economy.

The construction of the input-output tables is based on the "European System of National Accounts - ESA2010," which is a European version of the UN's "System of National Accounts 2008." In terms of data, the input-output model behind the Statbank tables for the importance of the cultural and creative industries in the national economy is primarily based on the national accounts' supply and use matrices, which are also the basis for the published national accounts data.

Input-output tables are compiled annually in both current and constant prices as an integrated part of the national accounts. For a more detailed description, see Input-Output.

The preliminary input-output tables for 2021 and 2022 are mathematical projections, based partly on the latest version of a finalized input-output table, and partly on published national accounts totals. Typically, the structure of input-output tables does not change much from year to year, but the current two preliminary years (2021 and 2022) are influenced by the economic disruptions caused by COVID-19. The consequences of COVID-19 have been incorporated into the national accounts totals (e.g., production, GVA, and employment at the industry level) used in the projection, but the input-output tables for 2021-2022 will provide a complete reflection of COVID-19 in a later release. Due to the major revision of the national accounts, the final version of 2021-2022, with a fully processed COVID-19 effect, will not be published until summer 2025. However, it is not expected that the calculations of the indirect effects from the cultural and creative industries will change significantly once the final versions are available.

Production Production is defined as an activity under the control and responsibility of an institutional unit that uses labor, capital, goods and services to produce goods and services. In the national accounts, a distinction is made between market production, production for own use and other non-market production. This distinction is of significant importance, as it is decisive for the principles of valuation of production. Market production takes place in units whose purpose is to produce goods and services for sale on the market, usually with the intention of making a profit. Total output is basically calculated as revenue from sale of the produced products at basic prices. The concept of basic prices means that no products taxes or subsidies is included in the price. For market-based production, the national accounts' definition of total output corresponds to a significant extent to the definition of "turnover" which is known from other statistics. Other non-market production is characterized by the fact that it is produced by public administration and services, organizations and associations or private households and is made available to other units, either free of charge or at prices which cover less than 50 percent of the cost of production. No market price formation takes place, and total output for these non-market activities is conventionally calculated as the sum of the costs of the activity. Libraries are an example of non-market production.

Gross value added (GVA) The gross value added is calculated as the difference between total output and intermediate consumption of goods and services. The calculation of intermediate consumption is measured in purchasers prices which implies that product taxes less subsidies is included. The gross value added at previous year’s prices is calculated through to the so-called double deflation method, whereby the deflation of total output and the value of intermediate consumption at purchasers prices is done separately and subsequently subtracted from each other. The gross value added in previous year’s prices is an expression of the real product. It indicates the gross value added the industry would have achieved in the reference year if it had produced the current year's output with the current year's input.

Employment The main source for calculating the national accounts' employment, remuneration of employees and hours worked is from the register working time account (ATR), which is a register that integrates existing labor market statistics. In the statistics, the employment is an expression of the number of employees in the creative and cultural industries, where annual working hours have been calculated accordingly.

Export and import The value of Danish exports is calculated on the basis of two statistics. The exports and imports of goods is calculated using the UHV register (foreign trade in goods), which focuses on the goods that cross the Danish border. The current account of the balance of payments contribute the exports and imports of services. Through its focus on economic ownership rather than border crossing, this statistic also captures the Danish export of goods produced abroad.

Indirect effects By taking advantage of the fact that the activity in the creative and cultural industries is mapped to the national accounts' industry classification, it is possible to use an input-output model based on Statistics Denmark's input-output tables to calculate the indirect effects that these industries have on other industries in the Danish economy. An input-output table is an arrangement in matrix format of the national accounts' statistics for the supply in terms of production and import of products, as well as use of the same products as input in production or for final use. The latter is divided into household consumption, public consumption, investments and exports. The input-output table can be transformed with simple mathematical techniques into an input-output model, which can contribute to analyzes of how the demand for a given industry is generating activities in other industries via the so-called multiplier effects. The indirect effects of the production of culture and creative services are calculated by "shocking" the input-output model with the industry-distributed input in production in the cultural and creative industries. This results in a measure of how much production and employment the required input in the cultural and creative production generates at sub-suppliers and their sub-suppliers. Since imports and GVA in the model are assumed to be proportional to production, the indirect effects on other industries' imports and GVA can also be estimated. Calculations with an input-output model will itself “find” the sub-suppliers for the industries designated as "Core". Among these are many of the industries that are already included in the calculation as "Support". In order to avoid double counting, this has been taken into account in the calculations. The calculations of the indirect effects of culture and creative production are made separately. Because certain industries are defined as both cultural and creative, both direct and indirect effects are calculated for these industries in both analyses, and the results of the two sets of calculations cannot therefore be added together. Thus, one creative industry’s indirect effects is a measure of the production that the industry's activity has generated in suppliers and their sub-suppliers in other industries than the creative one. When the direct and indirect effects are added together for a given industry, the result thus consists of production in the industry itself (direct effects) and production in other industries (indirect effects).

Adjustment

Not relevant for these statistics.