The economic promise of CreaTech: Projections, key findings, and the road ahead
The term ‘CreaTech’ - the fusion of emerging technology and the Creative Industries - has gained remarkable traction in the UK, and on the global stage. As innovative technologies shape new forms of artistic expression and drive productivity in traditional and emerging creative sectors, the question arises: How much economic benefit might CreaTech actually deliver?
This post explores high level projections around CreaTech’s prospective economic and jobs impact - specifically, estimates of how investments in skills, research and development (R&D), and business growth could generate up to £18 billion in additional Gross Value Added (GVA) over the next decade. These estimates form a moderate scenario, contingent upon steady policy implementation and macroeconomic conditions.
Our projections are made on the basis of the Government taking up a number of key policy recommendations, drawn from our recent report on CreaTech commissioned by the Royal Anniversary Trust and DCMS. These projections were developed alongside - but independently - of the project; however, we hope they serve as supporting evidence to highlight the importance of investing in this area over the next decade
Skills and workforce Growth
For CreaTech to thrive, the UK must have a highly skilled workforce - one that combines creative talent with technical know-how. Projections suggest that focusing on education and training in this area could create significant new job opportunities, with a notable knock-on effect on GVA.
The scenario
Annual job creation: By increasing training and education programmes dedicated to CreaTech skills, around 16,000 direct jobs could be generated every year. These roles would range from software development in creative businesses, to immersive technology specialists, to professionals working across adjacent ecosystems like design, fashion, or architecture. Over a 10 year period, this would amount to 160,000 jobs.
Indirect job creation: Beyond direct hires, further opportunities would likely emerge in supply chain and support roles - from specialised professional services to procurement and logistics - reflecting how one new job in CreaTech often sparks additional hiring in complementary fields.
GVA per worker: For these newly created roles, we assume an annual GVA of £50,000 per worker, reflecting relatively high productivity where technology, innovation, and creativity intersect.
In an optimistic environment, this projection would stand at £8 billion. However, the figure has been revised downward to £5 billion to account for several headwinds. These include:
Macroeconomic pressures: Slower growth, reduced consumer spending, and broader uncertainties that can dampen investment.
Labour market tightness and productivity: Even at £50,000 GVA per worker, achieving this level of productivity across tens of thousands of new hires is ambitious.
Regional disparities: Concentrations of opportunity in major cities can leave other regions behind, limiting overall national impact.
Policy and infrastructure gaps: If funding or policy initiatives falter, or if digital infrastructure lags in certain regions, full job creation targets might not be met.
Taken together, these factors lead to an approximately 40% reduction from the bullish £8 billion projection, producing a revised estimate of £5 billion in GVA through skills-based workforce expansion over the next decade.
R&D and innovation investment
CreaTech’s potential also hinges on robust research and development, from early-stage prototypes to applied innovations that transform business models. R&D investments unlock breakthroughs in software, immersive technology, AI-driven creative tools, and more - spurring new waves of growth for creative businesses.
The scenario
Public investment: An incremental £50 million of public R&D funding is envisioned each year, channelled into initiatives that directly benefit the Creative Industries.
Private leverage: At a 2:1 ratio, each £1 of public money is expected to attract £2 from private investors - yielding a total annual R&D pot of £150 million.
Return on investment: Drawing on benchmarks from the UK Government’s Department for Business, Energy & Industrial Strategy (BEIS), each £1 spent on R&D is projected to yield £3 in GVA.
In addition, spillover effects - like raising overall productivity in other industries, stimulating new demand, or boosting local economies - are expected to push this figure higher. Real-world multipliers drawn from studies of the Creative Industries range from 1.15 to 1.5, capturing everything from local house price increases (associated with increases in well-paid creative roles) to expanded supply-chain opportunities. Averaging these gives a 1.3 multiplier, which moves the projected GVA from £4.5 billion to about £5.85 billion. This value is rounded up to £6 billion to reflect likely spillovers from cross-sector innovation.
Business growth
Alongside upskilling and R&D, the capacity of CreaTech firms to scale up and attract capital at key growth stages will critically shape long-term impact. A robust pipeline of small and medium enterprises (SMEs), given the right resources, can become tomorrow’s creative powerhouses.
The scenario
A £500 million ‘Fund of Funds’: Establishing a large fund aimed specifically at CreaTech firms seeks to catalyse substantial growth. This could provide late-stage financing - particularly at Series B+ - often lacking in the UK’s creative start-up ecosystem.
Fifteen percent growth: The injection of capital is forecast to drive a 15% growth in the number of CreaTech firms achieving scale and more advanced productivity levels.
Productivity uplift: Scaling typically unlocks new efficiencies - from advanced manufacturing methods to global distribution deals.
Macroeconomic headwinds - from inflation to changing interest rates - could shape this impact curve, leading to diminished returns in later years. Nonetheless, £7 billion remains a credible total for a moderate scenario in which timely policy support helps minimise growth bottlenecks.
Total potential GVA contribution
When we combine the three strands - skills and workforce growth (£5bn), R&D and innovation investment (£6bn), and business growth (£7bn) - the total potential additional GVA comes to an estimated £18 billion.
These projections rely on a moderate scenario with considerable assumptions about policy continuity, the availability of funding, and overall economic stability. Any delays - whether in skill-building programmes, R&D investments, or fund deployment - would impact job creation, productivity, and GVA, meaning that effective governance and collaboration across the public and private sectors are paramount.
Key limitations
Data gaps
The CreaTech ecosystem is fluid, with rapidly emerging roles that cut across multiple disciplines, making it challenging to capture the full picture. Certain estimates might undercount newer job types that appear as technology evolves.Regional disparities
If investment and skills training remain concentrated in cities like London and Manchester, potential national gains may be diminished. Addressing uneven infrastructure and connectivity is essential for CreaTech’s broad-based success.Macroeconomic uncertainty
The trajectories for growth hinge on stable economic conditions. High inflation, reduced consumer spending, or political shifts could lower investment and slow expansion.Sector-specific challenges
Fluctuating consumer trends in gaming, media, or digital fashion, for instance, can also shape overall demand. Rapid advances in AI or automation could change the scale and nature of future roles, while also affecting GVA per worker.
Even with these caveats, an £18 billion upside underscores CreaTech’s powerful growth narrative - if the UK can make the right strategic moves in the near term.
Policy recommendations in brief
The recent report on which these projections are based offers several policy pathways to enable CreaTech to achieve its full potential. Below is a concise summary of the key recommendations.
Develop a CreaTech skills pipeline
Strengthen creative and technical education in schools: A balanced curriculum that integrates creative thinking with digital technologies early on is vital.
Boost further and higher education capacity: Encourage stronger links between FE/HE institutions and industry via lecturer ‘reservist’ models, increased practical placements, and up-to-date curricula.
Lifelong learning: Ensure the new Lifelong Learning Entitlement (LLE) includes robust options to develop CreaTech skills - for both career changers and working professionals.
Increase public investment in Creative Industries R&D
Align with industrial strategy: Recognise the Creative Industries, including CreaTech, as a growth-driving area of activity deserving of a larger slice of public R&D funding.
Five-year plan: Develop a targeted R&D roadmap with UKRI and industry, focusing on areas that support economic development, sustainability, and health outcomes.
Establish a dedicated CreaTech Catapult
National-scale facility: An innovation hub would equip businesses and educators with state-of-the-art technology to test, prototype, and co-develop new creative tech products.
Build on existing infrastructure: Projects like the Digital Catapult and AHRC Clusters show the viability of specialised, collaborative centres.
Leverage R&D tax reliefs for CreaTech
Pilot legal advisory: Provide targeted support to creative businesses unsure if they qualify for R&D tax credits, building case studies that clarify eligibility.
Publish guidance: Work with HMRC to develop accessible examples, reducing application confusion and fraud or error.
Create a Fund of Funds for scaling CreaTech companies
Fill the Series B+ gap: Retaining world-class IP and talent requires later-stage capital that UK-based creative tech companies often struggle to secure.
Public-private partnerships: Pool funding from the British Business Bank, Creative UK, pension funds, and others, allocating a portion for CreaTech to diversify risk.
Building on momentum
UK CreaTech is on the cusp of potentially transformative growth, representing the embeddedness of advanced technologies across the UK’s world-leading Creative Industries. From education initiatives that grow talent pipelines, to R&D investments that unlock boundary-pushing innovation, to financial mechanisms that power scaleups - each lever is interdependent, requiring coordinated effort from government, academia, industry, and investors.
The possible £18 billion GVA uplift captures the promise of this area if the UK effectively addresses regional disparities, invests steadily in digital infrastructure and research, and supports ambitious entrepreneurs at every stage. While uncertainties - economic, political, and technological - always remain, the scale of opportunity is great. By adopting the targeted policy recommendations outlined above, the UK can take confident steps toward becoming the global powerhouse of CreaTech, securing sustainable growth, job creation, and innovation leadership for the next decade and beyond.
Read the full paper here.
More about the author, Dr. George Windsor
With thanks to UAL Fashion for providing the image used to promote this blog post on the main page. This image is the result of an interdisciplinary approach to the high resolution rendering of a garment modelled on an original physical garment designed by Maria Grachvogel.
UAL Fashion, Textiles and Technology Institute, 2023, Maria Grachvogel 2023.
