In 2007/2008, the creative industries contributed $31.1 billion in industry gross product to the Australian economy, which is equivalent to 2.8% of GDP, and employed 316,600 workers.

Having the right hair cut just isn't enough…

The creative industries achieved an average annual growth rate of 5.8% over the last 11 years to 2007/2008, well above the annual growth rate for the broader economy of 3.6% over the same period. The Software Development and Interactive Content segment is responsible for much of this growth, accounting for 43.8% of earnings and 38.3% of jobs in 2007/2008.

The games industry in particular is a fast-growth industry in which Australian opportunities are shaped by large international enterprises. This growth is dependent on sustaining a pool of highly skilled workers. Technical creative and business skills have been in high demand over the last decade. However, a serious shortage of skilled employees is a major factor contributing to the almost $2 billion trade deficit in Australia’s digital content industry.

Moreover, the severe impact of the global financial crisis on the Australian games industry demonstrated both its dependence on international opportunities and its consequent volatility.

The structure of the workforce and the industry’s dependence on international games supply chains and markets inhibit growth in productivity and innovation in business models and markets.

This is reflected in current industry trends. Justin Brow is Director of the Interactive Skills Integration Scheme (ISIS) project which is exploring new business and training models for the sector.

For Brow, “the collapse of some of the larger Australian games development companies has resulted in companies moving away from the increasingly unsustainable ‘fee for service’ model towards digital distribution of original IP through apps stores and social networking sites”.

“From a skills development perspective, we need to keep the skills of our local workforce worldclass and this includes doing what we can to encourage innovative cross-industry IP creation.

Business and process transformation of non-entertainment industry sectors represent a big opportunity for the games industry and could lead to a heightened demand for interactive media skills across every industry sector in Australia, examples here include simulations in defence, stroke rehabilitation using the Wii console or the ‘Mathletics’ games they use throughout Aussie Primary Schools”.

The 60Sox Survey was the first ever national survey of graduates and employers in the digital content sector and it found that the skills deficit mainly stems from the gap between what is taught in academia and what is practised in industry.

There is a generally a gap between the qualifications aspiring creatives receive, and the industry-ready skills that employers require.

This gave the respondents the impression they have good employability, job-specific and career skills – when the skills that they think are important are not what employers in the industry actually want.

Another key issue which hinders graduates from gaining employment is their lack of industry engagement: only 13 per cent of the 60sox respondents had been directly involved with real work in industry.

Most of digital graduates rely on online networks to get jobs. They need to know that face-to-face networking with the industry is crucial to gain both employment and skills.

The industry can also help aspiring students by offering internships, mentoring relationships and by inviting students to take part industry events.

Given the ever-shifting nature of new media business environments, Interactive Media organisations face increasing challenges to operate most effectively.

It is necessary, therefore, to equip leaders within the Interactive Media sector with the requisite skills to make informed business decisions and develop appropriate management strategies to better navigate short and mid-term industry demands.

Aspiring creatives need to have the right knowledge, skills, attributes and qualifications to enter the creative industries; and once employed, access to incentives and support to enable them to have a sustainable and successful career.

Addressing these challenges will involve, but not limited to, providing aspiring creatives with opportunities to gain industry experience as early as possible; ensuring education and training providers and industry work together to develop, deliver and quickly adjust courses; changing employers negative perceptions of the capabilities of aspiring creatives; and helping aspiring creatives to become lifelong learners and effective networkers.

These actions will go a long way in helping the creative industries to create a pool of new workers who have the necessary skills sets to generate, share and monetise new ideas and knowledge.

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15 comments

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    • Against the Man says:

      07:02am | 20/09/10

      Greg, I’ve said this in previous postings. We can’t rely on the mining boom forever. We have to develop a skills industry (computers/biotechnology/R&D) etc to keep us going in the future. Now the current government is famous for blaming the Howard year for not investing in these areas for development but they haven’t done squat either. (At the same time I think it is funny they don’t credit the Howard government for leaving them a surplus to deal with the GFC, the one thing they can boast about from their last term). The ALP has too many internal problems and JG is like a fish out of water trying to manage this minority government so I guess we will continue to be stagnant. We need to address skilled immigration recruiting the best for our industries and unis. The current government is well known for talking big but that is all it ever is…...........talk.

    • Scientitian says:

      08:54am | 20/09/10

      The ALP hasn’t done squat in the whole 3 years they’ve been in power?

      Well, it’s not like the GFC didn’t throw a massive spanner in the works for actual policy development. Everything had to be put on hold while they dealt with that.

      But I suppose considering ther amount of whining you and your Libtard friends around here did about pink batts and school halls (both a problem of dodgy tradesmen or school administration and NOT the federal ALP) I guess you would have whined about any money given to the creative sector.

      You probably would have found an example of some guy that died from playing Call of Duty for 43 hours straight and blamed that on Labor.

      Or you would have whined about giving money to an artist that did something that you didn’t approve of.

      Maybe if your lot was capable of showing that you didn’t squander 11 years of power and actually been able to build a nation (you know, things like infrastructure, education, hospitals, a diverse economy - yes yes, all “state” issues even though the Cth holds the purse strings…....) rather than riding on the back of a resources boom your argument might have a leg to stand on.

    • Steve Putnam says:

      07:32pm | 20/09/10

      In his first budget Peter Costello slashed tax breaks for companies investing in research and development including $473 million for alternative energy. This was never returned for the life of the Howard government. As a consequence we are paying through the nose for technology that saw inception in this country, but was, for reasons explained above, never developed here.
      Its much the same with optic fibre. There simply isn’t enough venture capital to do what needs to be done. Abbott seeks a return to the practices of the past: The Howard government would seed-fund a telco to set up shop in country areas. Things would go alright for a while, they would introduce new services, sign up subscribers etc, and then when it became profitable, Telstra would step in offering the same thing at a heavily discounted price and basically strangle them at birth. This is why the importance of the broadband thing cannot be under stated. Companies are already sending their back of house stuff to India, partly it must be said because labour is cheaper, but mainly because work can be accomplished at a much quicker rate due to lightening broadband speeds.
      Malcolm Turnbull knows this perfectly well so Abbott has, in essence, told him to live a lie. It remains to be seen how the progressive elements in the Liberal will react to such Luddite leadership especially when it comes to be seen for what it is in the wider community and becomes an electoral liability.

    • Gregg says:

      08:00pm | 20/09/10

      What a great whinger you are Scientitian and the GFC threw what sort of a spanner into the works! when it was more like a government throwing away hard earnt money hand over fist and so you would like to blame dodgy tradesmen for a deadly and wasteful programs set up in haste without due diligence of whether there was going to be adequate financial and quality management.
      That was increativity and utter dumbness of the highest order and you reckon there was no infrastructure building going on in the previous 11 years!
      Are you blind or just blind drunk on Labor Euphoria for you’ll find that all infrastructure works around the nation does not stop/start with changes in government and the majority is likely undertaken under with the direction of state governments involved often with public/private partnerships and a good supply of federal funding.

    • acotrel says:

      08:21am | 20/09/10

      I’ve said this in previous postings. We can’t rely on the mining boom forever. We have to develop a skills industry

      I’m extremely skilled.  I was at school at age 57, and I have 40 years experience as an industrial chemist.  Where are the jobs?  Our hi-tech areas have been effectively devolved by successive governments, particularly the conservatives, who have a phobia about government establishments, doing what they perceive to be the preserve of private companies.  Now tell me about all those private companies doing research in Australia?

    • acotrel says:

      08:27am | 20/09/10

      The biggest thing which ruined our defence manufacturing was when that idiot Barry Jones described the government facilities as ‘centres of excellence’.  It was the signal for the conservatives to attack and destroy!

    • Sherekahn says:

      09:51am | 20/09/10

      Is this “deja vous?”
      A long time ago a film called, “On the beach,” was filmed about Perth, WA.
      The Northern hemisphere has been contaminated with radiation from Atomic war, the radiation is drifting south to Australia.
      The characters make their best efforts to enjoy what time and pleasures remain to them before dying from radiation poisoning. Scientist Julian Osborne (John Osborne in the novel) (Fred Astaire) and others organize a dangerous motor race that results in the apparent violent deaths of several participants. Moira remarks on the apparent senselessness of the race, but when she asks Osborne why he is taking part, he responds, “because I want to.”

      While GDP causing overpopulation and Climate change are destroying the Planet, our young people are glued to their computers addicted to gaming, while others are addicted to making money!

    • Kev says:

      10:15am | 20/09/10

      I think you’ll find the movie was set in Melbourne and I hadn’t noticed Climate change destroying the planet.  What’s going on?

    • Sherekahn says:

      11:21am | 20/09/10

      Kev, watch SBS on Tuesday night for Sir David Attenborough’s views on global population.
      Unlike me he is very typically understating in his views however, it promises to be an eye opener.
      When I was 16 the World had 1/3 of its present population.
      There was no Climate change.
      (SIR DAVID ATTENBOROUGH.) 2 billion, now 6 billion.  Actually nearer to 7 billion, SBS is behind the times, it just goes to show how rapidly things are changing!
      Now, 2010 World population 7 billion.
      Pollution and Climate change.  We are killing the creatures and plants of the Earth.

    • acotrel says:

      12:11pm | 20/09/10

      Julian Osborne was a lousy racing car driver.  The shots of Phillip Island in the movie were great! Julian should have stuck to dancing. Actually I believe Ava Gardner said ’ if you wanted t o make a movie about the end of the earth, Melbourne is perfect’.

    • Mike Tee says:

      10:55am | 20/09/10

      This current government if you can call it that can’t get the basics right so I’m not going to hold my breath waiting for them to develop Australia in other sectors. The ALP has already charted us on the road to ruin once the mining sector collapses.

    • Shane From Melbourne says:

      11:08am | 20/09/10

      Considering the Liberals abolished company R+D tax breaks, slashed the CSIRO budget, abolished the Training Guarantee Scheme in favor of 457 visas (who just happen to want to bring their families in), I don’t quite think they are in favor of a Clever or Creative Country…..

    • Jason S says:

      03:50pm | 20/09/10

      Lets see - Work hard at school to get the grades required to get into Uni.  4 years studying a Uni course (something in say the I.T. / Gaming field) = $30,000-$40,000 HECS debt, come out starting on $40K-$50K/year.

      Cruise through high school (or drop out if you want).  Start apprenticeship - 4 years you earn close to $80K (so you are already more than $100K ahead of the ‘clever’ person.  Then start fully qualified anywhere from $60K-$80K.

      Where are the incentives?

    • Shane From Melbourne says:

      08:39pm | 20/09/10

      Speaking of Clever Country, Why the hell do we slap a GST upon books? That’s a self imposed handicap right there….

    • acotrel says:

      03:39am | 21/09/10

      Jason S, You’ve forgotten to mention that tradespeople also get job satisfaction much more easily than ‘clever’ people!  My professional life has been intellectually stimulating, but extremely frustrating.  I feel most of my education and ability was wasted on Australia. I believe the introduction of HECS fees was a bit of cheek on the part of Australian industry.  Education of professional scientists and engineers should be strongly subsidised by the taxpayer as they are the main beneficiaries.  Nobody gets rich going down that path!

 

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