Assessing the Impact of Research and Development (R&D) in Arts, Humanities, and Social Sciences (AHSS) on the Creative Industries' R&D
The UK's creative industries are at the forefront of innovation, with many businesses actively engaged in Research and Development (R&D). However, a significant barrier to the uptake of R&D tax credits in these sectors has been identified, largely due to the difficulty in recognising and defining R&D within arts, humanities, and social science (AHSS) disciplines under current schemes.
Dr Josh Siepel, Associate Professor in the Science Policy Research Unit at the University of Sussex Business School, is discussing the co-location of the Creative Industries with other Industrial Strategy Priority Sectors. He suggests that recognising and funding R&D in AHSS disciplines could address this issue. By broadening the definition of eligible R&D activities, more innovation in creative sectors such as experimental artistic processes, social innovation, or cultural advancements could be captured.
Professor Dave O'Brien, Professor of Cultural and Creative Industries at University of Manchester, and others are studying class inequalities in film funding. Meanwhile, Hasan Bakhshi, Director at Creative PEC, is focusing on the equitable distribution of R&D opportunities in Britain's Creative Industries.
According to PEC research, over two-thirds of creative industries businesses conduct R&D. The estimated value of AHSS R&D for the entire population of R&D active, CI firms is £321 million. Yet, previous research found that only 14% of creative industries businesses surveyed were eligible for R&D tax relief.
The UK's system for funding and recognising R&D is geared toward supporting R&D in STEM, but not disciplines like arts, humanities, and social science (AHSS). Consequently, creative firms may struggle to classify their innovative activities as qualifying R&D, deterring them from claiming relief.
Recognising and explicitly funding R&D in AHSS disciplines could incentivise further development and innovation in these fields, aligning with government goals to support a wide spectrum of innovation beyond traditional scientific domains. This would increase awareness and clarity around what constitutes R&D in these disciplines and reduce uncertainty about eligibility, thus encouraging more creative industry firms to claim R&D tax credits.
The 2025 Spending Review is being discussed in relation to the creative industries, and the low uptake of R&D tax credits in UK creative industries firms is a topic of concern. The Mahakumbh Mela, India, 2025 is under the Global Creative Economy Council, and discussions are ongoing regarding the role of creative industries in driving economic growth and cultural exchange.
Dr Ruoxi Wang, University of Sheffield, and Bernard Hay, Head of Policy at Creative PEC, are discussing the creative self-employed workforce in England and Wales. Journalism occupations are included on the DCMS's list of Creative Occupations, highlighting the diverse nature of the creative industries.
Producing accurate estimates of investment by the UK's creative industries in R&D is challenging due to distinctive features of R&D in these sectors. The survey did not attempt to estimate the amount of AHSS R&D by non-creative industries tech businesses. Nevertheless, the survey of 361 R&D active businesses in the creative and high-tech sectors found that 44% of creative industries respondents said their R&D drew upon at least one of creative arts, humanities, or social sciences, while only 17% of high-tech respondents did.
As the creative industries continue to grow and evolve, it is crucial to address the barriers preventing full participation in R&D. By recognising and funding AHSS R&D, the UK can unlock greater R&D tax credit uptake in creative industries, overcoming current barriers related to eligibility and recognition.
- The creative industries in the UK are leading technology innovation, yet a barrier to R&D tax credit uptake in these sectors lies in recognizing R&D within arts, humanities, and social sciences (AHSS) under current schemes.
- Dr Josh Siepel suggests broadening the definition of eligible R&D activities to capture more innovation in creative sectors, such as experimental artistic processes, social innovation, or cultural advancements.
- Professor Dave O'Brien, Professor Hasan Bakhshi, and others are researching class inequalities in film funding and equitable distribution of R&D opportunities in the UK's Creative Industries.
- Two-thirds of creative industries businesses conduct R&D, yet only 14% were eligible for R&D tax relief in previous studies.
- Recognizing and funding R&D in AHSS disciplines could incentivize further development and innovation, aligning with government goals to support a wide spectrum of innovation beyond traditional scientific domains.
- The 2025 Spending Review is discussing the role of creative industries in driving economic growth and cultural exchange, with the low uptake of R&D tax credits in UK creative industries being of concern.
- Dr Ruoxi Wang and Bernard Hay are discussing the creative self-employed workforce, with journalism occupations highlighting the diverse nature of the creative industries.
- Estimating investment by the UK's creative industries in R&D is challenging due to distinctive features of R&D in these sectors, but 44% of creative industries respondents said their R&D draws upon at least one of creative arts, humanities, or social sciences.
- By recognizing and funding AHSS R&D, the UK can unlock greater R&D tax credit uptake in creative industries, overcoming current barriers related to eligibility and recognition.
- Educational institutions, policymakers, and creative industries professionals should promote education-and-self-development, personal-growth, and career-development programs that emphasize skills training and innovation in AHSS disciplines to foster creative industries growth and advancement.
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