III. Methodology

III.A. Estimation Methodology

The economic contribution of the creative economy to the Philippine economy is measured using the Production Approach or Value-Added Approach. This method consists of summing the GVAs of all identified creative industries.

The estimation process benefited from the final report of the DTI study which provides a listing of creative industries with corresponding copyright factors. It is important to note that economic activities in the national accounts are captured both in the organized and unorganized segments of the economy. Following the Production Approach of computing the economic contribution, GVA is derived by subtracting the Intermediate Consumption (IC) from the Gross Output (GO).

Estimation Methodology

For the estimation of the GVA of creative industries, the data and employment structure from the 2018 CPBI was used.

The value-added of organized creative industries is estimated using information from the CPBI which is disaggregated by five-digit Philippine Standard Industrial Classification (PSIC) level. Meanwhile, the value of creative goods and services produced but not captured in the formal establishment surveys like CPBI, are estimated using indirect estimation and employing the residual employment approach.

The general method for the residual employment approach is provided below:

For the estimation of non-benchmark years, indicators from the NAP and other relevant information and indicators are considered to obtain the levels for each year.

Employment in the Creative Industries

Employment in the creative industries refers to the employment related to the goods and services acquired by consumers and produced by creative industries. The employment structure from the LE was utilized to derive the number of employed persons in the creative economy by industry. The ratios were obtained at the five-digit PSIC level in the LE and were applied to the corresponding levels in the LFS to derive the total number of persons employed by industry.

III.B. Statistical Tables

The following are the available tables:

IV. Concepts and Definition of Terms

Republic Act No. 11904 defined creative industries as “trades involving persons, whether natural or juridical, that produce cultural, artistic, and innovative goods and services originating in human creativity, skill, and talent and having a potential to create wealth and livelihood through the generation and utilization of intellectual property.”

The proposed operational definition for creative economy covers economic activities primarily responsible for the creation, production, commercialization, distribution, and consumption of goods and services that use creativity and intellectual capital as primary inputs. Creative goods and services should satisfy any of the following:

a. Its production requires some input of human creativity;
b. It contains symbolic messages;
c. It has an intellectual property factor; or
d. It is a novel or a new product.

The following are the creative industries captured in the estimation:

a. Audio and audiovisual media activities comprising of manufacturing, renting, trading of live and recorded audio and audiovisual media;
b. Digital interactive goods and service activities including manufacturing, renting, trading of computers, software, programs, mobile applications, and electronic games;
c. Advertising, research and development, and other artistic service activities referring to advertising, research and development, recreational services, translation and interpretation including construction of other civil engineering projects;
d. Symbols and images and other related activities including manufacturing, renting, trading of symbols and images in textiles, garments, footwear, furniture, jewelry, fashion and accessory, toys, etc.;
e. Media publishing and printing activities comprising of publishing and printing, renting, trading of books, magazines, newspapers, journals including manufacturing of ink, hand-made paper, etc.;
f. Music, arts, and entertainment activities referring to manufacturing and trading of musical instruments, publishing of music; casting, booking; operations of concerts and theaters including activities in creative arts and entertainment;
g. Visual arts activities including manufacturing, trading, distribution, and preservation of works which are visual in nature including paintings, drawings, photographs, antiques, and other visual arts;
h. Traditional cultural expression activities which are related to customs, practices, traditions, culture, heritage including arts and crafts, gastronomy, culinary practices, cultural festivals, and celebrations;
i. Art galleries, museums, ballrooms, conventions and trade shows and related activities including operation of art galleries, ballrooms, discotheques, conventions and trade shows, libraries and archives, botanical and zoological gardens, museums and preservation of historical sites and buildings.

V. Dissemination of Results and Revision

The published 2018 to 2023 PCESA resulted from the pilot study of PSA technical staff. The schedule of release of the revised and preliminary PCESA is three (3) months after the reference year.  The press release, statistical tables, social cards, and infographics on the pilot PCESA compilation are posted on the PSA website and Facebook page.

VI. Citation

Philippine Statistics Authority. (2024). Technical Notes on Philippine Creative Economy Satellite Accounts. https://psa.gov.ph/statistics/creative-economy/technical-notes

VII. Contact Information

Mr. Gerald Junne L. Clariño
Chief Statistical Specialist
Satellite Accounts Division
g.clarino@psa.gov.ph

For data request, you may contact: 
Knowledge Management and Communications Division 
(632) 8462-6600 locals 839, 833 and 834
info@psa.gov.ph