The growing importance of the creative industries to the North’s economy has been identified in a recently published report commissioned by Highlands and Islands Enterprise (HIE).

Independent economic consultants, Ekos, who have offices in Glasgow and Inverness, found that the number of jobs within the sector had steadily increased in recent years and it now accounts for around five per cent of the total economy of the Highlands and Islands.

The sector is identified in the Scottish Government's Economic Strategy as one of six considered to offer significant potential for future economic growth. HIE is now aiming to increase the value of creative industries to the economy up to seven per cent over the next five years.

Iain Hamilton, HIE's head of creative industries, said: "The importance of this sector to the economic and social wellbeing of the Highlands and Islands is well documented, and HIE has been an active supporter of creative industries, non-commercial arts and cultural sector, through its economic and social remit."

Creative industries are defined as industries which are powered by individual creativity. Those that fall into the sector include music, film and video, gaming, television and fashion as well as advertising, architecture and arts and antiques.

The Ekos study combined analysis of official economic data with a survey of businesses in the industry and consultations with stakeholders in the region. According to its report, creative industries in their widest definition in the Highlands and Islands area currently employs 13,285 people, accounts for 1,670 businesses and generates £189 million in GVA (Gross Value Added) and £559 million in turnover per annum.

The consultants found that the sector was characterised by large numbers of micro-businesses and sole traders, with significant levels of freelance working. Around 72 per cent of businesses within the industries employed less than five people and 51 per cent had a turnover of less than £100,000.

The report states: "The creative industries in the Highlands and Islands are complex and diverse, ranging from voluntary, community based arts activity to commercially successful music promoters, production companies and publishers."

Designer fashion and its associated retail activity was found to be the largest employer within the North's cultural industries with 27 per cent of all employment, while publishing was the second largest employer at 18 per cent. Television and radio also emerged as a significant employer with a nine per cent share of all creative industries employment.

The report states: "Overall, this is a positive analysis. The creative industries in the Highlands and Islands region are clearly an important source of employment and have shown strong growth in recent years. In particular the growth in turnover and GVA is encouraging, although there is clearly still room for improvement in terms of productivity."

Iain Hamilton said: "The sector offers the potential to make ever increasing contributions to the region's economy. HIE's target is to stimulate dynamic partnerships locally and nationally. Working with Creative Scotland and other partners, HIE will work to achieve this growth and to ensure the creative sector gets the recognition it deserves for its contribution to the region."