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Małopolska Region is the fourth largest region considering the total number of economic entities classified as creative industries

The main goal of the “Creative industries of Małopolska Region – situation and development conditions” study was to determine the situation, potential and conditions for development of 11 creative industries of Małopolska Region, considering the social and economic growth of the region.

The study covers the following creative industries:

  • Film industry,
  • Music industry,
  • Publishing industry,
  • Media and advertisement,
  • Fashion design,
  • Architecture,
  • Performance arts (theater, opera, dance),
  • Activity of artists and handicraft,
  • Works of art and monuments conservation as well as cultural heritage,
  • Graphic design and industrial design,
  • Video games and software.

The role and significance of creative industries and their professionals for building regional competitive advantage has been one of the main topics of economists’ debates for years. The importance of creative industries for regional development can be observed in all the well-developed economies all over the world. Creative industries in Małopolska Region have also been identified as one of the key elements for regional economic growth stimulation. This study constitutes a synthetic diagnosis of conditions and competitive potential thereof.

Number of people employed in creative industries of Małopolska and the trend curve for each industry

Chart 1. Number of people employed in creative industries of Małopolska and the trend curve for each industry

Report summary:

  • Małopolska Region is the fourth largest region considering the total number of economic entities classified as creative industries (right behind Mazowieckie, Śląskie and Wielkopolskie), however, considering the area concentration level of this type of entities, Małopolskie is second in Poland.
  • Over the period 2010-2016 Małopolska was one of the top voivodeships considering the highest growth dynamics of creative industries entities. Over these seven years their number has increased by 36.0%.
  • The leading industry is video games and software – over the period 2010-2016 the number of companies doubled. Media and advertisement industry have also strengthened its position. The least optimistic is the publishing industry – the number of such companies has been continuously decreasing since 2013.
  • The creative industries in Małopolska Region have been dominated by microenterprises, hiring from 0 to 9 employees. In 2016, the percentage of micro-class entities was equal to 97.1%.
  • The largest concentration of creative industries entities is in Cracow (17,063 entities) and Cracow county (2,148), followed by Tarnów (945) and Wieliczka county (989).

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Most of citizens of cities or districts rated in a positive way the changes in area of culture investments.

The project “Influence of infrastructural projects in the field of culture conducted in Malopolska Region on the socio-economic environment” was undertaken by the Social Research Agency  “Question Mark” at the request of the Marshal’s Office of Malopolska Region. The main objective of the study was to support the voivodeship (regional) self-government in shaping public policies, with particular emphasis on activities related to the development and implementation of regional programs in the areas of culture and cultural heritage.

The research included analysis of the impact made by infrastructural projects on 11 cultural institutions and their socio-economic environmentThe project focused on the following institutions organised by the Marshal’s Office and projects financed from European Union funds.

Influence of infrastructural projects in the field of culture conducted in Malopolska Region on the socio-economic environment - infographics

Influence of infrastructural projects in the field of culture conducted in Malopolska Region on the socio-economic environment – infographics

The results of both the quantitative and qualitative research demonstrate that the investments had, and still have, an impact on citizens’ quality of life. Among 1088 citizens of cities or districts, where the institution is running, 51,9% respondents rated changes made by investment in  a positive way (in the opinion of 0,6% the changes are negative), although almost half of those examined do not see any changes (47,9%).

 

CATI research included interviews with 167 entrepreneurs in total: 49,7% of them were from microenterprises, 12,6% small enterprises, 7,2% medium-sized business, and 30,5% self-employed respondents.  More often than other research participants, entrepreneurs observe the positive impact of investment in the field of culture on the local economy. They see the impact especially in tourism development (36,6%).

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This is the first year in the history of Poland, when the limit of 200 billion euros in exports has been broken, and the annual growth is the highest in the history of modern Poland (from 1989).

The report illustrates the situation related to the development of foreign trade in Poland and the Małopolska Region in 2017 based on data obtained from the Tax Administration Chamber in Warsaw.

In 2017, in Poland, the export value was EUR 202 billion. This is the first year in history when the barrier of EUR 200 billion has been broken, and the annual increase (by over 20 billion) is also the highest in the history of modern Poland (since 1989). Similarly to Poland, in the Małopolska Region there was a significant increase of export amounted to EUR 9.56 billion compared to EUR 8.83 billion in the previous year (increase by 8.2%).

The value of exports and imports in Poland and Małopolska in 2013-2017 (in EUR billion).

Figure 1. The value of exports and imports in Poland and Małopolska in 2013-2017 (in EUR billion).

At the same time, the number of export companies in Małopolska Region increased from 3 569 in 2016 to 3 811 in 2017 (increase by 6.8%).

In 2017, goods and services of almost EUR 200 billion were imported to Poland. This is a significant – over 25 billion – increase in comparison to the previous year. Imports to Małopolska amounted to EUR 9.89 bilion after an increase from 8.88 billion euros in 2016. It gives the Małopolska 6th place among Polish regions.

 

Export value dynamics in Poland and Małopolska in 2013-2017 (%).

Figure 2. Export value dynamics in Poland and Małopolska in 2013-2017 (in %).

The most important export industry in Małopolska Region is the “Industrial processing”, which is responsible for over 80.3% for whole export from the region. Next export industry is “Wholesale and retail trade; repair of motor vehicles, including motorcycles” (in Małopolska it is responsible for 15.2% of whole export from region).

The most important import industries for the region are also: “Industrial processing” and “Wholesale and retail trade; repair of motor vehicles, including motorcycles”, which account for 54.3% and 42.2%. 

 

Export and import values in Poland and Małopolska 2013-2017 (%).

Figure 3. Export and import values in Poland and Małopolska in 2013-2017 (%).

The most important trading partner for Poland and Malopolska Region are Germany. In 2017, the value of goods sent to our western neighbors exceeded EUR 55 billion, which is 27.3% of the total Polish export (increase by 0.1 pp). Other countries that are Poland’s key export partners are: United Kingdom, the Czech Republic, France, Italy and the Netherlands. Each of the 25 most important trading partners in 2017 noted an increase of the value of export from Poland. The highest export increase  (26.3%) noted United States of America.

Poland and Małopolska export their goods mainly to European countries. 79.6% of the total Poland’s export value went to European Union (82.6% for Malopolska Region). Trade exchange with Asia and North America are around 4.3% each (for both Poland and Małopolska).

Imports to Poland are mostly from Germany (over 1/4 of the total value in 2017). An important role is also played by China, Russia, the Netherlands and Italy – from each of these countries goods and services of over EUR 10 billion were imported. All of the 25 countries that are Poland’s most important import partners have recorded increases in the value of goods sent to our country. The highest percentage increases noted Norway (43.2%), Lithuania (32.0%) and Russia (24.5%).

The value of exports from Poland to the 10 most important trading partners in 2016 and 2017 (in billion euros).

Table 1. The value of export (in billion EUR) from Poland to the 10 most important trading partners in 2016 and 2017 (own elaboration basen on data from the Tax Administration Chamber).

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The inflow of foreign direct investment in the Małopolska Region in 2015 – 2016 reached
the level of USD 1 418.9 million and was higher by over USD 200 million in relation to the value in 2015.

The study provides information on the structure of investments and their spatial distribution in the region. The attention was also paid to employment in companies with foreign capital, which is the second important segment measuring the activity of foreign investors. The values of investment and employment in companies with foreign capital for 2015 and 2016 were related to the trends observed in the inflow of direct investments to Małopolska since 1989.

The value of foreign direct investments (FDI) in the Małopolska Region in 2016 reached the level of USD 1 418.9 million and was higher by over USD 200 million in relation to the value in 2015, which were amounted to USD 1 196.1 million. The total value of foreign capital invested in Małopolska in the years 1989-2016 is almost USD 21.9 billion. The investment outlays per 1 inhabitant of the region incurred in the years 1989-2016 are 6.5 thousand USD.

Figure 1. Value (annual and cumulative) of foreign investments (in million USD) in the Małopolskie voivodeship until the end of 2016 with an estimated forecast for 2017

Figure 1. Value (annual and cumulative) of foreign investments (in million USD) in the Małopolska Region until the end of 2016 with an estimated forecast for 2017

In 2015, 87 active investors were identified in the Małopolska region, whose financial outlays amounted to at least USD 1 million. The largest part of financial outlays related to direct foreign investments attracted the industry and construction sector – USD 690 million, ie 57.3%. In 2016 there were already 99 investors whose expenditures amounted to at least USD 1 million USD. The largest investment activity and involvement in new projects and ventures had companies which were operating in the services sector. The funds invested by them accounted for USD 838 million, (59% of the total).

 

Figure 2. The inflow of FDI to the Lesser Poland voivodship by years and sectors of the economy (in million USD)

Figure 2. The inflow of FDI to the Lesser Poland Voivodeship by years and sectors of the economy (in million USD)

The amount of expenditures incurred by foreign investors in Małopolska in 2015 amounted to USD 1 966.1 million. All parts of the world were represented in this group except South America. Out of all investment inflow countries, the largest number of expenditures is borne by investors from Europe in Lesser Poland. Their share in the total amount of FDI in 2015 was as high as 78.9%. In 2016, foreign direct investment increased to USD 1,418.9 million.

As in the entire period of 1989-2016, in 2015 and 2016 the largest investment outlays went to Cracow – respectively over 53% and 75% of the total investment stream in the voivodship.

It is estimated that employment in companies with foreign capital included in the study in 2015 was at the level of 121.2 thousand employees. In 2016, this number increased to 128.5 thousand employees (which gives a 6% increase over the year).

In 2015, European capital (74.9% of all employees in companies with foreign capital) and those from the United States (19.6% from the total) had the greatest importance for the labor market in the Małopolska region. Companies with this capital together employ over 115 thousand employees from the total number of 121.2 thousand of employees.

The most important employers from European countries are companies with French (18.3 thousand), British (17.0 thousand) and German (14.5%) capital. In comparison to the previous year (2015), a significant increase in the number of employees took place in companies with Portuguese capital, mainly in trade.

Directions of FDI inflow to Małopolska in 1989-2016 in USD million

Figure 3. Directions of FDI inflow to Małopolska in 1989-2016 in USD million

 

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