=Paper=
{{Paper
|id=Vol-2588/paper18
|storemode=property
|title=Information and Communications Technology and Creative Industries in Ukraine
|pdfUrl=https://ceur-ws.org/Vol-2588/paper18.pdf
|volume=Vol-2588
|authors=Ivan Drobot,Tetyana Kalyta,Vadym Siniuhin,Yousef Ibrahim Daradkeh
|dblpUrl=https://dblp.org/rec/conf/cmigin/DrobotKSD19
}}
==Information and Communications Technology and Creative Industries in Ukraine==
https://ceur-ws.org/Vol-2588/paper18.pdf
Information and Communications Technology and
Creative Industries in Ukraine
Ivan Drobot 1 [0000-0003-3868-5087], Tetyana Kalyta 2 [0000-0003-4723-0236],
Vadym Siniuhin 3 [0000-0003-2773-0237] and Yousef Ibrahim Daradkeh 4 [0000-0002-9209-0626]
1
National Pedagogical Dragomanov University, Kyiv, Ukraine
2
National Aviation University, Kyiv, Ukraine
3
Vinnytsia National Technical University, Vinnytsia, Ukraine
4
College of Engineering, Prince Sattam Bin Abdulaziz University, Department of Computer
Engineering and Networks,Wadi Addawasir, KSA
t.v.kalita@gmail.com
Abstract. The authors explore the options of creative industry interaction with
information and communication technologies, which on the one side mean one
of the tools in the development of innovative services and goods supply. On the
other hand, the creative sphere conducts one of the factors in the development
of information and communication technologies. Such interaction features form
the existing cross-industry interconnection of creative industries and
information and communication technologies. The influence of information and
communication technologies on the development of creative industries in
Ukraine is characterized here. It is suggested to consider for Ukraine five
critical drivers of change influencing creative producers (ubiquitous
connectivity, the mobile consumer, the need for new sources of revenue, the
shift to platforms, personalization). The state of creative industries in the field
of information and communication technologies in Ukraine is analyzed. The
survey gives the statistical analysis on absolute and relative values of creative
industries in information and communication technologies of Ukraine. The
main indicators of the creative industries of Ukraine (Research and
Development, audiovisual and related services, computer services, information
services) are distinguished, while the largest share of which is held by computer
services. The authors have analyzed the import and export components of
creative industries in the total sales volume of information and communication
technologies. The paper analyses the role of creative industries in information
and communication technologies of Ukraine, whose export volume is several
times higher than their import; and what is important, the dynamics of their
export growth also prevails over the dynamics of their import.
Keywords: ICT, Creative Industries, Creative Technologies of Tomorrow,
Interindustrial Communication.
Copyright © 2020 for this paper by its authors. Use permitted under Creative Commons License Attribu-
tion 4.0 International (CC BY 4.0) CMiGIN-2019: International Workshop on Conflict Management in
Global Information Networks.
1. Introduction
Computer technologies have become an active part of the economy, politics, science
and social life of Ukraine's society. The policy of digitization, electronic document
circulation, electronic money and the country is a smartphone are actively being
implemented. Among modern technologies, there is the so-called creative industry.
The essence of which is to form a creative concept as the basis of technology, when
there is a need for a creative process in technologies. Creative industries are a part of
the creative economy - the economy of the future.
It should be borne in mind that there are interconnections and interrelationships
between information and communication technologies (ICT) and the creative
industries, both at home and at work. The ICT level also determines the success of the
creative sector and, on the contrary, the impact of creativity is very significant for
ICT.
The intersection of these two entities of the ICT and creative industries generates
interdisciplinary issues, the study of which requires separate reflection. ICT can be
seen as a tool in the delivery and development of creative goods and services.
Independent effects and the synergistic effect of their interaction can be considered
separately.
ICT changes in creative industries have not only a technological component but
also new opportunities for their development. It is difficult to single out the impact of
creative industries on ICTs and vice versa. Therefore, the question arises in a
systematic approach to the development of these industries and the interplay between
them.
The state of ICT and creative industries in Ukraine is considered. Take into
account the dynamics of the relative growth of exports and imports relative to the
previous year is in percentage and try to evaluate the ratio of the share of creative
industries in ICT throughout years, being necessary for determining the prospects of
creative industries in ICT in Ukraine.
2. Creative Industries — Current Situation
Creative industries are activities that have a creative expression through individual
and collective creativity, being inherent to ICT as well. Today the creative sectors
occupy a significant share of the market in developed countries, and their formation is
taking place in Ukraine.
‘The size of the global market for creative goods has expended substantially more
than doubling in size from $208 billion in 2002 to $509 billion in 2015’ [19].
In 2015, the country of creative goods exporters was China ($168 billion in 2015).
Creative industry statistics are published in the Creative Economy Outlook report,
which publishes information from 2015 to 2019.
In 2014, the value creative export services of Ukraine was more than $2 million,
doubling the results of 2010. At the same time, imports have increased since 2010,
but in 2014, they decreased to the level of 2010, amounting to $ 547 million [19].
The total volume of creative industries in Ukraine in 2014-2015 was only 0.4% of
the full global capacity. However, it should be noted that the number of creative
industries comprised 4% of the National Gross Product of Ukraine.
It is relevant to analyze the content of creative industries and their types presented
and developed in Ukraine. Furthermore, it is necessary to state the positive dynamics
of their development.
According to classification ‘Creative industries has six segments: music
composition and production; film, TV and video; animation and computer games
(entertainment software); writing, publishing and print media; advertising, graphic
design and marketing; architecture, visual arts and design’ [20].
To calculate creative goods/services, creative industries use classification by
categories: art crafts, audiovisuals, design, digital fabrication, new media, performing
arts, publishing, visual arts. [21] For analyzing these categories, Balance of Payments
Manual is used [10]. This information is summarized to get the volume of creative
industries sector in different countries [20].
Designs account for the most significant number of imports in the world being up
to 60%, followed by visual arts and new media 12% and 10%, respectively.
Compared to 2002, publishing has decreased from 14% to 7%. At the same time,
audiovisuals and performing arts have remained unchanged [19].
Most of the listed segments are not represented in Ukraine. That is due to many
factors. We are going to consider in more details the state of Ukraine in ICT
quantification.
3. Analysis of ICT and Creative Industries in ICT (Ukraine)
Table 1 shows the volume of data of products (goods, services) sold by enterprises
and natural persons-entrepreneurs in Ukraine by type of economic activity
"information and telecommunications" in a million UAH [16].
Table 1.Turnover of enterprises and natural person-entrepreneurs by their size, by type of
economic activity (Information and telecommunication)
Years 2010 2011 2012 2013 2014 2015 2016 2017
mln. UAH 73015 82638 90074 94278 105690 141480 175051 216804
$ currency 7,96 7.99 7,99 7,99 15,77 24,0 27,19 28,07
$mln. 9173 10343 11273 11799 6702 5895 6438 7724
As can be seen, Information and Communication is an industry that is developing
rapidly in UAH. Although, due to the exchange rate problems, there has been an
absolute decline in recent years in this area in dollar terms. The cost of services in
UAH for 7 years has increased in 3 times.
Exports from Ukraine of telecommunications and ICT services in 2018 amounted
to $2 billion, representing 4.2% of total products exports from Ukraine in 2018 [17].
In terms of creative industries, Ukraine ranks second place among countries with
an equivalent state of economic development.
According to the data in the report [19], the dynamics of changes in the export of
Ukraine in the sphere of creative services by years was analysed (see Fig.1).
Fig.1. Export of creative services of Ukraine: R&D, audiovisual and related services, com-
puter services, information services (by years)
Computer services make the most significant contribution to the export of creative
services in Ukraine, but information services and audiovisual and related services
account for a small portion, even though that they are growing. At the same time,
R&D has been at the same level almost all the time and fell last year. We are
considering the growth dynamics of each export indicator in comparison with the
previous year in percentage. The table below shows such percentage comparison of
the dynamics of the variables concerning the previous year (See Table 2).
Table 2. Dynamics of relative exports growth in comparison with the previous year as a
percentage
Creative services (EXPORT) 2011/2010 2012/2011 2013/2012 2014/2013
Research and development (R&D) 107% 108% 102% 76%
Audiovisual and related services 116% 97% 117% 74%
Computer services 163% 142% 138% 116%
Information services 160% 137,5% 185% 96%
The comparison gives sustainable growth trends. The indicators have grown signifi-
cantly over the years.
As for the dynamics of changes in the import of Ukraine in the sphere of creative
services by years [data 20], it is shown in Fig.2 (see Fig. 2).
Fig.2. Import of creative services of Ukraine: R&D, audiovisual and related services, com-
puter services, information services (in years)
The dynamics of creative services imports is declining for R&D, audiovisual and
related services and information services. The only growth direction is computer
services. The most considerable contribution of imports and exports is shown by
Computer services; while R&D and audiovisual and related services, however,
occupy a large part, but they are not growing. At the same time, information services
are almost at the same level nearly all the time. It is necessary to consider the growth
dynamics of each export indicator in comparison with the previous year in percent
(see Table 3).
Table 3. Dynamics of relative growth of imports compared to the previous year as a percentage
Creative services (IMPORT) 2011/2010 2012/2011 2013/2012 2014/2013
Research and development (R&D) 103% 96,5% 90% 60%
Audiovisual and related services 113% 87% 175% 34%
Computer services 121% 131% 119% 85%
Information services 111% 90% 127% 70%
When comparing Tables 2 and 3, we can see that exports are growing much faster
than imports.
Imports are lower not only in absolute terms but also the tempo of its growth is
slower. Exports have faster dynamics. Therefore, the creative industries are market-
driven and competitive.
The share of imports and exports of creative industries compared to total sales of
ICT products (Table 1) as a percentage was considered (see Table 4).
Table 4. The share of imports and exports of creative industries concerning total ICT sales
Creative services 2010 2011 2012 2013 2014
Share of Creative Industries ex-
10% 12% 14% 17% 16%
ports from total ICT
Share of Creative Industries im-
6% 6% 6% 7% 4%
ports from total ICT
Table 4 compares the volume of imports and exports of creative industries for the
total volume of ICT products sold. First, we see that the share of exports is higher
than the share of imports by 2-4 times, and secondly, the share of creative industries
is quite large and significant in the total gross volume.
4. Correlation between ICT and Creative Industries
Considering the interconnection and interrelation of creative technologies and
communication technologies (ICT), the success of the creative industry is also
determined by the level of ICT, and vice versa, the impact of creativity is very
significant for ICT.
ICT can be seen as a tool in the delivery and development of creative goods and
services. Separate effects and synergistic effects of their interaction can be considered
separately.
4.1. ICT as a tool for the Creative Industries
Creativity is democratized, and the opportunity for collaboration between creators,
artists, technologists, developers, consumers, manufacturers in the creative process
must be based on modern ICT technology as a tool.
The format of engaging artists involves collaboration from an individual to
corporate, with the artist-creator becoming the centre of the technological process,
both at the stage of development and decision-making.
Modern ICTs allow you to combine individual work, concentrate it while leaving
the freedom of creativity in harmony with the technological process.
One of the critical trends of the creative industries [11] is the formation of ideas
(concepts), which is an example of the practical implementation of the already
established system of work in the field of ICT.
4.2. Creative Industries as a Factor Influencing the Development of ICT
The ICT industry is dynamic at an ever-increasing pace. Manufacture and sale of
computer hardware, software development, although actively developing, but not
always managing to be attractive for investment. The creative industries influenced
the approach to ICT development provides additional impetus and benefits for
attracting resources and for delivering new ideas that are in higher demand from
consumers.
The intellectual and professional capacity of ICT professionals is in a rather
qualifying market, but the new modularities of the critical industries are significantly
increasing the value and competitiveness of ICT as a sluggish economy in Ukraine.
As of 2017, about 100,000 Ukrainian specialists have been involved in the ICT sector.
By 2020, it is projected to increase to 140,000 employees. [13] The intellectual capital
of Ukrainian ICT professionals is quite high, but it is the ability of creative industries
tools to add flexibility to industry products.
4.3. Interindustrial Connection Between ICT and CI
The creative industries are closing the boundaries between technology and creativity
between science and the arts. The creative industries are being stripped down, and the
interstate boundaries can, therefore, be localized to the interstate while still being
personalized. The absence of borders blurs frontiers and allows the filling of goods
and services not only inside one country but also of the planet as a whole.
Because of this, in the practical sense, ICT and creative industries can be seen as
small businesses. In addition, creative spaces (hubs) can be regarded as examples of
jobs.
The first thing that comes to mind when combining technology in creative
industries is visualization. Symbols, like simulacra, combined technological and
social components have made it possible to create powerful tools (programs) that
could be successfully implemented.
A separate question arises in the current trend of combining a seller and a buyer
when the available content gives rise to a consumer acting as a producer. That altered
the existing structure of interaction between them and increased demand. Before now,
the issue of personalization and the overall structure of organizational interaction
remained unresolved.
A key factor affecting the interaction between the ICT and creative industries is
the decline in digital prices. For the creative (field 2) it shapes accessibility and
develops the market by increasing participants.
5. Ukraine concept ICT with Creative Industries in future
In 2018, a PwC report was published stating that the boundary separating technology
and communication from the media no longer exists. The future of the creative
industries lies in the strengthening of the creative economy. PwC identifies five key
drivers of change influencing creative producers: (1) ubiquitous connectivity, (2) the
mobile consumer, (3) need for new sources of revenue, (4) the shift to platforms, and
(5) personalization [4].
The role of these factors in Ukraine and how they it influence the future
development of ICT was considered.
The interconnection of technology and creativity energizes the market. Ukraine, as
a developing country, is characterized by an increase in communication among
mobile content users. Demand for content depends not only on its quality and content
but also on creativity [8].
An important issue is the financing system and its refinement, taking into account
the integration of ICT and the creative industry. Formerly the main issue was in
technology, now not only the creators are becoming increasingly important [15], but
also it is also important to create corresponding conditions for them guaranteeing
them creative independence. Moreover, this raises questions about copyright and the
obligations of protecting consumers and manufacturers. Normative regulations
require access to data. Owners of data are not always willing to provide information.
There is a need for open standards or disclosure of information sources.
As an example, we can consider “Romania Start-Up Nation” with an annual
budget of €438 million, which stimulates SMEs especially in the field of ICTs and
creative industries [16].
The emergence of a ‘prosumer’ require an increase in technological solutions and
modalities for the user, and therefore there is a need for personalized content, 3D
printing, additional data and tools, which should have a simple interface and format of
use that does not require separate training.
That is why the creative industries, due to the creative component of the impact on
technology, require the creation of new business models (subject to the availability of
‘prosumer’), an adaptation of financing systems, the flexibility of format, and others.
‘Content – and access to it – form the bedrock of the creative economy, the system
that turns ideas and creative work into profit’ [6].
Take account of these directions of development and concept of development of
Ukraine until 2023 [13, 24] in the sphere of the creative industry. It means that in the
following period share growth and the share of exports of the creative industries in the
total volume of ICT grows.
6. Conclusions
The article is based on the analysis of the state of the creative industries in the field of
information and communication technologies in Ukraine; it is leading that the main
indicators of the creative industry dynamically increase both in absolute and relative
terms.
The sales volume of products (goods, services) of enterprises and individuals-
entrepreneurs by their type of economic activity "information and
telecommunications" is significant and occupies a significant share of the GDP of
Ukraine.
Indicators, namely R&D, audiovisual and related services, computer services,
information services, exports and imports of the creative industries of Ukraine, are
growing dynamically.
It is revealed that the share of import and export of creative industries in relation
to the total volume of realized production of information and communication
technologies, with the share of the export is more than import in 2-4 times. An
attempt has been made to evaluate the ratio of the share of creative industries in
information and communication technologies of Ukraine. Exports have been shown to
be several times higher than imports. Export growth dynamics also prevails over
imports.
The combination of ICT and creative industries demonstrates an interdisciplinary
knowledge of the development of creative goods and services, in combination with
technology, where technology, but not the idea or creativity becomes the centre. The
tendencies in the development of information and communication technologies in the
sphere of creative industries of Ukraine are characterized.
Summing up, it is necessary to state that interaction between creative industries
and information and communication technologies are considered as an aid and tool in
the development of creative goods and services when the creative sphere is a factor in
the development of information and communication technologies, and also the format
of the related interaction resulting in the forms of the interdisciplinary communication
of information and communication technologies in creative industry.
It is shown that the development of ICT contributes to the development of creative
technologies, which in turn provide new opportunities for ICT. At the same time, the
issues of preserving the creative personality and creating new technological, business,
organizational forms between the seller and the consumer are urgent.
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