Re-imagining the creative economy: the interplay between the cultural and creative sectors and industries and the social economy

Europe’s rich cultural heritage and strong creative industries not only reflect our past but also shape our future. It is by building on this foundation and developing our strengths that we can face the great challenges of our time with confidence and shape a desirable common future. Europe's cultural heritage originates from the interaction between people and places through time and is constantly evolving^[1]. Every citizen has a right to engage with the cultural heritage of their choice, while respecting the rights and freedoms of others, as an aspect of the right to participate freely in cultural life^[2].

Europe’s diverse tangible and intangible cultural heritage and dynamic cultural and creative industries (CCIs) are strategic assets. They enrich our lives, foster social cohesion and societal resilience, and contribute to a sense of belonging. They underpin a growing economy that generates more employment than the automotive industry and a similar trade balance as food, drinks and tobacco combined. Many of Europe’s multinational companies build their international success on European heritage and creativity. At the same time, the sector is nurturing large numbers of dynamic small, medium (SMEs) and micro enterprises, creating employment not the least for young people, while deploying their creativity not only to generate income but also to contribute to social and cultural sustainability, wellbeing and to projecting European values at home and abroad. The cultural and creative industries are engines of innovation not only in themselves, but across the entire economy, thus contributing strongly to Europe’s overall competitiveness and future prosperity.

This destination adopts a people-centred perspective and places cultural heritage and the cultural and creative industries at the very heart of the European economy, its competitiveness and sustainability. R&I activities under this destination will be aligned with the main principles and objectives of the Culture Compass for Europe and support objectives such as circular and just fashion and textiles value-chains, social cohesion and resilience through arts, design and cultural practices and creative entrepreneurial ecosystems for regional development. R&I activities under this destination will support and strengthen European cultural heritage and cultural and creative industries essentially along the following lines:

Europe’s sustainable prosperity and competitiveness: To secure Europe’s future prosperity and competitiveness, it is necessary to unlock the innovative power of our cultural heritage and CCIs. The CCIs contribute strongly to drive innovation not only in themselves but also in other industries and economic sectors, shape new technologies and can contribute to user-driven innovation, open innovation and cross-sectoral innovation, in addition to their wider societal contributions such as to cultural wealth, social cohesion and resilience.

R&I actions under this area will focus on boosting the innovation-driving role of the CCIs, on creative startups, on the impact of artificial intelligence technologies on creativity and CCIs, while ensuring that new technologies are fairly deployed, along with the contributions of artistic intelligence and soft skills, boosting a circular economy and global partnerships in cultural policies and CCIs, among other things.

Supporting people, strengthening our societies and our social model: Cultural heritage, the arts and the CCIs have a crucial role to play for resilient and socially sustainable societies, shaping and strengthening the values that hold us together and give meaning and a sense of belonging.

R&I actions under this area will focus on boosting the role of culture, the arts and creative industries in contributing to well-being, to the social economy and in general the societal impact of cultural heritage. R&I actions will explore and strengthen the role of culture, heritage and CCIs in shaping the technologies of the future and focus on safeguarding intangible heritage and linguistic diversity, on sustainable cultural tourism and on countering illicit trafficking of cultural goods, among others.

Some actions funded under this Destination will need access to and/or generate data. Where appropriate, actions should leverage the data and services available through European Research Infrastructures federated under the European Open Science Cloud or included in the European Strategy Forum on Research Infrastructures (ESFRI) and the ESFRI roadmap, as well as data from relevant European Data Spaces. In particular, projects that produce data or digital tools of potential interest to cultural heritage institutions or researchers should, as appropriate, establish links to and/or consider integrating their results in the European Collaborative Cloud for Cultural Heritage (ECCCH)^[3].Particular efforts should be made to ensure that the data produced in the context of actions under this Destination is FAIR (Findable, Accessible, Interoperable and Re-usable).

The innovation ecosystems created and nurtured by the Knowledge and Innovation Communities (KICs) of the European Institute of Innovation and Technology (EIT), in particular the KIC “EIT Culture and Creativity”, may contribute to actions under this destination, and may as appropriate be considered by applicants. Furthermore, applicants are invited to consult funding opportunities in other parts of the Horizon Europe Work Programme, including for instance the funding opportunities for companies, high potential start-ups, entrepreneurs and innovative researchers offered under the European Innovation Council.

R&I actions under this Destination will help ensure Europe’s sustainable prosperity and competitiveness, support people, strengthening our societies and our social model, contribute to protecting our democracy, upholding our values and boosting a global Europe, leveraging our power and partnerships. They will contribute to reaching the UN Sustainable Development Goals and to building a stronger, more participatory and crisis-resilient society and economy. They will support the realisation of the full potential of cultural heritage, arts and cultural and creative industries as drivers of sustainable innovation and a European sense of belonging.

To maximise the impacts of R&I under this Destination in line with EU priorities, international cooperation is encouraged whenever relevant in the proposed topics.

Expected impact:

Proposals for topics under this Destination should set out a credible pathway to contributing to the following expected impact of the Horizon Europe Strategic Plan:

• The full potential of cultural heritage, arts and cultural and creative industries and sectors as drivers of both sustainable innovation and a European sense of belonging is realised through a continuous engagement with society, citizens and economic sectors.

[1] Council conclusions of 21 May 2014 on cultural heritage as a strategic resource for a sustainable Europe (2014/C 183/08) https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52014XG0614(08)

[2] CETS 199 - Council of Europe Framework Convention on the Value of Cultural Heritage for Society (coe.int)

[3] See further for instance https://research-and-innovation.ec.europa.eu/research-area/social-sciences-and-humanities/cultural-heritage-and-cultural-and-creative-industries-ccis/cultural-heritage-cloud_en

Expected Outcome:

Projects should contribute to all of the following expected outcomes:

• Evidence-based policy frameworks and guidelines promoting the convergence of creative and social economy models.
• Case studies, indicators, and evaluation methods to measure the social and economic impact of CCSI in social economy frameworks. These tools are provided for policymakers and stakeholders, with areas for improvement identified.
• Hybrid CCSI business models that incorporate social economy principles, balancing profitability and social responsibility, showcasing scalable examples across different regions and sectors.
• Workforce development strategies addressing precarious employment in creative sectors, including alternative employment structures, skill-sharing, and professional development, and enhancing socio-economic diversity and mobility in creative industries, using gender-sensitive and intersectional approaches to address inequalities.

Scope:

The intersection of social economy[[ The European Commission defines social economy in the Communication ‘Building an economy that works for people: an action plan for the social economy’, COM(2021) 778 final, p. 5 "The social economy covers entities sharing the following main common principles and features: the primacy of people as well as social and/or environmental purpose over profit, the reinvestment of most of the profits and surpluses to carry out activities in the interest of members/users (“collective interest”) or society at large (“general interest”) and democratic and/or participatory governance. Traditionally, the term social economy refers to four main types of entities providing goods and services to their members or society at large: cooperatives, mutual benefit societies, associations (including charities), and foundations.” […]]] and the cultural and creative sectors and industries (CCSI) provides fertile ground for advancing sustainable and inclusive development across public and private domains. Enhancing synergies between private initiatives (impact-oriented enterprises, cooperatives, associations) and public policy can unlock innovative models, fostering hybrid approaches that blend public mission with entrepreneurial strategies. Studies highlight the role of social economy entities in CCSI for local development through ecological approaches, territorial clustering, and community engagement, as well as for improving employment and working conditions and promoting inclusive growth^[1].

The European Commission’s 2021 Action Plan for the social economy, complemented by the EU Social Economy Gateway^[2], and the Organisation for Economic Co-operation and Development (OECD) underscore the CCSI potential for economic growth, job creation, and innovation. The OECD further notes that integrating social economy models in culture and creativity can stabilise employment, improve working conditions in creative industries, which often face precarious employment and limited access to credit, and foster sustainability, innovation and social cohesion^[3]. In April 2023, the UN General Assembly recognised the social economy as critical to inclusive and sustainable economies^[4].

Embracing social economy principles in CCSI can address major societal challenges such as income inequality and social cohesion, while driving culture- and creativity-led innovation and inclusive growth across Europe.

Reimagining the creative economy requires CCSIs to engage with broader societal and economic frameworks. This topic aims to enhance the transformative potential of CCSIs’ interplay with the social economy in Europe. Proposals are expected to investigate, develop, and test innovative frameworks and models that leverage social economy principles in culture and creativity to drive social impact, economic sustainability, quality jobs creation, and vibrant, resilient cultural and creative sectors. By moving beyond traditional market logics and adopting cooperative, participatory and socially oriented models, proposals will identify scalable strategies for ethical business, revenue diversification, and embedding social purpose in creative innovation. This may include developing technical or legal assistance and support services enabling CCSIs to access shared resources, enhance resilience, and build community capital. These efforts will empower CCSIs to catalyse inclusive, sustainable transformation and position Europe as a leader in a fairer creative economy.

Key areas of focus are expected to be addressed through inter-, multi- and trans-disciplinary approaches (taking into account – among others – contributions by SSH disciplines), including cross-sectoral cooperation and stakeholder involvement:

1. Sustainable Growth and Quality Employment

• Analyse social economy models’ impact on CCSI sustainability, resilience, and growth, particularly during crises.
• Examine how social economy principles address precarious employment, support alternative employment, and foster professional development, while contributing to creative entrepreneurial ecosystems for regional development that strengthen local economies.
• Explore financing mechanisms, fiscal incentives and solutions to sector-specific challenges, to incentivize social reinvestment.
• Investigate how social economy enterprises address socio-economic diversity, income inequality, inclusivity, and promote innovation including within CCSIs.^[5]

2. Innovation, local development and social impact

• Investigate how CCSI social enterprises drive innovation (including social innovation), social participation, and empower marginalized groups and groups in vulnerable situations, such as persons with disabilities.
• Highlight social entrepreneurship’s role in catalysing new business models and value-driven practices addressing societal challenges
• Assess CCSI social economy enterprises contribution to local development, social cohesion, and responsible consumption.

3. Policy and comparative studies

• Analyse and compare policy frameworks supporting the convergence of creative economy and social economy models in the EU and beyond.

Identify best practices and propose recommendations for integrated strategies enhancing sustainable, inclusive development and innovation.

[1] Among others, A. Costantini, Social Economy Enterprises and Cultural and Creative Industries. Observations and best practices, Bruxelles, Diesis 2018 CCIs-SEEs_-FINAL_2018.pdf

[2] About the EU Social Economy Gateway - European Commission

[3] The Culture Fix. Creative people, places and industries (2022) Full Report | OECD; Economic and social impact of cultural and creative sectors. Note for Italy G20 Presidency Culture Working Group

Economic and social impact of cultural and creative sectors | OECD

[4] Promoting the social and solidarity economy for sustainable development A-77-L60.pdf

[5] The 2021 study "Social mobility in the Creative Economy: Rebuilding and levelling up?" by the Creative Industries Policy and Evidence Centre (PEC) provides insights into class imbalances in the creative industries, highlights the need for systemic change to address deep-rooted structural inequalities in the creative industries and proposes a ten-point action plan for enhancing social mobility in the creative economy Social mobility in the Creative Economy: Rebuilding and levelling up?