In a world increasingly driven by creativity and innovation, developing countries are emerging as key players in the global creative economy. Once on the periphery, nations like China, India, Mexico, and Nigeria are now at the forefront of exporting creative goods, carving out significant roles in industries ranging from fashion and design to music and film. However, despite these gains, they continue to face formidable challenges, particularly in the realm of creative services and intellectual property protections.

A Surge in Creative Goods Exports

In the last decade, the export of creative goods from developing countries has nearly doubled, bolstered by the growth of South-South trade. This trade, which involves the exchange of goods between developing nations, has become a critical driver of economic diversification. According to a recent report by UNCTAD, South-South trade in creative goods accounted for 40.5% of all creative exports by developing economies in 2020. China leads this charge, with its exports of creative goods far outstripping those of any other country, developed or developing. Other nations, including Mexico and India, are also making their mark, with strong performances in the fashion, crafts, and design sectors.

Struggles in the Creative Services Sector

While the story of creative goods is one of robust growth, the narrative around creative services — such as software, audiovisual production, and cultural services — is more complex. Developing countries remain underrepresented in this domain, which is still dominated by developed economies like the United States and Germany. The digital divide, lack of infrastructure, and inadequate skills are significant barriers that prevent these nations from competing on a global scale. The gap in creative services exports is stark: in 2020, developed countries accounted for 82.3% of all creative services exports.

Despite these challenges, there are pockets of progress. In Asia, countries like India are beginning to assert themselves in the global market for software and audiovisual services, thanks to rapid advancements in digital infrastructure and a growing tech-savvy workforce. However, these gains are often overshadowed by systemic issues, particularly in regions where intellectual property (IP) regulations are weak or poorly enforced.

The Intellectual Property Conundrum

The issue of intellectual property is perhaps the most significant hurdle facing developing countries in the creative economy. In countries like Nigeria, the potential of the creative economy — driven by globally influential industries like Nollywood and Afrobeats — remains largely untapped due to endemic IP challenges. Despite the country’s ambitions for its creative economy to account for 10% of GDP by 2030, large investors are pulling out due to concerns over IP protection. Creators often offshore their content, registering it in countries with more robust IP laws, such as the United Kingdom or the United States.

This regulatory vacuum not only stifles domestic growth but also leads to missed opportunities on the international stage. As Shain Shapiro, a leading expert on global creative industries, noted in a recent Forbes article, “For one’s creative economy to grow, it must be supported by respected and followed policies, practices, legal processes, and administrative procedures that define creations as economic goods that can be registered, tracked, and, most importantly, paid for.” Without these systems, the burgeoning creative sectors in developing countries risk stagnation.

Digitalization: A Double-Edged Sword

Digital technology and AI are transforming the creative economy, offering new opportunities while also posing significant risks. Streaming services, for instance, have expanded their share of the global music market, with developing countries increasingly participating in this digital ecosystem. AI is also making inroads, enhancing content creation and distribution. However, the benefits of these technologies are not evenly distributed. The global digital divide means that many developing countries are still struggling to integrate into this digital landscape, limiting their ability to fully capitalize on the creative economy.

The Road Ahead: Policy and Investment

As the creative economy continues to grow, the need for multidisciplinary policy responses becomes increasingly urgent. Developing countries must invest in education, digital infrastructure, and legal frameworks, particularly in the area of intellectual property. Without these investments, the potential of the creative economy to drive economic growth and social development will remain unfulfilled.
Yet, there is reason for optimism. The resilience of creative services during the COVID-19 pandemic — where exports of these services fell by only 1.8%, compared to a 20% decline in overall services — demonstrates the sector’s potential for stability and growth. With the right policies and investments, developing countries can continue to expand their role in the global creative economy, turning their cultural assets into engines of economic prosperity.

As the world looks towards 2030, the contributions of developing countries to the global creative economy will be critical in shaping a more inclusive and dynamic global marketplace. But to realize this potential, these nations must navigate the complex challenges that lie ahead, from intellectual property to digital infrastructure, ensuring that their creative sectors are not just celebrated, but also adequately supported and protected.