Unlocking finance for creative industries

Creative industries, such as film, music, fashion design and advertising are a growing important source of economic activity globally, generating around $2 trillion of revenues and supporting over 50 million jobs, especially for young people. Yet they struggle to get the financing they need to reach their full business potential.

The Power of Creative Industries in EMDEs

Creative industries are activities that transform ideas, intellectual properties and culture heritage into creative goods or services. In Emerging Markets and Developing Economies (EMDEs), creative industries are particularly important, offering opportunities for young people and women, who often face barriers to economic participation. Across low-income and lower-middle-income countries, individuals aged 15 to 24 accounted for nearly one-fourth of all employment in cultural occupations. In a recent World Bank series of creative industry country case studies, creative industries contribute to 4-15% of GDP and jobs, such as in the Philippines, Brazil, Korea and the US.  However, despite their potential and various challenges, SMEs in these industries face persistent challenges related to firm capabilities, regulatory environment and accessing finance, particularly when compared to their counterparts in developed economies.

The Financing Gap and the Role of IP

One of the highest barriers is the lack of access to affordable and flexible financing. Global investment has shifted toward intangible assets, where the value of Intellectual Property (IP) often surpasses that of tangible assets. Intangible assets now represent nearly USD 80 trillion globally. According to the WIPO-LBS Global INTAN-Invest Database, which covers 26 countries covering 52% of global GDP, total intangible investment consistently outpaced tangible investment, growing three times faster during the period 2008-2023. Although not all of this investment is related to creative industries, this underscores the rising economic importance of intangible assets like IP, including trademarks, copyrights, and patents. While IP holds immense potential as financial assets, it is not recognized globally as collateral for capital adequacy purposes. Notably, under the Basel III framework’s Standardized Approach for Credit Risk, intangible assets, including IP, are not eligible as collateral for reducing credit risk exposures, restricting their use in securing loans.

This challenge is compounded in many EMDEs by the absence of robust collateral regimes and regulatory frameworks that do not facilitate the use of IP as collateral. The lack of knowledge, insights, and research on critical aspects such as IP valuation, accounting standards, risk assessment, and market dynamics further hinders progress. This gap not only limits the growth of creative SMEs but also stifles innovation and economic resilience.

World Bank’s Research on IP Monetization and Finance for Creative SMEs

The World Bank, with support from the Korea-World Bank Partnership Facility and the CreatiFi Trust Fund is researching new financing solutions for SMEs in creative industries to offer insights into existing good practices and approaches to financing creative SMEs at various stages of their development.

One key first step is to explore mechanisms and regulatory reforms that enable creative SMEs to monetize their IP assets both through traditional monetization models such as copyrights royalties by collective management organizations, and digitally-enabled models such as “freemium” and advertisement revenues from digital platforms and NFTs.  Putting a price tag and supporting firms to generate revenues or royalties out of their IP is also critical in helping creative sector SMEs to gain more formal access to finance.

We are examining the unique financing needs of creative sector SMEs, from startups to mature businesses, and propose strategies to bridge the financing gap. A key focus of our upcoming publications on this topic will be the role of IP as an intangible asset, exploring how supportive collateral regimes, innovation like smart contracts and regulatory reforms can enable creative entrepreneurs to monetize their IP effectively. By addressing challenges such as valuation, risk management, and regulatory recognition and protection, this research will hopefully serve as a springboard to start and contribute to the global dialogue on IP backed financing of creative industries.  The World Bank is working on a broader “creative industries for jobs and growth” project whereby finance and private sector development teams jointly work on both the demand and supply side of financing creative SMEs.

A Call to Action

The WIPO IP Finance Dialogue, a conference of that brought together policymakers, financial experts, innovators, and academics held in Geneva in May 2025, highlighted the urgent need to rethink how we finance creativity and innovation. As the intangible asset economy continues to reshape global markets, EMDEs must not be left behind. The World Bank is committed to contribute to this conversation, working with governments, financial institutions, and international organizations to create an enabling environment for attracting more private capital investments and facilitating development of creative industries for jobs and growth.