The term ‘Creative Industries’ was developed to recognise and quantify the contribution made to the economy by those engaged in developing creative content. In the UK, as the New Labour administration took office in 1997, high-profile lobbying, in particular from the film and music industries, helped to persuade the government to develop and adopt strategies which encouraged and maximised economic activity in these areas. In Britain the government and its economic development agencies are geared to supporting industry sectors and so the Department for Culture, Media and Sport (DCMS) undertook a scoping study to define and map the creative industries as a sector and to establish levels of activity to provide benchmarks for future support initiatives.

The DCMS defined the creative industries as 'those activities which have their origin in individual creativity, skill and talent and which have a potential for wealth and job creation through the generation and exploitation of intellectual property', eg advertising, architecture, the art and antiques market, crafts, design, designer fashion, film and video, interactive leisure software, music, the performing arts, publishing, software and computer services, television and radio.  

UK creative industries generate revenues of around £112.5 billion and employ 1.3 million people, with UK exports accounting for around £10.3 billion. Between 1997 and 1998 output from creative industries grew by 16 per cent, as compared to 6 per cent for the economy as a whole. These figures supported the case for strategic support, although it should be noted that producing exact figures for the sector is difficult, as the creative sector doesn’t follow traditional industry models. It has a high number of freelancers and micro businesses (fewer than 10 employees) who move fluidly between commercial and non-commercial contexts. Also, those working in the sector may not recognise themselves as being part of an industry. These factors have influenced the models of support now in place.

In Scotland, more than 100,000 people are currently employed in the creative industries, generating £5 billion (which includes Scotland's computer games industry with an estimated turnover of £5 million), and contributing 4 per cent to Scottish GDP. Up to 6.7 per cent of Scotland's employment is within, or related to, the creative industries, giving it a greater share of creative industries employment than any region in the UK, outwith London and the South East. Scotland’s creative industries are recognised as being strong at developing creative content but there remains a need for stronger publishing, production and distribution mechanisms, which tend currently to be centred in the rest of the UK, mainly London and the South East. The majority of creative industries are resident in Glasgow, Dundee, Edinburgh and Aberdeen, with Dundee traditionally seen as a centre for games and digital content and Glasgow a magnet for film, TV and design activity.

Scottish Government support for the creative industries is channelled through the key statutory funding bodies - Scottish Enterprise, Highlands and Islands Enterprise (HIE) - Iomairt na Gaidhealtachd, Scottish Screen and the Scottish Arts Council's Literature Department.

Scottish Enterprise invests around £6 million each year on projects and feasibility work in the sector, and its strategy, Creative Scotland: Shaping The Future, outlines four strategic priorities: to develop a dynamic business environment; to develop and expand the talent and skills base; to increase innovation; and to enhance the international reputation of Scotland's creative industries. It manages a number of initiatives in games, radio and television, new media, film, music production, design, publishing, architecture, advertising, arts and, cultural industries and has a key focus on the digital content industries, which offer the most attractive opportunities for growth (the creative industries are forecast to grow on average by 10 per cent per annum, and for those companies involved in digital content production, rates up to 20 per cent per annum are predicted). Scottish Enterprise currently supports the sector in its aims to grow by 30 per cent, increase exports by 15 per cent and create up to 2,000 new jobs, through the development of a digital media centre at Pacific Quay in Glasgow and a digital media park on Tayside, support for awards programmes like Dare to be Digital in partnership with the University of Abertay in Dundee, and the Proof of Concept Fund encouraging universities to test the commercial potential of new research and development projects for this sector as well as through work with companies to help them make the most of international opportunities. These initiatives are delivered by SEn’s Creative Industries Department along with the Creative Industries managers in each Local Enterprise Company (LEC).

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