Creative Industries Liechtenstein

Creative industries in Liechtenstein, though modest in scale, are steadily growing and play a vital role in enhancing the country’s cultural identity and international profile. Nestled between Austria and Switzerland, this small yet prosperous principality is traditionally known for its finance and industrial sectors. However, its creative economy is emerging as a vibrant contributor to its development.

Flag of Liechtenstein
Creative Industries Liechtenstein

Key Sectors

Liechtenstein’s creative industries encompass a range of sectors:

  • Art and Design: The Kunstmuseum Liechtenstein stands as a beacon of contemporary and modern art, fostering a thriving artistic community. Local artists and designers often draw inspiration from the principality’s alpine landscapes, blending tradition with innovation.
  • Music and Performing Arts: The Liechtenstein Symphony Orchestra and other cultural institutions enrich the performing arts scene, hosting concerts and events that attract both local and international audiences.
  • Traditional Crafts: Heritage crafts like woodworking and ceramics remain integral, combining traditional techniques with modern aesthetics to appeal to global markets.
  • Digital Media and Publishing: Although still in its infancy, digital media and online publishing are gaining traction, supported by the country’s advanced technological infrastructure.

Trends and Opportunities

Liechtenstein’s creative economy is aligning with global trends such as sustainability and digital innovation. Eco-friendly practices in design and crafts are gaining prominence, while cross-border collaboration with Austria and Switzerland provides opportunities for market expansion and cultural exchange.

Challenges

The small size of Liechtenstein’s population and market poses limitations for scaling creative ventures. Additionally, the lack of extensive infrastructure and dedicated funding for creative industries can hinder growth and innovation.

Support and Collaboration

Government initiatives and organizations like the Liechtenstein Cultural Foundation play a crucial role in supporting local artists and entrepreneurs. The principality’s proximity to larger cultural hubs in neighboring countries further facilitates collaboration and access to broader networks and resources.

Future Outlook

Liechtenstein’s creative industries, though niche, are poised for growth. By fostering innovation, encouraging public-private partnerships, and emphasizing sustainability, the principality can carve a unique space in the global creative economy. With its blend of tradition and modernity, Liechtenstein’s creative industries contribute to its cultural richness and economic resilience.

Population: 40,272
Capital: Vaduz
Internet country code: .li

Economy

Despite its small size and lack of natural resources, Liechtenstein has developed into a prosperous, highly industrialized, free-enterprise economy with a vital financial services sector and one of the highest per capita income levels in the world. The Liechtenstein economy is widely diversified with a large number of small and medium-sized businesses, particularly in the services sector. Low business taxes – a flat tax of 12.5% on income is applied – and easy incorporation rules have induced many holding companies to establish nominal offices in Liechtenstein, providing 30% of state revenues.

The country participates in a customs union with Switzerland and uses the Swiss franc as its national currency. It imports more than 90% of its energy requirements. Liechtenstein has been a member of the European Economic Area (an organization serving as a bridge between the European Free Trade Association and the EU) since May 1995. The government is working to harmonize its economic policies with those of an integrated EU. As of 2015, 54% of Liechtenstein’s workforce consisted of cross-border commuters, largely from Austria, Germany, and Switzerland.

Since 2008, Liechtenstein has faced renewed international pressure – particularly from Germany and the US – to improve transparency in its banking and tax systems. In December 2008, Liechtenstein signed a Tax Information Exchange Agreement with the US. Upon Liechtenstein’s conclusion of 12 bilateral information-sharing agreements, the OECD in October 2009 removed the principality from its “grey list” of countries that had yet to implement the organization’s Model Tax Convention. By the end of 2010, Liechtenstein had signed 25 Tax Information Exchange Agreements or Double Tax Agreements. In 2011, Liechtenstein joined the Schengen area, which allows passport-free travel across 26 European countries. In 2015, Liechtenstein and the EU agreed to clamp down on tax fraud and evasion and in 2018 will start automatically exchanging information on the bank accounts of each other’s residents.