The Economic Impacts of Video Game Technology Spillover

Evaluation of how video game technology adoption has
benefited the broader UK economy and the economies
of Denmark, Finland, Norway and Sweden
November 2023

2 | The Economic Impacts of Video Game Technology Spillover2 | The Economic Impacts of Video Game Technology Spillover
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The Economic Impacts of Video Game Technology Spillover | 3
CONTENTS
04
Executive Summary
09
Introduction
11
Overview of Spillover Technologies
15
Methodology Overview
18
Economic Impact Results – United Kingdom
24
Economic Impact Results – Nordic Countries
37
Case Studies
54
Conclusion
56
Methodology Appendices
The Economic Impacts of Video Game Technology Spillover | 3

4 | The Economic Impacts of Video Game Technology Spillover
To determine the scope of the impact, FTI isolated the
growing linkages between video game-related software
publishing and development and other economic sectors.
These linkages showed the gradual dissemination of video
game technology throughout the broader economy.
The United Kingdom
Table 1 presents the impact of video game technology
“spillover” on the UK economy for 2021. Highlights include
nearly 10,000 jobs supported, 1.3 billion GBP in output,
1
Executive Summary
4 | The Economic Impacts of Video Game Technology Spillover
Ukie engaged FTI Consulting (“FTI”) to assess the impact of video game technologies’
contribution to non-game sectors in the UK and select Nordic economies. Sectors such as
healthcare, audiovisual media, manufacturing, and real estate have adopted and applied
innovations from game developers to enhance their products and improve their business
operations. These technologies include game engines, virtual reality (“VR”), augmented
reality (“AR”), rendering software, controllers and input devices, and haptic feedback. This
game technology is developed globally, but “spills over” into non-game sectors of local
economies, which benefit through higher productivity and output.
760 million GBP in Gross Domestic Product (“GDP”),
and 380 million GBP in labour income
2. This amount of
activity also supports 250 million GBP in government
revenues. Sectors that saw the highest spillover from
game technology in the UK included Information
Technology, Energy Extraction and Business Services.
Table 1 includes the ancillary jobs supported from
video game technology’s supply chain and consumer
expenditures. All impacts summarised in Table 1 are in
addition to the activities of the video game sector itself.
Table 1 – 2021 economic and fiscal impacts of video game technology spillovers in
other sectors on the UK economy
Metric UnitTotal
Employment Jobs (Units)9,900
Output 2021 GBP (millions) £1,330
GDP 2021 GBP (millions) £760
Labour Income 2021 GBP (millions) £380
Government Revenues 2021 GBP (millions) £250
1“Output” is the value of all transactions occurring throughout an economy.2Labor income is defined as the sum of all wages and salaries, the cash-equivalent value of other compensation for employees, and earnings.

The Economic Impacts of Video Game Technology Spillover | 5The Economic Impacts of Video Game Technology Spillover | 5
This game
technology is
developed globally,
but “spills over” into
non-game sectors
of local economies,
which benefit
through higher
productivity and
output.

6 | The Economic Impacts of Video Game Technology Spillover
Table 2 shows the impact of video game technology
spillover on Denmark, Finland, Norway and Sweden for
2021. Highlights include supporting approximately 1,700
jobs in Norway and Sweden, over 1,000 jobs in Denmark,
and 890 jobs in Finland. Additionally, the technology
spillover generated 700 million GBP in output for Norway,
270 million GBP for Sweden, 190 million GBP for Denmark,
and 130 million GBP in Finland. This amount of activity
also generated 570, 140, 120, and 60 million GBP in GDP
in Norway, Sweden, Denmark, and Finland, respectively.
Labour income for workers in Norway, Sweden, Denmark
6
| The Economic Impacts of Video Game Technology Spillover
and Finland was 100, 80, 50 and 30 million GBP and
their respective governments gained 180, 70, 40, and 30
million GBP in tax revenues. Across these regions, Energy
Extraction, Information Technology and Machinery
Manufacturing were the sectors that saw the greatest
total impact from game technology spillover. The Energy
Extraction sector in the Norwegian economy is very
large compared to other economies of similar size and
the value of game technology spillover in Norway scales
alongside this. The high output from game technology
spillover in Norway is sustained by a comparatively
Denmark, Finland, Norway and Sweden
For example, the almost 10,000 jobs supported by game
technology spillover in the UK are on top of the 71,400
jobs supported by the video game sector itself in 2019
according to the BFI Screen Business Report.
3
As the design of game technology and tools has evolved
to consider users of broader technical skill levels and
more diverse creative processes, these technologies
have expanded their application beyond just the video
games industry. Alongside providing an additional source
of economic contribution from the UK games industry,
which generated over 5.1 billion GBP in Gross Value
Added (“GVA”)
4 in 2019 to the UK economy, 5 video game
technology has lent a hand in many ground-breaking
innovations outside of games, such as:
• Game engine technology is instrumental in creating
state-of-the-art visual effects (“VFX”). The
cinematographer of Disney+’s The Mandalorian—a
top 50 ranked television show of 2023—praised
game engines for their ability to not only speed up the
production process but also improve the final product
by providing a real-time view of the finished VFX. In
addition to the time and visual benefits, the technology
3https://www.bfi.org.uk/industry-data-insights/reports/uk-screen-sector-economy4GVA is generally used when talking about specific industries or sectors, while GDP is often more appropriate when looking at an entire economy, as is the case with the impact of game technology spillover.
Most sector specific reporting in the UK (incl. the BFI Screen Business Report) uses GVA. Figures throughout this report are given in GVA or GDP as they were originally calculated or published. GVA is
a major component of the calculation of GDP and quarterly growth figures for both metrics are generally within 0.2% of each other, so comparisons between the two are reasonable. For more detailed
information, please see the ONS website: https://www.ons.gov.uk/economy/grossdomesticproductgdp/methodologies/aguidetointerpretingmonthlygrossdomesticproduct
5https://www.bfi.org.uk/industry-data-insights/reports/uk-screen-sector-economy6https://www.fda.gov/news-events/press-announcements/fda-authorizes-marketing-virtual-reality-system-chronic-pain-reduction
also reduces the need for physical props and locations,
enabling studios to produce smaller-scale productions
with smaller environmental footprints than previously.
• Healthcare professionals and surgeons can enhance
their skills through virtual reality simulations. These
simulations replicate real-world scenarios and surgical
procedures with accurate representations of human
anatomy.
• AppliedVR, a virtual reality (“VR”) developer, helps
individuals reduce chronic lower back pain. RelieVRx,
a VR technology and treatment programme, supports
and assists patients’ long-term pain management
needs using principles of cognitive behavioural therapy.
It has been shown to reduce pain for users in an
independent clinical trial.
6
• Video rendering technology originating in game
engines is now being used by real estate developers
to produce interactive digital designs that assist in
guiding the physical development and construction
of their projects. The process is currently being
employed in developing Co-op Live, the largest indoor
arena in the UK. Digital renderings allowed the architect
and design teams to visualise the final 23,000-seat
arena.

The Economic Impacts of Video Game Technology Spillover | 7The Economic Impacts of Video Game Technology Spillover | 7
Table 2 – 2021 economic and fiscal impacts of video game technology spillovers in other sectors on select
Nordic economies
Metric UnitNorwaySwedenDenmark Finland
Employment Jobs (Units) 1,6701,7101,100 890
Output 2021 GBP (millions) £700£270 £190£130
GDP 2021 GBP (millions) £570£140£120 £60
Labour Income 2021 GBP (millions) £100£80£50£30
Government Revenues 2021 GBP (millions)
£180£70£40 £30
modest workforce and so the spillover output per worker
in Norway’s Energy Extraction sector is the highest of any
sector analysed across all regions, including the UK.
As with the UK, all impacts summarised in Table 2 are in
addition to the those of the video game sector itself, which
supported over 12,000 jobs and generated over 5.5 billion
GDP in revenue across the selected Nordic economies.
7
Video game technology has been used in the following
contexts across Denmark, Finland Norway and Sweden.
• Advanced game engine technology is being integrated
into digital interfaces for passenger vehicles, providing
drivers and passengers with unobstructed views from
all angles. These digital renderings offer high-resolution
graphics in real-time, which contribute to the overall
safety of the vehicles.
• Game engine technologies also allow for the
advancement of hyper realistic driving simulations
to support testing and training capabilities in the
commercial transportation sector.
7https://www.egdf.eu/2021-european-video-games-industry-insight-report/
• The manufacturing industry uses detailed digital
renderings to produce furniture designs. This
technology generates lifelike 3D designs that help
manufacturers design, adjust, and develop new
products. These renderings also enhance the online
customer experience by allowing users to customise
products and view the changes instantly.
• The oil and gas industry is leveraging VR and AR
technology to enhance safety, training, maintenance,
and construction by employing detailed virtual
representations of facilities and equipment. Through
the use of VR and AR headsets, workers can engage
with a realistic 3D model of offshore platforms. This
technology reduced travel time, costs, and emissions
associated with offshore transportation, while also
promoting the secure operation of the platform by
allowing users on the rig to find and repair damaged
equipment more efficiently.

The UK is home to
almost 2,600 games companies…

with over 55% of game development roles
outside of London and the South East
8 | The Economic Impacts of Video Game Technology Spillover

The Economic Impacts of Video Game Technology Spillover | 9
The UK video game sector is oriented towards exports,
with 95% of UK game development studios exporting some
of their games. Some notable UK video game production
highlights are:
•
Grand Theft Auto (“GTA ”) is one of the most successful
video game series ever produced. Developed by Rockstar
North, located in Edinburgh, the GTA franchise has sold
over 400 million copies since 1997.
11 Grand Theft Auto V
was released in 2013, has sold over 180 million copies,
continues to appear in the UK’s top-selling games charts
a decade after its release and is considered to be the
“most financially successful media title of all time”.
12
• The Tomb Raider franchise is another success story for
The UK is home to almost 2,600 video game companies, with around 2,340 located in
England, 122 in Scotland, 68 in Wales, and 35 in Northern Ireland. The London region is the
primary hub for video game companies, with almost 900 operating in the city.
8 Although the
UK’s registered companies are concentrated in London, the games industry’s workforce is
more distributed, with over 55% of game development roles being outside of London and the
South East. Over 1,100 video game companies operated in Denmark, Finland, Norway and
Sweden combined in 2021. Sweden had the largest number of companies and employees,
with 785 companies, and the video game industry was centred primarily in Stockholm.
Finland had 216 video game companies, while Denmark had 168 companies. Norway had a
smaller presence in the industry, with fewer than 20 video game companies.
9,1 0
the UK video game sector. Originally created by Core
Design in Derby, England, the franchise has generated
19 games and three feature films with upcoming plans
for a streaming series.
13
• Released on Steam in early access in December 2021,
Vampire Survivors is an indie game success story.
Originally the work of solo developer Luca Galante,
following an explosion in popularity, it is now made by
a 15-person UK studio named poncle, headed by its
original creator. It saw an all-time peak of over 77,000
concurrent players
14 on Steam, putting it alongside
games like
Call of Duty: Modern Warfare II Warzone . Its
success was capped by winning both Best Design and
Best Game at the 2023 BAFTA Games Awards.
15
8https://map.gamesmap.uk9https://dataspelsbranschen.se/game-developer-index10https://www.egdf.eu/2021-european-video-games-industry-insight-report/11https://ir.take2games.com/static-files/f04c0f81-91d9-4792-a05f-c11d244c96c312https://www.gamesindustry.biz/gta-v-is-the-most-profitable-entertainment-product-of-all-time13https://www.hollywoodreporter.com/tv/tv-news/tomb-raider-tv-show-amazon-phoebe-waller-bridge-1235311582/14https://steamcharts.com/app/179468015https://www.bafta.org /games/awards/2023-nominations-winners
Introduction

Developers in Nordic countries have created some of
the largest and most popular video games in the world,
including those listed below.
•
Minecraft , the number one best-selling game of all time, 16
is developed by Stockholm-based Mojang Studios.
Originally launched in 2009, Minecraft would go on to
sell over 240 million copies and attract 93 million active
players every month.
17 Minecraft is available on over
20 platforms with Dundee-based 4J Studios handling
several console ports. The Minecraft brand has recently
expanded to other genres with
Minecraft Dungeons and
Minecraft Legends .
• Rovio Entertainment, established and based in Finland,
is the creator of the world-famous
Angry Birds franchise.
What began as a video game in 2009 quickly became a
global sensation and an immensely popular brand. The
franchise has since grown to now include around 30 video
games and two movies.
18
• The first entry in the Hitman franchise, Hitman:
Codename 47
was released by Copenhagen-based
IO Interactive in 2000. Over 21 years and 8 games, the
franchise has established itself as a staple of the stealth
game genre, with
Hitman 3 (2021) being named the best
stealth game of 2021 by PC Gamer
19 and the World of
Assassination
trilogy attracting over 50 million players 20.
IO Interactive, who became independent in 2017, employs
over 150 people
21 and operates subsidiary studios in
Malmö, Barcelona, Istanbul and Brighton. The franchise
has also seen two film adaptations and several mobile
spin-offs. According to the 2021 Screen Business report, in 2019, the
UK video games industry directly employed 24,000 full-
time equivalents, supported 24,200 indirect supply-chain
jobs, and induced another 18,200 jobs through consumer
expenditures.
22 These 71,400 jobs represent 2.4 billion
GBP in employment-related compensation and altogether
support 5.1 billion GBP in GVA for the UK economy. In the
Nordic region, according to the 2022 Game Developer
Index and the 2021 European Games Developer Federation
Industry Insight Report, the video games industry provided
employment to over 12,000 workers in 2021. Sweden
supported just under 8,000 jobs in the video game industry,
Finland employed 3,550 workers, and Denmark and Norway
employed 911 and 433 workers, respectively.
23,24
The video game industry’s economic impacts go beyond
just these figures and extend into other sectors where the
industry’s technology has been adopted, such as film and
television production, healthcare, and real estate. This
increasing “technology spillover” has enabled other sectors
to increase innovation and total output, improve product
designs, enhance product safety and training efforts, enrich
customer experiences, and preserve culture,
25 making now
a worthwhile time to gauge the extent to which video games
can be a source of economic value beyond its core sector.
This report documents how the growth of the video game
industry and game technology has resulted in spillovers in
multiple economies. It showcases specific examples of how
software and hardware technology developed by video game
developers has been applied in other economic sectors.
16https://www.forbes.com/profile/markus-persson/?sh=4565d5f969aa17https://dataspelsbranschen.se/game-developer-index18https://gamerant.com/every-angry-birds-game-chronological-order/#angry-birds-seasons19https://www.pcgamer.com/best-stealth-game-hitman-3/20https://youtu.be/r6Y3Bqjz_AY21https://regnskaber.cvrapi.dk/90261242/amNsb3VkczovLzAzLzAxLzkyLzZmLzIxL2U2NTktNGM0Zi05MmU4LWEzMDEwNjI4ZGM3MA.pdf22https://www.bfi.org.uk/industry-data-insights/reports/uk-screen-sector-economy23https://gamedevreports.ru/wp-content/uploads/2022/10/gamedeveloperindex2022webb.pdf24https://www.egdf.eu/2021-european-video-games-industry-insight-report/25https://www.cbsnews.com/news/notre-dame-cathedral-fire-video-game-assassins-creed-could-help-in-its-restoration/

The Economic Impacts of Video Game Technology Spillover | 11

12 | The Economic Impacts of Video Game Technology Spillover
Overview of
Spillover Technologies
This section describes several significant technologies developed by the video game
industry that have benefited other economic sectors. Important technologies include,
but are not limited to, game engines like Unreal Engine
26 and Unity, 27 virtual reality (“VR”),
augmented reality (“AR”), 3D rendering software, input devices, and haptic feedback.
These technologies are not all mutually exclusive, as they could benefit each other in
various ways. For example, game engines often incorporate 3D rendering software, and
input devices may include haptic feedback to immerse users in a VR world.
In the past decade, video game technology has matured greatly, and its uses have
expanded beyond video game development alone. For example, use of game engines as
visualisation tools has spread to various industries such as healthcare, real estate, and
preservation efforts, as illustrated further in the case studies. As a result, it is a crucial
time to evaluate the economic impact of game technology.
Matt Vernon-Clinch, Business Development Director, PRELOADED 28
26https://www.unrealengine.com/en-US27https://unity.com/28Expert interview conducted by Ukie
“As more immersive and engaging communication mediums
that are predominantly driven by games technology and
games design practices, AR and VR content has a broad
spectrum of appeal and interest beyond the gaming sector.
From training and L&D, through to marketing and retail,
the appetite and investment for solutions using these new
technologies is vast and rapidly increasing.”

The Economic Impacts of Video Game Technology Spillover | 13
Virtual Reality is an immersive experience that isolates
the user from the physical world. VR headsets, such as
the Meta Quest, allow users to explore fully interactive
environments while providing visuals and audio that
demand the full capacity of the user’s eyes and ears.
29
Combined with intuitive controls, this creates the illusion
of being fully transported to a different world, allowing
users to engage in video games with a deeper sense of
immersion or a more complete replication of real-life
experiences like tourism or driving.
In contrast, Augmented Reality (“AR”) superimposes real-
world environments with sensory elements. These include visual or audio elements to overlay digital content on real-
world objects. An early example of mass-consumed AR is
the popular
Pokémon Go app, originally released in 2016.
Pokémon Go players use the camera on their mobile
device to search for Pokémon hiding in the “real world.”
30
Users could find Pokémon hiding in their houses, behind a
tree at a local park, or at mass social gatherings.
AR has contributed to the medical field as well. The
technology allows healthcare workers to search for veins
more easily within patients’ arms. It also allows mechanics
to locate and troubleshoot damaged equipment in the oil
and gas industry.
31,32
Virtual and Augmented Reality
29https://www.meta.com/quest/products/quest-2/30https://pokemongolive.com/?hl=en31https://www.accuvein.com/32https://www.equinor.com/energy/digital-twin33https://csrc.nist.gov/glossary/term/commercial_off_the_shelf34https://www.usatoday.com/story/news/nation/2018/03/16/attack-submarine-colorado-xbox-controllers-included-join-fleet/431719002/
Controllers and input devices establish the link between
users and electronics. The obvious examples include a
mouse, keyboard, and video game controller.
Video game controllers have several advantages: low-cost,
abundant, easy to connect, easy to replace if failure occurs,
and user familiarity across a wide range of demographics.
Looking at the issue from the perspective of an engineer,
video game controllers are a commercial off-the-shelf
(“COTS”) part of a system that can be folded into existing
designs and are easily adaptable.
33
Controllers are no longer limited to video games. They
have found their way into many other contexts, such
as military applications. In 2018, the
USS Colorado , a
nuclear submarine, was equipped with Xbox controllers
to operate photonic masts in lieu of pricier periscope
controllers that required bespoke equipment.
34
Controllers and Input Devices

14 | The Economic Impacts of Video Game Technology Spillover
Game engines represent perhaps the most significant
spillover technology. A game engine is a software
product with settings and configurations to simplify the
development of video games. They include a two- or
three-dimensional graphics rendering engine, a physics
engine that simulates the physical behaviour of objects and
individuals, artificial intelligence (“AI”) that automatically
responds to the players’ actions, a sound engine to control
sound and music, and more. These components help
produce new games and can ease the porting of existing
games to additional platforms.
35
Many of today’s game engines are used for “in-house”
development only, meaning the engine’s owner (often
a publisher) and other studios within their group have
exclusive access to the engine for creating games published by that same owner (e.g. EA’s Frostbite Engine
36
and Capcom’s RE Engine
37). Other engines were developed
as licensable products, such as Unreal Engine from Epic
Games and Unity by Unity Technologies. Historically, these
tools were licensed to game development studios, many of
whom would not have the resources to build their own game
engine. They were often best suited to a particular style of
game. For example, Unreal Engine began with a focus on PC
first-person shooters. Both Unreal Engine and Unity are now
robust engines capable of handling many styles of games.
A significant shift in recent times has seen these engines
licensed to companies outside of the games industry and
used for purposes other than game design, becoming
increasingly ubiquitous as state-of-the-art visualisation
tools across many industries due partly to their ease-of-
use, broad knowledge base, and frequent updates.
Game Engines
Haptic technology, also known as haptic feedback, allows
users to experience physical sensations which imitate their
virtual environment.
38 For instance, a video game controller
or VR headset may shake, vibrate, or rumble in response to
in-game events, which provides real-time feedback to the
player. Such feedback increases the level of interactivity
and offers the users a more immersive experience.
In the automotive sector, haptic technology is being
employed to enhance both driver and passenger
experience. Using adaptive haptic gloves, users can
operate automobile functions such as audio through hand-
tracking movements, without ever touching the screen.
39
Advancements in haptic technology are also bringing
substantial improvements in robotics and healthcare.
Based in London, Fundamental Surgery is a medical
technology company incorporating haptic technology into
VR applications. These tools offer surgeons the ability to
merge VR surgery techniques with haptic feedback, which
allows them to feel aspects of anatomy. This approach
has resulted in a 44% increase in surgical accuracy over
traditional VR training.
40
Haptics
35https://www.arm.com/glossary/gaming-engines36https://www.ea.com/frostbite/engine37https://www.gameinformer.com/2023/07/03/how-is-capcoms-re-engine-so-versatile38https://masschallenge.org /articles/haptic-technology/39https://www.businesswire.com/news/home/20170216005123/en/HARMAN-Partners-with-Ultrahaptics-to-Bring-Custom-Haptic-Sensations-to-the-Connected-Car40https://fundamentalsurgery.com/platform/hapticvr/

The Economic Impacts of Video Game Technology Spillover | 15

Pay-roll taxes, in-commuters
Methodology
Overview
This section provides an overview of the underlying approach and specific analyses
carried out by FTI Consulting to determine the economic spillover impacts of video
game technology on the UK and Nordic economies. For more detailed information,
please see the appendices of this report.
41https://support.implan.com/hc/en-us/articles/12150245873435-2015-International-Product-Release-Notes
16 | The Economic Impacts of Video Game Technology Spillover
FTI used the IMPLAN model, which is an input-output
(“IO”) model of regional and national economies.
41 IMPLAN
produces five main metrics for the UK, Denmark, Finland,
Norway and Sweden:
1.
Employment – the number of jobs supported
2.
Output – the revenues of businesses associated with
video game technology
3.
GDP – the sum of all income related to production
4.
Labour Income – the household income supported by
video game technology 5.

Government Revenues – incremental tax revenues
for all levels of government because of higher levels
of economic activity, such as higher income tax
payments
IMPLAN illustrates how a direct change in employment
or expenditures, the “direct impact”, will then influence
the rest of the economy. IMPLAN describes these
“ancillary” or “ripple” effects through its “indirect” and
“induced” multiplier effects as shown in Figure 1.
IMPLAN Model and Definitions
Figure 1 – IMPLAN flowchart
Direct Effects
Input
Labor income Household income
Local purchases of inputs (goods and services)
Spending on local goods and services (continues to trickle through local
economy until exhausted by leakages)
Imports, taxes, profits
Indirect Effects Induced Effects
Imports, personal taxes, savings
Source: IMPLAN, Ukie

The Economic Impacts of Video Game Technology Spillover | 17
The types of IMPLAN effects are defined as the following:
•
Direct Effect – The direct effect is the direct
employment or output associated with video game
technology. Examples might include construction
workers or audiovisual artists.
•
Indirect Effect – The indirect effect is the impact on
the regional or national supply chain. For instance,
equipment and material inputs might be used in another
sector after first being produced by an initial sector
from the raw materials produced by the agriculture or resource sectors. Other sectors, such as utilities or
the many professional services and business services
needed to operate an enterprise, can also be indirect
impacts.
• Induced Effect – The induced effect is the consumer
expenditures supported by the wages paid to the
employees of the direct and indirect economic sectors.
•
Total Effect – The total effect is the sum of the direct,
indirect, and induced effects.
IO models represent all transactions occurring between
sectors throughout an economy. The IMPLAN IO model
for the US economy is significantly more detailed both in
terms of sectoral breakdown and timeseries than European
models. Acknowledging that the changing technological
relationships among economic sectors in the US are likely
to manifest themselves similarly in other high-income
countries, the US data was used as a proxy for the five
European economies, with results mapped onto each
individual European country using the European IMPLAN
models, informed by MIT’s Global Cloud Ecosystem Index
2022 (see Appendix #2: Mapping the US IMPLAN results to
the UK and Nordic economies).
42
The video game industry is found within two software
publishing and software development sectors in the
IMPLAN model. FTI analysed the millions of connections
between these sectors and the broader economy across the two decades of data available. Transactions from
2009 onwards were identified as the most appropriate
to focus on, with demand for software-related products
and services growing rapidly during the economic
recovery that followed the Great Recession in 2008.
FTI Consulting isolated growth in economic output due
to video game technology by analysing comparative job
growth between the video game sector and the broader
software publishing sector using independent data,
43
with video game jobs found to grow at a significantly
higher rate. In total, from 2009 to 2021, video game
technology spillover contributed an economic output of
7.1 billion USD to the US economy. The results chapter
that follows presents the overall economic value of
game technology spillover in the UK and Nordic regions
in 2021 and considers which sectors of each unique
economy are most impacted.
Analysing the US Economy and Mapping Results to European Territories
42https://wp.technologyreview.com/wp-content/uploads/2022/04/MITTR-INFOSYS-Cloud_Reort_FNL.pdf ?fbclid=IwAR1LgGMak430HwmgV6C0qmXM_J6iTe3tg2eO9EZpa8rdIGhL7LuBXTu19sE43https://www.ibisworld.com/industry-statistics/employment/video-games-united-states/

18 | The Economic Impacts of Video Game Technology Spillover

The Economic Impacts of Video Game Technology Spillover | 19
Economic Impact
Results in the
The UK games industry was estimated to contribute over 5.1 billion GBP in GVA to the
UK economy in 2019, with this figure expected to increase in the following years. It
supported 71,400 jobs across the entire value chain and is considered a cornerstone
of the UK’s creative industries.
44 The results below show how technology developed in
the global games industry has spilled over into the rest of the UK economy, outside of
games. It is important to note that the figures below do not represent spillover from the
UK’s domestic games sector itself, but from global video game technology, to which the
UK is undoubtedly a contributor. All currency conversions between USD and GBP use
the average exchange rate in 2021.
45
In total, the technology spillover contributed more than
1.3 billion GBP of output to the UK economy in 2021 as
shown in Figure 2. Direct, indirect, and induced output
contributions amounted to 620 million GBP, 390 million
GBP, and 320 million GBP, respectively. In terms of output,
game technology spillover roughly aligns with the UK timber
and forestry industry,
46 the aluminium production industry 47
and the cycling industry.
48
The technology spillover contributed 760 million GBP in total
to the UK’s GDP as shown in Figure 2. Direct, indirect, and
induced output contributions amounted to 360 million GBP,
210 million GBP, and 190 million GBP, respectively. This is
also roughly three times the size of the GVA generated by
animation series produced in the UK in 2019,
49 although
note that this does not include animated film.
United Kingdom
Analysing the US Economy
44https://www.bfi.org.uk/industry-data-insights/reports/uk-screen-sector-economy45https://www.exchangerates.org.uk/USD-GBP-spot-exchange-rates-history-2021.html46https://www.ons.gov.uk/businessindustryandtrade/business/activitysizeandlocation/adhocs/15105turnoverinsicclasses47https://www.ons.gov.uk/businessindustryandtrade/business/activitysizeandlocation/adhocs/15105turnoverinsicclasses48https://store.mintel.com/report/uk-cycling-market-report#:~:text=Bicycle%20market%20value%3A%20Bike%20sales,%25%2C%20reaching%20around%20170%2C000%20units.49https://www.bfi.org.uk/industry-data-insights/reports/uk-screen-sector-economy
Figure 2 – UK’s output and GDP impacts
GBP (millions)
Output GDP
620
360
390
210
320
190
n
Direct n Indirect n Induced

20 | The Economic Impacts of Video Game Technology Spillover
Figure 3 above summarises the top 10 sectors most
impacted by video game technology in terms of
economic output. These figures are in dollars as they are
taken from an earlier stage in the analysis. These sector
impacts are compared to employment impacts below in
Figure 5.
Figure 3 – UK’s top 10 most impacted sectors by output
Output (USD millions)
DirectIndirect
Information Technology
Energy Extraction
Business Services
Wholesale and Retail
Machinery Manufacturing Finance and Insurance Fabricated Metals
Publishing and Audiovisual Healthcare
Aerospace and Marine 346
275
148
92
65
45
42
37
36
33
Employment
Video game technology spillover supported 9,900 UK
jobs in total in 2021 as shown in Figure 4 opposite. Direct,
indirect, and induced output contributions amounted to
4,420 jobs, 3,140 jobs, and 2,340 jobs, respectively.
Figure 5 opposite summarises the distribution of the top
10 sectors impacted by video game technology spillover in
terms of employment. Of the 9,990 total jobs supported,
3,000 of these were in the IT and Other Information
Services sector. This sector includes subsectors such
as data processing, internet publishing, and all other
information services. Other Business Sector Services
supported 1,560 jobs, which includes subsectors such as
legal, accounting, and consulting services. The third largest
sector supported is the Mining and Extraction of Energy
Producing Products sector which supported 990 jobs. This
sector includes oil and gas extraction and coal mining. Figure 4 – UK’s employment impacts
Jobs (Units)
Induced
Total
4,420 3,140
2,340
9,900

The Economic Impacts of Video Game Technology Spillover | 21
Figure 5 – UK’s top 10 most impacted sectors by employment
Jobs (Units)Information Technology Business ServicesEnergy Extraction
Wholesale and Retail Healthcare
Machinery Manufacturing Fabricated Metals
Finance and Insurance
Arts and Entertainment
Publishing and Audiovisual
3000
1560
990
910
450
420
310
290
280
280
These results indicate that job and output impacts
generally follow the same trends. However, different sectors
have varying levels of labour productivity in terms of output,
which results in a difference in the rankings of sectors
between these results.
Both Figure 3 and Figure 5 show that Energy Extraction,
Information Technology, and Business Services are
among the top three sectors impacted. In the Energy
Extraction sector, AR and VR technology is used for virtual
training and to enable engineers to review faults on oil rigs
remotely.
50 The Information Technology sector includes
firms like popular social media platform Snapchat, which
uses AR technology to power some of the app’s most
popular features such as facial filters and “try-before-you-
buy” experiences for fashion.
51 Within the broader Business
Services sector, architecture and engineering services
are using game engines in architectural visualisation. This
technology enables architects to create realistic and stylish
3D renderings to be used in project planning.
52
50https://pale.blue/2021/06/10/paleblue-delivers-vr-for-oil-rig-to-neptune-energy/51https://www.forbes.com/sites/forbestechcouncil/2020/01/08/how-augmented-reality-can-boost-social-media-marketing /?sh=749907ae360452https://parametric-architecture.com/architectural-visualization-by-using-game-engines/

22 | The Economic Impacts of Video Game Technology Spillover
Labour Income
The direct impacts of 190 million GBP received as direct
labour income is equivalent to an average yearly salary
of 42,990 GBP for the 4,400 directly employed workers.
Summarised in Figure 7, this salary is 25% higher than
the average yearly salary of a UK worker, which is
34,280 GBP.
53
Direct Indirect
Figure 6 – UK’s labour income impacts
GBP (millions)
Induced Total
190 110
80
380
Figure 7 – UK’s average employee annual salary
comparison
2021 GBP
Average UK Worker
Annual Salary
Average UK Worker
Annual Salary Emplyed
by Video Game
Technology Spillovers 34,280
42,990
53https://www.oecdbetterlifeindex.org /countries/united-kingdom/54https://www.hoover.org /research/hausers-law
Government Revenues
Increased economic activity often leads to higher
government revenues because of additional
opportunities for taxes to be collected. This relationship
is formalised in the economics literature as Hauser’s
Law.
54 While empirically formalised in the US, the
relationship between GDP growth and growth in
government revenues has been generalised to all
world economies.
Video game technology spillover generated 250 million
GBP in government revenues in 2021 as shown in
Figure 8 below. Direct, indirect, and induced output
contributions amounted to 100 million, 80 million,
and 70 million GBP respectively.
Direct Indirect
Figure 8 – UK’s government revenue impacts
GBP (millions)
Induced Total
100 80
70
250

The Economic Impacts of Video Game Technology Spillover | 23
Summary Impacts
The 2021 Screen Business Study estimated the video
game sector in the UK at 5.1 billion GBP in GVA.
55 Table 3
below summarises the additional spillover economic
and fiscal impacts of video game technologies on other
sectors in the UK economy.
Table 3 – Economic and fiscal impact results (2021)
Metric UnitDirectIndirect Induced Total
Employment Jobs (Units)4,4203,1402,340 9,890
Output 2021 GBP (millions) £620£390 £320£1,320
GDP 2021 GBP (millions) £360£210£190£750
Labour Income 2021 GBP (millions) £190£110£80£370
Government Revenues 2021 GBP (millions)
£100£80£70£260
55Gross Value Added (”GVA”) is a more appropriate measure for sector-specific economic totals but is closely related to GDP and the two can be compared.

24 | The Economic Impacts of Video Game Technology Spillover
Results of the
Economic Analysis in
The latest data 56,57 for Denmark, Finland, Norway and
Sweden shows that, combined, the video game industry
itself directly supported over 12,000 jobs in 2021 through
over 1,100 companies across those regions. Company
revenues exceeded 5.5 billion GBP, driven primarily by
Finland and Sweden’s contributions.
The results in this section describe the economic impact
of video game technology spillover on each economy,
specifically for 2021. The analysis considers the spillover
impacts on non-game sectors given advancements in
video game technology globally, not how video game
technology produced explicitly in a given region impacts
Select Nordic Countries
Introduction
the broader economy in that region. For example, seen
later in this chapter, Norway sees a significant impact
from game technology spillover despite the smaller size
of its domestic games industry, due to the spillover of
game technology produced globally into Norway’s large
energy extraction sector. The relationship between GDP
growth and government revenues was formalised in the
US as Hauser’s Law
58 but has been generalised to all world
economies and is used in the calculation of government
revenues as it was for the UK. Results in this chapter are
presented in GBP but note that the average conversion
rate of pounds to euros in 2021 was 1.159233,
59 if results in
euros are preferred.
56https://www.egdf.eu/2021-european-video-games-industry-insight-report/57https://dataspelsbranschen.se/game-developer-index58https://www.hoover.org /research/hausers-law59https://www.gov.uk/government/publications/exchange-rates-for-customs-and-vat-yearly
24 | The Economic Impacts of Video Game Technology Spillover

The Economic Impacts of Video Game Technology Spillover | 25The Economic Impacts of Video Game Technology Spillover | 25

26 | The Economic Impacts of Video Game Technology Spillover
In total, video game technology spillover contributed
190 million GBP of output to the Danish economy in
2021. Direct, indirect, and induced output contributions
amounted to 100 million GBP, 50 million GBP, and 40 million
GBP, respectively. Total output impacts are approximately
half the size of the railroad construction industry in
Denmark.
60 For comparison, in 2020 (the latest figures
available) the Danish video game industry generated 380
million GBP in direct revenue.
Additionally, technology spillover contributed 120 million
GBP in total to Denmark’s GDP while Direct, indirect, and
induced output contributions amounted to 70 million GBP,
30 million GBP, and 20 million GBP, respectively.
Video game technology spillover supported 1,100 Danish
jobs in total in 2021. Direct, indirect, and induced output
Overall economic impact in Denmark
contributions amounted to 500 jobs, 330 jobs, and 270
jobs, respectively. The Danish games industry itself
supported 911 employees directly in 2020. Video game
technology spillover contributed 50 million GBP of labour
income to Denmark’s economy in 2021. Direct, indirect,
and induced output contributions amounted to 30 million
GBP, 10 million GBP, and 10 million GBP, respectively. The
direct labour income distributed across the 500 directly
employed workers gives an effective salary for a game
technology spillover worker as 60,000 USD.
61 This salary
is slightly higher than the average yearly salary of a Danish
worker, which is 58,430 USD.
62
Video game technology spillover generated 40 million
GBP in government revenues in 2021. Direct, indirect,
and induced output contributions amounted to 20 million,
10 million, and 10 million GBP respectively.
60https://www.ibisworld.com/denmark/industry-statistics/railway-underground-construction/14664/61The OECD reports global average annual salaries in USD.62https://www.oecdbetterlifeindex.org /countries/denmark/
Table 4 – Economic and fiscal impact results – Denmark (2021)
Denmark UnitsDirectIndirect Induced Total
Employment Jobs (units) 5003302701,100
Output 2021 GBP (millions) £100£50£40£190
GDP 2021 GBP (millions) £70£30 £20£120
Labour Income 2021 GBP (millions) £30£10£10£50
Government Revenues 2021 GBP (millions)
£20£10£10£40

The Economic Impacts of Video Game Technology Spillover | 27
Sectors most impacted by game technology spillover in Denmark
Figure 9 above summarises the individual sectors
most impacted by video game technology in terms of
economic output; values are presented in dollars as they
are extracted at an earlier stage of the analysis. Energy
Extraction, Information Technology and Machinery
Manufacturing appear as a clear top 3. Firms within the
Energy Extraction sector use VR and AR technology in training contexts where they recreate the layout
of complex sections of rigs in virtual reality, while the
Information Technology sector includes social apps
with AR features and other firms providing interactive
experiences to clients.
63 Video game technology is being
used in construction, a subsection of the Machinery
Manufacturing sector.
Figure 9 – Denmark’s top 10 most impacted sectors by output
Output (USD millions)
Energy Extraction
Information Technology
Machinery Manufacturing Business Services
Wholesale and Retail
Electronics Manufacturing Healthcare
Fabricated Metals
Publishing and Audiovisual Finance and Insurance
55
54
45
21
20
10
9
8
7
6
63https://www.forbes.com/sites/forbestechcouncil/2020/01/08/how-augmented-reality-can-boost-social-media-marketing /?sh=749907ae3604

28 | The Economic Impacts of Video Game Technology Spillover

The Economic Impacts of Video Game Technology Spillover | 29
In total, the technology spillover contributed 130 million
GBP of output to the Finnish economy in 2021. Direct,
indirect, and induced output contributions amounted
to 60 million GBP, 40 million GBP, and 20 million GBP,
respectively. Total output impacts are approximately half
the size of the landscaping services industry in Finland.
64
For comparison, in 2021 Finland saw a direct total revenue
from its games industry of 2.8 billion GBP, the highest of
the countries considered.
Additionally, the technology spillover contributed 60
million GBP in total to Finland’s GDP. Direct, indirect,
and induced output contributions amounted to 30 million
GBP, 20 million GBP, and 10 million GBP, respectively.
Video game technology spillover supported 890 Finnish
jobs in total in 2021. Direct, indirect, and induced output
Overall economic impact in Finland
contributions amounted to 430 jobs, 290 jobs, and
170 jobs, respectively. The Finnish games industry itself
supported a direct employee count of 3,550. Technology
spillover contributed 40 million GBP of labour income to
Finland’s economy in 2021. Direct, indirect, and induced
output contributions amounted to 20 million GBP, 10
million GBP, and 10 million GBP, respectively. The direct
labour income distributed across the 430 directly
employed workers gives an effective salary for a game
technology spillover worker as 69,767 USD.
65 This salary
is 51% higher than the average worker’s salary of
46,230 USD.
66
Video game technology spillover generated 30 million
GBP in government revenues in 2021. Direct, indirect,
and induced output contributions amounted to 10 million
GBP each.
Table 5 – Economic and fiscal impact results – Finland (2021)
Finland
UnitsDirectIndirect Induced Total
Employment Jobs (units) 430290 170890
Output 2021 GBP (millions) £60£40 £20£130*
GDP 2021 GBP (millions) £30£20 £10£60
Labour Income 2021 GBP (millions) £20£10£10£30*
Government Revenues 2021 GBP (millions)
£10£10£10£30
*Numbers do not sum due to rounding
64https://www.ibisworld.com/finland/industry-statistics/landscaping-services/14745/65The OECD reports global average annual salaries in USD.66https://www.oecdbetterlifeindex.org /countries/finland/

30 | The Economic Impacts of Video Game Technology Spillover
Sectors most impacted by game technology spillover in Finland
Figure 10 above summarises the sectors most impacted
by video game technology in terms of economic output;
values are presented in dollars as they are extracted
at an earlier stage of the analysis. Figure 10 shows that
Information Technology and Machinery Manufacturing
benefited the most from video game technology spillover
in Finland; they were ranked 2nd and 3rd for impact in
Denmark. The Information Technology sector includes
technology-driven firms like popular social media platform Snapchat. Meanwhile, video game technology
is being used in the construction industry, a subsection
of the Machinery Manufacturing sector. Here, haptic
feedback and controllers can be utilised to operate large-
scale industrial equipment, such as cranes. With handheld
controllers, users can operate these instruments and
receive haptic warning notifications if the machines are
close to obstacles.
67
Figure 10 – Finland’s top 10 most impacted sectors by output
Output (USD millions)
Information Technology
Machinery Manufacturing
Electronics Manufacturing Business Services
Wholesale and Retail Fa