WHAT IS THE CREATIVE ECONOMY?WHY DOES IT MATTER?

Center for Arts LeadershipUniversity of Houston

April 11, 2016Christine Harris

Which is art; which is creative economy?

Comparing Creative ClassificationsCreative class (Richard Florida, 2002) –The size of the creative professional and knowledge worker labor force

Creative placemaking (NEA, ArtPlace 2010) – An arts/culture-centric community and economic development strategy

Creative economy (Mt. Auburn, 2001) – The measured economic value of the businesses and workers in creative enterprises and occupations

World Growth IndustryUnited Nations Conference on Trade & Development Creative Economy Report 2013:•World trade of creative goods and services = $624 billion in 2011; doubling from 2002•Annual growth rate = 9%•“One of the most dynamic sectors of the world economy” this decade•Reports produced 2008 and 2010

The Language• Creative Economy – a new economic industry cluster

based on the businesses and people who produce intellectually protected goods and services generated from aesthetic or cultural content

• Creative Enterprises – the set of business enterprises and their workers who make up the creative economy in a particular locale

• Creative Occupations – the workers whose jobs are producing/distributing a creative good or service in any type of business

Why Define and Measure as an Industry Cluster?

• Recognition of economic value of creative assets • Integrating nonprofit and for profit• Competition for differentiation (consumer, business)• Move beyond ‘quality of life’ to ‘differentiation of place’• Community talent pipeline, inc. creative education

The Creative EconomyThe economic sector that employs culture and creativity to generate wealth and jobs through ideas, products or services.• Organizations and individuals whose products and

services originate in artistic, aesthetic or cultural content.• Arts and culture organizations, independent creatives

(graphic artist, painter, architect, etc), for profit creative businesses (printing, design, advertising, marketing, etc)

Measuring the Creative Economy• NAICS: North American Industry Classification System

codes (transitioned from SIC format) from the U.S. Census Bureau – business enterprises

• SOC: Standard Occupational Classification System codes from the U.S. Bureau of Labor Statistics – jobs

• O*NET: Mix of knowledge, skills and abilities which make up individual SOC occupations - US Dept of Labor

Creative Business SegmentsCreative Segment Description

Design

Communications: Printing, Graphic Design, AdvertisingBuilt Environment: Architectural Services, Interior Design, Landscape Design, Architectural Woodwork and Ornamental WorkProducts: Industrial Design Services, Fashion and Special Product Design

Culture & Heritage Museums, Libraries, Historic Sites

Media & FilmNewspaper and Periodical Publishing, TV and Radio Broadcasting, Software Publishing, Motion Picture and Video Production and Distribution, Music Publishing, Sound Recording Studios, Bookstores

Performing ArtsTheater Companies, Musical Groups and Artists, Promoters and Agents, Dance Companies, Musical Instrument Manufacturing, Musical Instrument and Supply Stores

Visual Arts & Crafts Visual and Crafts Artists, Art Dealers, Photography Studios, Fine Art Schools, Photographic and Art Supply Stores

Creative OccupationsCreative Occupation Description

DesignersArchitect, Landscape Architect, Industrial Designer, Interior Designer, Fashion Designer, Graphic Designer, Floral Designer, Set and Exhibit Designer

ArtistsCraft Artist, Fine Artist, Multimedia Artist, Producer, Director, Dancer, Choreographer, Writer, Musician, Composer, Animator

Media

Audio, Sound and Broadcast Technician, Camera Operator, Film and Video Editor, Media and Communication Worker, Photographer, Announcer, Agent, Sound Engineering Technician, News Analyst, Broadcast Technician, Technical Writer

Cultural Archivist, Librarian, Library Technician, Curator, Conservators, Audio-visual Collection Specialist

Jobs in the Creative Economy

Other Workers in Creative Enterprises (e.g. receptionist in architecture firm; accountant in orchestra)

Creative Workers in Creative

Enterprises (e.g. graphic designer

in ad agency; actor in theatre

company)

Creative Workers inOther Enterprises (e.g. product designer in manufacturer, architect in contractor)

Creative Enterprises Creative Occupations

Jobs in Houston’s Creative Economy

Other Workers in Creative Enterprises (e.g. receptionist in architecture firm; accountant in orchestra) 55,436 - 201172,552 - 2014+ 31%

Creative Workers in Creative Enterprises

(e.g. graphic designer in ad agency; actor in

theatre company)

35,747 - 2011 41,081 - 2014 +15%

Creative Workers inOther Enterprises (e.g. product designer in manufacturer, architect in contractor)

55,442 - 201165,523 - 2014+ 18%

Creative Enterprises Creative Occupations

2011 = 146,625 2014 = 179,156 + 22%

This research was compiled and published by the Houston Arts Alliance

Why Communities Research Their Creative Economy

Define and measure what creative economy means to a community

Measure scale and value of creative enterprises and occupations Understand creative talent pipeline Increase in talent base and creative businesses offers new

economic opportunities Compare to other local industries

JobsWages

Businesses

Other Related Information• US Bureau of Economic Analysis with Arts and Culture

Satellite Production Account – resulted in 4.3% contribution to GDP in 2012.

• Americans for the Arts – arts-related businesses comprised 3.9% of all businesses and 1.9% of all workers in America.

• Creativity now being included as a core competency skill for the American workforce – US Department of Labor, OECD 21st Century Skills and Competency Survey.

National Developments• US Bureau of Economic Analysis developing Arts and

Culture Satellite Production Account with the NEA – now working on local and regional accounts.

• NEA Creativity Connects – demonstrating and researching arts contribution to the creative ecosystem. June 2016

• Creative World Summit, D.C. July 16-30, 2016 - includes World Summit on the creative economy and creative industries. National Creativity Network & Creative Economy Coalition

Implications for Creative Sector• A different conversation – no one owns creativity• Mixing for profit & nonprofit business models challenging• Measuring economic value different from measuring

economic impact • For profit creative businesses often connect better with

individual creatives than with non-profit organizations• Rethink non-profit product offerings as ‘creative asset

management’; every artist• Opportunity for all to think beyond borders to work better synergistically

Implications For Communities• Increased global competition for creative talent because these

people and businesses can locate anywhere• Increased demand to demonstrate commitment to a creative,

innovative culture because ALL high functioning professional talent is drawn to living and working in a creative climate

• Impact on policies for arts education; critical component of ensuring a creative career path and talent pipeline

• Real, bottom line economic impact of strong creative economy

Transforming Cities Through Its Creative Economy

• Fostering entrepreneurial creative businesses - business development resources, loan programs

• Talent attraction - both creative talent and higher level professional talent who want to live in a creative, interesting and dynamic city

• Neighborhood development - the making of place through connecting artists and other creatives for better neighborhoods and increased social wellbeing

Transforming Cities Through Its Creative Economy

• Collaborative working spaces - the synergy of new ideas and businesses by co-locating talent

• Increasing business competitiveness – better creative talent increases innovation and product differentiation across all businesses

• Quality of Life/Place – increased heart and soul, distinction

Questions Houston Has to Ask Itself• Do we believe that creativity is a key differentiator for

talent attraction, business development, and community engagement?

• If so, where does the creative ecosystem fit within overall metro development planning?

• If so, who will take the lead in facilitating a strategic plan for fostering a creative community – business, K-16 education, neighborhood development, etc.?

• Is there a ‘collective will’ to maximize Houston’s creative capital for evolving itself into a resilient new economy city ?

Thank you!christine@charrisconnect.comChristine@charrisconnect.com

414-379-1011