The Other Arctic: Exploring Knowledge and Creative Economies in Arctic Cities Andrey N. Petrov Director, ARCTICenter University of Northern Iowa, USA NSF Award # Outline Introducing Arctics other economies Case studies Knowledge economy (Alaska patents) Creative and cultural economy Interlinks with pillars Discussion Other economies in the new Arctic Stylized representation of Arctic economy: Three pillars: Resource sector Public sector Traditional sector But how true is this representation? Globalization Urbanization Post-industrial economy Other economies?? Other sectors = not resource, public or traditional, although they may be connected to these through various linkages. mostly enabled (or limited) by the internal capacities of the Arctic regions (or communities), and not as much by external actors heavily urban Arctic GDP ~ $450 billion non-pillar sectors ~ $ billion other > mining in all regions, but AK and RU Why other economies are important? Responses to global economic trends Create employment for local residents Diversify economy Create competitive advantages Less decoupled from local economy Build human capital (retention and attraction) Build other capacities More compatible with the notion of sustainable development Already emphasized in national development strategies In the second phase (until 2020) complete the transition to sustainable innovation- driven social-economic development of the Arctic Zone (RF Strategy, 2013) Patchwork study objectives (1) introduce the multifaceted nature of other economies; (2) describe the geography of key sectors (knowledge and cultural economies) to the extent possible; (3) identify core characteristics of other economies in the Arctic; (4) explore the relationships and dependencies between other economies and resource sectors Methodology OE are eclectic and data are limited Mixed approach using whatever is out there Case studies (Circumpolar, regional) CountyLevel of AnalysisData Sources Alaska (U.S.A.)Borough and Municipality Alaska Bureau of Labor and Workforce Development (2008) CanadaTerritories and MunicipalityStatistics Canada: 2006 Canadian Census RussiaRegions and MunicipalityStatistics Russia: 2002 Russian Census FinlandNUTS 3Statistics Finland (2008) and ArcticStat SwedenNUTS 3 and MunicipalityStatistics Sweden (2008) NorwayNUTS 3 and MunicipalityStatistics Norway (2010) IcelandRegions and MunicipalityStatistics Iceland (2008) GreenlandMunicipality RegionStatistics Greenland (2008) Table 1. Core datasets used in the case studies Case study 1. Knowledge economy (KE): talent and knowledge workers in the Arctic Output side measures: patents, production Supply side measures: workers/human capital, investments in R&D, etc.: knowledge workers employed in KE KE occupations = Applied Science Index (Petrov, 2007) KE industries = Tech Pole Index (Florida, 2002) educated professionals Talent Index (Florida, 2002) Talent Index Generally low High and low concentrations Cities are clusters Capitals and centers Talent in Urban Arctic Hot spots: Regional capitals (Anadyr, Nuuk, Tromso, Salekhard, Magadan, Yellowknife, etc.) New industrial cities (N. Urengoy, Nadym, etc.) Arctic Rust belt Old industrial cities (Norilsk, Apatity, Olenegorsk, etc.) Remote cities (Isolated posts) Iqaluit, Dudinka, etc. Talent Index Urban concentration of educated prefessionals (Greenland) Urban/Rural Gap in post-secondary education In Russia gap is 5-20% YNAO: 29.2% of urban vs. 14.3% of rural residents have post-secondary degrees Chukotka: 28.4% of urban vs. 7.6% of rural Substantial gains, but widening gap Indigenous population are vastly underrepresented Knowledge workers: engineers, etc. Knowledge sector in the Arctic Tech Pole Index: Employment in knowledge economy sectors North America has relatively more developed knowledge sector Corresponds well with TI and ASI Knowledge workers in Yukon Creative Spaces in Nuuk Tourist (museums, galleries, ) Cultural (Arts, crafts, studios) Ethnic clusters Media, TV, IT clusters Public spaces (public art, gatherings, festivals,) Case study 2. Geography of patents in Alaska Patents is a good proxy of knowledge economy production US Patent and Trademark Office (USPTO) (July) AK 1,959 patents registered to AK residents: Anchorage 855: diverse Fairbanks 191: diverse Wasilla 117: diverse Juneau 73 Homer 64: key role of individual inventors Palmer 58: key role of individual inventors Specialized inventions: Sitka and Kodiak Low engagement among local innovators Case study 3. Geography of Arctics cultural economy No systematic data Traditional and non-traditional(western) cultural economies Surveys: 18% of Aboriginal residents of the Canadian Arctic manufactured crafts for sale (SLiCA) 1/3 of all Aboriginal people reported receiving some income from selling traditional art. 30% of Inuit living in Nunavut reported deriving a part-time income from their sculpture, carving and print making. Baffin Island is the most creative rural area in Canada (Hill Strategies, 2010). Adds $30 million to Nunavut GDP (Nordicity Group, 2014) A circumpolar scan Bohemian index LQ of residents reporting occupations in arts, crafts, etc. Arctic has high BI (!) Even more so if include secondary occupation artists Case Study 4: Interconnectedness Other economies tend to be locally-based and rely on knowledge, human capital etc. How much do they depend on resource sector? Study based on input-output models of Yukon economy Trace the impacts of mining crisis on other sectors, including the other economies Impacts of resource bust on non- resource sectors Impacts of mining bust (early 2000s) Highest impacts: top-end professional and financial services and wholesale trade losses were observed in arts, entertainment and recreation as well as travel, advertising and promotion sectors, i.e. in other economies. the largest decline in jobs was in high-tech services: information, professional and technical support, financing and insurance. Therefore, mine closures heavily affected other sectors, including knowledge and cultural economy. Loss of human capital due to outmigration. Discussion What are the common characteristics of other economies? urban embedded and endogenous knowledge-driven community-based deviating from path-dependency human-capital intensive globally-connected Arctic Innovation Systems (?) Small, but existing Distinct from the core: key role of individual inventor or single industry strong connectedness to external networks vis-a-vis weak links within the Arctic obscured relationship between formal education and knowledge production elevated role of informal skills remaining dependency on boom and bust cycles in resource extraction, public sector, etc. Conclusions Arctics other economies is the new pillar of sustainable development More compatible with the new model of development Key in resolving the main imperative of sustainable development in the Arctic: reconciling the local modernity of the Arctic and realities of modern capitalism Some policy implications Strategy of development of the Russian Arctic calls for innovation-based path of development In the second phase (until 2020) complete the transition to sustainable innovation-driven social-economic development of the Arctic Zone Growth of the relative weight of the regional knowledge products (and services) in the total volume of sales Arctic technopolis projects: Archangelsk, Central Arctic Technopolis (Yamal) Thank you! ?Questions?