WHAT IS THE CREATIVE ECONOMY?
WHY DOES IT MATTER?
Center for Arts Leadership
University of Houston
April 11, 2016
Christine Harris
Which is art; which is creative economy?
Comparing Creative Classifications
Creative class (Richard
Florida, 2002) –The size
of the creative
professional and
knowledge worker labor
force
Creative economy (Mt.
Auburn, 2001) – The
measured economic
value of the businesses
and workers in creative
enterprises and
occupations
Creative placemaking
(NEA, ArtPlace 2010) –
An arts/culture-centric
community and
economic development
strategy
World Growth Industry
United 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 Economy
The 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 Segments
Creative Segment
Description
Communications: Printing, Graphic Design, Advertising
Design
Built Environment: Architectural Services, Interior Design,
Landscape Design, Architectural Woodwork and Ornamental
Work
Products: Industrial Design Services, Fashion and Special Product
Design
Culture & Heritage
Museums, Libraries, Historic Sites
Media & Film
Newspaper and Periodical Publishing, TV and Radio Broadcasting,
Software Publishing, Motion Picture and Video Production and
Distribution, Music Publishing, Sound Recording Studios,
Bookstores
Performing Arts
Theater 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 Occupations
Creative Occupation
Description
Designers
Architect, Landscape Architect, Industrial Designer, Interior
Designer, Fashion Designer, Graphic Designer, Floral
Designer, Set and Exhibit Designer
Artists
Craft 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 Enterprises
Creative
Workers in
Other Enterprises
(e.g. product
designer in
manufacturer,
architect in
contractor)
Creative Occupations
Jobs in Houston’s Creative Economy
2011 = 146,625 2014 = 179,156 + 22%
Other Workers in
Creative Enterprises
(e.g. receptionist in
architecture firm;
accountant in orchestra)
55,436 - 2011
72,552 - 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 Enterprises
Creative
Workers in
Other Enterprises (e.g.
product designer in
manufacturer, architect
in contractor)
55,442 - 2011
65,523 - 2014
+ 18%
Creative Occupations
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
Jobs
Wages
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.com
Christine@charrisconnect.com
414-379-1011