TH CR E I NN EA T IVE OV SK ILL AT SA I ND ON TH E A SKI L DV AN L S CE D W ET OR KF OR CE Creative Skills and The Advanced Workforce U.S. businesses struggle to find, and often even to define, the talent needed to generate the innovative solutions and products demanded by the marketplace. But what skills define talent that can innovate, or a workforce that can adopt and adapt innovations? What is the relationship of these skills to innovation in the work place? Are such skills primarily the purview of specific occupations or industries or certain types of individuals? EXECUTIVE EXECUTIVE SUMMARY SUMMARY 2–3 OVERVIEW OVERVIE W 4–6 4– 5 THE CREATIVE THE CRE ATIVE ECONOMY ECONOMY 7 6–7 WHY DOES A WHY DOES WORKFORCE INNOVATION AND RICH IN CREATIVE A SKILLED, CRE ATIVE SKILLS MATTER? WORKFORCE MAT TER? 8–9 KEY FINDINGS OF KE Y FINDINGS OF OUR OUR RESEARCH RESE ARCH 10–11 INITIAL CONCLUSIONS KE Y FINDINGS OF OUR RESE ARCH 2 Analyzing data from the Department of Labor known as O*Net, Creative Alliance Milwaukee (CAM) found that a set of skills it is calling “The Innovation Skill Set” is important across a broad set of industries and occupations. O*Net is the primary source of detailed data about occupations in the U.S. O*Net tracks the level and importance of specific skills required for more than 900 jobs. The Innovation Skill Set is a combination of creative and analytical skills and includes such capacities as problem solving, creative thinking and coming up with multiple solutions for the same challenge. This skill set is often overlooked or poorly articulated as a set of core workforce competencies; however, these skills are more important than ever, given the need for employees to quickly adopt technical innovations, adapt to the ever-changing landscape and evolve their skills as future technologies unfold. According to human resources professionals technology is evolving at a pace that makes it difficult to anticipate the in-demand jobs of the future across industries. Advanced manufacturing and healthcare are two industries specifically in the M7 region that are facing this challenge. THE INNOVATION SKILL SET™ The Innovation Skill Set needs to become a normal and critical element of an employer’s hiring criteria, of employee assessment, and of workforce education, training and development if the region hopes to remain a globally competitive region. CREATIVE SKILLS ANALYTICAL SKILLS Thinks Creatively Oral and Written Comprehension and Expression The ROI is clear: •L everaging the Innovation Skill Set in the workforce across all industries will positively impact innovation output in the existing clusters, target industries, and the regional economy as a whole. Fluency of Ideas Deductive and Inductive Reasoning Originality Critical and Analytical Thinking Innovation Complex Problem Solving and Decision Making •Identifying and assessing individuals’ value as potentially creative innovators beyond their learned technical skills and work history, and engaging employees across industries and skill sets has the potential to uncover new pathways into careers for those currently lacking cutting edge technical training and skills, and therefore potentially uncover and develop a larger workforce pool capable of contributing in the evolving 21st century economy. Systems Analysis and Investigation Active Learning and Knowledge Application 3 THE CREATIVE ECONOMY In the past decade, discussions about the creative economy as an economic development opportunity have increased significantly locally, regionally and nationally. Yet, there has been little or no agreement on the scope or the definition of the creative economy. Is it a function of a set of creative industries? Is there a specific and identifiable creative class? Are there specific occupations that can be analyzed in terms of their creativity or creative outputs? The most common definition of the “creative economy” is a cluster of organizations, individuals, and companies whose products and services originate in artistic, cultural, creative, and/or aesthetic content. But to many, including this team, the common definition is lacking. It overlooks or under values large segments of the economy and a large number of occupations where creativity and innovation clearly occur. Efforts to define and measure the economic impact of the creative economy and creativity itself to date have been inconsistent and limiting. While this sector’s contribution to the economy as commonly defined can be considerable—in some regions, it is a primary driver of the economic activity, and in Southeastern Wisconsin it accounts for approximately 67,000 jobs, $2 billion in wages, 4,000 companies and 4.2% of the workforce—the hypothesis that led to this report is that creativity has a far broader and deeper economic impact. But what impact exact- ly could only be determined by looking at creativity and the creative economy in a new way and by analyzing exiting data through a different lens. on a vertical cluster of industries and occupations that support the creation and distribution of products and services with artistic or cultural content as at their core. In 2014, CAM received a grant from the Wisconsin Economic Development Corporation (WEDC) to do just that. CAM hypothesized that creativity is not just the purview of the creative economy as commonly defined, but is also a critical driver – if not the critical driver - to nearly all industries and companies. The CAM team therefore set out to analyze and clarify the value of creativity as a workforce skill across all industries in addition to clarifying the value of the sector if organized into an official economic cluster along the lines of the existing clusters of Water, Food and Beverage, and Energy. While there is certainly creativity in the arts, that is not the only venue where creative skills are deployed. In this report we take a different approach and ask, “Where are creative skills valued?” Our primary tool is a data set that gives us detailed information about the level of knowledge, skills, and abilities required for a wide range of occupations and the specific knowledge areas, skills, and abilities that are most highly valued in those occupations. This analysis follows up on a 2010 report on Milwaukee’s Creative Economy prepared by Mt. Auburn Associates. That report, like most creative economy assessments completed for other communities and regions across the US, focused This data set gives us a new way to identify occupations that go beyond the production of artistic or cultural content. In effect, it allows us to identify the relative value placed on creative skills by different occupations. It also allows us to identify those occupations where an equal premium is placed on creative and analytical skills, the combination of which is the hall- CREATIVE SKILLS THEMSELVES ARE OFTEN OVERLOOKED, POORLY UNDERSTOOD OR UNARTICULATED AS A SET OF ESSENTIAL WORKFORCE COMPETENCIES. 4 THE CREATIVE ECONOMY mark of creative problem-solving and innovation. When viewing the data this way, we are able to see a strong correlation between the value placed on each set of skills, one that is particularly strong amongst STEM occupations. In other words, the requirements for Creative and Analytical skills are highly correlated. An increase in requirements for analytical skills is associated with a greater increase in requirements for creative skills within STEM occupations than in non-STEM occupations. While this approach picks up many of the occupations and industries included as part of the creative economy in the Mt. Auburn study, it leaves out a number where the value placed on creative skills are below the threshold we set for inclusion. Our approach also picks up a number of new occupations and industries that are not included in most studies that approach the creative economy as a vertical cluster related to the production of artistic and cultural products. These include scientists, engineers, and occupations in computer systems and software, management and others. We also see a high value placed on creative skills in science, engineering, and information technology industries. Our approach changes the focus from a set of industries and occupations engaged in the production and distribution of goods with artistic or cultural content, to look at occupations and industries that place a high value on creative and analytical skills, regardless of the end product. Rather than a nar- rowly defined “creative cluster,” or sector, we look instead at all occupations that value the creative skill set and the industries where these skills are concentrated. Within this new and broader set of occupations and industries that place a premium on creative skills, we go on to identify those that also place a high value on analytical skills, i.e. the capacity not just to be creative, but to be a creative problem-solver. CAM sought answers to questions such as: Is workforce creativity a key capacity that cuts across industries, sectors, and functions? Are creativity and innovation a key to regional economic growth and prosperity? Can creativity and innovation be the focus of tactics that can be leveraged to drive economic development strategy? Rather than developing a formal, creative cluster “vertical” to add to Milwaukee’s other established economic clusters, is it more useful to analyze and understand creativity and innovation as a “horizontal” economic development capacity that can be identified, nurtured, developed, and measured as a critical factor that impacts the existing clusters, and indeed the economy of the Milwaukee region as a whole? “IN THE COMING AGE, CREATIVE THINKING AND PROBLEM SOLVING, AS WELL AS TEAMWORK, WILL BE KEY TRAITS FOR SUCCESS... DEVELOPING EVERY INDIVIDUAL’S CREATIVE POTENTIAL WILL BE ONE OF THE CRUCIAL VALUECREATING FACTORS FOR LEADING ECONOMIES IN THE IMAGINATION AGE.” –––––– Forbes, May 2014 During the course of this research, CAM quickly discovered that, despite numerous studies, along with countless surveys of CEOs, CFOs, and manufacturing executives emphasizing the need for creativity in the 21st century workforce, creative skills themselves are often overlooked, poorly understood or unarticulated as a THE CREATIVE ECONOMY 5 THE CREATIVE ECONOMY [CONT.] set of essential workforce competencies. It is this poorly articulated, yet oft-cited employer desire for employees with creative skills— the ability to problem-solve, think creatively, and provide multiple solutions— that has led CAM to look at the concept of the “creative economy” in a new way; a way that goes beyond the traditional creative industry definition. Early in the research it became evident to the CAM team that a solution based on creating a new vertical cluster for the Milwaukee region, while interesting and potentially even productive, is not likely to be significantly additive to regional economic development efforts or to the overall growth and health of the regional economy. But CAM’s analysis of a vertical creative industry cluster approach WHY DOES A WORKFORCE RICH IN CREATIVE SKILLS MATTER? uncovered an opportunity: understand and leverage the creative skills required to drive innovation across industries, and explore creativity and innovation as a horizontal economic capacity that can be nurtured and developed to impact industries and companies across the Milwaukee region. Consequently, rather than a road map to develop a creative cluster, this study is an analysis of why creative skills are critically important across sectors and industries, where creative skills are most valued, and where a workforce with such skills adds the most value. This report also provides an outline for a strategy to: - begin to better address and harness the creative workforce to establish the Milwaukee area as a region of innovation; - provide more opportunities to our untapped workforce; and, - provide companies in the fastest growing industries with people who make up the advanced workforce demanded by today’s innovative and growing companies. This report should be viewed as Phase One of an Innovation Skill Set Initiative Strategic Plan. It provides an analysis of the value placed on creative skills, and sets the stage for developing an economic development strategy that understands, values, fosters, and leverages a workforce with creative and innovative skills, and leverages its creative and innovative workforce as a marketable advantage in its overall economic development strategy. VALUE OF CREATIVE SKILLS TO STEM OCCUPATIONS Most STEM occupations that place above average value on Analytical skills also place above average value on Creative Skills. STEM Occupations that place the highest value on Analytical Skills also place the highest value on Creative Skills. 60% % OF ALL STEM OCCUPATIONS The correlation between the value placed on creative and analytical skills is particularly true for STEM occupations. Nearly 90% of the STEM occupations that score above average (0.0) on our Analysis measure also score above average on the Creative measure. Virtually all STEM occupations that score well above average (1.0) on the analytical skills measure score above average on the creative skills measure as well, with most scoring well above average on both measures. 50% 40% CREATIVE COMPOSITE SCORE THE CREATIVE ECONOMY “CRITICAL THINKING AND PROBLEM SOLVING WERE CITED BY EMPLOYERS AS SOME OF THE BIGGEST NEEDS – AND LARGEST GAPS– IN EMPLOYEE SKILLS.” –––––– Research By The Northwest Wisconsin Workforce Investment Board, Inc. In Cooperation With The University Of Wisconsin-­ Superior’s Department Of Business And Economics. June 2015. Given the undisputed role of innovation in economic growth, the drive for innovation has also long been the focus of successful companies, and is a priority now more than ever as a necessary response to an increasingly competitive global economy. Today’s successful companies and the economies in which they reside understand that the ability to generate ideas and turn them into new products and improved processes is the primary driver of prosperity, the creation of well-paying jobs, and overall economic success. Companies that innovate and economies that promote innovation grow faster than those that don’t. Companies and economies that focus on and invest in innovation are more prosperous than those that don’t. And what today’s innovative companies require is a workforce that is able to problem solve, think creatively, has a fluency of ideas, etc. In other words, a workforce that possesses The Innovation Skill Set. Economic development organizations have learned that the availability, quality, sustainability, flexibility, and cost of the workforce is the most common critical location factor for companies when locating new operations or determining whether to expand or even stay in their current locations. While the type of workforce and the specific skills change with every location project they work with, the need for a high quality, sustainable workforce does not. And this need does not diminish with advanced technology; it increases. They understand that without an available skilled, educated, flexible workforce, economic development is not sustainable. Nor can the improvement of the other fundamental economic development capacities—infrastructure, finance and good governance. All are ultimately dependent on an abundant and talented workforce. WELL ABOVE AVERAGE ABOVE AVERAGE “AMERICA OVERCOMES ITS DISADVANTAGE BELOW AVERAGE 30% —A LESS-TECHNICALLY-TRAINED 20% WITH OTHER ADVANTAGES SUCH AS WORKFORCE [LIKE JAPAN]— CREATIVITY, CRITICAL THINKING 10% AND AN OPTIMISTIC OUTLOOK.” –––––– 0% BELOW AVERAGE ABOVE AVERAGE WELL ABOVE AVERAGE ANALYTICAL COMPOSITE SCORE 6 Occupations that require high levels of both creative and analytical skills will be the drivers of innovation. Understanding both where these skills show up and how the region has fared in expanding this key capacity of its workforce is central to crafting an economic development strategy for the 21st century. “Why America’s obsession with STEM education is dangerous” By Fareed Zakaria of The Washington Post. WHY DOES A WORKFORCE RICH IN CREATIVE SKILLS MATTER? 7 KEY FINDINGS OF OUR RESEARCH The Innovation Skill Set, though often poorly understood or articulated, is important across all industries and occupations and is an essential set of workforce competencies. 1 CREATIVE SKILLS ARE AS IMPORTANT AS ANALYTICAL SKILLS. cross occupations, the value placed on creative skills in a given occupation is highly A correlated with the value placed on analytical skills. “INCREASING CREATIVITY IN A MANUFACTURING ORGANIZATION IS LESS ABOUT HIRING THE LONE GENIUS AND MORE ABOUT GETTING CREATIVITY OUT OF EXISTING EMPLOYEES.” –––––– The Creativity Paradox, article in Industry Week: Advancing the Business of Manufacturing,December 22, 2014. By Mike Collins, author of Saving American Manufacturing. eyond a small set of occupations for which artistic skills are of paramount importance, the B occupations with the highest requirements for creative skills require equally high levels of analytical skills, and this relationship is even stronger for STEM occupations. The type of occupations classified as “creative” needs to be broadened to include many of what are commonly classified as STEM occupations, and likewise, we must recognize that occupations that are commonly considered to be primarily technical or analytical in nature likely also have high requirements for creative skills. MANY STEM OCCUPATIONS THAT VALUE ANALYTICAL SKILLS 2 WHEN EMPLOYERS SEEK AN INNOVATIVE WORKFORCE, WHAT THEY APPEAR TO BE SEARCHING FOR IS A COMBINATION OF BOTH CREATIVE AND ANALYTIC SKILLS. iring or engaging only technical or analytical skills, to the neglect of creative skills, H most likely does not develop the culture of innovation or the innovative outcome today’s companies are seeking. ALSO VALUE CREATIVE SKILLS HIGH CREATIVE SKILLS HIGH CREATIVE SKILLS LOW ANALYTICAL SKILLS HIGH ANALYTICAL SKILLS • Fine Artists, Including Painters, Sculptors, and Illustrators 3 • Graphic Designers LIKE TECHNICAL OR ANALYTICAL SKILLS, THE CREATIVE SKILLS CAN BE ARTICULATED, EVALUATED, MEASURED AND LEARNED THROUGH EDUCATION, TRAINING AND ONGOING SKILL DEVELOPMENT. THEY ARE ALSO TRANSFERABLE SKILLS. Creative skills should become an important part of an employer’s skills needs assessment and an important part of employee review and assessment. Because creative skills are at least as important to innovative companies as technical or analytical skills suggests that training and education based only on STEM is misguided and wrongly discounts the growing need for creativity and innovation in today’s growth industries and occupations. 4 OVER THE PAST 15 YEARS, EMPLOYMENT IN MOST OF THE OCCUPATIONS AND INDUSTRIES WHICH PLACE A HIGH VALUE ON CREATIVE SKILLS HAS LAGGED IN THE MILWAUKEE REGION. This has led to an erosion in most of the occupations and industries which had previously shown concentration in the Milwaukee region as well as an apparent loss of those in the 25 to 44 age cohort that we would expect to see working in occupations that value The Innovation Skill Set—including those in key STEM fields. • Music Directors and Composers • Craft Artists • Actors • Photographers • Makeup Artists, Theatrical and Performance • Floral Designers • Film and Video Editors LOW CREATIVE SKILLS LOW CREATIVE SKILLS LOW ANALYTICAL SKILLS HIGH ANALYTICAL SKILLS • Graders and Sorters, Agricultural Products • Airline Pilots, Copilots, and Flight Engineers • Postal Service Mail Carriers • Audiologists • Crossing Guards • Pharmacists • Postal Service Mail Sorters, Processors, and Processing Machine Operators • Genetic Counselors • Gaming Change Persons and Booth Cashiers • Administrative Law Judges, Adjudicators, and Hearing Officers • Ushers, Lobby Attendants, and Ticketakers • Pourers and Casters, Metal • Gaming Cage Workers • Dishwashers 8 KEY FINDINGS OF OUR RESEARCH • Physicists • Architects, Except Landscape and Naval • Biochemists and Biophysicists • Mathematicians • Astronomers • Operations Research Analysts • Biological Scientists, All Other • Biomedical Engineers • Chief Executives • Nurse Midwives • Physician Assistants • Optometrists • Financial Examiners KEY FINDINGS OF OUR RESEARCH 9 INITIAL CONCLUSIONS Although more input will be needed and more analysis completed, it is our initial conclusion that there will be a significant economic benefit and competitive advantage to regions that recognize the power of The Innovation Skill Set and commit to focusing specifically on it as an essential workforce capacity across all key industries. For the Milwaukee region, such a focus could become an economic development market differentiator and a key selling point for both corporate and talent attraction and retention. Current economic development structures will not be able to accomplish this on their own, however. Creative problem-solving will need to be applied to re-imagine and reconfigure the current model. Creating a sustainable, flexible, ever-evolving advanced workforce will require a number of stakeholders to pull together -- for the long term. Developing the workforce that today’s successful economy requires cannot be the responsibility of one entity, organization, or institution. Five pillars of the area economy will need to come together with a common goal and vision to develop and maintain the modern workforce: THE PRIVATE SECTOR EDUCATIONAL INSTITUTIONS LOCAL & STATE GOVERNMENTS THE WORKFORCE SOCIAL INSTITUTIONS These fives pillars will need to create a unified agenda to focus on a workforce development strategy that produces talent with the essential skills that comprise The Innovation Skill Set now demanded by successful companies. Current programs and resources will need to go beyond the skills developed in STEM programs to also include assessing and training workers in the critical thinking, creativity, problem solving, communication and teaming skills that the innovative economy requires. THIS STUDY IS AN ANALYSIS OF: WHY CREATIVE SKILLS ARE CRITICALLY IMPORTANT ACROSS SECTORS AND INDUSTRIES WHERE CREATIVE SKILLS ARE MOST VALUED WHERE A WORKFORCE WITH SUCH SKILLS ADDS THE MOST VALUE 10 INITIAL CONCLUSIONS MILWAUKEE HAS AN OPPORTUNITY TO MAKE A WORKFORCE DEVELOPMENT LEAP FORWARD. There is a developing consensus that a creative, innovative workforce is the single most important for competing in today’s global economy. Whether it is in the economist’s conclusion that innovation is the driver of economic growth and job creation, the corporate site locator’s constant search for the skilled and flexible workforce, or the economic development professional’s increasing focus on workforce as the critical economic capacity, all are coming to agree that creativity and innovation and the advanced work force that possesses these traits are the key to the new economy. This report is on the leading edge nationally of understanding the value and importance of The Innovation Skill Set to innovation. Milwaukee has an opportunity to make a workforce development leap forward. Building a sustainable workforce capacity rich in The Innovation Skill Set will not necessarily be easy or likely to yield dramatic near-term results: building up skills and capabilities along with the workplace environment that supports them takes time, effort and finances. However, the return on investment is nothing short of a thriving economy fueled by a resilient, innovative workforce able to adopt new ideas, technologies and concepts and adapt to an ever-changing landscape. INITIAL CONCLUSIONS 11 Read the full research findings at CreativeAllianceMKE.org 207 E. Buffalo Street Suite 600 | Milwaukee 53202 | 414-988-3226 The research conducted by Creative Alliance Milwaukee was funded in part by a grant from the Wisconsin Economic Development Corporation. Cover illustration by Jean-Marc Denis.