Innovation in the
Creative Age:
Why Tapping Everyone’s
Creative Potential is Vital
Kevin Stolarick
Brief Overview
1.
2.
3.
4.
5.
2
The Rise of the Creative Class
Ontario in the Creative Age
Innovation across the Board
Benchmarking Ontario & Hamilton
Connectivity and the Mega-Region
The Rise of the Creative Class
3
Understanding Economic Activity
4
Understanding Economic Activity
Regional (Smith, Marshal)
5
Understanding Economic Activity
Regional (Smith, Marshal)
Industrial
(Porter)
6
Understanding Economic Activity
Regional (Smith, Marshal)
Industrial
(Porter)
7
Education, Skills
(Glaeser)
Understanding Economic Activity
Regional (Smith, Marshal)
Industrial
(Porter)
8
Education, Skills
(Glaeser)
Occupational
(Florida)
Understanding Economic Activity
Regional (Smith, Marshal)
Industrial
(Porter)
Education, Skills
(Glaeser)
BOTH
9
Occupational
(Florida)
Knowledge to Creativity
• Knowledge
• Creativity
• “Human
• Creative
Capital”
• Education Levels
• Regional Stock
10
Capital
• Occupations
• Regional Flows
Why Occupations?
• Among
all people who either work in the IT industry
or work in an IT occupation (or both):
–50.2% work in an IT occupation but not in the IT industry
–25.7% work in the IT industry but aren't in an IT occupation
–Only 24.1% work in an IT occupation in the IT industry
IT Occupations
11
IT Industry
What is it about Pittsburgh?
12
The “4Ts”
Regional
Growth
Technology
13
The “4Ts”
Talent
Regional
Growth
Technology
14
The “4Ts”
Talent
Regional
Growth
Technology
Tolerance
(Inclusiveness)
15
The “4Ts”
Talent
Regional
Growth
Technology
Tolerance
(Inclusiveness)
Territory Assets
(Amenities)
16
The “4Ts”
Talent
Technology
Tolerance
(Inclusiveness)
Territory Assets
(Amenities)
17
Regional
Growth and
Prosperity
What is the Creative Class?
What You Do (Job Occupation)
vs.
Where You Work (Industry)
10 Year Job Growth Estimate
•
•
•
18
Working Sector 10%
Service Sector 14%
Creative Sector 20%
Who Works in Creative Class?
Creative Class: TAPE
T = Technology and R&D Innovation
A = Arts and Culture
P = Professional and Managerial
E = Educating and Training
19
U.S. Creative Class
• 30
(% of the workforce)
• 40 (million people)
• 50 (% of the wages)
• 70 (% of the discretionary income)
20
The Rise of the Creative Class
21
The Rise of the Creative Class
Creative
Service
Working
Farming
22
U.S. Creative Economy
Knowledge
Workers (Talent)
23
Service
Working
40,379,520
59,769,270
31,949,350
% of Workforce
30.5%
45.1%
24.1%
% of Wages
48.8%
30.4%
20.6%
Who are the 40,000,000?
Occupations
T
A
P
E
24
Workers
Salary ($B)
Computer and mathematical
3,076,200
213.0
Architecture and engineering
2,430,250
160.9
Life, physical, and social science
1,231,070
73.4
Healthcare practitioners and technical
6,713,780
416.5
Arts, design, entertainment, and media
1,727,380
79.6
Management
5,892,900
541.7
Business and financial operations
5,826,140
349.6
976,740
83.4
Sales and related occupations
4,298,620
147.7
Education, training, and library occupations
8,206,440
371.9
Total
40,379,520
2,437.7
Legal
U.S. Creative Growth
Occupations
T
A
P
E
25
Growth
New Jobs
(20042014)
(000; by 2014)
Computer and mathematical
30.7%
1,389
Architecture and engineering
17.1%
876
Life, physical, and social science
16.4%
531
Healthcare practitioners and technical
25.8%
3,047
Arts, design, entertainment, and media
14.9%
851
Management
11.3%
2,757
Business and financial operations
19.1%
2,163
Legal
15.9%
336
Sales and related occupations
9.6%
408
Education, training, and library occupations
20.0%
3,558
Canada & Ontario’s Creative Economy
26
Canada
Workers (Talent)
Ontario
Creative
Workers (Talent)
% of Workforce
% of Workforce
4,874,885
35.5%
2,027,152
33.2%
Service
Working
5,788,767 3,333,726
38.7%
23.0%
2,210,604 1,311,995
39.4%
22.7%
Share of creativity-oriented jobs is increasing
27
28
Creative Ontario
Percent of labour force
10.0%
20.0%
30.0%
37.0%
Ontario
Eastern Ontario
43.9%
Ontario
26.4%
Eastern Ontario
26.6%
RURAL
Eastern Ontario
-Creative jobs are more common in larger cities
-Eastern Ontario somewhat higher mainly due to Ottawa
29
50.0%
37.5%
Eastern Ontario
Ontario
40.0%
34.7%
Ontario
CA
CMA
TOTAL
0.0%
26.0%
27.8%
30
31
32
33
Creative Jobs as a Percent of Total Employment
34
Service Class Jobs as a Percent of Total Employment
35
Working Class Jobs as a Percent of Total Employment
36
Agricultural Jobs as a Percent of Total Employment
37
Ontario in the Creative Age
38
Ontario Government asked Roger Martin and
Richard Florida to…
•
Undertake a study of the changing composition of
Ontario’s economy and workforce
•
Examine historical changes and projected future
trends affecting Ontario
•
Provide recommendations to the Province on how
to ensure Ontario’s economy and people remain
globally competitive and prosperous
Ontario Budget, March 2008
2
40
This Work Was Completed by....
41
Ontario’s distinctive advantage can be created
through actions on four fronts
42
Harness the creative potential of Ontarians
43
•
Increased creativity in all jobs
•
Be the world’s first jurisdiction where creativity-oriented
occupations account for half of all jobs
•
Strengthen creativity skills through our education
system
•
Market Ontario as a creative province
•
Make diversity a cornerstone of economic prosperity
Share of creativity-oriented jobs is increasing
44
New jobs will be in creativity-oriented and
routine-oriented service occupations
45
Ontario has less creative content than US peers
in 36 of 41 clustered industries
46
Nearly 80 percent of jobs in Canada are in
services industries
47
Unemployment is higher in routine-oriented
occupations especially in early 90s recession
-48
Broaden our talent base
49
•
Make Ontario the talent province
•
Strengthen our managerial capacity
Workers draw on three sets of skills
50
Earnings rise with increases in occupations’
analytical skills
51
Earnings rise more with increases in
occupations’ social intelligence skills
52
Earnings do not rise with increases in physical
skills
53
Ontario under values increases in analytical and
social intelligence skills
54
Clustered industries draw more on creativity-oriented
occupations than dispersed industries
55
Creativity-oriented occupations in clustered
industries generate highest earnings
56
Establish new social safety nets
57
•
Make early childhood development a high
priority
•
Invest in skills development for recent
immigrants
•
Consider wage insurance for longer tenure
workers
Wage differences are much less prevalent in
Ontario than in peer states
58
Returns to investment are highest for early
childhood development
59
Build province-wide geographic advantage
60
•
Make the mega-region as strong as it can be
•
Invest in connectivity
Ontario out performs US peers on Tolerance but
under performs on Talent and Technology
61
Workers in creativity-oriented occupations are
concentrated in small number of city regions
62
Harness the potential of the mega-region and
connect the disconnected parts of Ontario
63
64
Innovation across the Board
65
Innovation Cycle (one of many)
Invention
Universities
Govt Labs
R&D Labs
Garages
Supply
66
Development
Family
Friends
Fools
Angels
VC
Demand
Commercialization
Design
Manufacturing
Marketing
Consumers
Real Product
Innovation Success: Balanced
Supply
67
Demand
The Source of Innovation
•
Innovation does not come from technology
– Except in Terminator movies
•
Innovation comes from talented, skilled people
– In the “Creative Class”
– Not the entire group
•
People are mobile
•
Success balances new and needed
– “the new” – e.g., Apple
– “the needed” - e.g., Medical Devices
68
Self-Employed
69
Innovation for All
Getting to 50% Creative
• “Industry Agnostic”
• Creativity is not Industry-specific
• Service Class (low wage)
•
– Increase value of work
– Learning from
– The Four Seasons
– Best Buy
– Toyota
– Others
70
Benchmarking Ontario & Hamilton
71
Benchmarking Ontario (and its Regions)
72
73
Ontario
74
Technology
“A high technology base is both a
necessary condition for and a result
of a region having a strong creative
economy.
Being known as a "high-tech" region
helps to attract the creative
workforce, which, in turn, generates
new technologies making the region
even more high-tech.”
75
Technology
•
High Technology:
– Concentration of high-tech
companies
– Growth of high-tech companies
– Tech-Pole (North American)
•
Innovation:
– # of patented innovations per
1,000 people
– Growth in patented innovations
76
Ontario
77
Talent
“The concentration of people in the
Creative and Super Creative Classes,
has a stronger relationship with
economic growth.
Creative people don't just cluster
where the jobs are. They cluster in
places that are centers of creativity
and also where they like to live.
Places need a people climate -- or a
creativity climate -- as well as a
business climate.”
78
Talent
•
Talent Index
(Bachelors Degree and above)
•
% Super Creative
(scientists,engineers, artists,
musicians, designers)
•
% Knowledge Workers
(super creative + professionals)
•
79
Brain Drain/Gain Index (BDGI)
Ontario
80
81
82
83
Tolerance / Inclusiveness
“Diversity has become a politically
charged buzzword. To some it is an
ideal and rallying cry, to others a
Trojan-horse concept that has
brought us affirmative action and
other liberal abominations.
Creative Class people use the word
often, but not to press any political hot
buttons. Diversity is simply something
they value in all its manifestations.”
84
Tolerance / Inclusiveness
•
Mosaic Index
(% foreign born)
•
Gay/Lesbian Index
(% gay & lesbian population)
•
Boho Index
(% culturally creative)
•
•
•
85
% Visible Minority
% Interracial Marriage
Composite Diversity
Index (CDI)
Ontario
86
Territory Assets
“What Creative people look for in
communities are abundant highquality amenities and experiences,
an openness to diversity of all
kinds, and above all else the
opportunity to validate their
identities as creative people.
Places are valued for authenticity
and uniqueness … Authenticity
comes from several aspects of a
community … It comes from the
mix … Authenticity is the opposite
of generic.”
87
Territory Assets (Quality of Place)
•
•
•
•
•
•
•
•
Economy/Growth
Housing
Culture
Climate
Education
Healthcare
Recreation
Dis-amenities
– Crime, Weather
•
Transportation
– Connectedness
88
Benchmarking Ontario’s 15 Metro Areas (CMAs)
89
Hamilton CMA
90
Technology
“A high technology base is both a
necessary condition for and a result
of a region having a strong creative
economy.
Being known as a "high-tech" region
helps to attract the creative
workforce, which, in turn, generates
new technologies making the region
even more high-tech.”
91
92
Talent
“The concentration of people in the
Creative and Super Creative Classes,
has a stronger relationship with
economic growth.
Creative people don't just cluster
where the jobs are. They cluster in
places that are centers of creativity
and also where they like to live.
Places need a people climate -- or a
creativity climate -- as well as a
business climate.”
93
94
95
Tolerance / Inclusiveness
“Diversity has become a politically
charged buzzword. To some it is an
ideal and rallying cry, to others a
Trojan-horse concept that has
brought us affirmative action and
other liberal abominations.
Creative Class people use the word
often, but not to press any political hot
buttons. Diversity is simply something
they value in all its manifestations.”
96
97
Creativity Index
“The key to understanding the new
economic geography of creativity and its
effects on economic outcomes lies in
the 3T's of economic development:
Technology, Talent, and Tolerance.
Each is a necessary but by itself an
insufficient condition: To attract creative
people, generate innovation and
stimulate economic growth, a place
must have all three.”
98
Creativity Index
99
•
Technology
•
Tolerance (Inclusiveness)
•
Talent
100
Connectivity & Mon-Tor-Loo (Tor-Buff-Chester)
101
“Urban” Policy
Urban policy
is not
social policy.
102
“Urban” Policy
Urban policy
is not
social policy.
Urban policy
is
economic policy.
103
“I can see the cities...”
104
105
Tor-Buff-Chester?
106
107
108
GGH Creative Class
109
110
111
112
113
Mega-Region & Connectivity
• Be
Big
• Look Big
• Innovation & City Size (Santa Fe Institute)
• “Middle child”
– Bos-Wash
– Chi-Pitts
• Speed
– People
– Products
– Ideas
114
flow of
Review
1.
2.
3.
4.
5.
115
The Rise of the Creative Class
Ontario in the Creative Age
Innovation across the Board
Benchmarking Ontario & Hamilton
Connectivity and the Mega-Region
Summary
•
•
•
•
•
•
116
Innovation
Creative Age
Tapping
Everyone’s
Creative Potential
Is Vital
Thank You
Kevin Stolarick
kms@rotman.utoronto.ca
www.martinprosperity.org